FESCO Transportation Group is the largest intermodal transport operator in Russia, which provides services, including marine shipping, Roll-on/roll-off, rail transportation and port handling via more than 70 sales offices located around the world. The parent company of the Group is Far-Eastern Shipping Company JSC. FESCO Group is headquartered in Moscow.
Share capital and management
The base company of the group is the Far-Eastern Shipping Company. The company was founded in Vladivostok in 1880. FESCO is publicly traded as. Current shareholding structure is: Mr. Magomedov – 32.5%; entities controlled by Mr. Garber – 23.8%, TPG – 17.4%, other shareholders/Free float – 26.3%. The Chairman of the Executive Board of FESCO Transportation Group is Leyla Mammad Zada, the President is Alexander Isurin. On 13 December 2012, Summa Group and GHP Group indirectly acquired 49.99% and 23.75% of the shares of FESCO, respectively. The acquisition was funded by a mixture of debt and equity. In December 2012, TPG joined in Summa Group's investment in FESCO, as a result of which TPG has certain rights in respect of oversight of the FESCO business and an indirect economic ownership interest of 17.5% in the Group.
Business
A diversified asset portfolio enables FESCO to provide door-to-door solutions and control all links of the intermodal transportation value chain. The majority of the Company’s operations are located in the Russian Far East. FESCO operations are handled by five divisions, namely Port, Rail, Liner and Logistics, Shipping, and Bunkering. They are fully integrated allowing the Company to provide intermodal transportation services and offer customised solutions, while also generating revenue across the divisions. Shipping. The Shipping Division is involved in ship ownership, ship management, chartering out and provision of vessel agency services. FESCO vessels participate in an important social project involving the delivery of goods to the northern territories of Russia and a project for providing supplies to the research stations in Antarctica. The vessels operated by the Shipping Division are largely container and bulk carriers. FESCO owns a fleet of 20 vessels. Liner and Logistics. The Liner and Logistics Division integrates services provided by other divisions of the Company. The Division operates sea liner services and provides freight forwarding, sea, intermodal, rail and trucking services both for containers and break-bulk cargoes. The marine transportations are carried out on a cabotage and import-export basis. The capacity of port container and break-bulk facilities in Russian Far East totals 650,000 TEU and 5 mln tons respectively. FESCO also has at its disposal inland terminal facilities in Khabarovsk, Tomsk, Novosibirsk and launched a new container terminal project in Moscow region, which is now under construction. Rail Services. FESCO Group provides rail transportation services under «Transgarant» and «Russkaya Troyka» brands. The Group operates over 8,000 units of diversified rolling stock, including 5,000 fitting platforms. The Rail Division provides services both as an operator of railcars and rail agent. When acting as an operator, it renders transportation services for containerized cargoes using both locomotives and rail cars of various types owned or leased by the Rail Division. Ports.The Ports Division owns and operates port facilities and container terminals in Russia and provides stevedoring, storage and other related port services and facilities. One of the core assets of the Group is Vladivostok Commercial Sea Port, which is an important transportation hub in the Russian Pacific coast. FESCO has full operational and strategic control over VMTP.
The 100% FESCO subsidiary Transgarant and Russkaya Troyka. In 2011, the Bremen-based BLG Group and FESCO founded a joint venture for logistics for the Russian automotive industry. In cooperation with JSC Sea Port, cars are to be handled in St. Petersburg. In 2018, FESCO increased intermodal transportation volumes by 23.9% YoY bringing them to 301.8 thousand TEU. The Group secured a record high intermodal transportation market share of 39% across the East–West corridor, up 2 pp YoY. At the same time, domestic sea containertrade volume amounted to 79,5 thousand TEU, rail container transportation rose to 340,2 thousand TEU. In 2018, FESCO consolidated revenue increased by 30.3% YoY to RUB 57.0 billion, bolstered by the overall economic recovery and higher transportation volumes. EBITDA grew by 36.0% YoY to RUB 10.61 billion given that all operating divisions contributed to the consolidated EBITDA growth, with their effective commercial policies and higher cargo traffic being the key drivers. EBITDA margin expanded from 17.8% to 18.6%.
