Port consolidation

Two related transactions for adherence to the Novorossiysk Commercial Sea Port (NCSP) Maritime Commercial Sea Port (PMTP), as well as to acquire 50.1% stake of the NCSP "Transneft" and "The sum of the Capital" was closed in January 2011 . General Director of NCSP Igor Vilinov then said that the acquisition of the second port's Russia is a transformational deal for the NCSP, which will allow the company to diversify its geographic presence, reducing the volatility of freight traffic, access to new markets and additional organic growth opportunity. To sum up the turnover of the Novorossiysk and Primorsk port, the result is obtained that the power of the alliance in 2010, very close to the mark of 150 million tonnes, which corresponds to about 27% of Russian market of stevedoring. Add to that the value of the turnover of the two terminals of "Transneft" - specialized marine oil port Kozmino and CPC-P, non-joint holding company with the "sum", it turns out that the total share of the group is already 37%. Note that the second place in the market of stevedoring services with a significant gap from the leader (6%) is holding UHCL Vladimir Lisin. In 2010, revenues decreased by NCSP 6% over the same period last year, reaching $ 635 million, while operating profit was at $ 346 million, 6% below year to year. The decrease in revenue was mainly due to the reduction in transshipment of grain after the embargo on exports. Net income increased 2.5% QM $ 258 million, due to the reduction of net financial expenses by 43%. Dozagruzka Primorsk. At the same time the possibility of an alliance of "Transneft" and "sum" for further growth is not completely exhausted. NCSP - a universal company, the port of Novorossiysk resources enable you to handle all major types of cargo carried by sea transport - tankers, bulk, and mixed containers. Seaside port is still a serious versatility can not boast, the main and almost only his specialty - transshipment of crude oil and petroleum products. However, leave the port highly specialized new shareholders do not intend to. "In terms of anti-TB drugs - the diversification of goods, - said," F. "Director General of Maritime Trade Port, a board member of Novorossiysk Commercial Sea Port Boris Tikhonenko. - Based on the research plan transshipment of bulk and general cargo. At the moment there are negotiations with potential shippers on cooperation in the field of handling and storage of such goods. " Under the future development of coastal infrastructure is already pulled. "According to information released to the media press services and Roszheldor Railways, in 2012 it is planned to complete construction of the railway infrastructure, which enables the supply to the port of Primorsk, bulk and general cargo", - said Boris Tikhonenko. Originally planned to develop the port of Primorsk in two directions. The current port area Ermilovsky focus on overloading of crude oil, dark and light oil delivery pipeline and rail. Second District - Vysokinsky - it is assumed for handling liquefied gases, general, container, bulk cargo delivery by pipeline, rail and road. Experts have noticed that when working with bulk in Primorsk, the alliance "Amount Capital" and "Transneft" has considerable experience in handling it, but the practice of working with other goods, such as containers, they do not. At this point the representatives of the alliance that they intend to retain management team possesses extensive specialized NCSP and attract strong managers from abroad. "Operating activities - it is the responsibility of management of the company - said Boris Tikhonenko. - So, first, the controlling shareholders, who consider the continuity of an important factor for further development of the NCSP, retained management team. Second, understanding the importance of this trend, they [the controlling shareholders] were invited to leading a group of NCSP one of the most famous and effective managers of the industry - Rado Antolovicha. " Mr. Antolovich works in the port area since 1976, and since 1997, manages the container terminals of more than 1 million TEUs. To confirm the correctness of the chosen course in the "Summa Capital" link on the results of the port of Novorossiysk in the first quarter of this year. "In January-March 2011 the volume of containerized cargo transshipment allowed to enter the maximum load of container terminals. Container throughput in the twenty-foot equivalent in January - March 2011 compared with same period last year increased by 77.6% and amounted to 153 thousand TEU. Including the growth of container at the terminal NLE was 115.8%, in the terminal BSC - 105.4% at the terminal of NCSP - 13.5%, "- said Tikhonenko. Port consolidation. The ambitions of the new owners of Novorossiysk port did not go unnoticed by competitors. The arrival of new shareholders in the NCSP has already led to changes in the terminal at the port. The owners of the "National Container Company" (NCC) group First Quantum and businessman Andrei Kobzar in March announced the sale of 50 per cent stake in the container terminal NUTEP (Novorossiysk nodal forwarding