During Business Summit of APEC a Russian ICT Group and a Japanese corporation Mitsui & Co., Ltd. had signed Memorandum on strategic Relationship in railway business. Under this Memorandum both parties will discuss joint investments in railway and transport business development in Russia.
The Memorandum was signed by the President of ICT Group Mr. Alexander Nesis and by the President and CEO of Mitsui & Co., Ltd., Mr. Masami Iijima on 8th September, 2012.
Following the joint-venture agreement signed between ICT Group and Mitsui & Co., Ltd. earlier this year, a Russian 50/50 owned Joint Venture (JV) has agreed the terms of its first contract on the purchase of freight railcars and its transfer into lease.
The total investments into the project will amount to up to 100 million US dollars. As one of railcar procurement sources, JV will acquire among others new generation freight railcars based on innovative Barber S-2-R bogies produced by Tikhvin Freight Car Building Plant, the most modern railcar production plant in Russia, which was officially launched in the beginning of 2012 with the presence of President Vladimir Putin.
Both parties will discuss the volume of further joint investments into JV’s fleet, that could amount up to 500 million US dollars. Moreover, the documents will define other areas of long-term cooperation between Mitsui & Co., Ltd. and ICT Group.
As stated at the ceremony the President and CEO of Mitsui & Co., Ltd., Mr. Masami Iijima “Russian railway business is strategically important to develop the nation’s essential infrastructure. It is our intention to contribute to the development of Russian infrastructure through the successful conclusion of this project with our partner. We also would like to develop a strategic relationship with ICT Group in a wide range of business fields by cooperating in other various projects in Russia”.
“We strongly believe that starting a joint business with Mitsui will have significant impact on the railway transport in Russia as it demonstrates that major foreign investors are eager to participate in the projects aimed at modernization of Russian transportation infrastructure, and to invest substantial funds into new innovative domestic product and into other Russian industrial facilities as well”, said Mr. Alexander Nesis, the President of ICT Group