Nurminen Wagons Russian Fleet Expansion

Location:

Russia

Project number:

42790

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Target board date:

29 Sep 2011

Status:

Cancelled

PSD disclosed:

25 Aug 2011

Translated version of this PSD: Russian 

Project Description

The Project’s key purpose is to support the current operations and future expansion of Huolintakeskus by financing the acquisition of approximately 715 wagons.

Transition Impact

The Borrower is a niche player on the freight rail market, delivering high quality services to pulp and paper industry clients for their cross-border traffic between Finland and Russia. The expansion of the fleet will enable a change in the critical size of the fleet, requiring some operating, management and reporting improvements at the Borrower’s. In order to maintain its level of service and ensure the maximum profitability, the Borrower envisages purchasing types of wagon, which are just being introduced on the CIS market. The Project will thus promote competition in the rail freight market in Russia as well as demonstrate use of new technologies and a successful restructuring.

The Client

OOO Huolintakeskus, a limited liability company incorporated in the Russian Federation carrying out rail freight operations in North West Russia and between Russia and Finland. HK is 100 per cent owned by Nurminen Logistics, one of the biggest Finnish logistics companies operating in the Baltic region.

EBRD Finance

A senior A/B loan of up to EUR 45 million, with a tenor of up to eight years.

Project Cost

EUR 57.0 million.

Environmental Impact

The project has been appraised as category B. HK provides railway transportation services and their operations are associated with very limited environmental and social impacts; responsibility for operating the rail wagons largely rests with the lessees and the traction company. The new wagons will meet EU standards, including for railway noise. The introduction of modern wagons will result in energy efficiency gains. Appropriate human resource policies are in place. Stakeholders identified include workers and customers, and relevant communication is in place. Monitoring will be via annual environmental and social reporting by the client.

Technical Cooperation

none.

Company Contact

Antti Salila
Email: Tea.Berghall@nurminenlogistics.com

 

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