- •How political connections of russian transportation firms influence their international activities
- •Introduction
- •Improvement of fiscal policy in transport is carried out in the following areas:
- •Companies’ analysis rzd Russian Railways
- •Internationalization3:
- •Transneft
- •Aeroflot
- •Internationalization:
- •Freight 1
- •Internationalization:
- •Transaero
- •Internationalization:
- •N Trans Group
- •Internationalization:
- •Moscow Metro
- •Internationalization:
- •TransOil
- •Internationalization:
- •Internationalization:
- •Internationalization of cargo and passenger transportation:
- •Volga-Dnepr Group
- •Internationalization:
- •S7 Airlines
- •Internationalization:
- •Federal State Unitary Enterprise State atm Corporation
- •Internationalization:
- •Sovkomflot
- •Internationalization:
- •Mosgortrans
- •Internationalization:
- •Internationalization:
- •Caspian Pipeline Consortium
- •Internationalization:
- •Central Suburban Passenger Company
- •Internationalization:
- •Sovfracht-sovmortrans
- •Internationalization:
- •Independent Transportation Company
- •Internationalization:
- •Isr Trans
- •Internationalization:
- •Mostransavto
- •Internationalization:
- •Ural Airlines
- •Internationalization:
- •St Petersburg Metro
- •Internationalization:
- •Eurosib
- •Internationalization:
- •Conclusion
Internationalization:
International Cooperation Division was established to promote and protect the interests of the Enterprise within the community of air navigation service providers, render assistance in implementation of international best practices in the field of air navigation services based upon ICAO requirements and ANS providers' advanced know-how.
Country |
NA |
Year of entry |
NA |
Industry/ business area |
NA |
Entry mode |
NA |
Objectives |
International Cooperation Division’s Objectives: - Planning the Enterprise’s cooperation activities and analysis of the results obtained; - Informational and analytical support of cooperation with ANS providers; - Establishing liaison with foreign partners; - Assistance to the Enterprise's departments and divisions in their international cooperation activities; - Organizational and protocol support for the Enterprise's international cooperation activities. |
Firm specific advantages used on the foreign market |
Position on the market. It is a monopoly |
First mover or follower |
Not applicable |
Type of state involvement in the process of internationalization |
Direct, state is the owner and the interested party |
Evaluation of the success of the internationalization |
No internationalization of the organization |
Sovkomflot
State influence:
Sovkomflot is a Russian maritime shipping company specializing in petroleum and LNG shipping.
Sovcomflot is a corporation the shares of which are 100% owned by the government of Russia. The government appoints many board members from the political elite. However, there are plans to possibly sell 25-50% of the government’s stake in Sovcomflot’s sometime in 2013.
Internationalization:
Country |
Indonesia |
Year of entry and goal |
SCF Group, along with NYK Line (Japan) and PT Samudera Shipping Services (Indonesia), jointly owns two LNG carriers that provide seaborne LNG transportation services under long-term agreements to Tangguh Production Sharing Contractors (TPSC), an international consortium that controls Tangguh gas project in Indonesia. LNG exports started at the end of 2008 and the projected annual production of LNG has been set at 7.6 million tonnes. Long term sales agreements indicate that the LNG will be exported to markets in China, South Korea and the USA.
|
Industry/ business area |
|
Entry mode |
Joint venture (with NYK Line of Japan and PT Samudera Shipping Services of Indonesia. |
Motives |
The modern marine transportation industry is very globalized by its very nature, and particularly so in the oil and gas transportation sub-indsutry, because usually it involves transportation of oil and gas from producer-countries to consumer-countries. Thus, Sovcomflot is following the general trend. Its entry into East Asia shows that Sovcomflot understands the important of the rapidly-growing Asian markets and wants to establish itself more firmly in the region. Of course, participation in such an international joint venture with other leading shipping companies indicates that Sovcomflot has achieved high level of technical standards and service level, on par with other leading world sea transportation companies26. This translates into greater prestige for Sovcomflot. It entered as part of a joint venture because it required the expertise of other Asian countries which know the local peculiarities. |
Firm specific advantages used on the foreign market |
The company’s close ties with Russian government and, by extension, Russian oil and gas producing companies, gives it a general competitive advantage, because constant demand for its services are assured. Sovcomflot also possesses a definite advantage because of its expertise of working in extreme weather conditions and transporting goods through icy water. This might be particularly important in the future as more artic ice melts and companies begin to extract more oil and gas from that region. |
First mover or follower |
Sovcomflot is the only Russian company to have participated in competition to take part in this Indonesian project. Since Sovcomflot’s acquisition of Novoship, it became the undisputed dominant player in the Russian marine shipping industry. |
Type of state involvement in the process of internationalization |
The state, as a 100% owner of course has a lot of say in the company’s decisions. The state primarily influences the decisions of the company through its participation in the management of the company. Several prominent politicians are members of the board of directors of Sovcomflot and thus exert influence on the decision-making process. |
Evaluation of the success of the internationalization |
The internationalization through participation in the project in Indonesia was successful. |