Advance Capital successfully sold the OTEKO Group's railway business to JSC NefteTransService, significantly enhancing NTS's tank fleet and market leadership.

Target Information

Advance Capital has successfully finalized the sale of a 100% ownership stake in the railway division of the OTEKO Group to JSC "NefteTransService" (NTS), one of the foremost railway operators in Russia. This business acquisition includes a substantial fleet comprising over 14,000 tank cars, along with the carriage renovating entity, SFAT-Ryazan. This strategic transaction positions NTS as the industry leader in tank ownership, significantly expanding its fleet by nearly 25%.

Industry Overview

The Russian railway industry plays a pivotal role in the country’s logistics and transportation ecosystem, serving as a critical conduit for freight movement across vast distances. The sector has witnessed substantial growth, driven primarily by increasing demand for efficient cargo transport solutions, particularly in the oil and gas, chemicals, and agriculture sectors. Rail transport, known for its cost-effectiveness, has become a preferred option among industries seeking to optimize their supply chains.

In recent years, the market has seen investments from both private and state-owned enterprises aiming to enhance infrastructure and expand service offerings. Innovations in technology and operational efficiencies have also contributed to the indust