FESCO doomed to extinction?
A well-known Far Eastern Shipping Company (FESCO), one of the oldest Russian shipwoners, is on the brink of extinction as a shipowner. FESCO found itself in difficult situation since the fall of the USSR, losing position, losing fleet, losing lines and losing staff. With new director, Mr. Magomedov, a factual liquation of FESCO as a shipowner is taking place, writes to Maritime Bulletin a source which asked for anonymity. 21 vessels were sold last year, company still operates some 20-27 vessels, some of them in a lay-up. Stuff cuts are under way.
Mr. Magomedov explains it by his understanding of shipping business – shipping itself, fleet ownership and operating, is rather bothersome and risky undertaking. Logistics is much more easy and profitable business, than shipping, says Mr. Magomedov. Especially in Russia, where the access to cargo flows often is determined not by services one may offer, but by right connections and bribes to right persons.