As part of its long-term strategy and vision, FESCO has decided to go back to its roots and concentrate solely on expanding and improving its Russian transportation network and service offerings through the sale of its Australasian unit to Hamburg S’d.
The transaction with Hamburg S’d, which should be completed sometime next month (approval pending), will include FESCO’s Asia-Australia, Asia-New Zealand and Australia/New Zealand/North America services. Hamburg S’d will also acquire approximately 15,000 containers and will charter nine vessels currently utilized by FESCO Ocean Management Limited with a capacity range of 1,000 to 1,750 teus, as well as three new buildings of 2,740 teus, which will be delivered in the second half of this year.
After the sale is completed, FESCO will concentrate solely on servicing the needs of its customers in the Russian trades, including the following services:
- FESCO Pacific Line Russia (FPLR) = Vladivostok - Korsakov - Petropovlosk ’ Other Far East Russia Ports - US West Coast ’ US East Coast
- FESCO Ro-Ro Line = Ro-Ro Service from Japan to Russia Far East Ports
- FESCO/Mitsui OSK Lines Service = Vostochny ’ Busan ’ Taiwan ’ Busan ’ Vostochny
- Vietnam (FVDL) = Nakhodka ’ Haiphing/Cai Lan ’ Ho Chi Minh ’ Nakhodka
- China (FCDL) = Vostochny ’ Hong Kong ’ Shanghai ’ Vostochny
- Korea-Sakhalin (FKSL) = Kholmsk-Korsakov ’ Busan
- South Korea (KSDL) = Vostochny ’ Vladivostok ’ Masan ’ Busan ’ Vostochny
- Japan (JNO) = Nakhodka ’ Kawasaki ’ Yokohama
- Japan (JTSL) = Vostochny ’ Kobe ’ Nagoya ’ Yokohama ’ Moji ’ Toyama ’ Vostochny
- Magadan (FML) = Vostochny ’ Magadan ’ Vostochny
- Kamchatka (FPKL) = Vladivostok ’ Petropavlovsk ’ Kamchatsky ’ Vladivostok
- Sakhalin (FKDL) = Vladivostok ’ Korsakov ’ Vladivostok
- Chukotka (FADL) = Vladivostok ’ Anadyr ’ Vladivostok
Hamburg S’d will continue to specialize in servicing the Australasian market, while FESCO will focus 100% of its efforts and financial resources on expanding its Russian transportation services. This will include a multi-million dollar investment in Russian Troika (Russian Rail and FESCO joint venture), and ports and terminals throughout Russia with the goal of creating superior services for its import and export customers.