To be the Leader

Russian Federation unique geographical location in conjunction with an active growth of international trade and traffic volume is the key competitive advantage of Russian companies, aiming to become a part of world transport system.

Nowadays, none of the companies, operating at transportation market and face considerable problems both infrastructural and economic do not posses necessary resources and technologies equal to a pride task. In terms of a competitive struggle of Russian transportation corridors and marine routs, there must be the new player, who could combine the possibilities of sea and rail delivery, operating his own port facilities, possessing financial and industrial resources, who is able to offer available services to the market.

The basis for establishing such a company was the oldest country’s shipping enterprise Far Eastern Shipping Company, world-wide known as FESCO. As a result of the steps taken consequently by FESCO, the largest national intermodal transport and logistic company was founded.

Considering fast growth of cargo containerization in Russia, the first step was the expansion of transportation geography including combined type of transport as a result of establishing of LLC Russkaya Troika in 2004. The company founded on parity principles with PLC Russian Railways was the first one to use innovative transportation technology of container line cargo by block-trains. Similar step on developing of intermodal transportation of bulk cargo “door-to-door” type was undertaken in 2006, when the company “Transgarant” – one of the largest railway industrial cargo carriers in Russia – joined the FESCO group. Today just the clients of “Transgarant” provide considerable part of export cargo traffic in Eastern direction, delivered by FESCO bulk fleet at the Pacific.

The next step directed to create the intermodal operator, combining marine, railway and motor-car transport, was acquiring in the year of 2006 50% of shares of “National Container Co” (NCC) which is the leader of terminal business in Russia. NCC has the biggest terminal in Russia in its possession – “The first container terminal” in St. Petersburg, modern terminals at Black Sea – in Novorossiysk and Ilyichevsk. NCC investments to the building of “The Baltic container terminal” will let the group take an active part in building and further operating the special handling container complex at port of Ust-Luga with capacity of about 3 million TEU a year which is in prospect the largest transportation centre in the former area.

Besides named companies, FESCO Transport group nowadays includes “Trans Siberian intermodal service” which provides more than 30% of the Trans Siberian Railroad traffic; “Incontek-Trans-Service”, one of the leading container operators in the North-West region; “Dalreftrans”, refrigerated cargo carrier; and “Dalnevostichny Container Terminal”, processing containers in the Port of Vladivostok.

The business development demands Group management reformation. The Group will be transformed into vertically integrated structure, managing shipping, railroad and terminal divisions. All operations, including forwarding and terminal services will be done by specialized companies of the Group.

The estimated level of investments into this strategy implementation is more that USD 1 billion. The financial resources will be used both for companies and infrastructure facilities acquisition, including fleet and rolling stock renovation, port and terminal facilities development.

The synergy effect of tight integration of different transport modes, weldless transport chain formation and combination of skills and experience will result in FESCO competitive positions significant strengthening in the global market. The shipping services and Trans Siberian Route capabilities combination is expected to attract cargo traffic from Deep Sea route. The transit time reduction in two times is very attractive for clients, who have intensive production schedule. Due to this FESCO plans to gain 50% of the expected volume of container traffic in the year 2014. The volume is estimated to be about 12-14 millions of TEUs. In other words, the transit intermodal transportation becomes not FESCO Group’s key stone, but takes on special national significance.

Go to Index of # 1(19) 2007


# 1(19), 2007