JN - Wagon Financing

Location:

Russia

Project number:

34836

Business sector:

Transport

Notice type:

Private

Environmental category:

C

Target board date:

27 Jun 2006

Status:

Completed

PSD disclosed:

19 May 2006

Project Description

The proposed project will finance the expansion of the fleet of rolling stock owned by OOO Huolintakeskus by providing medium-term lending for the acquisition and refinancing of wagons for transport of timber and wood chips. The project is important for the development of commercial traffic between Northwest Russia and Finland, while encouraging private ownership of rolling stock in line with rail sector reform in Russia.

Transition Impact

The project encourages private ownership of rolling stock in line with one of the reform objectives of the recent railway sector reform in Russia. Private entrepreneurship will also increase the provision of value-added logistics services alongside transportation, and orientation towards customer needs of forestry companies as clients of the Borrower. Know-how of the more value-added services provided will be increasingly transferred to the local workforce employed.

The Client

OOO Huolintakeskus is a company registered under the laws of the Russian Federation and based in St. Petersburg. It is majority-owned by John Nurminen Oy of Finland and specialises in providing railway transport and logistics services to the forestry industry in Northwest Russia, in particular on routes linking the region to the Finnish border.

EBRD Finance

RUB 554.4 million senior loan to OOO Huolintakeskus.

Project Cost

RUB 800 million.

Environmental Impact

Screened C/0. The purchase of new stanchion wagons is not associated with significant environmental impacts. JN will conduct its business with due regard to the environment and public and occupational health and safety and in compliance with Russian environmental laws and regulations. Annual environmental, health and safety reports will be submitted to the Bank.

Technical Cooperation

None.

Company Contact

Antti Sallila
Director, Finance
Nurminen Logistics
Pasilankatu 2
P.O. Box 124
FIN-00241 Helsinki, Finland
Tel: +358-010-54500

E-mail: antti.sallila@nurminenlogistics.com
Website: www.nurminenlogistics.com

 

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