Friday, September 21, 2018

RZD will increase train purchase volume in 2013

Russian Railways is planning to nearly double its investment program for purchasing new locomotives, according to Russia's deputy transport minister.

Alexey Tsydenov made the announcement during the 6th regional conference of the Union of Railway Machinery Producers, a non-commercial partnership, in Yekaterinburg, RZD Partner reports.

Tsydenov said that RZD acts as the impetus for locomotive demand in Russia and that the company will buy all the trains the nation's industry can produce in 2013.

On Tuesday, Tsydenov said that RZD may privatize a five percent stake in the rail monopoly using an initial public offering in late 2013, RIA Novosti reports.

The country's economics ministry drew up a proposal last week to privatize up to a five percent stake in RZD to provide a market valuation of RZD's assets.

In June, Russia's government approved a final privatization plan for major state assets, including the sale of 25 percent minus one share of RZD. Vladimir Yakunin, the CEO of RZD, said the sale of 25 percent minus one share was unrealistic in 2012-2013 because of unfavorable markets and the necessity of reorganization in 2015.

RZD also looked into a London float in a partial-privatization that would value the company at more than $53 billion, according to the Independent.

"We have been working in London for many years and we are known here in this market," Yakunin said, according to the Independent. "My personal position is that there is a supportive case for placing the shares of the mother company here in London as well."