Global Ports Group and the Corporation for the Development of the Far East and the Arctic (FEDC) have entered an agreement to invest in Vostochnaya Stevedoring Company (VSC)’s marine container terminal expansion project in the Primorsky Region port territory.
Parties signed the corresponding agreement on 6 September.
Under the deal, Global Ports will invest at least 10 billion Rubles ($163.7 million) in VSC’s development up to 2030. The Group said it will fund modern handling equipment procurement, upgrade infrastructure and will increase yard and rail capacities.
FEDC will assist Global Ports in VSC’s development with account to the region potential. The partnership will cover land plots selection, infrastructure issues, and getting state support for the project.
“The Far East ports significance in the overseas trade flows has increased drastically,” said Albert Likholet, CEO of Global Ports Group.
“The Group has been consistently investing in VSC for many years which allows the terminal to handle export and import cargo efficiently and uninterruptedly under high market volatility and peek loads.
“The intensive development of VSC as a responsible investor of Primorsky region and big container hub in Russia remains a priority for the Group, and we view the Far East and Arctic Development Corporation as a strong partner for our strategic plans implementation.”
READ: Maersk sells off Global Ports stake
“The expansion of the VSC marine container terminal in the port of Vostochny will increase the volume of container turnover in the south of Primorye, providing new jobs and attracting private investment to the region,” added Nikolay Zapryagaev, CEO of FEDC.
“The implementation of the project will contribute to the development of the region’s production potential and strengthen our country’s export positions.”
Last month, Global Ports released its interim consolidated financial results (unaudited) for H1 2022, posting a near to 20 per cent increase in spite of weaker cargo traffic.
The company’s revenue increased by 18.2 per cent to $271.6 million compared with the same period in 2021, while gross profit adjusted for impairment increased 28.8 per cent to $129.9 million.