Fesco feels it

Russia’s Far Eastern Shipping Company (Fesco) reported lower first quarter earnings after poor results from its rail operations ate into improvements in container shipping.

Fesco reported group consolidated ebitda, excluding one-off amounts, of $34.5m, down from $48.1m in the first quarter of 2013 as revenues fell by 11.9% to $242.5m.

Slowed economic growth caused rail market weakness which was exacerbated by devaluation of the ruble, the company says.

Fesco’s port and export-import liner shipping operations reported increases in volumes of 8% and 11% year-on-year.

Its rail container unit also increased volumes by 9.5% to 70,000-teu, but its revenues fell 40%, and Ebitda 53% due to continued decreases in rates and ruble devaluation.

The company continues to invest in its ports division as per its strategic direction.