FESCO Transportation Group

Proud of the past, sure about the future

Historical Milestones

1880 - 1935 1935 - 1992 1993 – Present Near Future

Formation of the company

1880 - a new fleet

Agency (Dobroflot) was

registered in Vladivostok

The largest shipping

company in USSR

1992 – the company was

renamed in FESCO

The best Russian shipping line

2010 – FESCO

bought 100% share in Vladivostok Sea Commercial port

Developing of multimodal

services, terminals, ports

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FESCO – national leader in integrated logistics

• A unique for Russia blend of maritime, rail and trucking transport, port and stevedoring services, packaged in integrated solutions

• Global network of sales offices

• Diversified clientele ranging from retail cargo owners and forwarders to large multi-nationals

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Diversified business portfolio

• Russia’s largest container and dry bulk ship-owner

• Own fleet of 28 vessels, totaling over 300 thousands DWT

• 4 Icebreaker leased

• Port container and break-bulk facilities in Russian Far East (FESCO is owner of Vladivostok Commercial port)

• Inland container facilities

• Annual capacity: 6.5 million tons of containerized and non-containerized cargo

• Russia’s second largest private independent railcar operator

• Over 17,000 units of diversified rolling stock – railcars of 14 different types

Shipping

Rail

Liner & Logistics

• Integrated solutions for container cargo

• Full spectrum of forwarding services for container, break bulk, oversize/overweight and special cargo

• Full spectrum of reefer container services: shipping, port handling, rail, trucking

• Customs clearance service at main ports of Russia

Ports and Terminals

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FESCO operational highlights

Service 2012 2011

Port Division

Handling of containers, thou TEU 456 432

Handling of vehicles and equipment, thou pcs 85 70

Handling of non-containerized cargo, thou mt 2952 2860

Rail Division

Throughput (Transgarant), bln. t km 29,7 33,5

Marginal profitability (Transgarant), RUR/car a day 1289 1170

Linear and logistic Division

Sea container transportation, thou TEU 411 363

Intermodal transportation, thou TEU 208 197

Refrigerated transportation, thou TEU 49 38

Maritime Division

Displacement, thou mt 302 833

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FESCO owned equipment: Vessels

Quantity DWT

Containerships 14 209 731 General cargo ships 4 33 608 Supplier vessels 4 14 459

Ro-Ro 3 11 775 Ice-breaker cargo vessels 2 29 345

Timber ships 1 7073 Total: 28 305 991

Ice-breaker cargo vessels Supplier vessels Containerships

General cargo ships Timber ships Ro-Ro

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FESCO owned equipment: Wagons / Containers

7957

Ore pellet cars

Box cars

Universal gondola cars

Other wagons

2163

1208

2254 – 80ft flat cars

655 – 60ft flat cars

1142 – 40ft flat cars

Total – 4051 units Average age – 6 years

2226

FESCO owned

Transport Assets

40ft – 4030

20ft – 17 677

40ft HQ – 20 684

Total – 13 554 units Average age – 12 years Total – 42 391 units

CONVENTIONAL FLAT CARS

CONTAINERS

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FESCO Assets: Terminals

Location Function Ownership Throughput capacity

Vladivostok

Dry bulk port

Container terminal

Ro-Ro terminal

Reefer Container terminal

100%

7.5 mln. tons

240,000 TEU

100,000 units

75,000 TEU

Novorossiysk

General cargo

Bulk cargo

Liquid cargo

Container terminal

25% («Summa Group» share)

471,4 thsd. TEU

Khabarovsk Logistics center (10 ha) 98% 2200 TEU

Mikhnevo Logistics center (69 ha) 100% Under construction

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FESCO share in JSC "TransContainer" is 23.7%