company). This asset is the NCC developed in conjunction with the "thing" Sergei Shishkareva. According to some, namely "Business" and bought the stake from the NCC, eventually becoming a 100 percent owner of NUTEP. NCC reasons for the sale of package in the terminal, which developed from the ground up for 9 years, not reported, limiting the duty of the phrase that the company will develop in line with its priorities. However, there are suggestions that the NCC has decided to withdraw from the asset to avoid fierce competition with the NCSP. On the eve of the deal struck in Novorossiysk serious scandal. Sergei gorgeous accused the new owners of the NCSP is that after their arrival changed the rules work around the port of Novorossiysk. "Squeezed out of the market forwarders, bunkering, agency, company, which at this transport node, worked for years" - was indignant Mr. Shishkaryov. The response was not long in coming. Vice President, Legal and Corporate Affairs NCSP Peter Maximov in a statement the company suggested that "the charges of" nonmarket "viewed personal reasons, Mr. Shishkareva." NUTEP is a direct competitor, "Novorossiysk Commercial Sea Port", but unlike the latter, things are not going well NUTEP. NUTEP turnover in 2010 decreased by 37% to 1.4 million tons. For two months in 2011 it was reduced by 15%. According to Director of Development IAA "IAA" Nadezhda Malysheva, the new shareholders NCSP seriously approached the issue of increasing the profitability of their business, not so much by optimizing the most stevedoring activities (here, to open America is quite difficult), but by increasing the provision of structures "Amounts" services at the port. In the "Summa Capital" do not see anything wrong in their desire to make money on the service. "Services at the ports - an integral part of the services to be provided by logistics companies to its customers, so they must be provided regardless of the profitability and promote operational efficiency and reduce processing time throughout the supply chain", - said Boris Tikhonenko. "In our work we focus on producers and consumers, he says. - It is obvious that the quality of additional services throughout the supply chain increase the efficiency of our clients' business. And that, ultimately, lead to mutually beneficial cooperation with all our contractors. " The pros and cons. On the prospects and the strength of the new alliance analysts argue very cautiously. "Give the group the first place" forever "rash - a leading expert believes the Criminal Code of" Finam Management "Dmitry Baranov. - Because we do not know what mergers and acquisitions may occur in the Russian market, suddenly appears even more prominent player. This major change in the direction of traffic experts do not expect. "Getting a number of terminals of NCSP close to the maximum, according to her representatives, - said Dmitry Baranov. - One can hardly expect a mass conversion of consignors and consignees from one port to another and changes in traffic following in Russia and from Russia. Given the economic recovery from the crisis and the projected increase in freight traffic will be enough work to all ports, even with excess. " Since the deal was not so much time and is difficult to properly assess its impact. I held the transaction has both pluses and minuses, said Nadezhda Malysheva. "Pros - increased political weight of industry in the long term decline of some overhead. For clients opened wider range of services provided by one supplier, growing logistics capabilities - she says. - Cons - a fine line between the market and a monopoly. " Shares of the largest stevedoring holdings of the Russian Federation: Holding Share,% joint asset "Amounts Capital" and "Transneft" 27.70 "Transneft" 9.50 Total Alliance "Amount Capital" and "Transneft" 37.2 Holding UCLH 6,10 harbor "Lukoil "4.50 harbor" Kuzbassrazrezuglja "4.40 2.50 NCC Murmansk Commercial Seaport 2.45 2.30 PNT harbor of N-Trance 1.90 Source: IAA" IAA "Financial results for the NCSP in 2010 according to IFRS Key results of the group, $ thousand 2010 2009 Name of indicators Change% Revenues 635 315 675 060 -5.9 Cost of services (242 069) (236 813) 2.2 Gross profit 393 246 438 247 -10.3 Adjusted EBITDA * * 415 975 431 015 -3.5 Operating profit 346 472 367 926 -5.8 Net financial expenses *** 11 769 20 499 -42.6 Net income 258 440 252 165 2.5 Basic and diluted earnings per share $ 0.0131 0.0130 - Investments * (new projects and existing production) (c VAT) 129 707 72 854 78.1 Turnover *, th t 81 602.8 86 519.4 -5.7 * Here and below - management reports. ** Raccchitana as profit before tax increased by the amount of depreciation, net financial expenses and exchange differences. *** Calculated as the difference between interest income on deposits and finance charges. Consolidated revenues of the NCSP by end of 2010 was $ 635,315 thousand versus $ 675,060 thousand in 2009. In $ thousands 2010 2009% Change Total, including: 635 315 675 060 -5.9 Stevedoring 494 804 534 168 -7.4 For port services 81 213 84 663 -4.1 45 028 Fleet Services 46,874 Ship repair -3.9 2,254,915 Other 12 016 8440 42.4 Source: Company data