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RZD, AvtoVAZ, RailTransAuto Sign Contract on Vehicle Shipment

On 26 January 2009 a trilateral contract of intentions was signed to develop the shipment of AvtoVAZ made cars by rail. The contract was signed by the President of Russian Railways (RZD) Mr. Vladimir Yakunin, the President of AvtoVAZ Mr. Boris Aleshin and the Deputy Chairman of RailTransAuto (RTA) Mr. Maksim Liksutov attended by the General Director of Rostekhnologii, Chairman of Engineering Workers Guild of Russia Mr. Sergey Chemezov. The contract envisages that the 0.37 rate will be applied against the price list N10-01 established by Federal Tax Service for 2009 in the shipment of products of AvtoVAZ at a distance of 1000-3000 km in domestic service. RZD, in its turn, will accrue and collect the carriage charges for the cargo shipment using exceptional rates in accordance with the order of FTS Russia, arrange acceptance of railcars with cars at railway terminals, provide their unloading and storage. RTA will provide the rolling stock for planned regular transportation of cars by rail, insure terminal and other logistics infrastructure to handle the cargo flow of the Russian car maker. AvtoVAZ will increase the cargo shipment by rail to 350 000 cars annually.