This week the delegation of RAO GAZPROM (GAZPROM Russian Joint Stock Company) arrived to KAMAZ on business visit. It is headed by Suren Bagdassarov, Chief of Motor Transport Department of this largest gas company in Russia.

During three days, top managers and chief experts of GAZPROM and its subsidiaries, responsible for procurement of RAO enterprises with all kinds of vehicles, have met with designers, engineers, heads and experts of various departments and divisions of KAMAZ Inc. They will negotiate with KAMAZ their future cooperation on new projects, production and delivery of trucks and superstructures to GAZPROM.

On Tuesday morning, the guests attended the exhibition of new KAMAZ vehicles and had a meeting at R&D of KAMAZ Inc. They noted that KAMAZ is the only company at the Russian market, which can offer a whole range of trucks and chassis, superstructures and buses. KAMAZ Inc. manufactures more than 250 models and modifications of trucks and 70 of them are specially designed for operation at oil and gas industries, and haulage companies. This is why GAZPROM is especially interested in KAMAZ vehicles and already before coming to Naberezhnye Chelny has placed its order for 60 new families’ dump trucks. While attending the exhibition, GAZPROM representatives paid special attention to heavy-duty trucks, in particular to a prototype of KamAZ-65226 all-wheel drive truck with a fifth-wheel device of 27t load capacity and 97t of g.v.w. It was immediately suggested to carry out field tests of this model truck and other new vehicles by KAMAZ at GAZPROM fleets in the Northern regions of Russia.

As was stated by Suren Bagdassarov, GAZPROM’s fleet is currently undertaking major changes and there is a need to replace about 20% of its depreciated fleet. At present, RAO and its subsidiaries have approved a complex program till the year 2005 aimed at renovation of their fleets. This program makes a special emphasis on KAMAZ vehicles. A meeting of the two Generla Managers - of A.Miller and S.Kogoghin – made a significant input into materialization of this program. Upon negotiations the parties have agreed a plan of delivery of KAMAZ vehicles to GAZPROM’s fleet till 2005

Special vehicles for elimination of emergency situations at gas mains, and also for routine operation of gas wells are currently on high demand with gas producing companies. As was indicated by the guests, among domestic OEMs only KAMAZ undertakes real actions towards a complete modernization and expansion of its vehicles’ range. Besides, KAMAZ has a wide network of own service centers all over Russia.

To enhance available advantages on the domestic market, gas producers suggest to use GAZPROM production facilities in various regions of Russia for KAMAZ vehicles’ servicing. For example, this can be done through direct agreements signed between GAZPROM and KAMAZ. A.Gorobets, representative of “UrengoyTransGas”, asked his colleagues to pay attention to a possibility to perform high quality overhaul of engines and vehicles at “RemDiesel” Plant of KAMAZ inc. The Partners are also interested in leasing directly from the OEM and GAZPROM is willing to use its own leasing company too. According to S.Bagdasarov, this idea has already been discussed with S.Kogoghin during their meeting and was approved by our General Director.

GAZPROM and KAMAZ representatives also discussed cooperation on development of gas engines, which have a great future. Gas engines will find their market, stated the speakers. For their implemention GAZPROM is going to develop its network of gas filling station, the number of which in Russia today is 218 only. This is much less than in other countries, e.g. in Germany. Now the situation has changed completely and introduction of a gas engine became a world tendency. Stable supply of liquefied gas from Russia as opposed to a destabilizing impact of the USA policy in supplying of Europe with oil and oil products has made its significant input into this development.

KAMAZ has a real chance to reach industrially developed countries- such an opinion was expressed by GAZPROM representatives. The main advantage of gas fuel is that it is twice as cheap than the best brands of petrol and diesel fuel. In some regions it will cost about 2,5-4 Rubles/l. So, there is a considerable economy of operation cost by 30-40 per cent: 100 trucks give economy of not less than 2 million rubles per month. All these facts and reasons were provided by E.Pronin, Deputy Director of Department of Gas Fuelled Vehicles of GAZPROM and Deputy General Manager of “UralTransGas”. By the way, this GASPROM’s division is the main partner of KAMAZ on introduction of gas engines.

Ildar Ghilfanov, Technical Director of KAMAZ, stated that KAMAZ is capable to fit into GAZPROM’s philosophy on establishment of a system of vehicle maintenance and servicing. KAMAZ will participate in GAZPROM plans through its service networks and it is currently preparing typical project decisions. We are quite ambitious and through our servicing system we are going to secure ourselves a niche at international haulage corridors.

Ildar Ghilfanov has also indicated that “…KAMAZ sets itself a “modest” aim i.e. to increase truck delivery volumes to GAZPROM by 250 mln Rubles. As an example he mentioned a long-term cooperation with military bodies of Russia. As the result, Ministry of Defense of Russia alone has increased its purchase volumes of KAMAZ trucks almost by ten times vs. 2002 and has already bought 1,246 trucks for its fleet. There is possibility to achieve the same success with other corporate clients of the Company.

In the nearest future KAMAZ will send its experts to various parts of Russia to study situations and demands of customers at sites. Those who work at KAMAZ learn fast to react to market demands without a delay.”

GAZPROM representatives have visited production facilities of KAMAZ Inc., and other Divisions and a Headquarter of the Company. At the end visit results have been summarized.