Publications

07.11.2018

DELOPORT WILL INVEST OVER 7.3 BLN RUB IN PORT INFRASTRUCTURE DEVELOPMENT TILL 2020

As a part of its investment program, DeloPorts will invest over 7.3 bln rub in infrastructure projects at the terminals, said Company’s spokesmen to RIA Novosti.


“The investments in the construction of the unique deep-water berth No 38 at NUTEP Container Terminal will amount to about 3.6 bln run. The commissioning is expected at the beginning of the second quarter 2019. And 3.7 bln rub is set aside to invest in the expansion of KSK Grain Terminal throughput capacities till 2020”, - DeloPorts confirmed.

DeloPorts will invest in KSK development project in Novorossiysk 2.2 bln rub of own funds and 1.5 bln rub borrowed on the line of credit subsidized by the Ministry of Agriculture. Project financing of deep-water berth construction at NUTEP is also conducted with own funds and funds attracted at commercial banks.

The project will allow KSK to increase its throughput capacities by 1.5 mln tonnes to 6.5 mln tonnes per year by 2020. Meanwhile the deep-water berth will allow NUTEP to handle ocean type vessels up to 10 thous. TEUs and double its throughput capacity – to 700 thous. TEUs.

By the end of 2018 DeloPorts plans to expand its tug-boat fleet operated by the Service Company “Delo” with by two tug-boats. Currently the Company operates three own Damen tugboats. The project cost is not disclosed.

“DeloPorts” is a Russian holding company that owns stevedore assets and the service company of Delo Group, owned by Sergey Shishkarev. The assets were incorporated in a holding company in 2012.

Source – Prime, 07.11.18
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24.09.2018

EXPANSION OF KCK GRAIN TERMINAL IN NOVOROSSIYSK IS TO BE COMPLETE IN 2020

The expansion of KCK grain terminal is due to be complete in 2020, TASS quotes Andrei Lyan, Cargill (owns 25% of the terminal) director for public and state authorities relations.


In October 2016, FSUE Rosmorport and joint-stock company KCK Grain Terminal signed an agreement for cooperation on the implementation of the project for reconstruction of the grain terminal to boost its throughput capacity from 2.5 mln tonne/year to 4 mln tonne/year.

The document provided for cooperation of the parties on design and construction (reconstruction) of berths No. 40A, 40, 41, 2 and 3 in the Port of Novorossiysk to ensure maritime safety and to boost the throughput capacity of joint-stock company KCK Grain Terminal for 1.5 mln tonne/year.

Joint-stock company KCK Grain Terminal is one the stevedore assets of DeloPorts Ltd., Russian holding company, which owns the stevedore assets of Delo Group. The assets include NUTEP container terminal, KCK grain terminal and TOS bunkering company. In 2015, the total throughput of the terminals amounted to 5.5 mln tonnes.

The deep-water grain terminal handles cargo in the Port of Novorossiysk. Aside from bulk cargo, the terminal handles general and ro-ro cargos.

For the first half-year of 2018, the net profit of DeloPorts Ltd. of Novorossiysk amounted to 2.81 billion roubles and that is 42% more than the year before. The proceeds for the same period grew by 34.2% to 5.41 billion roubles. Consolidated EBITDA grew by 47.1% to 4.01 billion roubles. EBITDA profitability amounted to 74.2% compared with 67.7% in the first half-year of 2017.

In January-June 2018, the amount of cargo handled at the terminal of DeloPorts Ltd. amounted to 4.6 mln tonnes which 30% higher than the same period of the last year.

For more detail go to RBK:

https://kuban.rbc.ru/krasnodar/freenews/5ba8855e9a794782e38521b8


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20.09.2018

“100% of the ships touching at our terminals are serviced with our own tugs”

Коммерсантъ 20.09.2018
DeloPorts company, which manages the neighboring container and grain terminals of the Port of Novorossiysk, has implemented a non-trivial for stevedoring companies investment project to acquire four own tugboats . As per Igor Yakovenko, General Director of the company, this has allowed drastically to speed up the ship servicing at the terminals. And once the construction of the new container berth is complete, Delo will acquire two more pieces of the same equipment.


BG: Tell us, how did you arrive at the idea of acquiring your own tugging fleet?

IGOR YAKOVENKO: We’ve been working in Novorossiysk for 25 years. We constantly analyse the market and fully realize what our customers lack to work effectively. To service a ship in a port is an entire set of various services: agency services, forwarding, bunkering (refuelling a ship - "Ъ"), tugging, piloting, ship-chandler services, etc.

Usually, the customer is unable to order all these services from a single operator. And there is a substantial element of discordance in the operation of each of them.

Since long, Delo Group has its own maritime agency and own bunkering company, which has its independent business, but it was the tugboats that we outsourced. A few years back, we began an analysis as to see how our operation would change if we provided all these services to our customers in an all-inclusive fashion. According to our calculations, the integration of the bunkering and tugging services had to produce a powerful synergy effect to speed up the operation at our both terminal – the grain and the container.

As a result, we made a decision to create on the basis of our maritime agency and the bunkering company a single service company Delo, which commenced its operation in June last year. Yet in 2016, we placed an order for three tugs with one of the leading world manufacturers of this class equipment - Dutch company Damen Shipyards. Now the tugs effectively operate in the Tsemes bay. We expect the forth tug at the end of the year.

We see that it has already affected the load capacity and even the structure of the freight turnover at our container terminal. The ship and cargo processing speed, which we assure, has turned out to be an important parameter for refrigerator-type cargo carriers. Lines that work with the reefer containers, as soon as they saw our capabilities, started to use our terminal more actively, although before we acquired the own tugs, we hadn’t been able to assure this required speed and rhythmicity.