FESCO services: Global map

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Russia St. Petersburg

Hamburg Rotterdam

Europe

SEA

CIS

Pusan

Dalian

Xingang

Qingdao

Shanghai

Hong Kong

Haiphong

Turkey

Genoa

China

India

Japan

Jakarta

Bangkok

Chennai

Nhava Sheva

Singapore

Manila

Yokohama

Korsakov

Magadan

Petropavlovsk-Kamchatskiy

Anadyr

Istanbul

Izmir

Hochiminh

Tallin

Riga

Klaipeda

Antwerpen

Moscow

Novorossiysk

Ekaterinburg

Khabarovsk

Novosibirsk

Zabaikalsk

Dostyk

USA

Vladivostok

Ocean lines

Rail freight

FESCO Shiping Lines

• 9 own regular container lines, calling at Russian Far East ports

• Major market share of Russian export-import container shipments in the Asia-Pacific Region

• 4 domestic container lines

• 5 export-import container lines

• 2 Ro-Ro lines

• Direct connection between FESCO export-import and domestic lines services

• Direct link with rail service via FESCO own container terminal VCT

• Wide transshipment geography

Regular sea lines in the Asia-Pacific Region

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• Own feeder service from: Dunkirk, Zeebrugge, Rotterdam and Hamburg to St.Petersburg and Ust Luga

• Sailing frequency: weekly service

• Transit time from European ports to St.Petersburg: 5-6 days

FESCO Shipping Lines FESCO ESF Container line

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Sea freight

Rail freight St. Petersburg

Ust Luga

Hamburg

Rotterdam

Zeebrugge

From Italy

Dunkirk

Europe

FESCO Shipping Lines FESCO Black Sea Services

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Russia

China Turkey

Europe

Sochi

Dalian

Pusan

Xingang

Shanghai Ningbo

Yantian

Genoa

La Spezia

Felixstove

Bremerhaven

Antverpen

Feader service FESCO Black sea Shuttle: Novorossiysk – Sochi – Izmir (Alsancak) – Gebze (Yilport) – Istanbul (Kumport) – Novorossiysk

FBSS FE: from Asia-Pacific region

FBSS MED: from Genoa/La Spezia/Salerno

FBSS EU: from Antwerpen/Felixstowe/Bremerhaven

Sales frequency: weekly service

Izmir Salerno

Istanbul

FBSS FE

FBSS EU

FBSS MED

FBSS Shuttle

Novorossiysk

From USA

Russia

USA Oakland

Los Angeles

Seattle

Magadan

P.Kamchatskiy

Vladivostok Vostochny

Pusan

Korsakov

FESCO Shipping Lines West Coast of the USA - Russia

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FESCO Shipping Lines East Coast of the USA – Russia

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New York

Norfolk

Savannah Miami

St.Petersburg

Bremerhaven

Kotka

Baltic

ports

Chicago

USA

Russia

Novorossiysk

Sochi

FESCO Shipping Lines RO-RO lines

Regular RO-RO service. Ports of direct call: Japan: Yokohama, Nagoya, Kobe, Osaka, Hamada, Omaezaki China: Shanghai, Xingang Russia: Vladivostok

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FESCO services From Europe to Russia and CIS

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Russia

Europe CIS

St.Petersburg

Brest

Slawkow

Chop

Southampton

Rotterdam

MAIN ROUTES: From Europe to Russia and CIS via St.Petersburg/Riga (with the further oncarriage by truck or rail)

From Europe to Russia and CIS by rail (via:Brest/Slawkow/Chop and another)

From Europe to Russian Far East (Ocean freight)

Tallin

Riga

Klaipeda

Hamburg

Antwerpen

Valencia

Barcelona

Genoa

Novorossiysk Vladivostok

Sea freight

Rail freight

Unique experience Transportation to Central Asia and the Middle East

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From North

America

From Europe

Ventspils Muuga Klaipeda Riga

KAZAKHSTAN

CHINA CENTRAL ASIA

AFGHANISTAN

Transportation of container and conventional cargo from Europe, USA to Central Asia and the Middle East via Baltic ports • FESCO is the operator of unique container block-train “BALTIC-TRANSIT” which offers the

express delivery for cargo from Europe, North America and Asia pacific regions to Kazakhstan, Central Asia, Afghanistan and back via Baltic ports (2-3 trains per week)

