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Independent Transportation Company

The state proceeds from the principle of avoiding unjustified interference in transport industry. | State transportation management agencies are entrusted with delegation of certain functions related to the regulation of the transport activity. | RZD Russian Railways | N Trans Group | Volga-Dnepr Group | Federal State Unitary Enterprise State ATM Corporation | St Petersburg Metro |


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State influence:

Independent Transportation Company (NTK) is now one of the leading freight transportation companies in Russia. The Company performing home-based and international rail cargo transportations[37]. The company is private, so the state doesn’t have direct involvement.

Internationalization:

Country Company operates mostly in Russia (~95%), but offers transportation services to several former USSR countries, namely Belarus, Ukraine, Latvia and Lithuania. All of its 8 divisions are located in Russia.
Year of entry Not known
Industry/ business area Cargo rail transportation
Entry mode Not applicable: company only delivers goods to certain foreign locations, but does not own assets abroad or export goods for sale
Motives Company’s decision to deliver cargo to several locations in the former USSR can partially be explained by the growing links and cooperation between former USSR countries and the resulting increase in trade.
Firm specific advantagesused on the foreign market What makes the firm competitive on the foreign market?
First mover or follower Follower: company only started operations in 2001[38], when there were already a lot of players on the market
Type of state involvementin the process of internationalization Not direct
Evaluationof the success of the internationalization Not full internationalization, cant be evaluated.

 

ISR Trans

State influence:

 

ISR Trans specializes in rendering of transport and forwarding services related to bulk oil carriage by rail. The company renders transport and forwarding services on 10 out of 17 railways of Russia, as well as services related to cargo carriage using the railways of the CIS and Baltic countries[39].

No direct state involvement

 

Internationalization:

Country All over the world
Year of entry Not known
Industry/ business area · Transportation of bulk-oil cargo · Full, door-to-door multimodal freight transportation by all methods of transportation (sea, river, railway, road, air) in the territory of the Russian Federation, the CIS countries, Europe and the world
Entry mode Not applicable to this company: ISR only provides transportation services to foreign locations but does not own assets there or sell goods.
Motives N/A
Firm specific advantagesused on the foreign market Firm offers fully-integrated, door-to-door transportation services, integrating all available modes of transportation (air, sea, river, road, rail) into a convenient package. As a result of its wide offering of integrated transportation services, the company can help transport goods from almost any point in the world, with no restrictions based on whether the location is by the sea, in the north, south, etc. In addition, the company has extensive experience in transporting natural resources, such as oil, oil products and coal. Lastly, the company owns many means of transportation, such as train cars, which lowers cost compared to renting.
First mover or follower Follower: the company was established in 1997, whereas some of its competitors have been operating since the Soviet times (first as governmented-owned companies and then partially or fully privatized)
Type of state involvementin the process of internationalization No, the company is fully private
Evaluationof the success of the internationalization Since international activities are not the core business of the company, it is hard to separate them from the overall success of the company. All in all, it is posting good profit and is performing well.

 

 

Mostransavto

State influence:
Mostransavto is the largest carrier in the Moscow region - provides passenger and freight transport on the Moscow region as well as in Russia and other countries[40]. It is 100% state owned company: state unitary enterprise[41].

Internationalization:

Country Company does not have international operations
Year of entry N/A
Industry/ business area · Public bus transportation (scheduled service, both inter-city and intra-city) · Private bus transportation · Bus terminal operation · Cargo transportation[42]
Entry mode N/A
Motives N/A
Firm specific advantagesused on the foreign market N/A
First mover or follower First mover: original bus transportation company in the Moscow region
Type of state involvementin the process of internationalization N/A
Evaluationof the success of the internationalization N/A

 


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