ContainersEuropeMiddle East

DP World-led consortium in talks for Fesco stake

Summa Group, the holding company of Russian billionaire Ziyavudin Magomedov, is negotiating a minority stake sale in one of Russia’s best know transport conglomerates, Fesco. Summa is in advanced talks with a consortium led by Dubai terminal operator DP World, and the state-run Russian Direct Investment Fund (RDIF), according to the Financial Times.

Fesco is a containership owner as well as running the port of Vladivostok and handling much of the freight carried on the Trans-Siberian railway.

Fesco has hit financial trouble in recent years. In 2016 it defaulted on interest payments for its eurobonds.

In January last year DP World formed DP World Russia, a joint venture with RDIF, looking at Russian transport investments while last September it signed a memorandum of understanding with Summa Group with an eye on local port investments.

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.
Back to top button