New Partner for Sweden and Norway

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1 // News from the InterRail Group InterRail Trans Siberian Express Service LLC with a new Managing Director New Partner for Sweden and Norway Mark Develop Spedition AB, Västerås (Sweden), became a partner of the InterRail Group for Sweden and Norway in May this year. The owner, Mark Barnelius, has already worked for decades with InterRail subsidiaries. Up and until the founding of his own forwarding company in 2005, Mark Barnelius was responsible for various companies in rail traffic, amongst others traffic to Iran, from and to the CIS. He thus gained much experience in the markets of the InterRail Group. I have closely followed the developments of InterRail over recent years and I am convinced that, together, we can develop interesting business in Sweden and Norway, says Mark Barnelius. Contact: Mark Develop Spedition AB Box 123 SE Västerås Mobile: +46 (0) mark@markdevelop.se Website: As per 1st, Eduard Burakhovich (33) is the newly appointed General Manager of InterRail Trans Siberian Express Service LLC (TSES), Moscow. He succeeds Howard Lamb, who is CEO of the InterRail Group and has been holding the position of acting Managing Director of InterRail-TSES until now. Eduard Burakhovich had already been working for TSES prior to its takeover by InterRail in He has held the position of Deputy General Manager InterRail Trans Siberian Express Service LLC (TSES), Moscow, since February last year. Mark Barnelius, owner of Mark Develop Spedition AB (left) and Hans Reinhard, Chairman of the Board of the InterRail Group (on the right) New address InterRail-TSES, Moscow, moved to the offices of RailService Moscow on 9. The new address is as follows: InterRail Trans Siberian Express Service LLC N. Krasnoselskaya 5, bld. 6, RU Moscow, Phone: Fax: moscow@interrail-tses.ru, Website: 1

2 // News from the InterRail Group InterRail at TransUzbekistan 2012 InterRail participated in the Trans- Uzbekistan Exhibition from 15th to 17th May 2012 with its own stand. This fair was part of the Central Asian Industrial Week, during which a total of eight international exhibitions were held, amongst others the 16th International Oil & Gas Conference. Since 1997, this Conference annually brings together important representatives of the oil and gas industry in order to discuss future development and to plan the execution of large-scale projects. For the InterRail team, this offered an excellent opportunity to meet business partners and make new contacts. Economic situation in Uzbekistan Uzbekistan, with around 29 million inhabitants, is one of the most populous countries of the CIS. It has an enormous economic potential, a suitable climate for agriculture, extensive deposits of various mineral resources, and energy sources. In recent years, Uzbekistan has earned increasing revenue for the export of cotton, gold, copper, uranium and natural gas. Transport sector According to official statistics the highest concentration of market services among all types of economic activity in 2011 was recorded in the transport sector. Experts attribute this to the additional impetus for the development of the transport system of Uzbekistan given by the Presidential Decree of December 21, A large-scale construction and upgrading of roads, railways, bridges, upgrading of motor vehicles, railway locomotives and rolling stock, acquisition of new medium and long-haul passenger aircrafts is carried out within the governmental document. The main direction of the transport policy is integration of Uzbekistan into international transport networks, development of effective international routes for transportation of foreign trade and transit cargos, modernization of the transport sector and increasing transit capacity. In the transport sector of Uzbekistan a special role belongs to railway transport, 35% of which are export-import and transit of cargoes. In 2011, the mainline railway transported 59.6 million tons of cargo, including coal, oil and construction materials, ferrous metals, chemicals, grain and milling products. The analysis shows that over 50% of rail freight accounts for the oil and construction materials and mineral fertilizers. Growth of traffic compared to the previous year made 4.8%. In recent years, the railway stations Navoi-Uchkuduk-Sultanuizdag-Nukus (341 km) and Toshguzar-Baisun- Kumkurgan (220 km) have been built. They are designed to provide an uninterrupted rail link between northern, southern and central regions of the country. The railway Toshguzar-Baisun-Kumkurgan also provided a direct rail access to Afghanistan. (Source: UzReport.com) From left: Dildora Azizova (InterRail Tashkent), Masoud Rajabi (Managing Director Tarabari Rail Iran), Dilshod Suleymanov (Chief Delegate InterRail Tashkent), Nuriddin Yuldashev (Head of Operations InterRail Tashkent) 2

3 // Portrait TransRail-BCH Ltd., Byelorussia TransRail-BCH Ltd. was founded in June 1994 as a joint venture with the Byelorussian Railways in Minsk, Byelorussia. As a freightforwarding agency, TransRail markets the Railway services to forwarders and transport organisations in a competitively neutral way. These services include traditional transit as well as bilateral traffic with the CIS. Today, with Tatjana Kim as Managing Director, there are 26 employees who work for the company both in Minsk and in Brest. The offer of services comprises freight rates, detailed market know-how, solutions for problems during trans-shipment or when changing axles problems which arise due to the track change from the European norm to the Russian broad gauge ; container and conventional loads; liquid goods, bulk material and mass goods; wagon groups as well as block trains. As part of the InterRail Group, Trans- Rail-BCH Ltd. has a broad network thanks to its holding company, TransInvest. It can thus offer reliable support along the whole transportation route. Brest - gateway to the West Brest is a significant gateway to the West. It is the most important border crossing for railways and vehicles to Poland. The biggest part of land-based traffic from Western Europe via Germany and Poland to Byeolorussia, Russia and onwards to Central Asia passes through this city. This is why the railway station Zentralny in Brest has a comprehensive railway trackage with both the regular track gauge (1435 mm) and the Russian broad gauge (1520 mm). All passing trains must undergo a gauge change before they leave the city again. The TransRail-BCH Team in Minsk JV TransRail-BCH Ltd., Voronianskogo-st. 50/4 of.210, BY Minsk, Byelorussia Phone: , Fax: , main@transrail-bch.by, 3

