APM Terminals has announced that it is entering the Russian market in a strategic partnership with leading transportation group N-Trans.
By acquiring 37.5 per cent of the public company Global Ports, APM Terminals becomes an equal controlling partner in the leading operator of container terminals in Russia – N-Trans had been the sole controlling shareholder of Global Ports with 75 per cent ownership.
The transaction values Global Ports approximately at US$2.3bn, making APM Terminals’ share acquisition the largest foreign direct investment in Russia’s transportation industry to date.
With the new partnership, APM Terminals adds three container terminals in Russia, two container terminals in Finland, one inland container depot in the vicinity of St Petersburg and a major oil and oil products terminal to its global network.
According to the group, APM Terminals will also be able to play a major role in expanding terminal capacity for future demand in Russia and neighbouring countries 'when the right opportunities present themselves'.
'Russia will need world-class port infrastructure and operational excellence to serve global shipping lines and its own ambition of economic development,' said APM Terminals' CEO Kim Fejfer. 'Today we are proud to announce that we found an excellent partner to expand our network to Russia. Global Ports has a well-diversified port network, a very experienced management team, a sound customer-focus, and a good eye to grow the business,” commented Kim Fejfer.
'This investment underpins our long term business development strategy of increasing presence in high-growth markets. The scale of entry in a market like Russia will further strengthen our diversified global portfolio. The partnership will also serve as our platform for future business development activities in this attractive part of the world,' added Francois-Xavier Delenclos, APM Terminals’ Vice President of Strategy and Business Development.
