FESCO, BLG in JV for autos logistics
FESCO Group and BLG LOGISTICS GROUP have announced a joint venture (JV) for the development of integrated logistics solutions for the automotive industry in Russia, FESCO said Tuesday.
The partners will invest at the initial phase of the project some EUR 10 million.
The newly created company will be engaged in car imports handling in conjunction with Big port St. Petersburg. The terminal for offloading and storage of vehicles encompasses 95,000 sqm. The yard's expected throughput is 60,000 cars and 31 tractor-trailers trucks this year.
The Shareholders' Agreement was signed today by President and CEO of Transport Group FESCO Sergei Generalov and Chairman of BLG LOGISTICS GROUP AG & Co. KG Detthold Aden.
"The project partners appreciate the perspectives of the Russian car market, which experts say will show an average 15 percent annual growth and soon will become the biggest market in Europe by the number of cars sold," the Group said in a statement.
FESCO Transport Group is a leading Russian integrated transport and logistics company offering its customers a full range of services for ‘door-to-door’ cargo delivery with its own transport facilities to ensure guaranteed quality and reliability of services.
The Group owns a fleet of deadweight of over 800,000 tons, while container capacity is 17,000 TEUs. FESCO Group also manages a diversified fleet of its own railway rolling stock of over 17,000 units. The Group’s container fleet is about 50,000 TEUs. The aggregate capacity of the port facilities is 250,000 TEUs and 7.5 million tons of general cargo.
BLG Logistics Group AG & Co. KG offers automobile, contract, and container logistics services. The company provides vehicle logistics services, including handling, storage, and technical preparation in sea and river terminals, and inland; conveyance and transport services; and coastal shipping and technical services. It also offers specialized logistics solutions in the areas of automotive parts, consumer products, and business electronics. The company was formerly known as Bremen Warehouse Company and changed its name to BLG Logistics Group AG & Co. KG in January, 1998. BLG Logistics Group AG & Co. KG was founded in 1877 and is based in Bremen, Germany.