BG: What project efficiency indicators can you quote?

I. Y.: The first months of the operation showed us excellent indicators: about 70% of out clients ordered the tugging services from us. And today, 100% of the ships touching at our terminals are serviced with our own tugs. This means that the customers saw the manufacturability of it and how convenient and quick it was.

Saying manufacturability, I mean the operation proper of our terminal. It’s the timeliness of berthing that practically all the types of operations with the cargo depend on. We have got the only railroad for both the container terminal and the grain one. Therefore, we have to feed cars either for grain or for containers. We need to take into account the busyness of the automobile road and the feed of the auto transport to load and unload, plan the loading of the grain silos, operatively utilize the capacity of the container storage and so on.

Now, we can assure this ten times more effectively and quickly since we are independent of external tugging companies, which not infrequently had us at the end of the line. Today, thanks to the compact arrangement of the terminals, our tugs, which are based at NUTEP, can move forwards to KCK and back in a matter of minutes: as soon as a grain bulker is berthed they go out in the roads to get a container ship and so on.

BG: Will this service operator be profitable in itself or it’s an auxiliary business for DeloPorts?

I. Y.: It’s been only half a year since the project’s in operation, so we only glean the statistics. Preliminary estimates are very positive first of all in the growth of the manufacturability of the operations. But I am certain now: if we calculate all the non-productive downtime that we had had at the terminals before acquiring our own tugs, then it will be a very profitable project in any case. We see that our work has been approved by the customers and, under the conditions of the market today, it is as important as gaining profit.

I will say more: as soon as we have finished the investment project to build the new container terminal No 38 at NUTEP and the new silo capacities at KCK, the number of the tugs we have will not suffice. This very summer we won the approval by the shareholders of the next investment stage and will be buying two more tugs of the same build. It’s a long standing tradition that the god mothers for our boats are leading players of the handball national team Russia. Delo is the general sponsor of the Russian Handball Federation.

BG: And aren’t the Russian ship builders able to supply the equipment of the needed category?

I. Y.: They are able but at the time we placed the order in 2016, all the domestic shipyards were busy with the government order. They simply couldn’t prepare tugs with necessary characteristics and in the amount needed: we weren’t satisfied that they would come to us a year later than it was required. Therefore, we had a contract with Damen, which had the ships we needed available “in stock”. And we’re very pleased with this cooperation.

Interviewed by Alexei Ekimovsky

https://www.kommersant.ru/doc/3739187


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18.09.2018

HOME PORT – BELOVED NOVOROSSIYSK

It was the initiative of Delo Group to open in Novorossiysk the only commemorative sign to port workers in Russia.


Kuban news

The unveiling of a memorial to sea port workers. Photo by Anatoly Pozdnyakov

It was the initiative of Delo Group to open in Novorossiysk the only commemorative sign to port workers in Russia.

Foreign ships called at our harbour.

The Port of Novorossiysk is a company-town type of enterprise. Since 1845, many Black Sea routes meet here, connecting Russia with Africa, Asia and America. The port workers built the city, defended it during the war and rebuilt it later from the ruins. Perhaps there is not a single family in Novorossiysk where everybody has nothing to do with the port.

Sergey Shishkarev, president of Delo Group, too thinks himself a port worker by birth. As a child, he often happened to be in the port watching his father work, who had been a dispatcher for many years. Thirty years later, he was twice elected to the Board of Directors of NCSP. He knows what makes up people’s lives here and he sincerely respects each of them who has ever worked here. The port and the city is a single organism, their fates are tied inseparably. That’s why both the townsfolk and the city hall were responsive to the idea of creating the commemorative sign To Port Workers of Novorossiysk.

The activity of our company has a wide geography. We have access to all the seas of Russia but we never forget that our “home port” is Novorossiysk. We sincerely love our city and are always ready to invest in its development particularly in its beautification. We believe there will be another nook which people of Novorossiysk will love. Many thanks to the city’s officials who supported our idea.

Delo Group has recently commemorated its 25th anniversary. Throughout this time, probably not a single social project in Novorossiysk has been implemented without the participation of the Group’s companies. The city hospital, the children’s hospital, rehabilitation centre Romashka, the charity fund for support of family, motherhood and childhood Sun in the Palms, the regional division of Russian Children’s Fund and the educational institution for orphans and children without parental custody are among the friends and organizations being sponsored.

With overall assurance

The whole process took about three years from the inception of the idea to its actualization. The action group, which included veterans, port workers and just enthusiasts enamoured of their city, had gone through all the stages: from many verifications by supervisory bodies to approvals of sketches and the placement spot. The financing was provided on a parity basis by Delo Group and Novorossiysk Commercial Sea Port. But also some government and private companies and individuals donated for the installation of the commemorative sign.

A very beautiful place has been chosen – there where the quay comes up to the territory of the port; now there is a young girl-tallyman, two dock-engineers busy with the loading and a stevedore standing in the shade of trees. Konstantin Kubyshkin, sculptor from Moscow, had gone through a multitude of photos and twice had come to the port before he had an image of the commemorative sign.

“The idea was for people to recognize port workers in this group and not just representatives of the industrial workforce, to recognize themselves”, says the author. “I tried to completely follow the truth of life: if the safety measures require hard hats and light reflecting vests then they must be on the sculpture. The inscription “This side up” and the arrows indicating the direction were added on the crate at the last minute. A small concession was made for one nuance – we didn’t take away the rope cables and mooring bollards, which were positioned too close to the people. The safety measures don’t allow this but everybody had taken a liking to these elements symbolising work at sea.”

