A long-term EBRD loan of US$ 100 million to FESCO, one of the leading integrated transportation operators in the Russian market, will fund the first phase modernisation of commercial infrastructure in the port of Vladivostok and other priority logistics projects.
The Vladivostok project is vital for expanding freight traffic along international transit routes running through the Russian Far East.
The Bank’s seven-year loan will enable FESCO to upgrade the Vladivostok commercial seaport, a major infrastructure hub in this important region, as well as the company’s intermodal container operations. The aim is to turn Vladivostok into a modern, clean and efficient port focused on handling high-value and environmentally friendly cargo, particularly in containers.
Most of the port infrastructure in the Russian Far East was built over 50 years ago and the current lack of adequate port and inland container terminal facilities have created bottlenecks which hinder the growth of export-import flows through Russia’s gateways.
As one of the few companies on the Russian market which owns facilities at every stage of the logistics chain, including shipping, railways and port facilities, FESCO’s strategy is to provide a single-service intermodal transportation system for its customers, particularly in the container market.
“The project highlights both the EBRD’s commitment to renewing key Russian infrastructure projects as well as support for the private sector’s role in raising the efficiency of the country’s transport system,” said Varel Freeman, EBRD’s First Vice President.
In August 2008 the EBRD acquired a 3.7 per cent equity stake in FESCO, whose shares are listed on Moscow’s MICEX and RTS exchange.