The railway companies of Russia, Kazakhstan and Belarus ("Russian Railways", "Kazakhstan Temir Joly "and the Belarusian Railway) signed an agreement today at the St. Petersburg International Economic Forum to establish an integrated transport and logistics company.
It is highly probable that OTLK will be registered as a legal entity already this year. Terminal assets and shipments will be made by the Kazakh and Belarusian sides over the next year. The future company will be investing in wagons, containers, terminals and IT-infrastructure, the estimated amount of investment in the course of 7 years is $6.2 billion.
It is expected that Russian Railways will give the OTLK 50% plus one share of "TransContainer". OTLK can be developed on the basis of "Russian Railways Logistics."
The decision to establish OTLK was supported by Russia in April, and the business plan for the company has been agreed upon. It is expected that OTLK will make a contribution to the GDP of the single economic space in 2020 of a total of $11.3 billion.