The height of the sculpture group is 2.5 metres, the width – 4 metres. On the granite slabs on each side of the memorial, there are words from a decree by the Emperor Nikolai I to establish a new Russian port on June 30, 1845 and the words of its significance nowadays.

Dedicated to dockers, tallymen, stevedores

The opening of the new memorial was timed to commemorate three dates at once: 180 years since establishing Novorossiysk, 75 years since the rout of the German fascists at Novorossiysk and 45 years since gaining the title of Hero City. Igor Dyachenko, mayor of Novorossiysk and an honoured guest, remarked that it was a landmark event. “Novorossiysk has always been and will be a city of port workers, seamen and cement plant workers. And this memorial for the port workers perpetuates the work of all the professions of the commercial sea port, of all its epochs. I am very much thankful to all who has financed the creation of the monument: Delo Group, Novorossiysk Commercial Sea Port, entrepreneurs and partial citizens. Thanks to you all, there is such a memorial and I am sure it will be one of favourite sights of the city.”

Igor Terentiev, first Deputy General Director of PJSC NCSP, reminded that among more than 600 memorials of the city up to this day there had been not one dedicated to port workers. Now this injustice has been rectified. The commemorative sign underscores the significance and prestigiousness of port professions, glorifies the work of the port workers of Novorossiysk and their input in the development of the region and the country.

Hundreds of townspeople have come to the opening ceremony including those whose life has inseparable ties with the port. Valentina Vlasenko can be proud to say that she belongs to two port dynasties at once – the father Nikolai Leontievich has worked as a docker for 20 years; the husband’s family worked here too and she as well can’t imagine her life without the port. Once retired, she became an active member of Veterans’ Council. And, of course, she just couldn’t miss out on this historic event – an opening of the memorial.

“One can say that this is a memorial to my parents who right after the war were rebuilding Novorossiysk”, says Valentina Nikolaevna. “The port developed on my watch and the city developed along. Sergey Shishkarev is ours, local; therefore, he understands how much the port workers have done for the city. I bow down to him for this remarkable idea!

And the new commemorative sign has already been living its life. The townspeople came up with a tradition right away: if you rub the bronze sculpture, it will bring sure luck. The same way the port workers bring luck throughout many years to the home town.


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30.08.2018

FINANCES OF DELOPORTS AS PER IFRS

SeaNews 
DeloPorts Ltd. has published the consolidated financial results for the first half-year of 2018 in accordance with IFRS.


The company’s adjusted net profit for the reported period of 2018 is 2,916 mln roubles, which is by 49.4% higher than in the 6 months of 2017.

The proceeds grew by 34.2% to 5,416 mln roubles.

The EBITDA indicator grew by 47.1% to 4,019 mln roubles, whereat the profitability according to EBITDA grew by 74.2% vs. 67.7% of the first half-year of 2017.

The operational cash flow in the reported year of 2018 grew by 55.6% to 2,943 mln roubles.

The capital costs over 2017 grew by 2.9 times to 1,542 mln roubles.

The net debt over the 6 months of this year has amounted to 16,047 mln roubles, which is 3 times more when compared with December 31, 2017. The significant increase in the net debt was stipulated by a new dollar bonded loan, the company states.

Just a reminder, DeloPorts incorporates the assets of NUTEP container terminal, KCK grain terminal and Delo Service Company. The total amount of cargo put through over the 6 months of 2018 amounted to 4.6 mln tonnes of grain which is by 30.3% higher than over the same period of 2017.

http://seanews.ru/en/2018/08/30/finansy-deloports-po-msfo-3/


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01.08.2018

CARGO OF DELO

SeaNews

The amount of cargo handled by DeloPorts Ltd., i.e. incorporates the stevedore assets of Delo Group (NUTEP container terminal, KCK grain terminal and the service company Delo) in the first six months of this year grew to 4.6. mln tonnes. That is 30% higher than the same period of the last year.



When broken into segments, grain takes up more than half of the cargo (KCK grain terminal). When compared with the 6 months of 2017, the amount of grain handled has grown by 40 % to about 2.4 mln tonnes.

The containers also take up a significant share of the cargo handled. During January-June 2018, the amount of containers put through grew by 28% to 2.2 mln tonnes.

During the 6 months of this year, the container terminal NUTEP handled 186 thousands TEU which is 12% higher than the same period of the year 2017.

Regarding the other cargo segments, the growth is negative. The amount of general cargo handled amounted to 1 thousand tonnes only, i.e. 99% below the same period of the last year. The volume of the ro-ro cargo went down by 65% (to 7 thousand tonnes).

During the first half-year of 2018, Delo Service Company which specializes in the bunkering of all kinds of ships in the Port of Novorossiysk sold 14% (to 27 thousand tonnes) less bunker fuel.

Since June 2017, Delo Service Company has begun providing ship’s agency services in the Port of Novorossiysk. The number of ships serviced during the 6 months of 2018 grew 5.4 times to 113 units. During January-June, there were 457 mooring operations.

http://seanews.ru/en/2018/08/01/gruzy-dela-4/


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16.07.2018

CARGO THROUGHPUT OF DELOPORTS OF NOVOROSSIYSK IN JANUARY-JUNE OF 2018 GREW BY 30%

RBC
The cargo through put of DeloPorts Ltd. of Novorossiysk in January – June 2018 grew by 30% to 4.6 mln tonnes as of the same period of the last year, the press service of the company reported.


