Expanding to Exploit an Open Market

This article describes Russia’s second largest freight operator, Globaltrans, which has launched an IPO and recently listed itself on the London Stock Exchange. Because roadways are poor, distances vast, and weather extreme, more than 90 percent of freight transport in Russia moves by rail. Globaltrans is second in size only to the first Freight Company, a subsidiary of the state-owned Russian Railways, but there are some 2,000 private operators now firmly integrated into the Russian rail structure. Globaltrans provides transport for some 250 blue chip companies, hauling metals, scrap and oil products. The article describes the company’s relationship to the state-owned railway, the challenges of operating in Russia due to the sheer scale of the country and the necessity of far-flung depots, and the expanding market. Also included is a description of Globaltrans’ fleet of locomotives and cars, as well as an interview with the company’s chief executive.