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St Petersburg Metro

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 | Caspian Pipeline Consortium | Independent Transportation Company |


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State influence:
100% state-owned enterprise, a monopoly.

Internationalization:

Country No international operations. Like most other metros in the world, the St Petersburg metro operates in a fairly small region: in the city proper and the Leningrad region (1 station there)
Year of entry N/A
Industry/ business area Inter-city train transportation services (underground)
Entry mode N/A
Motives N/A
Firm specific advantagesused on the foreign market N/A
First mover or follower First mover
Type of state involvementin the process of internationalization N/A
Evaluationof the success of the internationalization N/A

 

 

Eurosib

State influence:

Eurosib - one of the largest privately owned transport and logistics companies in Russia. Eurosib provides intergrated transportation and logistics service[46]. 100% private company controlled by family of the founder, Nikitin, who was killed in 1999.

Internationalization:

Country All international locations
Year of entry  
Industry/ business area Cargo transportation and logistics services: · Rail and truck delivery services · Own terminals for storage and transfers from one mode of transport to others · Multimodal transportation (organizing imports-exports from Asia to Russia and from Russia abroad)[47]
Entry mode Not applicable: company does not directly invest abroad
Motives With increasing globalization, the transportation market is becoming more and more international. In general, international cargo transportation industry involving Russia is characterized by shipping of natural resources from Russia to Europe and Asia, and imports of manufactured goods from Asia (in particular China)[48]. Eurosib understands these trends and offers its services in both of these directions.
Firm specific advantagesused on the foreign market · The company owns its transportation hubs, which enables it to keep its costs down and decrease shipping time. · Eurosib has developed special one-stop-shop services in two most popular international shipping directions to/from Russia: export of natural resources and imports from East Asia.
First mover or follower Follower compared to other shipping companies. The company was established in 1991 after the collapse of the Soviet Union, which means that there already were several Soviet-era shipping companies operating at the time.
Type of state involvementin the process of internationalization No state involvement
Evaluationof the success of the internationalization Successful

 

CONCLUSION

 

Participation and the government's interest in the transactions of transportation due to the role of transport in the economy. The state needs a stable and efficient transportation system that allows you to maintain economic growth.

The transport industry is to deliver cost-effective products to markets across the country, ensuring the availability of goods to consumers at reasonable prices.

That the economy is stable and effective, the competitive and profitable system of transport services. In many countries, the state intervenes in the work of transport to a greater extent than in other industries. Such intervention may take the form of regulation, support or participate in the ownership. Regulation is that the government restricts access to certain markets, carriers or engage in a valuation of transport tariffs. Public policy support vehicles seen in the fact that the government is helping the industry in research and development, allocates land for railway lines or contains a system of air transport. Such control allows the government to exert considerable influence on the economic success of certain regions, industries or firms.

Overall, the transportation industry in Russia is characterized by high level of state involvement in all activities, including international ones. This can be attributed to several factors: first, transportation is of strategic and national importance to Russia, because it connects such a big country and keeps it together. Next, since Russia has an economy based on export of natural resources, transportation is crucial for proper functioning of the economy.

In the subindustry of international passenger transport, the role of the state in activities of companies is not as strong as in other transportation subindustries: most of the companies private (e.g. Utair, Ural Airlines, Transaero) and, due to international agreements (such as airline alliances), companies have a high degree of independence from the state. At the same time, the government has many avenues of influencing passenger transport companies, such as through airline regulations and airport fees and rules. (example: rules forcing small companies out afrer a series of crashes) In addition, some flights are regulated by the intergovernmental agreements (e.g. flight Moscow-London can only have 4 carriers flying it, 2 Russian and 2 British), restricting international expansion. Of course, there are many local transportation companies which are fully state-owned, but, since they do not have international operations, they will not be discussed (e.g. St Petersburg and Moscow metros, Mosgortrans).