4 // Tariff Policy, Additional Freight Costs and Other Fees Exchange rate: Exchange rate 3rd Quarter 2012: For the period to , CIS Railways again fixed the exchange rate CHF/USD at This means that there will be no change for those countries which calculate according to CIS tariff policy. Uzbekh Railways: New fees for transit dispatches from Afghanistan: In telegram no. 553 dated , the new additional fees for dispatches from Afghanistan will be announced, amongst others for customs control, wagon hand-overs, etc. Please contact us when you receive requests from Afghanistan. // News from the railway market RZD, Belarus and Kazakhstan Railways agree to coordinate development of transport logistics Russian Railways, Kazakhstan Temir Joly and Belarusian Railways have signed an agreement to develop a transport and logistics system in the Common Economic Space. The agreement was signed during the Seventh International Rail Business Forum 1520 Strategic Partnership in Sochi on 31 May Under the agreement, the parties concurred in the need for joint efforts and greater cooperation in developing a transport and logistics system across Russia, Kazakhstan and Belarus which would focus on providing quality and competitive services within the Common Economic Space and, in the future, in the 1520 broad gauge space. The main goals are to establish straightthrough tariffs and to develop uniform standards in services. To implement these goals, it is planned to establish an International Transport and Logistics Association, which will develop a common legal framework on transport for the Common Economic Space and improve the system of technical regulation. (Source: eng.rzd.ru) Plans for broad gauge up to Vienna The Russian Railways plan to extend their broad gauge via Slovakia through to Vienna. This project was also discussed during the international Railway Forum 1520 in Sochi. According to RZD, this would significantly enhance the container traffic on the land bridge between East Asia and Europe. Vienna with its transport connections, various railway connections, well-developed and supraregional road network, along with the Danube and its channels, would be an excellent strategic intersection and transit point for the onward transportation of imported goods to destinations in South and Central Europe. The same goes for exports via Vienna in the direction of West and East. There are no precise figures yet for this Vienna connection. According to the Russian Railways, project planning, political agreement and obtaining approval from the authorities as well as the ensuing building and development process may take a decade. (Source: Verkehrsrundschau) Regular ferry service Sassnitz/ Mukran Ust Luga The regular ferry service between the ferry harbour Sassnitz on Rügen and the new Russian deep-sea port Ust Luga near St. Petersburg became officially operational on 8 June. The ferry harbour of Sassnitz is Germany s biggest railway ferry harbour. The harbour and railway area has a total of 30 km broad gauge tracks (1520 mm) and 60 km tracks in normal gauge (1435 mm). This makes Sassnitz-Mukran the only harbour in Europe, where railway wagons with broad gauge can be handled. The harbour location offers regular and highly frequented ferry services to Trelleborg (Sweden), Rønne (Denmark), Klaipeda (Lithuania), Ventspils (Latvia), Ust Luga and St. Petersburg (Russia). (Source: zughalt.de) 4

5 // more News GETO wants to extend initiatives for Transsiberian traffic Interest in the rail forwarding business between Europe and Asia has steadily increased, members of GETO (Community of European Transsiberian Operators) noted at their annual meeting, which was held in Frankfurt in May this year. Werner Albert, longstanding Chairman of GETO and simultaneously Vice-Chairman of the International Council on Transsiberian Transportation (CCTT) in Moscow, saw an enormous progress in the fact that company trains currently travel in both directions between China and Germany and thus revive the international transit on the Transsiberian route. He expects that this regular traffic, which functions well, will also encourage other carrier companies to take a keener interest in rail transport along these routes. In order to promote the Eurasian rail freight traffic, GETO wants to position itself even more strongly as an interest group for medium-sized operators and freight forwarding companies focussing on the CIS market. We cannot leave the market to a few monopolies. If we want to have lasting sustainable and conclusive solutions for the international transit on the Transsiberian route, we need to make offers, which are open and attractive to a large circle of customers, Mr. Albert underlined. GETO was founded in 1978 in Basel, at a time when international Transsiberian transit was booming. Its goal was to protect the interests of European Transsiberian operators and to Werner Albert, new Honorary Chairman of GETO (left) und Hans Reinhard, new Chairman of GETO (right) support traffic on this very important Eurasian railway magistrale. In more than three decades and thanks to many initiatives, GETO has tried to overcome decreases in international Transsiberian traffic and to develop it anew. Hans Reinhard, Chairman of the Board of the InterRail Group, which belongs to GETO, mentions the current initiative of extending the container block train traffic Eastwind from Berlin right through to Aktobe in Kazakhstan by means of a regular shuttle service, with a connection to China and other countries in Central Asia. Together with the Kazakh Railways, we want to develop Aktobe into a hub for the entire region and to establish new resources for this traffic thanks to greater flexibility, Mr. Reinhard explains. At GETO s General Assembly, he was elected new Chairman of this community. Mr. Albert, as Honorary Chairman and in his function at CCTT, will continue to stay involved and committed to the interests of GETO. Why become a GETO member? GETO bundles know-how and competence of leading railway forwarders in the Eurasian railway transportation. Not only does it enable an active information exchange on current developments in this regard, it also facilitates common innovations and their implementation. Due to the immediate vicinity of the CCTT in Moscow and of the management of RZD as well as other CIS railway companies, GETO is an important partner to contact when it comes to new planning, concepts and offers regarding the Eurasian railway corridors. 5