FESCO takes control of Transgarant
FESCO Group, Russia’s largest intermodal transportation group, has acquired the remaining 50 percent stake in Transgarant, the country’s fourth-largest private rolling stock operator.
This transaction follows FESCO’s acquisition of a 50 percent stake in Transgarant in October 2006. FESCO acquired the remaining shares in exchange for about 12 percent of its share capital.
Transgarant provides transportation of bulk commercial goods by railway, and including its subsidiaries, controls more than 13,400 railcars. Transgarant’s annual shipment volume is more than 16 million tons and in 2005 posted revenue of $142 million.
“The acquisition of Transgarant is another step in our overall strategy to create the largest intermodal transport group in Russia, combining marine and railway transportation, stevedoring and logistic centers,” said Evgeny Ambrosov, FESCO’s president and chief executive officer. “We believe that the integration of shipping and railway operations with terminal services will provide the best solution to our clients needs. We expect to meet the demand for combined solutions by our clients through the offering of highly competitive service both on price and quality.”