- •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
Independent Transportation Company
State influence:
Independent Transportation Company (NTK) is now one of the leading freight transportation companies in Russia. The Company performing home-based and international rail cargo transportations37. The company is private, so the state doesn’t have direct involvement.
Internationalization:
Country |
Company operates mostly in Russia (~95%), but offers transportation services to several former USSR countries, namely Belarus, Ukraine, Latvia and Lithuania. All of its 8 divisions are located in Russia. |
Year of entry |
Not known |
Industry/ business area |
Cargo rail transportation |
Entry mode |
Not applicable: company only delivers goods to certain foreign locations, but does not own assets abroad or export goods for sale |
Motives |
Company’s decision to deliver cargo to several locations in the former USSR can partially be explained by the growing links and cooperation between former USSR countries and the resulting increase in trade. |
Firm specific advantages used on the foreign market |
What makes the firm competitive on the foreign market? |
First mover or follower |
Follower: company only started operations in 200138, when there were already a lot of players on the market |
Type of state involvement in the process of internationalization |
Not direct |
Evaluation of the success of the internationalization |
Not full internationalization, cant be evaluated. |
Isr Trans
State influence:
ISR Trans specializes in rendering of transport and forwarding services related to bulk oil carriage by rail. The company renders transport and forwarding services on 10 out of 17 railways of Russia, as well as services related to cargo carriage using the railways of the CIS and Baltic countries39.
No direct state involvement
Internationalization:
Country |
All over the world |
Year of entry |
Not known |
Industry/ business area |
|
Entry mode |
Not applicable to this company: ISR only provides transportation services to foreign locations but does not own assets there or sell goods. |
Motives |
N/A |
Firm specific advantages used on the foreign market |
Firm offers fully-integrated, door-to-door transportation services, integrating all available modes of transportation (air, sea, river, road, rail) into a convenient package. As a result of its wide offering of integrated transportation services, the company can help transport goods from almost any point in the world, with no restrictions based on whether the location is by the sea, in the north, south, etc. In addition, the company has extensive experience in transporting natural resources, such as oil, oil products and coal. Lastly, the company owns many means of transportation, such as train cars, which lowers cost compared to renting. |
First mover or follower |
Follower: the company was established in 1997, whereas some of its competitors have been operating since the Soviet times (first as governmented-owned companies and then partially or fully privatized) |
Type of state involvement in the process of internationalization |
No, the company is fully private |
Evaluation of the success of the internationalization |
Since international activities are not the core business of the company, it is hard to separate them from the overall success of the company. All in all, it is posting good profit and is performing well. |