- •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
Freight 1
State influence:
Joint Stock Company "Freight One" (Freight One) is the leading freight railway operator in Russia. The Freight One is a railway business formed in Russia during reforms by Russian Railways (RZD).
Nowadays Freight One is a subsidiary of UCL Rail, the railway division of Universal Cargo Logistics Holding (UCL Holding), an international transport group.
The Company was founded in July 2007 as a result of reorganization of "Russian Railways" (at that time thus the state involvement was absolut), and in November the same year began to manage its railcar fleet. The structure of Freight One includes 14 branches offering client service covering the railway network in all regions of Russia10. The company provides full-scale cargo transportation services inside Russia and by the International routes. Freight One is represented in 14 cities of Russia as well as in the Ukraine and Finland11.
Primary activities:
freight transportation using private rolling stock;
forwarding;
freight transportation using third party rolling stock.
Even though it is a private company, government still influences its activities due to the specifics of this industry segment (for example, by setting railway line tariffs)
Internationalization:
Country |
Ukraine, Finland |
Year of entry and goal |
In Ukraine and Finland the interests of the Company are represented by Freight One in Ukraine and Freight One Scandinavia. With the help of these 2 subsidiaries Freight One got access not only to Ukraine and Finland themselves but also to other neighboring countries.
|
Industry/ business area |
Freight transportation |
Entry mode |
|
Motives |
Freight One was founded in 2007 as a result of reorganization of "Russian Railways" ("RZD"), which is completely state-owned, through the provision of rolling stock monopoly. Because "Russian Railways" is a natural monopoly with regulated tariffs, it could not compete on equal terms with the other owners of the rolling stock. Freight One was created to ensure the competitiveness and investment attractiveness of freight transportation, and as a consequence - to obtain additional funds to upgrade the Russian rolling stock and infrastructure financing. Other general motives were the “pull” ones, i.e. growth opportunities: · To increase sales · To increase market share of the firms |
Firm specific advantages used on the foreign market |
Efficient operation, modern rolling stock. |
First mover or follower |
Follower |
Type of state involvement in the process of internationalization |
At the beginning their was a direct involvement, including help (for example, RZD supplied Freight One with 200,000 cars) |
Evaluation of the success of the internationalization |
Yes, it helped company to raise its revenue substantially. |