HELSINKI--(BUSINESS WIRE)--Regulatory News:
Nurminen Logistics Plc (HEX:NLG1V) Stock Exchange Release 22 September 2016 at 11.00 am
Nurminen Logistics Group start the strategic collaboration with the Russian Rustranscom group. This will see the creation of a jointly owned company, NR Rail, a subsidiary of the Nurminen Logistics Group, that will offer new alternatives for import and export traffic between Finland and Russia. Rustranscom is one of the largest providers in a number of areas, including forest industry and agricultural products railway transport, with a rolling stock encompassing more than 44,000 wagons.
The new agreement on international railway transport concluded between Finland and Russia is due to be ratified in the near future. In practice, the bi-lateral agreement sees the deregulation of rail transport between Finland and Russia in the Finnish rail network. Previously, this was subject to a Finnish State Railways (VR) monopoly. The change will be significant, as the total value of the railway logistics market in Finland is valued at EUR 450 million, with rail transport connecting Finland and Russia accounting for around a third of this.
NR Rail is due to invest in modern locomotives and enhanced cost-effectiveness. The amount and the schedule of investment in locomotives will depend on the development of customer volumes. In future, Nurminen Logistics will be able to offer its own locomotives as part of a comprehensive service offering comprising wagons, terminals, railway yards and forwarding services at border crossings in Imatra, Niirala and Vainikkala.
“I am excited at the prospect of this new venture between our two companies. This will allow us to expand Nurminen Logistics’ entire service offering. What’s more, we will be able to offer an even longer value chain. The aim is to start the locomotive business in the second half of 2017. What we are setting out to do is to maintain our commitment to developing cost-effective and transparent logistics services to benefit Finnish import and export industries,” Marko Tuunainen, President and CEO at Nurminen Logistics, said.
Nurminen Logistics Plc
President and CEO
Nurminen Logistics is a listed company established in 1886 that offers logistics services. The company provides high-quality forwarding, cargo handling and value added services as well as railway transports and related to it project transport services to its customers. The main market areas of Nurminen Logistics are Finland, Russia and its neighbouring countries.
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