Freight One Scandinavia - new joint company for freight services between Finland and Russia

Press Release, Helsinki, 10 Nov 2009

VR and the Russian Freight One Company, PGK, have set up a joint freight services company. The company will be called Freight One Scandinavia Oy and will be registered in Finland. It will provide single wagon and full train export, import and transit transport services between Finland and Russia for freight customers.

“Our clients have wished for more comprehensive solutions for rail carryings. Our goal is to provide the client’s entire transport chain and to get more carryings moving from and through Finland to Russia and in the opposite direction. Working with Freight One Company we can offer clients a wider range of logistics solutions,” says Erik Söderholm, Senior Vice President, Logistics division at VR Group.

“Our objective in setting up the joint company is to increase the volume of export, import and transit carryings conveyed by PGK and VR between Russia and Finland. The new company will sell and market rail freight services and provide one-stop services,” stresses PGK General Director Salman Babayev.

VR Group and PGK each own half of the shares of the new company. Maria Kuokkanen, MA, has been appointed managing director of the company. She was previously managing director of International Management Education (IME) Oy and has held various positions at VR Group.

Freight One Company, PGK, is a one hundred per cent owned subsidiary of Russian Railways RZD that provides freight transport services with its own fleet of wagons. The company was established in July 2007 and is Russia’s largest railway operator. In January – June 2009 PGK conveyed 100 million tonnes of freight. The company has more than 200,000 freight wagons of different types, and owns 21 % of all the freight wagons in Russia. VR Group conveyed some 42 million tonnes of rail freight in 2008, and traffic between Finland and Russia accounted for about 40 % of this. This year VR’s carryings to and from Russia have been significantly below last year’s figures, mainly due to the fall in imports to Finland of Russian round timber.

More information:
Maria Kuokkanen
Managing Director
Freight One Scandinavia Ltd.
Tel. +358 50 358 5820

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