The holding company accounts for the increase by the growth in the numbers of containers put through NUTEP terminal, owned by DepoPorts Ltd., both in tonnes and twenty foot containers – 12% and 28% respectively, the growth being the result of the continuing recovery of the Russian container market.

Besides, the growth in the amount of grain, being a result of good wheat harvest, handled by KCK terminal (+40) also counted.

The proceeds of DeloPorts in 2017 amounted to 8.79 billions of roubles, as RBK Krasnodar reported. They grew by 12.7% as compared with 2016. The net profit of the company, allowing for the exchange rate due to re-evaluation of the obligations denominated in foreign currency, grew by 4.1% to 4.24 billion roubles.

In April 2018 the rating agency Standard & Poor’s lowered the long-term corporate credit rating of DeloPorts Ltd. from BB- to B+ with stable outlook. The lower rating is caused by the close of the deal to buy out 30.75% stake in Global Port Investment PLC. by the parent company Service Company Delo Ltd. To finance the deal, DeloPorts issued bonds for 140 mln dollars. Besides, Delo Group took out a loan.

In May, RAEX agency (Expert PA) lowered the company’s ratings to ruA level for the same reason. Besides, “under monitoring” status was removed from the company.

DeloPorts Ltd. was registered in Novorossiysk in 2015. The company is one of the Russian largest stevedore holding companies that incorporates assets of Delo Group in the grain and container segments. The holding company includes NUTEP container terminal, KCK grain terminal and TOS bunkering company.

For more details go to:

https://kuban.rbc.ru/krasnodar/freenews/5b4ca9309a79473eaaa6af25


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11.07.2018

DELOPORTS ISSUED BONDS FOR 3.5 BILLION ROUBLES WITH THE 9.4% COUPON

PRIME
Stevedore DeloPorts has issued bonds for 3.5 billion roubles for 5 years with the 9.4% coupon, the company’s statement reads.


The company announced the issuance of bonds of 001P-01 series for 3.5 billion roubles. There is no offer on the bonds. The coupon interest rate at the close of the entry book is set at 9.4% annually (which corresponds to profitability of 9.62% annually), the statement reads.

The total demand for the 9.4% coupon was 9.5 billion roubles. Raiffeisenbank, Sovcombank and GPB (Gazprombank) organized the issuance. The bonds have been issued under the programme for exchange bonds of DeloPorts registered in August 2016. The amount of the programme is 50 billion roubles or an equivalent to this amount in foreign currency. The maturity of the bond issue under the programme is up to 10 years.

At the same time, the company offered to take the bonds of the first series out which it issued in November 2015 for the amount of 3 billion roubles with the 13.8% annual rate for the half-year coupons till the offer in November 2018.

“The new issuance for 3.5 billion roubles for a 5 year period allows extending the maturity date for the current obligations of DeloPorts and lowering the borrowing costs from 13.8% to 9.4%. The specificity of the deal is that the profitability for the redemption of the old stock is based on the profitability for the new issuance with a small premium. As a result, investors used the offer for the total amount of 2.1 billion roubles,” said Andrei Bubnov, General Director of Delo Service Company.

DeloPorts is a holding company, which owns stevedore assets of Delo Group. The assets include NUTEP container terminal, KCK grain terminal and TOS bunkering company. The both terminals are located in Novorossiysk.

https://1prime.ru/finance/20170711/827667342.html


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28.04.2018

S&P LOWERED THE CREDIT RATING OF DELOPORTS OF NOVOROSSIYSK

RBC
The rating agency Standard & Poor’s has lowered the long-term corporate credit rating from BB- to B+ with stable outlook, the press statement of the agency reads.


The lower rating is caused by the parent company Service Company Delo Ltd. closing the deal on the buy-out of 30.75% stake in Global Port Investment PLC. To finance the deal, DeloPorts issued bonds for 140 mln dollars. Besides, Delo Group took out a loan.

“Since DeloPorts is the principal source of income for Delo Group, it’s this company that will be liable for the debt repayment”, Standart & Poor’s analysts state.

Global Ports is the largest operator of container terminals. There are five such terminals in Russia and two in Finland under its management. The company’s assets are in the Baltic and the Far East.

The agency also expects that the proportion of funds from operations (FFO) to the company’s debt may amount to 23% in 2018 and to 25% by 2019. For comparison: this proportion was 46% in 2017. If FFO to the debt drops below 15%, the company’s rating may be lowered again, the analysts say.

Yet in December 2017, S&P predicted the deal would entail the lowering of the ratings of DeloPorts Ltd.

The proceeds of DeloPorts (corporate affiliate of Delo Group) in 2017 amounted to 8.79 billions of roubles, as RBK Krasnodar reported. They grew by 12.7% as compared with 2016. The net profit of the company, allowing for the exchange rate due to re-evaluation of the obligations denominated in foreign currency, grew by 4.1% to 4.24 billion roubles.

DeloPorts Ltd. was registered in Novorossiysk in 2015. The company is one of the Russian largest stevedore holding companies that incorporates assets of Delo Group (under control of businessman Sergey Shishkarev) in the grain and container segments. The holding company includes NUTEP container terminal, KCK grain terminal and TOS bunkering company.

For more details go to:

https://kuban.rbc.ru/krasnodar/freenews/5ae42cae9a7947b85a9af960


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13.04.2018

DELO WILL PARTITION THE PORTS

The group will manage the old and new assets separately


Newspaper "Коммерсантъ" №64 of 13.04.2018, page 8

Delo Group has sealed the deal to acquire 30.75% of Global Ports port holding company from N-Trans of Nikita Mishin, Konstantin Nikolaev and Andrei Filatov for about $250 mln. The deal terms read that Global Ports and DeloPorts, stevedore asset of Delo, will be managed separately and keep the competition in the market. To do this, the assets had to be isolated one from the other at the Board of Directors level. The sellers will spend the proceeds on their own projects.

