Russian Railways cultivating cooperation with Gek Terna with view to Greek assets
MOSCOW. Aug 2 (Interfax) - Russian Railways (RZD) , which is interested in Greek transportation assets that are being privatized, is developing cooperation with local company Gek Terna.
"We are cooperating with the Greek government, studying the situation, cooperating with one of the largest Greek companies, which among other things also works in construction, Gek Terna," RZD president Vladimir Yakunin told reporters in Moscow on Friday.
He said negotiations are still at a preliminary stage, as there have not yet been any final decisions on the conditions of privatization. "We can't yet say that we've reached an agreement with someone, because there are no conditions for a tender," Yakunin said.
As reported earlier, RZD has asked President Vladimir Putin for permission to bid in the privatization of Greek transportation assets, for which it intends to use borrowed money. The Hellenic Republic Asset Development Fund (HRADF) began taking bids in the middle of July for 100% of national railway company TrainOSE, which is being sold under a privatization program for 2012-2015 approved in 2011.
Russian daily Kommersant also reported that RZD is interested in repair company Rosco and the Thessaloniki seaport. Yakunin said in a letter to Putin that RZD had received preliminary information from Greek ministries on the starting prices for these assets, which will be at least 30 million euros for TrainOSE, 10 million euros for Rosco and 100 million euros for Thessaloniki.
"Russian Railways has the opportunity to combine railroad and port projects in Greece, use the potential of acquired logistics company GEFCO to increase the volume of shipments along the transport corridor," Yakunin said in his letter. Companies from China, France and Arab countries are also showing interest in these assets, he said.
Yakunin is hoping for government assistance in financing the deal "taking into account the strategic importance of projects to increase Russia's role in the European economic space." But he said RZD could also go into the tender as part of a consortium "with a major Greek company in the area of infrastructure construction," or with French railways. Yakunin also did not rule out the possibility of the Thessaloniki port being bought by another Russian company "authorized by the government," the paper reported. However, a source close to the government, cited by the paper, said this strategy was debatable.
The Thessaloniki port, one of Greece's two main ports, had cargo turnover of 4.4 million tonnes and 317,000 TEU (20-foot equivalent) in 2012 and posted a net profit of 5.13 million euros. TrainOSE is Greece's only freight and passenger rail operator, and annually carries about 4.5 million tonnes of freight and 15 million passengers. The company had an operating profit of 1.3 million euros on revenue of 140.7 million euros in 2012.
