FESCO Transport Group

FESCO Transport Group is a Russian transport company that provides marine, rail, road transport and stevedoring services at its own terminals in the largest ports of Russia and the CIS.

Activity

It is a group of companies. The base company of the group is the Far Eastern Shipping Company. FESCO owns its own fleet, train personnel, port, sea and land terminal complexes, as well as a network of offices in many countries around the world. The management company is FESCO Transport Group LLC. The group is headquartered in Moscow.

FESCO's transportation group is committed to rapidly implementing the most efficient transportation technologies, offering the high-quality 3PL provider services needed to move goods across the supply chain.

FESCO Transport Group is a private integrated company that provides customers with a wide range of logistics solutions, combining the capabilities of its own maritime, railway and road transport, stevedoring services at its own terminals in the largest ports of Russia and the CIS, and an extensive network of offices around the world.

The Group's production assets include modern, fast, reliable and safe vessels of various types, its own diversified fleet of rolling stock, traction trains, motorways, a fleet of containers and special equipment, sea and land terminal complexes that make it possible to quickly and efficiently combine various types of transport into a single supply chain.

Performance indicators

2023: Profit growth 289 times to 5.9 billion rubles

According to the results of 2023, the FESCO transport group earned 8.7 billion rubles in revenue (according to RAS), which is 13.4% more than a year earlier. The company's net profit soared 289 times - from 20.5 million to 5.9 billion rubles. This was reported in the reports of PJSC Far Eastern Shipping Company (DVMP, the parent company for FESCO), published in early April 2024.

According to Interfax, citing materials from the DVMP, the company's revenues from the provision of services to the sole executive body in 2023 reached 4.7 billion rubles (+ 18.7% compared to 2022), from the operational lease (time charter) of the fleet - 3.2 billion rubles (+ 31.7%), from the services of the transport fleet - 794.3 million rubles (1.6 times decrease).

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The loss from sales of DVMP at the end of 2023 amounted to 4.3 billion rubles, which is 26.7% less than the same loss a year earlier. Revenues from participation in other organizations increased by 16.8%, to 11.1 billion rubles, and gross loss decreased 1.8 times, to 2.7 billion rubles. By the end of 2023, the group's long-term liabilities increased by 23.3% and reached 31.13 billion rubles. The company's assets on an annualized basis increased from 57.03 billion to 61.25 billion rubles.

By the end of 2023, FESCO is one of the largest transport and logistics companies in Russia with assets in the port, railway and integrated logistics business. The Group owns PJSC Vladivostok Commercial Sea Port. The company operates container terminal complexes in Novosibirsk, Vladivostok, Khabarovsk and Tomsk with a total throughput of more than 167 thousand. TEU per year. Fesco manages more than 170 thousand. TEU, the fleet of fitting platforms exceeds 11 thousand units. The group's fleet is over 100 tractors. Fesco's fleet includes 35 transport vessels, which predominantly operate on their own sea lines.^[1]

2018: Revenue - about $1 billion

In 2018, FESCO's revenue is about $1 billion (slightly less than 60 billion rubles), it grew by about 35% by 2017, EBITDA is a record in five years, almost 11 billion rubles, profitability - almost 19%. Net debt - about $610 million, debt to EBITDA ratio less than 4.

History

2023: Turkey subsidiary opens

Fesco Transport Group opened a subsidiary in Turkey in March 2023 to develop transport and logistics services in the region.

2021: Mikhail Rabinovich increased his stake in the company to 26.529%

In January 2022, it became known that Loko Bank shareholder Mikhail Rabinovich officially increased his stake in FESCO to 26.529%. Formally, he became the second largest co-owner of the company after businessman Ziyavudin Magomedov (owns 32.5%), who was arrested in March 2018 on charges of creating a criminal community. But sources believe that Rabinovich's package is larger and it is issued for controlled structures. According to RBC, in September 9.129% of FESCO on the Moscow Exchange cost about 6 billion rubles.

2020: Mikhail Rabinovich's acquisition of a 17.4% stake in FESCO from TPG Capital

On November 20, 2020, Interfax announced that the American TPG Capital had left the shareholders of the FESCO transport group, its 17.4% stake was acquired by a businessman, co-owner of LOKO-Bank Mikhail Rabinovich.

The transaction took place on market terms.

