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Home News & Events TRANSPORT LAW NEWS: Freight One Auctioned

TRANSPORT LAW NEWS: Freight One Auctioned

Saturday, 05 November 2011 22:28

Valdimir Lisin, Russia's richest businessman, has managed successfully to acquire seventy-five percent (75%) of Freight One, a subsidiary of Russian Railways, for $ 4.2bn in an auction winning over rival tycoon Gennady Timchencko. This acquisition is deemed to be historical since it manifestly shows a shift from an important state-owned sector to a private undertaking providing a clear indication for other privitisation processes in the future.

Analysts in the industry have remarked that it is now the intention of Russian Railways to make use of the funds available from this privatisation to upgrade its infrustructure which has been much under heavy criticism for some time, making possible a much overdue reform in the railway transport sector.

As a result of this partial privistisation of Freight One, it is expected that there will be an increase in competition within the freight railways market which is expected to benefit from better charges and much more efficient services.

 

Source: Financial Times of October 28-30, 2011 in an article by Courtney Weaver entitled 'Russian tycoon takes control of Freight One'.