The Shareholders Agreement was signed today by Sergey Generalov, President and CEO of FESCO Transportation Group, and Detthold Aden, Chairman of the Management Board of BLG LOGISTICS GROUP AG & Co. KG.
Both companies share the belief in significant growth potential of the Russian car market, which is forecasted to grow at an average rate of 15% per year to become soon the biggest car market in Europe by number of units.
“I have no doubts that our joint efforts with BLG will enable us to offer clients attractive automotive logistics services, supporting our ambitions to develop this joint venture in one of the leading players on the Russian market within the next 5 years, combining sea transportation and port handling of vehicles in the European part of Russia and in the Far-East with rail and truck transportation of both imported and locally assembled cars”, says Sergey Generalov.
Detthold Aden adds that “…the combination of FESCO’s deep knowledge of the local market, diversified portfolio of assets and services across the country, as well as strive for innovation make them a perfect match to BLG’s strong positions in Europe to Russia trade, existing presence in Russia, as well as our experience in organizing automotive logistics in international markets.”
FESCO (RTS/MICEX: FESH(FESHG) is a leading Russian transportation and logistics company, combining own sea, rail and road transportation, port and in-land infrastructure to offer clients integrated solutions for containers, general and project cargo and vehicles. With own fleet of 49 vessels with 850,000 tons DWT, 19,000 railcars in operation, and annual infrastructure capacity of 400,000 TEUs in containers, 5 mln tons in bulk cargo and 100,000 cars, as well as the sales network in across Russia and 15 countries around the globe, the Group is one of nation’s largest transportation and infrastructure players, with US$ 459 consolidated revenue in 1H of 2011.
BLG LOGISTICS GROUP
BLG LOGISTICS is European’s market leader in automobile logistics. The Bremen based BLG LOGISTICS GROUP in 2010 achieved a turnover of about 900 million Euros. The number of employees amounted to 15,000 worldwide. The business divisions of BLG are Automobile-, Contract-, and Container logistics. Regarding automobile logistics the European network with sea and inland terminals and corresponding technical centers is supplemented by shipments via rail, road and water. A total of 5.4 million vehicles including high & heavy cargo were handled last year.