Fesco and Segezha sign agreement on developing logistics in Russia and for export

ST. PETERSBURG. June 15 (Interfax) - Timber holding Segezha Group signed an agreement with the Fesco transport group on the joint development of logistics for both the domestic market and exports.

According to Segezha, the agreement covers transportation from the Northwestern, Central, Volga and Siberian regions of Russia to the countries of Southeast Asia, the Mediterranean Sea, Turkey, India and China.

The partners intend to cooperate on projects on the Northern Sea Route and the North-South International Transport Corridor, the press release says.

"Our business relies simultaneously on domestic and foreign markets. This year's Q1 results show that Segezha Group's foreign exchange earnings amounted to 63% of the total. Therefore, reliable logistics is important for us both within Russia and with regard to friendly foreign countries. The development of new logistics and transport solutions is leading to an objective increase in the share of multimodal transportation. In this context, expanded cooperation with FESCO promises to be mutually beneficial: on the one hand, it will be reliable logistics services, on the other, filling transport corridors with timber industry goods, including alternative ones that are still in their infancy," President of Segezha Mikhail Shamolin said, as quoted in the press release.

According to Andrey Severilov, Chairman of the Board of Directors of Fesco, the companies intend to work together "to improve the efficiency of logistics processes and promote joint transport products on foreign markets."