«Kamkor Management» LLP

«Kamkor Management» LLP

«Kamkor Management» LLP is a conglomerate which unites more than 10 enterprises all over the Republic of Kazakhstan where more than ten thousand people work fruitfully and efficiently

«Kamkor Management» LLP

«Kamkor Management» LLP

«Kamkor Management» LLP is a conglomerate which unites more than 10 enterprises all over the Republic of Kazakhstan where more than ten thousand people work fruitfully and efficiently

Development Strategy

Long-term development strategy of «Kamkor» Repair Corporation LLP (hereinafter referred to as the Company, KRC) until 2020 (hereinafter referred to as the Strategy) is a fundamental document, representing development strategic priorities of the Company over a long-term period.

The Document is worked out with due consideration of the requirements of affluent core groups — the Government, «Samruk-Kazyna» JSC, JSC National Company «Kazakhstan Temir Zholy», an individual (stockholder), the administration of the Company.

The Document is a result of cooperation of the Company’s managers, Strategy Partner and CMS (Germany) advisors. The Document is drawn up after considering the results of:

— the Company’s strategic analysis, done by Strategy Partner’s advisors, within the scope of which the affluent core groups were interviewed as well as different internal and external documents as to the Company’s ongoing activities and development were analyzed;

— the analysis of depot operating efficiency;

— the strategic session with the participation of the Company’s managers;

— the financial modeling of the Company’s activities until 2020.

Taking into account the foregoing, KRC sets forth the following mission, perspective and goal of the development.

The mission is consumer satisfaction in the spheres of repair of rail infrastructure and railway rolling stock.

The perspective of the Company’s target business model can be described in three sections:

Regarding the main business, that is repair of rail infrastructure and railway rolling stock, new quality of service is expected, including:

— successful cooperation with «Kazakhstan Temir Zholy», which will improve contractual conditions and reduce risks of both Parties;

— reduction of locomotive repair depots till optimum quantity — 10 depots by 2020 — simultaneously with introduction of the principle of specialty (formation of centers of competence);

— total transition to maintenance service of the locomotive new fleet;

— increase in a number of railway rolling stock repair: railcars, special railway rolling stock;

— maintenance of centralized traffic control and communication devices in association with companies, that «Kazakhstan Temir Zholy» defines as its partner.

Regarding the main business expansion, a reasonable diversification on the base of key competence is expected:

— manufacturing of freight cars;

— construction of electric and wiring train;

— special-purpose machines’ repair.

Regarding the organizational structure and management system, an effective strategic holding company with synergistically connected businesses is expected:

— a separate sub-holding as a part of «Kazakhstan Temir Zholy» Holding Company including business portfolio corresponding to target positioning;

— strategic-holding management, when the head office sets up rules, defining business-units’ activities;

— result-oriented management system of different kinds of business and personal responsibility of business-unit leaders;

— high human capital in the sphere of machine-building industry; organizational culture aimed at market result and lean business processes.

The goal is an overall capital appreciation and services quality improvement.

To achieve this goal the Company sets the following tasks:

— current business model development;

— business expansion (diversification);

— organization model and management system optimization.

«Kamkor» Repair Corporation is a strategic supplier of a wide range of services to «Kazakhstan Temir Zholy», first and foremost regarding locomotive repair. Being a part of the group makes an opportunity to carry out fully synergistic ties among the companies and to reduce risks of both parties.

The strategic priorities of KRC, set in the Long-term Development Strategy of the Company until 2020, correspond with the strategic priorities of the affluent core groups, i.e.:

— the Government, since they set up a competitive company, aimed at technical, technological and managerial leadership in one’s own field and increase in labor productivity with regard to corporate social responsibility;

— «Samruk-Kazyna» JSC, since they suppose a transfer to innovation technologies in the spheres of management, technical and technological base (that is one of the most important priorities of the Fund);

— JSC National Company «Kazakhstan Temir Zholy», since they form a reliable and long-term partner in the field of rendering services of high quality as well as ensure cost increase with risks as low as reasonably possible;

— a stockholder, since they ensure cost increase with risks as low as reasonably possible and suppose transparency and investment attractiveness of the Company;

—the Administration of the Company, since they make it possible to fit a modernized business model of the Company to new market conditions, providing a possibility for fast career growth both in active and new business segments.

  Download the strategy