FESCO plans to acquire 50% of Vladivostok Container Terminal till July 2008
FESCO have signed an agreement with N-Trans on purchase of 50% of Vladivostok Container Terminal. According to the company’s report, the deal is valued at $200 million. The parties plan to complete the transaction in July 2008.
According to Siman Povarenkin, Chairman of FESCO BOD, “upon the deal completion, Vladivostok Container Terminal will be completely integrated into FESCO Transport Group.”
Upon completion of the transaction, FESCO and its partners will own the largest port container terminals in all strategic basins including the Baltic and the Black Seas and the Pacific Ocean. Povarenkin emphasized “the deal is a key stage in implementation of the company’s strategy aimed at creation of an intermodal container carrier providing direct link between Europe and South-East Asia across Russia.” “FESCO may carry out all operations on container transportation between Europe and Asia based on ‘door-to-door’ principle by sea, railway, road as well as handling in the port,” he said.
According to Nikita Mishin, Commercial Director of N-Trans, the deal is to contribute to optimization of the group’s container business. “Our key container terminal in the Far East is Vostochnaya Stevedoring Company, 50% in VCTmay not be a strategic asset,” Mishin comments. “At the same time, the proposal will make it possible to spend considerable resources for new projects and for development of the existing terminals in the Far East and North-West regions. As for FESCO Transport Group, Vladivostok is a key port considering the development of efficient intermodal container service and VCT facilities with a perspective of handling 600,000 TEU will contribute to expansion of the company’s technological opportunities.”