The Russian government is selling off parts of its vast rail sector and deregulating the market to raise cash for infrastructure and improve efficiency - initiatives that have handed strong growth opportunities to private companies now on the lookout to boost their fleet.
Globaltrans is one of the largest private operators of railcars in Russia, transporting the oil products and metals that are the lifeblood of its economy across the world's largest rail network.
Last month it completed a $540 million swoop for the freight and logistics arm of iron ore miner Metalloinvest, controlled by Russia's richest man and Arsenal soccer club shareholder Alisher Usmanov.
"We believe the deal will be a trigger for the market. Other metals companies should think about selling such businesses," Eliseev told Reuters.
Steelmakers Evraz, Mechel and MMK are three such firms with divisions that may interest Globaltrans, while state monopoly Russian Railways has stated an intention to auction a share in London-listed freight operator Transcontainer.
Eliseev said it was not clear how much of the company would be auctioned - it could be 25 percent or 50 percent - while analysts at Bank of AmericaMerrill Lynch said they did not expect a sale before 2013.
The Metalloinvest deal stretched Globaltrans' debt levels but they remain within the range promised to investors at the time of its 2008 IPO - up to 2-2.5 times net debt to EBITDA, according to analysts - although the group could raise more cash if the right deal came along.
Russia's Kommersant newspaper has said Globaltrans has laid the groundwork for a $300 million secondary share issue, but has postponed the deal due to market conditions.
Eliseev declined to comment on the report. Globaltrans has also issued rouble bonds to fund railcar purchases in recent months, another possible cash-raising avenue.
Globaltrans is just over 50 percent owned by investment group N-Trans, which also counts infrastructure groups Global Ports and Mostotrest among firms it has floated in recent years.
Eliseev has a personal shareholding in Globaltrans of more than 7 percent.
Lisin's Cash
The Metalloinvest deal was the group's second major acquisition in three years, although it missed out on the $4.2 billion auction of 75 percent of state-owned Russian Railways unit Freight One to steel magnate Vladimir Lisin last year.
"Lisin (Russia's second richest man) had the cash, but we (Globaltrans) are very conservative with our financial policy and so decided not to significantly increase our leverage to finance this. There are two key elements we focus on: opportunistic growth and a strong balance sheet," Eliseev said.
He added Lisin's purchase had strengthened Globaltrans' market position in a different way: the tycoon scrapped a significant government railcar purchase programme shortly after the deal, opening the market to other players.
As a result, Globaltrans bought the 10,000 cars it had planned to purchase over the course of 2012 by the end of April, and at a discount to the market price of previous years. (Reuters)