On Thursday, Delo Group of Sergey Shishkarev and N-Trans of Nikita Mishin, Konstantin Nikolaev and Andrei Filatov closed the deal to acquire by Delo 30.75% of Global Ports, a large Russian stevedore company. The company announced about the deal at the end on 2017 (see “Ъ” of December 21, 2017) and the FAS approved the deal on 16th February.

As Sergey Shishkarev explained to “Ъ”, the value of the transaction was “slightly below a quarter of a billion dollars”. He didn’t disclose the exact amount saying that “the deal is closed under the market conditions”. The financing was provided from the own funds of Delo, an issue of exchange bonds by DeloPorts (stevedore asset of the group) and a credit line from Sovcombank.

There are five container terminals under the Global Ports management in the Russian Federation and two in Finland. According to IFRS, the earnings for the first half-year of 2017 are $162 mln, EBITDA — $97,3 mln, the net loss - $11.9 (versus $113.4 mln profit a year earlier). The net debt is $1.03 billions. Dutch A.P. Moeller-Maersk through Netherland APM Terminals B.V. owns 30.75% of the shares and Cypriote Ilibrinio Establishment Limited и Polozio Enterprises Limited own 9% each. N-Trans owned the share of Global Ports through Transportation Investments Holding Ltd (TIHL). DeloPorts, the main asset of Delo, includes NUTEP container terminal, TOS bunkering company and KCK grain terminal. The consolidated earnings of DeloPorts for 2016 are 7.8 billions of roubles. Also, Delo owns ship repairing, railroad and grain assets.

The terms of the transaction have no provision about making an offer to other shareholders. The relationships with strategic partners of Global Ports are not to be changed: Delo Service Company has joined the shareholding agreement with APM, replacing TIHL therein. The partners will draw up a new development strategy for Global Ports “in the upcoming autumn of 2018”. As Delo Group explained, the first steps towards this end are expected to be made by the end of May. The strategy may provide for diversification in the cargo nomenclature, “for example, Ust-Luga develops as an industrial cluster with a clear-cut export orientation”.

Delo Service Company will operate DeloPorts and Global Ports separately. There will be a “Chinese wall” between the assets which will prevent the overflow of sensitive information, as Anton Chertkov, member of the Board of Directors of Delo explains. This explains the reshuffles among the management positions: the members of the Board of Directors of DeloPorts will not be on the Board of Global Ports and vice versa. But the agreement provides for Sergey Shishkarev to be on the both boards and participate in management of the companies.

According to information “Ъ” has obtained from N-Trans, the shareholders intend to spend the funds on personal projects in various industrial branches. Andrei Filatov has plans to invest in SRP-project of the “25 years of independence” gas field in Uzbekistan. Nikita Mishin will continue supporting Russian education under Dar fund, as the company stated.

The FAS approved the acquisition under a number of conditions, particularly requiring Global Ports to set within 30 days after the deal is closed rouble tariffs at an economically justified level or lower. They mustn’t be above the prices of 2013-2014, allowing for the inflations. As the Group explained to “Ъ”, Global Ports and Delo interact with the FAS on this issue on the basis of the settlement agreement signed between the FAS and Global Ports in December 2017.

As Michael Burmistrov, head of Infoline-Analitiki, comments, under the market volatility induced by the sanctions, a deal without a discount for foreign currency risks is more beneficial for the seller than in December. He explains that appearingly the period for rouble stability has ended and the FAS, while insisting on changing the port tariffs to roubles, this way will decrees the marginality of the stevedore companies and their steadiness against foreign currency risks when servicing the debt.


Natalia Skorlyghina



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06.04.2018

DELOPORTS WILL PLACE BONDS AT MOSCOW STOCK EXCHANGE FOR $140 MLN

Newspaper “Kommersant”
As DeloPorts Ltd. reports, it will place at Moscow Stock Exchange publicly offered exchange bonds with the coupon being calculated from April 10, 2018. The bonds to be placed are documentary interest-bearing non-convertible bearer bonds with mandatory centralized storage.


According to the company, the total number of the bonds will be 140 thousands with the nominal value of $ 1,000. Thus the total amount of the bonds to be placed will be $ 140 mln. The company also states that the coupon for 14 coupon periods from April 10, 2014 till April 1, 2025 will be 6.75% annually.

DeloPort Ltd., i.e. part of Delo Group, is one of the Russia’s largest private transport-logistic holding companies. The Group’s companies provide services in cargo handling and ship bunkering in the Port of Novorossiysk, railroad and multimodal container transportation, forwarding, customs clearance of exports-imports in Russia and the CIS, supply of crude oil and petroleum products. According to «SPARK-Interfax», Sergey Shishkarev is the beneficiary. According to „Ъ“, Delo incorporates the container terminal NUTEP, the bunkering company TOS and the grain terminal KCK. The consolidated proceeds of DeloPorts Ltd. in 2016 are 7.8 billions of roubles. The group also owns ship repairing, railroad and grain assets.

As „Ъ“ said before, in March 2018, the FAS granted the petition by Sergey Shishkarev to acquire 30.75% of Global Ports. „Ъ“ reported on the forthcoming deal in December 2017 when Global Ports itself reported that Transportation Investments Holding Ltd. (group N-Trans of Nikita Mishin, Konstantin Nikalaev and Andrey Filatov) had made a deal with Delo Group to sell this block of stock (see „Ъ“ of December 21, 2017). As per timeline given in the report, the deal was to be closed in April. The value of the transaction wasn’t disclosed; however, based on the capitalization, it had to be around $238 mln.

