Wednesday, August 12, 2009

Russian and Finnish Railways Approve Freight Combine

New company to handle cross-border traffic
Shipping News Feature

RUSSIA / FINLAND - Russia’s First Freight Company and Finland’s VR Ltd. are planning to form a joint venture to handle rail freight shipments between the two countries after approval for the scheme was granted by Russian Railways (RZD).

The new joint-stock company will be owned 50/50 between the two and will initially handle the 50,000 tons of paper products that move between Finland and Russia annually. However, it is expected that if successful the venture will handle increasing amounts of the cross-border traffic.

According to Russian Railways the new company may at some point expand its operations into other EU countries.