NEWS

29/03

KEF-2019 Segezha Group and FESCO Transport Group Sign Agreement of Intent

On March 29, as part of the business program of Krasnoyarsk Economic Forum (KEF`2019, March 28-30, 2019) Segezha Group  (part of Sistema JSFC) and FESCO Transport Group signed an agreement of intent.  The document was signed by Alexander Isurin, President of FESCO, and Mikhail Shamlin, President and Chairman of the Board of Segezha Group Management Company LLC. 
The parties agreed to work together for mutual benefit in the sphere of organizing cargo transportation and development of optimal logistical solutions in the process of modernization of the Segezha pulp and paper mill in Karelia, construction of a new plywood mill in the town of Galich, Kostroma region, a new biotechnological complex in Krasnoyarsk Krai and other Segezha Group projects. 
“We are pursuing a systemic development approach in Krasnoyarsk Krai and throughout the country, and we are starting work on several large-scale projects and construction of new capacities; this has led to increased cargo turnover,” Mikhail Shamolin said during the signing of the agreement. “It is our common goal to increase the cargo flow, and solve the logistical problems that inevitably accompany developing production projects and new construction.”
“I am pleased to see our partners developing actively; on our part we are ready to make their logistics as effective as possible, working on advance schemes of transportation, using railways and intermodal chains via Vladivostok for exports to China’s southern ports and other countries of Southeast Asia. Additionally, we see considerable potential for optimization in the Yenisey Siberia project,” President of FESCO Alexander Isurin said after the signing.
According to the Agreement of Intent, a joint plan will be developed for the companies to participate in Yenisey Siberia TIS. FESCO will also be invited to participate in competitive purchases related to transport and logistics servicing of the assets of Segezha Group currently being modernized or built and the assets currently in operation.  They will also prepare proposals for development of transport and logistics solutions and their subsequent application. 
If a contract on the subject is signed, FESCO will provide the necessary resources and will carry out transport and forwarding services for enterprises, including transportation of ready products, heavy and oversized cargoes via the port of St. Petersburg and ports of the Far East all the way to the end consumer. 
The parties do not exclude the opportunity of joint acquisition and operation of rolling stock and containers in order to facilitate uninterrupted dispatch of company products. 
The representatives of Segezha Group attending the signing ceremony were Vladimir Vinogradov, Vice President for Segezha Group, Nikolai Ivanov, Head of Segezha Group’s Directorate for Government Relations, and Milena Simonova, Managing Director for Public Relations.  On behalf of FESCO the agreement was signed by Ekaterina Grishkovets, Vice President for External Relations.