There are five container terminals in the north-west and the Far East of the Russian Federation under the management of Global Ports with 670 thousand TEU containers put through in the first half-year and two in Finland. The proceeds, according to IFRS, for the first half-year are $162.5 mln, EBITDA — $97,3 mln, the net loss – $11.9 mln (versus %113.4 mln profit a year earlier). The net debt is $ 1.03 billions. Dutch A.P. Moeller-Maersk A/S through APM Terminals B.V. owns 30,75% of the shares and Ilibrinio Establishment Limited and Polozio Enterprises Limited own 9% each.


Коммерсантъ

Andrei Nimchenko


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29.11.2017

S&P CONFIRMED THE RATING OF DELOPORTS WITH “STABLE” OUTLOOK

FINMARKET.RU
International rating agency S&P Global Ratings confirmed the long-term corporate credit rating for DeloPorts Ltd. (head company of the stevedore group) at the level BB-.


The rating’s outlook – “stable”, the agency’s release reads.

“DeloPorts will continue profiting this year due to the improved situation in the Russian container market, which is especially noticeable in the Black Sea, where the company operates, the statement says. – it also has good conditions for exporting grain.”

The agency’s analysts predict growth in the container segment by 18-20% in 2017, in the grain business – by 15%.

S&P GR expects the proceeds of the company grow by 2% next year, profitability EBITDA – by about 70-72%.

DeloPorts is a holding company owning stevedore assets in the south-eastern district of the sea port of Novorossiysk. The company is one of the Russian largest sea stevedores in the south, holding leading positions in the amount of grain and containers handled in the region. The key assets of DeloPorts: NUTEP container terminal, KCK grain terminal and TOS bunkering company.

The cargo throughput at DeloPorts terminals in 2016 amounted to 6 mln tonnes, which is 10% over the last year, whereat the amount of grain handled grew by 18.2% to 3.3 mln tonnes, containers – by 18.2% to 233 thousand TEU.

http://www.finmarket.ru/news/4665480


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13.07.2016

Interview: Everything has to be done fast, the competition is fierce

Newspaper “Kommersant”

Founder and President of Delo Group Sergey Shishkarev about Middle Eastern investors, family business and construction of deepwater berths.




Read the interview in English here

Full version of the interview in Russian read here

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14.06.2016

MASS PRODUCTION TECHNOLOGIES

Market situation
It was 8.5% growth in the amount of cargo handled at the ports of Russia over 2015, and 4.6% growth for the first quarter of 2016. Russia’s active investment since the early 2000s in crude oil facilities, which resulted in their stable expansion, has already had tangible geopolitical results, such as cargo traffic being diverted from the ports of the Baltics. Further development of the ports requires developed infrastructure to handle other types of cargo, export of which is growing, including grain and bulk cargo.


Sea growth

The Russian port industry, unlike the tendencies in the economy, keeps on building up cargo handling capabilities. It doesn’t quite correlate with the incomes of the port workers, but the quantities are growing. In 2015, the amount of cargo handled in the Russian ports grew by 8.5 %, from 623.4 mln to 676.7 mln tonnes; however, this number has been steadily growing since the late 1990s. Average growth for the last 15 years was 9.6%, two-digit growth rates in 2000-2005 and their sharp decline since 2006. The least growth in the amount of cargo handled was in the year of crisis 2008 (by 0.8%); nevertheless, the dynamics was positive.

Currently, there are 67 sea ports with port complexes in the Russian Federation. Three quarters of the amount of the Russian export cargo are transported to the ports via railroad. The capability of the port infrastructure is constantly growing. In 2015, “the entire sea port infrastructure grew by 19.5 mln tonnes”, says Vladimir Putin at a press-conference in December, positively evaluating the growth in the quantity of cargo handled in the ports.

In 2015, the large basins such as Azov-Black Sea, Baltic and Far East demonstrated the highest growth both in percentage and real numbers. The Azov-Black Sea basin became the absolute leader in the growth in the amount of cargo handled, which went up by 38.4% as compared with the last year’s result. And for the first time, it has become the leader in the amount of cargo handed, taking over the Baltic basin in aggregate tonnage (232.9 mln tonnes versus 230.7 mln tonnes).

The first quarter demonstrates different dynamics. While the common growth in cargo handling throughout Russia is 4.6% (to 167.3 mln tonnes), the Arctic basin demonstrated the highest growth in percentage (+18.3% to 10 mln tonnes), growth in real numbers - the Far East basin (4.22 mln tonnes or 9.3%). Crude oil accounts for the noticeable growth in the quantities in the Arctic basin (41.2%) with the ports of Murmansk and Varandey being the leaders, who increased their cargo handling quantities by 24,7% and 21,6% respectively. Among all the ports of the Far East, only the Port of Prigorodnoye demonstrated an insignificant negative dynamics. The others grew, while some of them like Vanino, Nakhodka, de-Kastri and Posiet demonstrated a two-digit growth (Posiet +40.9%).

