Interfax reported that Russian railway operator Transoil has submitted a bid to participate in an auction offering 75% plus two shares in Russian Railways subsidiary Freight One Company.

The bid was accepted by the agent authorized to carry out the auction Transcreditbank on October 10. Transoil submitted its RUB 5 billion deposit for the auction on October 7. The auction is due to take place on October 28.

Mr Andrei Gamon Transoil General Director said participation in the auction was an important element of one of the possible directions for strategic development establishing a diversified transport and logistics company.

Transoil transports oil freight by rail and occupied 23.3% of the market in Russia as of March 1. The company transported 59 million tonnes in 2010. It has 29,400 tankers and 36 locomotives.

Transoil is considered one of the main contenders for the Freight One shares. Two other companies are also ready to go after the shares Mr Vladimir Lisin's UCL Holding and Neftetransservis. The fourth contender Globaltrans said it would not take part in the auction due to the volatility on international financial markets.

(Sourced from Interfax)