Eastern Petroleum, Russian firm tie up on vehicle deployment

Filipino firm Eastern Petroleum Corporation has tied up with Russian firm Gaz Group on deployment of the latter’s light commercial vehicles in the Philippines.

The local oil company, in a statement to the media, has indicated that this venture will be part of the fleet modernization program being pushed for the country’s transport sector.

In their deal, it was stipulated that Eastern Petroleum had been granted the rights “for distribution and after-sales service of GAZ’s light commercial vehicles,” including its Gazelle Next 17-seater minibus and Gazelle Next City Line 20seater bus.

The signing of the agreement was consummated in Moscow this week between Gaz Group Senior Vice President Christian Kremer and Eastern Petroleum Chairman Fernando Martinez.

The Philippine government’s fleet modernization program is partly anchored on a paradigm intending to replace the old buses plying the country’s major thoroughfares.

According to Martinez, his company’s tie-up deal with the Russian firm will allow them “to aggressively participate in public transport modernization that badly needs private and public sector investments.”

The Gazelle Next Family has a line of light commercial vehicles, ranging from trucks, utility vehicles, vans and minibuses – and equipped with technologies utilizing diesel, gasoline or gas engines.

For the Philippine fleet modernization program, it was envisioned that at first stage in year 2023, the target will be to roll out roughly 200,000 units of new bus fleets – that could either be minibuses, medium or large buses.

In tandem with that move would be the targeted opening of new bus routes – by at least 150 – within the specified timeframe.