In cargo transportation industry, state involvement is generally not very high compared to some other transport sectors, because this is not a strategically important subsector and does not impact national security or government revenues. It is in state’s best interest to not control his subsector too much. This is also reflected in the state transportation policy and strategy.

However, one section of the cargo transportation industry which is heavily regulated and controlled by the government is oil and natural resource transportation. This industry is strategically important for Russia’s economy, because over 50% of state budget comes from oil and gas extraction taxes and activities. For oil and gas to be sold and the government to get its money, these resources must first be transported abroad. Many of the companies in this sector are completely government owned and controlled, while others, which are partially or fully private, are closely monitored and controlled.


[1] http://eng.rzd.ru/statice/public/rzdeng?STRUCTURE_ID=4223

[2] http://eng.rzd.ru/statice/public/rzdeng?STRUCTURE_ID=30

[3] http://eng.rzd.ru/statice/public/rzdeng?STRUCTURE_ID=74

[4] http://eng.transneft.ru/company/

[5] http://www.russiaenergy.com/index.php#state=CompanyDetail&id=2059

[6] http://www.cpc.ru/EN/about/Pages/default.aspx

[7] http://www.cpc.ru/EN/about/Pages/default.aspx

[8] http://www.aeroflot.ru/cms/en/about/company_profile

[9] http://www.aeroflot.ru/cms/en/about/global

[10] http://eng.pgkweb.ru/page.aspx?tmpl=textpage&ob_no=995

[11] http://www.uclholding.ru/en/holding/structure/555/document556.phtml

[12] http://www.rbcdaily.ru/industry/562949983821584

[13] http://www.tadviser.ru/index.php/Компания:Н-Транс

[14] http://www.globaltrans.com/about-us/our-business/history/

[15] http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapid=23353659

[16] http://engl.mosmetro.ru/pages/page_0.php?id_page=79

[17] http://transoil-spb.ru/en/about/

[18] http://corp.utair.ru/en/

[19] http://www.aeoncorp.ru/en/aeon/

[20] http://www.aeoncorp.ru/en/activities/

[21] http://www.volga-dnepr.com/eng/group/companies/profile/

[22] http://www.s7.ru/home/about/s7-airlines.dot#.UT9jizlpvw4

[23] http://www.gkovd.ru/en/

[24] http://www.canso.org/cms/showpage.aspx?id=152

[25] http://www.scf-group.com/pages.aspx?ln=EN&cid=2&cs=1

[26] http://www.setcorp.ru/main/pressrelease.phtml?news_id=19826&language=english

[27] http://www.nmtp.info/en/

[28] http://www.fesco.ru/en/assets/

[29] http://www.fesco.ru/en/about/history/chronicle/year-1880-1935/

[30] http://www.cpc.ru/en/about/pages/default.aspx

[31] http://www.cpc.ru/EN/about/Pages/chronology.aspx

[32] http://www.cpc.ru/EN/about/Pages/chronology.aspx

[33] http://www.cpc.ru/EN/about/Pages/shareholders.aspx

[34]

[35] http://www.eng.sovfracht.ru/?PageID=5558&lnk=5682

[36] http://www.eng.sovfracht.ru/?PageID=5560&lnk=5684

[37] http://www.uclholding.ru/en/holding/structure/divisions/zheldor/ntk.phtml

[38] http://www.ntcorp.ru/overview.html

[39] http://en.isrtrans.ru/about/

[40] http://www.mostransavto.ru/

[41] http://www.mostransavto.ru/?page=about

[42] http://www.mostransavto.ru/?page=about

[43] http://www.uralairlines.ru/en/passengers-info/about/

[44] http://www.uralairlines.ru/en/your-flight/flight-map/

[45] http://www.uralairlines.ru/en/passengers-info/about/

[46] http://www.eurosib.biz/eng/english.html

[47] http://www.eurosib.biz/partner_invest/index.html

[48] http://www.eurosib.biz/partner_invest/eurosib-logistics.html


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