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TRANSPORTATION COMPANIES_ MID TERM.docx
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Mosgortrans

State influence: State Unitary Enterprise MOSGORTRANS is the main operator of the surface public transport system in Moscow and largest in Europe. It is a 100% state-owned monopoly: Mosgortrans is a State Unitary Enterprise owned by the city government of Moscow

Internationalization:

Country

No international operations

Year of entry

N/A

Industry/ business area

Operator of surface public transit (bus, trolleybus, tram) in Moscow

Entry mode

N/A

Motives

Reasons for internationalization in general. Why particular country? Why this particular business area?

Firm specific advantages used on the foreign market

N/A

First mover or follower

First mover in Moscow surface public transit

Type of state involvement in the process of internationalization

N/A

Evaluation of the success of the internationalization

N/A

NCSP

State influence:

NCSP Group is one of the largest European providers of stevedoring and port services27. The state’s total ownership stake is 25.3%: 20% is directly though the state agency Rosimuschestvo (Russian property), and 5.3% through companies affiliated with RZD.

Internationalization:

Country

No international activities

Year of entry

N/A

Industry/ business area

  • stevedouring and port services, processing oil, grains, wood and containers at the company’s ports in Novorossiysk, Primorsk and Baltiysk

  • Ship repairs services at the Novorossiysk Shipyard

  • Towing and tugboat services in Novorossiysk

  • Storage facilities

  • Fuel and fertilizer sales

Entry mode

N/A: the company provides export services and means of facilitating exports of goods, but does not actually produce anything to export

Motives

N/A

Firm specific advantages used on the foreign market

N/A

First mover or follower

The company is the largest port operator in Russia. Its competitors include Sovfracht, which operates the Port of Vladivostok and some others.

Type of state involvement in the process of internationalization

N/A

Evaluation of the success of the internationalization

N/A

Fesco

State influence: via ownership or other type? If ownership, please identify the share (calculate if the ownership is indirect) and name the public authority. If other type, please describe. The state’s ownership stake is 20% though the state agency Rosimuschestvo (Russian property).

Internationalization:

Country

Year of entry

Industry/ business area

  • Multimodal shipping services by sea, rail, air, road. Marine shipping particularly in the Far East region (connecting Russian far east with other locations in East Asia and beyond)

  • Port operations (Vladivostok)

Entry mode

Not applicable: company ships/delivers goods to international locations, but does not produce anything for export or have any overseas assets

Motives

Company was historically concentrated on connecting the Russian Far East with other parts of Russia and the world, and today it continues to build on its historic strength areas, namely, serving the Russian Far East, East Asia, and connecting them to Europe, North America, Europe, etc.

Firm specific advantages used on the foreign market

  • Company owns a great deal of infrastructure and assets in Russia, including its own marine vessels, trains, traincars, port, transportation hubs, trucks, etc28. This enables Fesco to keep its costs low and ensure fast service.

  • In addition, the company has a lot of experience (over 130 years) working in the Russian Far East and knows all the specifics and peculiarities of conducting operations between this region and other parts of the world29.

  • Company takes advantage of Russia’s strategic position between Europe and Asia and its size. Although many companies operate on similar routes (e.g. USA-Europe or USA-China), Fresco is able to offer unique solutions, such as shipping from USA to Central Asia, which few other companies can offer.

First mover or follower

First mover in shipping to/from the Russian Far East: Fesco used to be a state-owned company and has a long history dating back to the times of Tsarist Russia. However, with globalization of international shipping industry it faces a lot of competition on certain shipping routes (for example Asia-North America).

Type of state involvement in the process of internationalization

As the company used to be state-owned during the Soviet times, its policy and entry onto international markets was originally state-controlled. In case of some shipping routes, the company continues to serve routes established during the Soviet times on government orders/directives.

Evaluation of the success of the internationalization

International transportation services constitute a significant part of Fresco’s operations. Since the company on the whole is quite successful, one can conclude that its international activities are also successful.

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