The Azov-Black Sea basin: the grain future

Today the Azov-Black Sea basin accounts for 34% of the total cargo amount handled at the ports of Russia (232.9 mln tonnes), 58% of which is bulk (liquid) cargos. However, the analysis of the market situation and the tendencies in the export-oriented Russian industries indicate that in the mid-term run the handling of bulk cargo, grain and general cargo will grow. It’s expected that by 2020 384 mln tonnes will be handled at the Azov and Black sea ports as compared with today’s 320 mln tonnes whereat the ports are expected to be incapable to handled 21 mln tonnes more of coal, 19.5 mln tonnes more of mineral fertilizers, 9.1 mln tonnes more of grain, 9 mln tonnes more of general cargo, 3 mln tonnes more of soy and rape and 2.4 mln tonnes more of ore.

The grain export is a significant impetus for developing the regional port capabilities. Overall, throughout Russia, in the four months of 2016 the grain shipment grew by 40% to 7.2 mln tonnes, and there is a noticeable growth in the shipment at the Black Sea. Thus, in the four months NCSP shipped 2.2 mln tonnes of grain (+29.6%), the grain terminal Taman doubled the shipment to 735.5 thousand tonnes, DeloPorts in the first half-year shipped 79% more grain than the year before (829 thousand tonnes). The forecast of the grain industry indicates that by the end of the agricultural year of 2016 Russia will reach the number of 224.5 mln tonnes (export of wheat with flour when converted into grain will amount to 24.7 mln tonnes), beating the USA for the first time and taking the lead in export among single countries. Moreover, as grain from Russia is expected to be sent to the Black sea ports so is grain from Kazakhstan, which has the only way out through the “closed” Caspian Sea (for more detail see an interview with Sergei Gubineetz).

Despite the fact that among the Black Sea ports the Crimean ports have become available, the government deems the latter of little significant use. Nevertheless, the Crimea contributed significantly to the growth in the amount of cargo being handled in the basin: large Crimean construction projects accounted for the growing numbers of the amount of cargo handled by some Russian ports, first of all, the Port of Kavkaz, which handled in 2015 three times the amount of 2014 (30.5 mln tonnes vs. 10.2 mln).

As the Black and Azov sea port development programme reads, by 2020 the capabilities of the terminals to handle dry cargo are to grow by 61% to 169 mln tonnes a year. And it is within the scope of the updated sea port development programme to create in the region by 2020 a dry cargo zone at the Port of Taman with capabilities during the first stage of operation of 37.8 mln tonnes of coal, mineral fertilizers, general cargo, grain and rice, and during the second stage, with the freight traffic confirmed, they can reach 95 mln tonnes. In February 2018, OTEKO Group is planning to make the first shipment of bulk cargo from Taman terminal, the overall amount being 35 mln tonnes a year. At the end of this and the beginning of the next year, OTEKO Group will commence construction of a grain terminal for 14.5 mln tonnes.

Also, part of the NCSP terminals will be redesigned to boost their capabilities to 24.5 mln tonnes a year to handle more mineral fertilizers, grain, bulk cargo and containers, a berth with 350 thousand TEU capacity to handled containerized cargo and a 1.5 mln tonnes grain terminal at Delo Group will be built. There is a plan to build in Taman a 5 mln tonne capacity ammonium terminal for Togliattiazot.

The Far East basin: the export hub and potential transitter

The Far East constantly strengthens its positions in the Russian port industry. It’s dry and fluid cargos that were driving the growth of the regional ports in 2015, the amount handled of which grew by 6.1% and 10.1% respectively.

At the same time, the port industry development strategy of the Far East is dependent on coal export expansion. In the Far East basin in the Port of Vanino, the projects to develop the coal terminal Daltransugl to build up the capacity to 24 mln tonnes a year, which will require reconstructing the railroad, and construction of Sahatrans coal terminal (24 mln tonnes) will be a priority, Andrei Lavrishev, head of Rosmorport said. Also, there are plans to build both the third stage of the coal terminal to increase the capacity from 22 mln to 39 mln tonnes and Sever coal terminal of UPTC (Universal Production Transshipment Complex) (20 mln tonnes) in the Port of Vostochny. The capacities of the Port of Sakhalin will be increased, particularly the coal terminal in the Port of Shakhtersk coupled with the development of Solntzevskoye deposit will be reconstructed. Its capacity will be increased from 3.5 mln to 12 mln tonnes. Reconstruction of the ferry crossing Vanino-Kholmsk along with construction of a passenger terminal in Korsakov is planned. A terminal to receive cruise liners and handle containers (600 thousand tonnes TEU) will be built on the cape of Signalny in the Port of Petropavlovsk-Kamchatsky.

However, it’s not just the development of direct export that caused the “turn-around towards the East”. The Ministry of Russia for the Development of the Far East actively promotes the idea for the Far East to be a transitter, focussing on increasing the amount of cargo put through the Russian ports by intercepting part of the cargo traffic between north-east of China and its southern and central parts as well as between other countries. For this, there are plans to develop international transport corridors (ITC) Promorie-1 (Suifenhe – Nakhodka) and Primorie-2 (Hunchun—Zarubino). As per McKinsey evaluation and given the successful implementation of the projects, the cargo traffic through the ports of Primorye will grow by 3% annually and will have increased to 45 mln tonnes by 2030 (22 mln tonnes in containers and 23 mln tonnes in grain). The Chinese consignors will be able to save about $700 mln a year on this and Russia will have a 29 billion rouble increment to the GDP. According to Alexander Isurin, President of FESCO, the potential economy when using these corridors equals $10 per tonne. However, the relative attractiveness of the Chinese tariff conditions and the underdevelopment of ITC infrastructure are the stumbling blocks for the successful project implementation. In particular, Leonid Bershansky, head of Rosgranstroy Federal Government Institution (Rosgranstroy FGI) accentuated the necessity for building and reconstructing the railroad border crossings under concessional conditions citing Makhalino border crossing, which had no modern infrastructure to handle cargo traffic, as an example. Railroads and automobile access roads to the ports are underdeveloped. According to McKinsey, it will cost about 315 billion roubles (145 billion roubles for Promorie-1 and 170 billion roubles for Primorie-2) to develop all the infrastructure of ITC; as per updated figures from the federal authorities, which are to be the basis for the time schedule for these projects’ implementation, the overall costs are nearing 430 billion roubles. Although, Summa Group’s estimate for them is somewhat lower. It plans to build a terminal complex in Zarubino. The first stage of which, when completed, will allow to handle 10 mln tonnes of grain and 700 thousands TEU of containers, the second stage - 23 mln tonnes and 1.8 mln TEU respectively. As per Summa’s estimate, out of 204 billion roubles needed for Primorie-2 85 billion roubles will be invested by the government and the rest will come out of private investors’ pockets. Part of the government investment can be shared among potential Chinese concessioners. Summa has already signed with the Chinese railroads a Letter of Intent to build access railroads to the Port of Zarubino.

