PORT operator DP World is awaiting approval from Russia's Federal Anti-Monopoly Service (FAS) to acquire Fesco, owner of the Vladivostok seaport. The Dubai-headquartered company has not disclosed the size of its intended stake in the Russian port.
Analysts of the Russian Ministry of Transport believe the company is interested in acquiring a controlling share of the container operations at the port. Part of the proceeds from the sale may go to restructure Fesco debt, which is estimated to be US$885.8 million, reported IHS Media.
The expansion of DP World in Vladivostok may double container volumes at the port by 2020, Semen Plachnikov from the Russian-China Trade Association, was cited as saying.
Russian analysts in the field of port business and shippers are not surprised with the plans of DP World to expand in the Russian Far East because of rapid growth in container shipments in the region.
In the first eight months of the year, container volumes at Russian Far East ports rose 27.6 per cent over the same period last year, to reach 959,440 TEU. Within this total, 650,000 TEU were handled by Vladivostok port. Up to 70 per cent of this cargo were imports from China and Japan for Russia consumers, while the remainder was destined for the European Union.