Russian Railways (RZD) will create a Second Freight Company to provide improved services and decrease the cargo traffic.

The new open joint stock company (OJSC) Second Freight Company’s key challenge will be to reform the system for the provision of freight cars to increase the actual output of the freight car fleet.

Russian Railways will retain 30,000 freight wagons for its own transportation business and assign 60,000 freight cars to First Freight Company, 217,000 to Second Freight Company and 32,000 freight cars will be written off as scrap.

Once in place these will be able to contribute to the new company’s capital freight wagons it owns at market value.

The First Freight Company will have a market share of about 27.5% (266,000 cars) and The Second Freight Company 27–29% (265,000–283,000).

However, RZD will develop a business plan for the Second Freight Company based on consideration with the Board of Directors.

The new company is expected to start its commercial activities by the first quarter of 2010.