The Baltic: pour but know where to stop

The Baltic basin is the pillar for the Russian export of crude oil and petroleum products. The proportion of crude oil here is the highest in the total amount of shipments: in 2015 the oil shipments made up 62% of the total cargo handled, the first quarter of 2016 - 64.3%. Such proportion is stipulated by the necessity to replace the ports of the adjoining Baltic republics, which during the Soviet times took the lead over the ports of the Russian republic as they were newer and with better infrastructure quality. As the first stage of BPS -1 (Baltic Piping System) with its terminal at the Port of Primorsk was commissioned in 2001, Russia gradually started to redirect the bulk (fluid) cargos from the ports of foreign Baltic countries to its own. BPS – 2 with its terminal at Ust-Luga in 2002 clinched the deal. The share of transportation and storage services in the Baltics’ GDP is quite high and the loss of the Russian transit is rather painful.

Overall, the Baltic ended 2015 with the growth rates not high (+3.2%) and for the first time lost the lead in the amount handled to the Azov-Black Sea basin. The crisis in the container industry and lower volumes of ro-ro cargos accounted for the decreased growth rates. In the first quarter the Russian Baltic ports put through 0.6% more cargo than the previous year, while the Russian ports in general gained 4.6% growth. Primorsk demonstrated the highest growth (+5,6%) among the Russian Baltic; Ust-Luga was just behind (+4,1%); the other ports demonstrated a decrease with the Port of Petersburg being the lowest (8,2%). Thus, despite the drop in the crude oil price, the oil ports demonstrated the most positive dynamics, indicating there was a growth in demand.

The neighbours are not doing so great either: they, as the Russian ports, have been influenced by the crisis in the container market and the predicaments in relationships of the Russian consignors with the foreign counterparts. While in 2014 the amount of cargo put through the Port of Riga grew by 15.8% to 41.8 mln tonnes, but then in 2015 decreased by 2.5% and, in the first quarter of this year when compared with the same period of the last year, dropped by 13.8% to 9.1 mln tonnes. In 2015, crude oil shipments were higher (3.3%) while the amount of coal handled decreased (-2.7%), so did the amount of containers transshipped (-8.3%). The amount of cargo handled in the Port of Ventspils since 2013 drops: the sanctions dealt it the biggest damage in 2014, due to which the port lost a significant portion of Russian coal transit and ended the year with a 9% loss in the amount of cargo handled. In 2015, the transshipment dropped by another 14% to 22.5 mln tonnes. And the Port of Tallinn in 2015 showed a significant sag in the amount of bulk (fluid) cargos handled (-32.2%) and lost by 19.8% in the number of containers put through. All in all, the port’s throughput amounts lowered by 20.8%. However, there are Baltic ports which are doing not bad. For instance, the amounts of cargo put through the Port of Klaipeda are growing. In percentage, in the first quarter, the growth was higher than all the ports of the eastern Baltic coast, exceeding the results of the last year by 9.1% (to 13.3 mln tonnes). In 2015, the Port of Klaipeda, allowing for Būtingė crude oil terminal, handled 38.5 mln tonnes (+5.8% vs. 2014), whereat the share of crude oil, as in the first quarter of 2016, was the highest and amounted to 28.2%.

Russia continues intercepting the cargo traffic from the neighbours. Yet in 2008, Sergei Ivanov, Vice-Premier, stated that by 2015 Russia would completely stop exporting not only petroleum products but coal via the ports of the Baltics and promised to have created sufficient amount of own throughput capabilities. And the president in his last year’s address to the Federal Assembly emphasized the necessity to develop logistic centres including “modern ports in the Baltic”.

However, it’s not the crude oil that is the basis for developing the Russian Baltic ports. The updated sea port development strategy for the period of up to 2030 provides for the completion of construction of Bronka Maritime Transshipment Complex (MTC) of 1.9 mln TEU (the first stage - 1.45 mln TEU) and 260 thousand units of ro-ro cargo, construction of Eurochem Ust-Luga terminal in the Port of Ust-Luga (7 mln tonnes) and a Baltic fertilizer terminal (5.2 mln tonnes), the expansion of throughput capability of the container terminal in Baltiysk from 150 thousands to 300 thousands TEU and construction of a passenger terminal in the Port of Pionersky in the Kaliningrad region (250 thousand people and 3 million tonnes of ferry cargo a year).


Natalia Semashko


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DeloPorts Limited transferred all interests in its subsidiaries into the capital of OOO DeloPorts (Russia) in July 2015