FESCO Transportation Group and Hyundai Glovis Co. Ltd, one of the largest logistics companies in South Korea specialized in shipments of cars and car spare parts, jointly launch a regular container service from Busan to St. Petersburg through the Commercial Port of Vladivostok (VMTP).
Containers are delivered to VMTP through regular FESCO marine lines and further transported to St. Petersburg by Trans-Siberian Railway. The lowest transit time from Busan to St. Petersburg is 15 days. Principal cargoes transported through the joint service are car spare parts and components for Hyundai Motor Manufacturing Rus, Russian plant of Hyundai Motor Company. The planned monthly transportation volume is around 500 TEU.
On August 14, there took place a ceremony for the dispatch of the first regular train from Vladivostok. Representatives of FESCO and Hyundai Glovis Co. Ltd. signed a Memorandum of Understanding formalizing the parties’ plans to increase container transportation volumes from the Republic of Korea to Russia via the Far East.
In June 2018, FESCO launched a project “From Busan to Moscow in 15 Days” aimed to reduce delivery time on this route. The average delivery time for its direction through traditional services via the Far East is 21-23 days and via the Suez Canal – 40 days. The launch of the project “From Busan to Moscow in 15 Days” is a part of the initiative aimed to develop the network of fast regular cargo transportation from ports of the Asia-Pacific region to Russia via the Far East through the existing FESCO services.
Further development of intermodal import-export services through the ports of the Far East and improvement of logistics technologies on these routes is the first step toward the development of transit services from countries of the Asia-Pacific region to Europe, which will allow to ship a part of cargo volumes currently transported to Russia through the Suez Canal.