• From 2009 FESCO was involved in transportation of cargo for U.S. Army ISAF (International Security Assistance Forces) located in Afghanistan

• In the year 2012 12273 TEU were transported to CIS and 2045 TEU to Afghanistan • In the year 2013 «BALTIC-TRANSIT» block-train celebrating its tenth, during 10 years of work

train transported over 125 000 TEU • Service is for dry and reefer containers

FESCO services Regular block-trains

FESCO Moscow Shuttle (Block Train) 8 times a week (Vladivostok - Moscow) FESCO Siberian Shuttle (Block Train) 2 times a week (Vladivostok - Novosibirsk) FESCO Ural Shuttle (Block Train) 1 time a week (Vladivostok - Ekaterinburg)

FESCO Amur Shuttle (Block Train) 3 times a week (Moscow –Khabarovsk)

Moscow – Russian FE ports via Vladivostok (Block Train) 4-5 times a week

Moscow – Novosibirsk (Block Train) 1 time a week

Slawkow – Moscow (groups of wagons) 1 time a week

Russia

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Moscow

Slawkow

Ekaterinburg

Khabarovsk

Novosibirsk

Vladivostok

FESCO advantages:

• Over 10 years of experience in oversize/project cargo handling (all rail or sea+rail transportation)

• Expertise of the cargo: assessment of oversize grade for out-of-gauge cargo, loading scheme development

• reloading at border crossing points, fixing of cargo, control of reloading operations

• Special escort for out-of-gauge cargo (covered wagon with guards)

• Cargo tracing system

FESCO services Conventional and project cargo

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Moscow & St. Petersburg branch offices

Rolling stock: 550 specialized flat wagons,

65 diesel cars

Reefer container terminal

Motor vehicles 25 freightliners for reefer

containers

FESCO services Transportation of the perishable cargo

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Vostochny

Vladivostok

Moscow/St. Petersburg: • Baltic customs (shipping); • St. Petersburg Customs (auto and rail transportations); • Customs Excise; • Pulkovo Customs (transportation by air); • Moscow regional Customs (auto transportation); • Moscow Customs (railroad transportation)

Moscow

Vladivostok: • Vladivostok Seaport (Commercial port of Vladivostok); • Pervomaysky customs post (Vladivostok Sea Fishing Port); • Vladivostok Airport

Nakhodka (Vostochny): • Vostochny Seaport (поселок Врангель) • Sea port of Nakhodka

Novorossiysk: • Novorossiysk Sea

Commercial Port • Imeretinskiy Port (Sochi)

Novorossiysk

St. Petersburg

FESCO services FESCO Broker – the Customs clearance

Unique experience Projects for automobile industry

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The results of FESCO activity in figures : Via Vostochny: Via Novorossiysk: HYUNDAI: S.Korea – Taganrog (14397x40’HC) SOLLERS: Turkey – Nab. Chelny (1625x40’HC) SOLLERS: S. Korea - Nab. Chelny (3497x40’HC) IzhAuto: S.Korea – Izhevsk (6258x40’HC) Via Brest: Derways: China – Cherkessk (1800x40’HC) OPEL: Germany – Tolyatti (860x40’HC)

Novorossiysk

Taganrog

Cherkessk

Nab. Chelny

Izhevsk

Vladivostok

Tolyatti

Tashkent

Vladivostok Automobile Terminal

• Berths #3-4 of Vladivostok port

• Annual capacity of 100 000 cars

• 3 warehouses, including 10 level parking lot with capacity of 1 000 cars

• Cargo base – new imported cars and heavy duty vehicles from Japan & Korea

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Why FESCO

• Efficient intermodal solutions for shipments from/to Russia and the CIS based on own logistics assets and agency network

• Wide range of services, routes and cargo solutions available from a single logistic provider

• Global network of sales offices in Russia, CIS, Asia Pacific, Europe and US

• Competence and reliability based on a great experience in international and domestic transportation

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Web page: www.fesco.ru Email: sales@fesco.com (rate request and cooperation)

Thanks for attention