Brunswick Rail made to lease rolling-stock in Russia launches a large-scale activity
The company carried out the first deal on July 9 — Brunswick Rail (BRL) handed over 250 fertilizer-carts (hoppers) to the group in the town of Voskresensk, near Moscow where the plant Voskresenskiye Chemical Fertilizers included into the group Fosagro is located. According to BRL Chief Executive Officer D.Yeremeev, the contract with Fosagro presupposes a long-term lease of 500 carriages for a five-year term. On expiration of the term, the customer may act in the following ways: prolong the contract, buy the carriages at the depreciated cost, or return them to a leasing-giver. According to D.Yeremeev, BRL intends to grant Fosagro and other Russian companies about 1.5 thousand freight cars already this year and invest $50 million in these projects. By 2008, BRL is planning to increase the fleet to 10 thousand cars of various kinds and investments - to $500 million.
All funds invested up till now came from abroad, D.Yeremeev says. However, BRL hopes to attract capital also on the Russian financial market in the future. BRL was established in March 2004 as a 100% subsidiary of the investment company Brunswick Capital representing the interests of the group of West-European and American investors. Brunswick Capital owns investment funds of Brunswick Asset Management and Brunswick Real Estate and 50% of shares of the investment bank Brunswick UBS (the other 50% belong to the Swiss bank group UBS). Brunswick Capital informed about its intention to launch a new line of leasing business in Russia (railway leasing) in July 2003.