Customs Union joint railway company may become operational in Q4 2012

Belarus hopes that a joint railway company of the Customs Union member states will begin operating in Q4 2012, BelTA learnt from Ivan Shcherbo, Belarus' Transport and Communication Minister.

"The Transport and Communication Ministry expects this joint venture to start operating in the fourth quarter of 2012," the minister said.

Ivan Shcherbo noted that Belarus, Kazakhstan and Russia successfully cooperate in railway transportation. He added that Belarusian Railways may face competition from St. Petersburg that acts as an alternative transit route for cargo going from Kazakhstan to Europe.

Besides, Ivan Shcherbo underscored that after the creation of the joint Belarus-Kazakhstan-Russia company railway shipment will still be conducted by Belarusian Railways. The only area where Belarus should try hard to avoid losing profit is freight forwarding.

The minister could not yet unveil Belarus' share in this railway company. He informed that the matter was settled on a political level but the work is still underway on the details of the project. "There is an instruction to the Head of Belarusian Railways. Work on the project is in progress and the sum will be finally determined somewhere by July. In line with the common development strategy, the sum will not be less than that of the other participating countries."