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The GEFCO Group, a global provider of supply chain services for industrial enterprises and a European leader in automotive logistics, celebrates 15 years of operations in Russia.
During this time the company became one of the leading players in the automotive logistics market, received a license from a customs broker, expanded the range of services from the transportation of finished cars and components to the organization of integrated supply chains for leading Russian industrial enterprises, diversified the client portfolio, winning customers in many key industries.
The opening of the representative office in Russia in 2003 was one of the stages of the Group's international expansion, which developed around the world, following its main shareholder, the PSA Group. In the first years of work, the company specialized in delivering finished cars and components and was able to quickly gain a leading position in the Russian automotive logistics market. For 15 years of operation, 10 representative offices have been opened in the largest cities of Russia - from Kaliningrad to Vladivostok. The company's clients include the world's leading automakers and component suppliers, the largest Russian holdings - metallurgy, engineering, energy, oil and gas, and others. It should be noted that the indicators of local customers in the portfolio are constantly growing, and for the year 2017 the revenue growth for this segment was 32%, and the share in the portfolio for the first months of 2018 increased by 27%.
"For 15 years of work in Russia we have acquired a truly unique experience. The Russian market has always been a priority for the GEFCO Group, and the anniversary of the Russian delegation is an important event for us. A significant way has passed, we have safely survived not only the drop in the automotive market, which is still a priority for the Group, were able to successfully diversify the business model in Russia, and our goal remains unchanged - to strengthen our positions on the Russian market, "said Luke Nadal, Chairman of the Board GEFCO groups.
Business Development in Russia
The last few years have been marked for GEFCO by successful transactions and projects. Companies such as SUEK, Severstal, ChTPZ, Uralkhim, Gazpromneft-Supply, Ferronordic Machines, as well as international concerns and manufacturers - PSA Group, Toyota, Talgo, entered the GEFCO client portfolio in Russia.
In May 2015, a five-year contract was signed with Ferronordic Machines, the official dealer of Volvo Construction Equipment and Terex Trucks in Russia. As part of this partnership, GEFCO Russia is responsible for integrated logistics services, the organization of logistics flows of the company and the transportation of goods - machinery and equipment under the brands Volvo and Terex, as well as spare parts and components for them.
Also in 2015, GEFCO signed a contract with the ChTPZ Group, winning a tender for logistics services and offering the best way to organize the delivery of pipe products from Russia to the United States. In the future, the companies continued cooperation, and GEFCO organized a special project to optimize the logistics flows of ChTPZ, switching supplies from the plants in Chelyabinsk and Pervouralsk from road to rail.
In June 2016, GEFCO became a partner of the Russian Export Center (REC). The main goal of the cooperation was the support of Russian exporters of the industrial sector. In early 2018, the companies expanded the boundaries of joint work, and GEFCO acquired the status of accredited partner of the REC. The companies will continue to work together to improve the efficiency of export support and will promote the growth of volumes of supplies abroad of products of various industries, including the automotive industry.
In the summer of 2017, a Memorandum of Cooperation was signed between GEFCO and SUEK on the implementation of innovative integrated transport and logistics solutions in the field of supplies of components and equipment for the coal industry. The companies have implemented more than one joint project, most of which have no analogues both from the point of view of the decisions themselves, and from the point of view of their effectiveness and manufacturability.
Based on its many years of global experience, GEFCO has implemented a number of successful initiatives to develop its operational activities in the Russian market. Among the most significant projects is the launch of a complex for storing and servicing finished cars in Domodedovo (opened in 2012, 13,000 cars), the investment volume of which amounted to several tens of millions of euros. The complex became the first in Russia platform of the European level, offering a service of a "technical station" unique for the market of new cars with a large selection of additional services for the period of storage.
The company continues to invest in the development of its business in the Russian market. A similar example is investment in rolling stock for the transport of finished cars: in the fall of 2017, GEFCO purchased more than 700 rail cars for car exporters.
Cooperation with JSCo «Russian Railways»
In December 2012, Russian Railways acquired a 75% stake in GEFCO, which was a turning point in the history of the GEFCO Group's development in the Russian market. As a result of the transaction, RZD was able to use the international experience of GEFCO in its work. In turn, GEFCO was able to develop a range of services and offer integrated logistics solutions to both Russian and international clients, attracting not only the resources of Russian Railways, but also the assets and infrastructure of the holding's subsidiaries. Among the examples of cooperation in this direction is the participation of GEFCO in a major infrastructure project for the construction of the transport and logistics center Doskino in Nizhny Novgorod, where a terminal for storing finished cars was built (opened in 2014, 5500 cars), and the creation of a department of railway logistics, whose tasks include the development of the company's services with the attraction of railway transport. GEFCO works on the infrastructure of JSCo «Russian Railways» in several directions: the organization of multimodal transportation of various cargoes "from door to door" with the main railway component; rendering of services on loading, unloading, storage of cargoes and management of warehouse operations, railway transportation of finished cars; export, import rail transportation, as well as transit from Asia to Europe and vice versa. In the framework of projects on warehouse logistics, GEFCO invests in the infrastructure of the holding sites - in cases when the client's tasks require it. Belonging to JSCo «Russian Railways» is a competitive advantage for GEFCO. Partnership with the Holding and its enterprises makes a significant contribution to the development of the company on the Russian market.
Changes in the composition of the management
September 1, 2017 Valeriya Seledkova became the General Director of GEFCO in Russia. She previously held the position of the CFO of Russia, CIS and Baltic countries. This appointment is a reflection of the personnel policy of the GEFCO Group, which provides its employees with opportunities for further professional and career development within the company.
"It is an honor for me to lead the Russian representation of GEFCO in the year of its 15th anniversary. Of course, this is an occasion for pride, but at the same time a great responsibility. The company is developing dynamically. Among the last successful projects are partnerships with REC, SUEK, GTLK, Sberbank. We appreciate the trust that companies that are strategically important for the country's economy give us and are proud of our achievements. Over 15 years, 4 billion kilometers have passed, more than 4 million tons of cargo have been delivered, and hundreds of customers and partners have been in the portfolio. These are impressive figures, and we will set ourselves even more ambitious goals for future years, "- said Ms. Seledkova.
Future plans
The GEFCO Group is working to ensure growth and achieve high results in 2018 and is aimed at maintaining the status of a leader in automotive logistics.
In the coming years, the company will strive to ensure sales growth and continue to diversify the client portfolio - in this direction the Russian representation has been successfully moving for several years. Back in 2013, the share of customers in the automotive sector was 97%, and already now more than 40% of GEFCO customers in Russia are companies from the FMCG industry, large industrial and manufacturing companies.
The company also plans to continue cooperation with the main shareholder - JSC Russian Railways: work on the principles of cross-selling (there are already contracts with regional railways for cross-selling, and GEFCO is ready to extend successful experience to the whole network), working together on the electronic JSC "RZD" for cargo transportation.
The key priorities of GEFCO are the integration and optimization of the supply chain, support for the high quality of the services provided, a rapid adaptive approach to the needs of customers and a contribution to human resources development. It is people who generate innovative ideas, and GEFCO is focused on long-term skills development of its employees and further growth in the Russian market.
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