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Control of FESCO up for grabs following jail sentence of its largest shareholder

Following a four-year court battle, Ziyavudin Magomedov was sentenced to 19 years in jail yesterday over corruption charges. His leading 32.5% stake in FESCO, Russia’s largest private maritime logistics operator, will now be put up for sale.

Among likely suitors for control of FESCO, and its unique transport footprint in Russia’s Far East, are likely to be Delo Group, the largest Russian container operator, as well as DP World from Dubai, both companies having earlier circled the Russian container specialist.

Vladivostok-based FESCO has a fleet of around 20 ships plus port and rail interests.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Comments

  1. Any global operator looking at a stake should be considering the potential for knock on issues in other areas. I am imagine dockworker unions not being to happy to support DP world operations if they want to get start snapping up Russian logistics firms. (Using DP world as an example only – any other global operator with large operations in Europe or USA?) This could also lead to political backlash from a lot of countries supporting Ukraine? I can imagine lot of ex eastern bloc countries political stance may change towards a logistics company getting openly more involved in the Russian market in the current climate?

    1. Unless, all concerned with the type of business in question, are on the same page, it would make life and decision making very difficult. Responsibilities, a clear direction and aim should be given. In my opinion they would be essential to obtain progress and success running it.

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