Russian transport group FESCO is prepared to support a threefold increase in trade turnover between Russia and South Africa over the next five years, stated Timofey Shkuntik, Head of Sales at FESCO Integrated Transport LLC, in response to a question from an "African Initiative" correspondent.
This statement follows remarks made in June by South African Vice President Paul Mashatile during a plenary session at the St. Petersburg International Economic Forum (SPIEF), where he outlined plans to triple trade volumes with Russia within the next four to five years from the current level of $1.3 billion.
"A threefold increase in trade turnover over the next five years? The FESCO Group is ready. There are certain necessary steps to be taken, and from our side, we are executing them—we are attracting cargo. We need to demonstrate this growth. It will become visible next year when we can gather the data and present it at a higher level," Shkuntik said during the seminar "On the Development of Transport Routes between Russia and South Africa."
He noted that the company is collaborating with the Russian Ministry of Transport, the Ministry of Industry and Trade, and African partners.
"Cargo booking is available both from South Africa and the Russian side; there are no restrictions in this regard. A threefold growth in five years is quite achievable," the FESCO representative added.
According to him, increasing trade volume depends not only on logistics but also on business initiatives and sales. He highlighted that export volumes are influenced by currency exchange rates. "A cheap US dollar is beneficial for importers but not for exporters. Consequently, sales have decreased even compared to last year for certain categories of containerized cargo—plywood, paper, metals, and grain. Grain is also included, although we are in close dialogue with grain companies, and we have a solution for transporting grain cargoes. Therefore, yes, growth is possible, and we hope that the business community will also be engaged," Shkuntik emphasized.
During the seminar, Russia's Trade Representative in South Africa, Petr Pavlenko, reported that the core of South African exports to Russia in 2024 consisted of fruits, nuts, ores (primarily manganese and chromium), and wines. Russia's main exports to South Africa are fertilizers, cereals, and fuel (oil, petroleum products, coal).
FESCO launched a container shipping service between Russia and the port of Durban in South Africa in June. For exports to the African nation, the company organizes shipments from the ports of Novorossiysk and Saint Petersburg via its own sea lines to the Indian port of Nhava Sheva, where containers are transshipped onto feeder vessels bound for Durban. For imports from South Africa to Novorossiysk, containers are routed via the ports of Nhava Sheva or Jebel Ali (UAE), and to Saint Petersburg via the Indian port of Mundra.
Buyinta Bembeeva
