TransFin-M Establishes a Unified Railway Operator

14 December 2019
VEB.RF Group and TransFin-M PC have joined efforts to set up a unified railway rolling stock operator on the basis of Atlant LLC.
The parties have completed a merger transaction, wherein the VEB.RF state development corporation owns a 25% share in the railway operator. The remaining 75% of Atlant LLC will remain under the ownership of TransFin-M PC.

VEB.RF plans to transfer its entire fleet of about 40,000 freight cars to Atlant LLC under a lease or title transfer agreement executed on an arm’s length basis. Papers have been signed for the first 17,000 cars, and the transfer of rolling stock is underway.

As a result of the planned fleet merger, Atlant LLC will have control over approximately 75,000 cars. As a result, the company will become a major railway operator in the rolling stock market, boosting competition among the industry leaders.

VEB.RF Group owns a substantial fleet of railcars, which are leased by various players in the railway transportation market. Following its development strategy, VEB.RF intends to withdraw from the railcar operating lease market. We decided to enter into an equity investment deal with a partner that has proven track record in the industry, who can build a large company and provide quality services to the consumers. For VEB.RF, this project can be a source of increased revenue from its fleet of rail cars, including revenues through expected growth of share ownership, Deputy Director VEB.RF Artem Dovlatov says.

 Alexey Taycher, Chairman of the Board of Directors of TransFin-M PC, said:

We found VEB.RF to be a reliable partner, and together we intend to create a leading player in the railway transportation market. Given TFM Group’s existing experience and competencies, this consolidation will improve fleet management efficiency and enable us to offer even more competitive terms to the customers.

TransFin-M Establishes a Unified Railway Operator
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