Ex-Chairman of Russian Carrier FESCO Launches New Service to West Africa

 

Former FESCO co-owner and Board Chairman Andrei Severilov has opened a new venture targeting the West African freight market.

Last week, Russian company JSC A7 Holding - associated with Severilov - registered a new freight transportation entity. According to Interfax news, the newly-formed A7 African Cargo Lines LLC (A7 ACL) was launched on April 17, with a charter capital of $122,000. The company’s primary activity is listed as railway freight transportation.

Interfax reports that the new line is incorporated in the United States, and is owned by two U.S. business entities: A7 Holding LLC (registered in Delaware) and A7 Infrastructure LLC (registered in Missouri). These entities are registered to corporate agents, and their relationship to A7 ACL could not be immediately confirmed.

Severilov told Interfax that the company is keen on establishing a feeder shipping service between West Africa and Russia. “At the first stage, with the assistance of the Russian trade mission in Nigeria, we are implementing a project to establish a direct shipping line,” said Severilov.

By mid-June, the company wants to launch a new maritime route between Novorossiysk and Nigeria’s Lagos port. Two containerships will be chartered for the line’s inaugural route, each with a capacity of 700 TEU. There are future plans to expand maritime connections to Senegal’s Dakar port.

Severilov has extensive experience in the shipping sector, including a stint as the Board Chairman at top Russian container line FESCO. He also held a 23.8 percent stake in FESCO’s parent company, PJSC FESCO. However, Severilov had to leave the company after the Russian state nationalized FESCO in 2023, effectively transferring its ownership to the state nuclear power company Rosatom. The transfer followed the conviction of businessman Ziyavudin Magomedov on corruption charges; Magomedov was the founder of Summa Group, which held a large stake in FESCO.

Severilov announced he would re-enter the transport sector in September 2024. But even as Severilov’s freight company targets the Nigerian market, its entry comes while the Nigerian government is incentivizing local shipping companies to own their own vessels.

Last week, the Minister of Blue Economy Adegboyega Oyetola, directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin the disbursement of the Cabotage Vessel Financing Fund (CVFF). The fund was established back in 2003 with a goal of supporting Nigerian shipping companies to access subsidized credit for the acquisition of vessels. This is the first time the fund will be operationalized. As of last year, NIMASA reported that CVFF had accumulated over $360 million, as part of contributions made by the Nigerian shipping sector.

Eligible Nigerian shipping companies could access up to $25 million each at competitive interest rates. NIMASA has already issued a notice inviting applications through a select group of primary lending banks.