Russia-based Uralvagonzavod’s subsidiary UVZ-Logistik has signed an agreement with Cuban ferrous metallurgy and machine-building group El Grupo Empresarial de la Industria Sidero-Mecánica (GESIME) to form a transport logistics joint venture in Cuba.

Under the agreement, the new joint venture will modernise the Planta Mecanica machine-building plant near Santa Clara, Cuba.

Using this facility, the new venture will assemble, repair and service the freight rolling stock of the Cuban railways, the company stated.

Uralvagonzavod External Relations director Yuri Lyzhin said: "We also came to an agreement between UVZ and Grupo Empresarial Proveedora General del Transporte (TRADEX) of Cuba.

"Parameters and technical characteristics of the freight rolling stock were agreed on."

"Parameters and technical characteristics of the freight rolling stock were agreed on. The project is expected to be implemented in 2015-16."

This modernisation project is being funded through a mutual investment package that valued at approximately €25m. It includes the shares of Russian banks and Russian Agency for Export Credit and Investment Insurance (EXIAR).

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By GlobalData

The financial model of this new transportation and logistics company was presented during the 13th sitting of the Russian-Cuban intergovernmental commission on trade, economic, scientific and technical cooperation that took place in Kazan.

In addition, the general layout of the reconstruction of Planta Mecanica machine-building plant was also presented.

With the support of around 700 staff, the GESIME factory currently manufactures machine tools and fabrication services to Cuba’s sugar industry and local steel mills. The facility is also producing equipments for export.

Image: The officials of UVZ-Logistik and GESIME during the signing ceremony. Photo: courtesy of JSC.