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2021 April 12   17:46

Delo Group approved strategy development until 2030

The Board of Directors of Delo Group (hereinafter - Delo Group), the largest transport and logistics holding in Russia, approved the Group's development strategy for the medium term, until 2025, and long-term, until 2030. Its main goal is to create a national logistics champion based on the Group, a leader in container logistics in the Eurasian space, which provides for the Group's leading positions in the following segments: Railway operator in the transport of containers with a total market share of at least 50%; Operator of sea container terminals located in key basins of the Russian Federation, with a market share of at least 50%; Freight forwarder # 1 in Russia in multimodal container transportation; Leader in technology and innovation, digital and logistic interface for international clients in providing modern multimodal solutions in Russia; A responsible and reliable partner of the state in the formation and implementation of the national agenda in the transport and logistics industry.

The strategic plan of Delo Group provides for three key areas of business development:

Proximity to the client: clear segmentation of the client base and services between the companies of the Group, improving the quality of existing services and introducing new services to the market, developing cross-selling to increase the Group's share in logistics solutions for clients.

Operational leadership: implementation of projects to improve operational efficiency in all segments of the Group's business, achievement of key performance indicators of the logistics business at the level of world leaders in the industry.

New points of growth: development of digital services, implementation of the Digital Logistics project,

focused on the segment of small and medium-sized businesses; development of project logistics, as well as transportation of large-tonnage cargo; support of SMTK and SMP projects.

One of the main strategic tasks for the Group is the redistribution of a part of the global transit of containers through Russia, using the advantages of both the geographical location of our country and its own assets and competencies.

“In the current conditions of global competition, we have no other choice - we must become the best in everything.  By 2030, we are targeting a market share of 50% or more for container shipping and container handling in ports and 15% for freight forwarding. These target indicators will allow us to ensure the development of assets and the implementation of investment plans, as well as in the long term, after achieving regional leadership, to secure a worthy place in the global transport and logistics elite,” said Chairman of the Board of Directors of the Group Sergey Shishkarev.

The strategy is based on the results of an in-depth study of the current state and development prospects of the logistics market, the holding's capabilities, and the likely directions of development of each of the Group's assets. On this basis, the criteria of a national logistics champion (scale, efficiency, innovation and manufacturability, quality of service) and practical ways to achieve them were determined. In addition, the strategy includes the direction of realizing commercial and operational synergies from the joint work of assets within the Group.

“Over the past year, we have not only been engaged in the theoretical study of our strategy, but also in the course of practical work, including in the difficult conditions of coronavirus restrictions, worked out various models of interaction between the Group's assets, which ultimately enabled us to eliminate all unnecessary and focus on those segments where we see the maximum increase in their value,” said Igor Yakovenko, Chief Executive Officer of Management Company Delo.

The strategy provides for the growth of the Group's EBITDA by 2025 by 2.2 times, by 2030 - by 3.5 times. The total amount of expected investments in its development only in 2021–2025. may amount to about 150 billion rubles.

“Achieving the target indicators of the Strategy will allow Delo to ensure a high level of financial stability and comfortably finance not only organic growth, but also, if necessary, buy additional assets on the market,” said Andrey Yashchenko, Senior Vice President of the Group.

The strategy separately describes the target indicators for each of the holdings of the Group, including TransContainer, which became part of it in 2019, the largest asset of the Group to date. According to its forecast, by 2030 the number of containers transported by the Company will more than double, and its market share in profitable traffic will amount to 45%.

To do this, TransContainer needs to fully implement the priority areas of work identified by the strategy: focusing on the most promising segments of the “commodity group-route”, development of the terminal network, industrial logistics as a driver of containerization, transportation in special containers, development of new products and services.

It is planned to invest about 125 billion rubles in the development of TransContainer until 2025 - a significant part of the Group's investment expenses for this period.

The strategy also contains a block of corporate social responsibility. It includes the development of work practices and support for employees, the development of local communities and support for sports, a focus on good business practices, and a focus on environmental protection and sustainability of production activities.

The implementation of the strategy provides for an organizational change in the management model, which involves the creation of new competencies and organizational and staff activities in the Group and sub-holdings.

The document adopted by the Board of Directors contains a set of tasks, methods and means common for all assets of the holding and specific for each holding to achieve its main goal. At the same time, they are organically linked with each other in such a way that the solution of each individual set of tasks has a positive effect on the development of all the Group's assets. In addition, the strategy initially includes the ability to respond flexibly to rapidly changing external and internal conditions and to promptly adjust to them.

Delo Group is the largest transport and logistics holding in Russia, managing sea container terminals in the Azov-Black Sea, Baltic and Far Eastern basins, a network of railway container terminals, a fleet of containers and fitting platforms. The parent company of the Group is LLC MC Delo, 70% owned by the founder of the Group, Sergey Shishkarev, and 30% is owned by State Atomic Energy Corporation Rosatom.

The Group's stevedoring business includes DeloPorts holding and Global Ports, a leading container terminal operator. The transport and logistics business of the Group is made up of the multimodal transport operator Ruscon and the intermodal container operator TransContainer that owns and operates the largest fleet of containers and flatcars over the entire 1520 standard railway network.

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