PRESS: Russia’s TGK, STLC may create oil tank wagon operator

MOSCOW, Oct 17 (PRIME) -- Russia’s Trubnaya Gruzovaya Kompaniya (Pipe Cargo Company, TGK) and State Transport Leasing Company (STLC) are considering setting up an oil tank wagon operator a tentative name of Eurotranzitoil that would consolidate over 33,500 tank wagons, Kommersant business daily reported on Wednesday citing a source.

The companies may invest 55.3 billion rubles in the project, borrowing over U.S. $800 million from the Eurasian Development Bank (EDB) to buy tank wagons for 1.65 million rubles per unit. Eurotranzitoil will be registered in Kazakhstan, and its subsidiary will operate in Russia, the business daily said.

The source told Kommersant that STLC would lease out tank wagons to Eurotranzitoil, which will ensure exports of at least 10 million tonnes of diesel and marine fuel per year to China under a contract with China Petroleum Technology & Development Corporation, among other deliveries. The project’s weighted average capital cost should amount to 13%, while discounted cash flow to 14 billion rubles.

EDB, TGK and STLC declined to comment.

(65.5305 rubles – U.S. $1)

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