Vladimir Lisin, reputed to be Russia’s richest man, won the auction for state-owned Russian Railways cargo arm, Freight One, in a $4.2 billion deal that gives him control over a fifth of the nation’s rail cars, the Journal of Commerce reported.
The steel tycoon’s Universal Cargo Logistics Holding unit beat out several other bidders, including mining supply group Transoil and rail freight operator Nefte Trans Service, to acquire 75 percent minus two shares of Freight One.
Russia’s biggest rail privatization has given Lisin control of around 192,000 rail cars that transport a quarter of the nation’s freight, mainly bulk cargoes, across the world’s second largest rail network.
Lisin, the 14th richest person in the world, is valued at $24 billion, according to Forbes magazine, with the bulk of his fortune held in his 80 percent stake in NLMK, Russia’s biggest steel maker by value.
Lisin also has around $2 billion of transport assets, excluding Freight One, comprising cargo terminals in the ports of St. Petersburg and Tuapse and rail freight company Independent Transportation Co., which has 27,000 rail cars.
Russian Railways has Kremlin approval to sell 50 percent plus two shares in Russia’s biggest rail container operator, which listed on the London Stock Exchange last November. A sale, to raise funds for rail infrastructure, is expected in 2012 or 2013.
Globaltrans, Russia’s biggest private rail freight company, didn’t participate in the auction for Freight One “due to global financial conditions.”
Russian Railways share of the freight market fell below 50 percent for the first time in 2010 as it lost business to private operators with more modern rolling stock.
The steel tycoon’s Universal Cargo Logistics Holding unit beat out several other bidders, including mining supply group Transoil and rail freight operator Nefte Trans Service, to acquire 75 percent minus two shares of Freight One.
Russia’s biggest rail privatization has given Lisin control of around 192,000 rail cars that transport a quarter of the nation’s freight, mainly bulk cargoes, across the world’s second largest rail network.
Lisin, the 14th richest person in the world, is valued at $24 billion, according to Forbes magazine, with the bulk of his fortune held in his 80 percent stake in NLMK, Russia’s biggest steel maker by value.
Lisin also has around $2 billion of transport assets, excluding Freight One, comprising cargo terminals in the ports of St. Petersburg and Tuapse and rail freight company Independent Transportation Co., which has 27,000 rail cars.
Russian Railways has Kremlin approval to sell 50 percent plus two shares in Russia’s biggest rail container operator, which listed on the London Stock Exchange last November. A sale, to raise funds for rail infrastructure, is expected in 2012 or 2013.
Globaltrans, Russia’s biggest private rail freight company, didn’t participate in the auction for Freight One “due to global financial conditions.”
Russian Railways share of the freight market fell below 50 percent for the first time in 2010 as it lost business to private operators with more modern rolling stock.