|
| Description of company and purpose of project |
Eurosib group of companies (Eurosib of the Group) based in Saint Petersburg, offers transportation and logistics services to shippers of coal, steel, fertilizers, paper, lumber, containerized and other cargo within Russia and the former Soviet Union. With extensive rail transport operations throughout Russia, Eurosib’s main business is the operation of owned and leased rolling stock for the transportation of bulk goods and the provision of freight forwarding and logistics services.
The proposed investment consisting of loans of up to $47 million for the account of IFC and syndicated loans of up to $70 million would finance a part of the Group’s corporate investment program comprising the construction and operation of a network of six inland container-handling logistics terminals throughout Russia. This investment program is expected to be completed in 2008. This would be IFC’s second investment with the Group. IFC’s first loan of $30 million (Project #23270) was committed in FY2005. |
|
| Project sponsor and major shareholders of project company |
| Eurosib is an existing private group of companies with over 4,400 owned rail freight wagons and 13 years of experience in railroad operations, logistics and freight forwarding in Russia. The group is wholly owned by Raval Holding GmbH, a privately owned holding company incorporated in Austria. Eurosib is one of the leading railroad operators and freight forwarders in Russia. |
|
| Total project cost and proposed IFC investment |
| The total cost of the group’s current investment program is approximately $180 million. The proposed IFC investment includes loans of up to $47 million for the account of IFC and syndicated loans of up to $70 million for the account of the participant banks. The balance will be financed with equity funds and internal cash generation. |
|
| Location of project and description of site |
| Eurosib is headquartered in Saint Petersburg, Russia. The proposed logistics facilities will be located in the north-western and central parts of the country as well as in the Urals and Siberia along the routes of main export, import and domestic cargo flows. Each inland terminal will be between 5 and 30 hectares in size and will include a container yard and a logistics warehouse. |
|
| Project Development Impact and IFC's Role |
| The proposed project will improve the operating efficiency and delivery capability of one of Russia’s leading private sector companies in the logistics services business, enhancing industry standards and contributing to the overall efficiency and competitiveness of the sector. The project is expected to increase capacity and improve container handling in Russia through lower overall transport costs, time savings and higher service levels; such efficiency gains are expected to contribute to further improvement in the competitiveness of Russian exports and lower prices for Russian consumers. IFC’s investment alongside an established Russian transportation and freight forwarding company will provide financing and credibility to an industry that will play a key role in removing bottlenecks to Russian economic growth in the coming decade. |
|
| Environmental and social issues - Category B |
This is a category B project according to IFC’s environmental and social review procedure. The following potential environmental and social impacts of the project were analyzed:
- Site Selection and Land Acquisition;
- Water, Sewage, and Waste Management;
- Oil/Hazardous Materials Storage and Handling and Emergency Planning and Response; and;
- Occupational Health and Safety (including Fire and Life Safety).
To view the environmental documents for this project, click here |
|
| Location of environmental documents in locally affected community |
Copies of environmental disclosure documents for the project will be made available at Eurosib’s administrative office:
Eurosib SPb CJSC
4 Michurinskaya St.
St. Petersburg, 197046, Russia |
|
| To contact the project company, please write to: |
Eurosib CJSC
4 Michurinskaya St.
St. Petersburg, 197046, Russia
Phone: +7 (812) 326-81-11
Fax: +7 (812) 326-81-28
e-mail: group@eurosibspb.ru |
|