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VTB to finance Nizhny Novgorod Cable Car Company

 
10 December 2013

VTB to finance Nizhny Novgorod Cable Car Company © photoexpress.ru

VTB Bank has opened a nine-year credit line worth RUB 400 million to the operator of the Nizhny Novgorod cable car. The company will use the loan to finance current operations and the future development of the cable-car line.

The passenger cable car across the Volga River connects Nizhny Novgorod with its satellite town, Bor, and is a faster and cheaper alternative to motorways and river transport. The Nizhny Novgorod government initiated the construction of the cable car to ease traffic congestion. Work on the project began in early 2010, and the cable car opened to passengers in 2012, reducing travel time from Nizhny Novgorod to Bor from 90 to 12 minutes. The cable car can carry up to 500 passengers per hour.

Mikhail Oseevskiy, Deputy President and Chairman of VTB Bank Management Board, said: "Nizhny Novgorod Cable Car Company is an unusual client for VTB Bank. This investment project benefits the region’s transport, tourism and social development. The cable car is an extremely important traffic route for people in the region. I believe that by working with regional authorities we will help the company to continue developing in future."

Vladimir Ivanov, Deputy Governor and First Deputy Chairman of the Government of the Nizhny Novgorod Region, said: "The Nizhny Novgorod-Bor cable car across the Volga opened nearly two years ago, and I believe that people have come to appreciate its advantages. The line is about 3.5 kilometres long, while the same journey by motorway is 27 kilometres. The project has been a technological, social, environmental and commercial success. It carries nearly 2 million passengers per year and runs at 90% capacity, which is much more than the average load factor on other types of passenger transport. The cable line is now fully self-financed. I am pleased that the company’s management is looking for new forms of commercial cooperation."

For reference:

The main beneficiary of Nizhny Novgorod Cable Car Company is the Nizhny Novgorod Regional Ministry of State Property and Land Resources, with 61.29% of share capital. The cable car line is an effective way to ensure the transport accessibility and regular passenger flow between Nizhny Novgorod and Bor. The estimated travel time at an average speed of 14–22 km/h is only 12.5 minutes. The 3.66-km long Nizhny Novgorod cable car line is the longest urban gondola system in Europe. In 2012, it made the Russian and European record books as the cable car line with the longest unsupported span, 861.21metres, over a navigable river.


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