Eurosib SPb-Transportation Systems, CJSC (a Eurosib Holding company) purchased 100% of shares of Magistral Ltd., which is a company specialized in rendering services in delivering and removal rail cars on lines of Podporozhie railway station in Leningrad region. Previously, the absolute owner of Magistral used to be Metsaliitto Podporozhie Ltd., a daughter enterprise of Finnish Metsaliitto Group, the largest forest leaseholder in Leningrad region.

 

The business transaction closing was reported by the press relations service of Eurosib SPb-Transportation Systems, CJSC. The transaction amount has not been revealed, however it is emphasized that the primary object of purchase of assets of Magistral Ltd. was expanding the range of services being rendered to Finnish Metsaliito. The Metsaliitto Group is one of the major customers of Eurosib SPb-Transportation Systems in timber processing in the North-West region.

For Metsaliitto Podporozhie Ltd, one of the key customers in the segment of timber railway freight service, we provide conveyance of pulp chips and round timber (export and domestic transport). As press relations service of Eurosib SPb-Transportation Systems notes, 17% of the company-owned total rolling stock is used to meet its needs. As of the date, 7 switch engines and 11.7 thousand cars of different types are employed in company's operations. In 2008, Eurosib SPb-Transportation Systems, CJSC handled around 3.65 million tons of freights of timber processing industry, which amounts almost to the fifth of 19 million tons of the total freight turnover.

Eurosib SPb-Transportation Systems, CJSC believes that acquisition of Magistral Ltd. will allow the company to enter a new market segment of rendering railroad services in shunting operations on receipt lines of general and special use. In prospect, Eurosib SPb-Transportation Systems is planning to develop this direction and the company purchased may become the base for assets consolidation in the field of switch locomotive operations.

Inna Lushina
‘Kommersant St. Petersburg' Newspaper

07/04/09