- •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:
Country |
GlobalPorts: presence in Finland, Estonia, other Europian countries, Asia and the USA. Globaltrans: presence in Ukraine, Estonia, Kazakhstan, Belarus, etc |
Year of entry |
GlobalPorts: In 2007 the parent company acquired interests in the Finnish Ports (container terminals MLT Kotka and MLT Helsinki). 2011 Global Ports Investments PLC listed its Global Depositary Receipts (GDRs) on the Main Market of the London Stock Exchange.
Globaltrans: In 2008 the GDRs were listed on the Main Market of the London Stock Exchange with a free-float of approximately 30%. In July 2008, the Board of Directors of the Company approved the creation of Ukrainian New Forwarding Company LLC, a wholly owned Ukrainian subsidiary14. In December 2008, the Group acquired 61% of AS Spacecom and 65% of Spacecom Trans (formerly Intopex Trans), two Estonian registered rail tank car leasing companies. These subsidiaries provided the Group with an increased presence in the oil products and oil transportation markets in Kazakhstan, Belarus and Russia. |
Industry/ business area |
International and internal railway, sea, river, and truck shipping operations; rail transportation; transportation of bulk-oil cargoes; cargo handling in ports; computer monitoring of cargo movement; transportation of metal, raw material, bulk-oil, and other kinds of cargoes; container shipping; arrangement of multimodal transportation; and logistics15. |
Entry mode |
GlobalPorts: - Via strategic partnership with market leaders:
- Via brownfield investments (in terminals)
Globaltrans: - via acquisitions:
|
Motives |
Orientation on the sale side, market potential. Freight transportation is in general a more international activity than a domestic one, even though of course domestic transportation is huge too. |
Firm specific advantages used on the foreign market |
Advanced logistics and fleet management systems; reputation for delivering reliable service and effective transportation solutions. Company’s partners include many of Russia’s most important blue-chip companies including leading industrial groups such as Evraz, Gazpromneft, Lukoil, Mechel, Metalloinvest, MMK, Rosneft, Severstal, TMK and TNK-BP. We seek to establish long-term partnerships with our customers, based on mutual benefit and trust. |
First mover or follower |
Follower |
Type of state involvement in the process of internationalization |
State didn’t participate in this process directly. But it might have sponsored partly some acquisitions. |
Evaluation of the success of the internationalization |
Internationalization is successful. Company continues to expand its business pursuing a strategy of opportunistic profitable growth, hitting higher and higher targets. |