Rabinovich's partner Andrei Severilov has already joined the board of directors of the group by decision of the repeated annual meeting of shareholders of PJSC Far Eastern Shipping Company (DVMP, the head structure of the FESCO group).

Former chairman Leila Mammedzadeh, former FESCO president Alexander Isurin, chairman of the board of directors of GHP Group Garber and head of the Moscow branch of TPG Capital Dmitry Shvets left the council.

9 people were elected to the council, including FESCO President Arkady Korostelev and representatives of shareholders who control 33.9% of the company's capital - these are the owners of Zavodinvest LLC Evgeny Melnikov and Nautilus LLC Jan Bliznets. The council also included Andrei Severilov, Yulia Vasilyeva, Alexander Timchenko, Alexander Mineev, Dmitry Tikhonov and Vyacheslav Plotsky.

TPG Capital spokesman Dmitry Shvets would not comment on the deal.

As reported, at the end of September, FESCO co-owner Ziyavudin Magomedov announced that FESCO Chairman Leila Mammadzade and some members of the board of directors are trying to disrupt the annual meeting of shareholders and contribute to the raider seizure of the company. FESCO management called the statement on behalf of the group's shareholder an attempt to speculate and disseminate untrue information.

In early October, it became known that GHP GroupMark Garber sold a 23.8% stake in the FESCO transport group. The businessman did not disclose the buyer and the terms of the deal, citing a confidentiality agreement. As a result of trading on the Moscow Exchange on October 2, 23.8% of FESCO cost about 6.5 billion rubles.

At the same time, FESCO revealed companies representing the interests of shareholders controlling 33.9% of the company's capital, who in a joint statement denied Magomedov's statement about the raider seizure of the company. One of these companies may have purchased Garber's package.

The statement was signed by the heads of three companies representing the interests of DVMP shareholders - these are Moscow-based LLC Innovinvest and LLC Nautilius, as well as Domidias Ltd (British Virgin Islands).

FESCO did not comment on the interests of which shareholders the companies represent. According to the SPARK-Interfax analytical system, the owner of Innovinvest LLC and Nautilus LLC until September 30 was a member of the board of directors of Vladivostok Commercial Sea Port PJSC (VMTP) and vice president for FESCO railway division Aydemir Usakhov, after the owners of the companies were Evgeny Melnikov and Jan Bliznets.

According to SPARK, Melnikov is also the general director of Davinchi Holding Company LLC, the main beneficiary of which is Rabinovich (80%), another 20% in the company of Andrei Severilov. In June 2020, Severilov sold Davinchi Travel LLC to Victoria Novikova, she also owns Agro Trading LLC, which is headed by the owner of Nautilus Bliznets.

Magomedov later called the transaction for the purchase by a group of investors of almost 34% of FESCO shares illegal. {{quote "The sellers are well aware of all the circumstances of their ownership, that this transaction is invalid, as it violates the commercial agreements that existed between the parties, and this will undoubtedly be the subject of legal proceedings," said Magomedov. }}

2019: Owners

As of March 2019, Ziyavudin Magomedov is one of the shareholders of FESCO, in which he owns a share together with TPG Group. In general, this is less than 50%, that is, the package by definition does not control. TPG is a large American investor, with a large practice of portfolio investments in various industries. In addition to them, FESCO has other shareholders - GHPMark Garber, a large free float package.

2014

In 2014, the fleet of DVMP OJSC was replenished with two container ships - FESCO Novik and FESCO Navarin, which in October began working on a regular sea container service on the route Vladivostok - Petropavlovsk-Kamchatsky - Vladivostok.

The multi-purpose vessel FESCO Primorye, which became part of the fleet of DVMP OJSC in September 2013, in March 2014 began work on a regular marine container service on the route Vladivostok - Petropavlovsk-Kamchatsky - Vladivostok.

In October 2014, DVMP won the tender of the Argentine Ministry of Defense for participation in the project to supply Argentine research stations in Antarctica in 2015.

The strategic development of the company at this time is mainly based on the development of a container business with high growth potential. In recent years, FESCO has gradually withdrawn non-container vessels from the fleet, and replaced older vessels with more modern and efficient ones, which led to lower operating and maintenance costs.

2013

In 2013, the fleet was replenished with the multi-purpose vessels FESCO Pevek and FESCO Posiet, which began work on the Vladivostok-Magadan coaster line. Ships have an ice class to operate in freezing ports.