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  • 2007 June 4

    FESCO's new BOD

    Far East Shipping Company OJSC has renewed its Board of Directors and introduced new independent directors. General Meeting of FESCO shareholders held June 1 in Vladivostok approved four international audit companies and decided to spend undistributed net profits of 2006 amounting to RUR 984.65 million for a strategic development plan and investment projects. The above changes reflect implementation of a long-term program for the company’s management modernization. 

     

    Elected 

     

    The company’s Board of Directors comprises nine members including Sergei Smyslov, chairman of the Board of Directors of Firma Transgarat LLC, Sergei Generalov, president of Industrial Investors LLC, Siman Povarenkin, chairman of the Board of Directors of Industrial Investors LLC and Kirill Rubinsky, senior vice-president responsible for the corporate finances of Industrial Investors LLC. Besides, the shareholders elected Evgeni Ambrosov, general director, Far East Shipping Company and Sergei Guschin, deputy director responsible for railway operations of Far East Shipping Company.Boris Lapidus, senior vice-president of Russian Railways OJSC, Sergei Gorkov, director of Eton Energy Ltd and William Owens, the former governor of Colorado (USA) were elected independent directors. Experts say FESCO attracts independent directors in view of IPO.  

     

    Possible cooperation

     

    This year FESCO Group plans to reinforce its leading position at Russia’s container market. Today the company implements a number of large projects. In particular, the group is to invest $72 million into construction of a container terminal in the port of Vladivostok. Besides, within three years it is to spend $710 million for construction of Baltic container terminal in the port of Ust-Luga and $83.5 million for a logistics terminal in the village of Shushary (Leningrad region).  In order to finance some of the projects FESCO plans to carry out additional issue of shares. Late in May 2007 Russian Federal Service of Financial Markets registered the decision on issue and a prospectus of additional issue to make 15% of FESCO’s authorized capital. Issue of 306,509,000 securities is to be placed by open subscription.  Experts think that considering the expected placement, election of William Owens should help the company stay at international markets next year. Stanislav Vartanyan, one of FESCO’s managers told PortNews IAA that election of William Owens may “help FESCO stay at international investment and transport market”.  The placement of additional shares is to attract some $150 million, which is to be invested into acquisition of new assets including container feed service at the Baltic Sea and container terminals in Russia and CIS countries. Such transactions are to be made within the framework of the Group’s strategy aimed at creation of an integrated transport-and-logistics company.  

     

    About company:

     

    FESCO Transport Group is created on the basis of Far Eastern Shipping Company. Today the group comprises Far Eastern Shipping Company; Transgarant (one of Russia’s largest railway operators specializing in transportation of dry bulk cargo); Russkaya Troika CJSC (JV with Russian Railways OJSC, specializing in railway transportation of containers); National Container Company (leader at Russian market of container terminals); partnership project with First Quantum; TIS (covering 30% of Transsib container transportations); Inkotek-Trans-Servis (container transportation in the North-West region of Russia); DalRefTrans (transportation of refrigerated cargo); vast network of agent companies covering Russia, CIS, Asia and Europe.

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