Reorganization of Belarusian-Russian-Kazakh logistics company UTLC ERA over
MINSK. KAZINFORM - A shareholder agreement of AO United Transport and Logistics Company - Eurasian Rail Alliance" (AO UTLC ERA) was signed in Moscow on 4 June. The document was signed by Director General, Chairman of the Board of OAO Russian Railways Oleg Belozerov, Head of Belarusian Railways Vladimir Morozov, Chairman of the Board of Kazakhstan Temir Zholy (Kazakhstan Railways) Sauat Mynbayev, BelTA has learned.
According to Belarusian Railways, the shareholder agreement stipulates that the railway administrations of Russia, Belarus, and Kazakhstan intend to continue integrating transit transportation by rail in the Eurasian Economic Union. The document also regulates rights and obligations of the parties with regard to the package of UTLC ERA shares. The shares are equally divided, with each shareholder getting 33.33% of the stock. The agreement's signing was the final step in reorganizing UTLC ERA.
The United Transport and Logistics Company (UTLC) was established on 13 November 2014 by the railway administrations of Russia, Belarus, and Kazakhstan. The company was founded to provide comprehensive service for organizing container transportation between China and Europe using the 1,520mm railway gauge from the Kazakh-Chinese border to the Belarusian-European border.
In 2018 the company was converted into United Transport and Logistics Company - Eurasian Rail Alliance" (AO UTLC ERA) for the sake of splitting its stock evenly between the shareholders (33.33% for each shareholder).
UTLC ERA is a major player on the market of container transportation by rail in the Eurasian Economic Union. The transit container traffic transported by the company between China and Europe via Belarusian Railways increased from 48,000 TEUs in 2015 to 280,000 TEUs (twenty-foot equivalent units) in 2018, Kazinform refers to BelTA.