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TRANSPORTATION COMPANIES_ MID TERM.docx
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Moscow Metro

State influence:

Moscow metro is the main public transport of the capital carrying over a half of all city passengers. Many metro stations and ticket halls represent historical, cultural and architectural monuments and are protected by the government16.

It is 100-% government owned company, a monopoly.

Internationalization:

No such. Apriori metro can not internationalize. Every city, not even to say about countries, has its own metropolitan.

TransOil

State influence:

Transoil Group (Moody’s Ba3, outlook – “stable”) is a leading group of private Russian companies consisting of a self-titled transportation company and three service companies supporting the operation of locomotives and rolling stock. Included in the Transoil Group are LLC Transport Leasing, LLC TransService, and LLC Transoil-Service17.

The structure of the Company’s regional network, consisting of 10 branches and representative offices, ensures a superior level of customer service throughout the territory of the Russian Federation, Mongolia, Finland and the countries of the Baltics, CIS and Eastern Europe.

So, the company is not state-owned, and state doesn’t influence it more than other companies in the same transportation segment.

Internationalization:

Country

Operations with Mongolia, Finland and the countries of the Baltics, CIS and Eastern Europe. But mostly domestic ones.

Year of entry

No data available

Industry/ business area

  • Dispatching control over movement of cargoes and giving respective information to cargo owners.

  • Settlements with carriers for transportation of goods and empty cars on a centralised basis through the Transport Service Centre of Russian Railways JSC with maintenance of availability of the necessary cash funds and control over correctness of settlements, reasonableness of collecting of payments and duties for carriage.

  • Settlements with foreign carriers for transportation of goods and empty cars over the CIS countries within the framework of cooperation with the leading forwarding organisations.

  • Settlements with the RF Departmental Railway Transport Security Service, Federal State Enterprise, to provide shift convoy and cargo protection in transit within the Russian Federation's territory.

Entry mode

Via agreements

Motives

Other general motives were the “pull” ones, i.e. growth opportunities:

· To increase sales

· To increase market share of the firm

Firm specific advantages used on the foreign market

Modern operational fleet, high quality of services, strict technological discipline and implementation of state-of-the-art standards of management.

First mover or follower

Follower

Type of state involvement in the process of internationalization

State is like an observer/controller, as oil cargo is extremely important for Russian economy

Evaluation of the success of the internationalization

Can not be evaluated, maybe due to the fact that right now Transoil is at very early stage of internationalization process, and the results are not so substantial yet.

UTair

State influence:

UTair is a competitive Russian airline conducting its activities on market principles and striving towards maximum transparency while aiming to provide a whole new level of passenger service18. It is a private company and government influences it as any other private air company, ie through airline and air safety regulations, airport control, etc.

The airline "UTair" is well known for the huge volume of passenger and freight transport, both in Russia and in many parts of the world, carrying out orders of government and private organizations of many countries, as well as a large number of major commercial and non-commercial enterprises.

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