FEC-KAZAKHSTAN: who refuels national locomotives and why is it important?

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Over the past 11 years "FEC-KAZAKHSTAN" has done more for national rail transportation than 10 other companies in 11 years before it.  

FEC-KAZAKHSTAN: who refuels national locomotives and why is it important? Фото: «Trade house «FEC-KAZAKHSTAN» LLP

"Trade house "Fuel and energy complex – KAZAKHSTAN" group of companies – is the largest network of fuel bases in Kazakhstan. The Company carries out its activity since 2001 on the market of oil derivatives. At the beginning of Y2021 the total amount of fuel storage units of "Trade house "FEC-KAZAKHSTAN" Group of Companies is 53 units. The Company is an owner of fuel storage units (oil depots), located at the railway stations with the regional coverage of more than 80% of the territory of the Republic of Kazakhstan.

The fuel depots, which became the company's property at the beginning of the tenth were in a poor condition.  Nowadays they are considered as an advanced infrastructure facilities. General Director of "Trade house "FEC-KAZAKHSTAN" LLP Dimash Mukhametkhanovich Khasanov told in an interview with Inbusiness.kz how the company have achieved such results.

– Dimash Mukhametkhanovich, could you tell about "Trade house "FEC-KAZAKHSTAN" LLP?

– "Trade house "FEC-KAZAKHSTAN" consists of a parent organization and two subsidiaries including  "FEC-KAZAKHSTAN" and Silk Way Petroleum LLP. The total amount of fuel storage units of "Trade house "FEC-KAZAKHSTAN" Group of Companies is 53 units. Tankage capacity of "Trade house "FEC-KAZAKHSTAN" LLP is 234 000 m3, for the diesel fuel, tank battery of oils and lubricants is 16 000 m3, gasoline - 7 500 m3, which allows accepting for storage the oil derivative in greater volume. The capacity of coal sites is 130 000 tons. "FEC-KAZAKHSTAN" stores fuel and refuels not only KTZ  locomotives, but also all other locomotives in the country. Silk Way Petroleum sells coal and diesel fuel.

Our Clients include both Domestic corporations, governmental facilities, and large oil traders, as well as small and medium businesses.

–What are the main features of the company? 

– The history of the fuel industry in Kazakhstan goes back more than 100 years. Since 1920s and up to the 1970s of the last century the oil depots were built alongside with the development of the railway infrastructure. In 2001, according to the order on the sale of non-core assets signed by the then Prime Minister, Kazakhstan's fuel depots were withdrawn from the KTZ and sold on the market. Those depots were bought by 10 different natural persons and legal entities. At that time the depots as well as the equipment were in poor condition. They needed repairs and long-term investments.

It was almost impossible to monitor the quality of work during the first 11 years, but in 2012 our company brought together all these fuel depots. And nowadays "FEC-KAZAKHSTAN" is a modern chain of fuel bases in Kazakhstan, which provides services for the storage and transshipment of diesel fuel, gasoline, fuel oil, heating oil, bulk goods.

– What do you do to keep your position in the market?

– The basic rule of business is that you must first invest in order to gain. From 2012 to 2022 "Trade house "FEC-KAZAKHSTAN" invested about 54 billion tenge  to upgrade and improve infrastructure, build new fuel depots, upgrade the tank farm, comply with fire, industrial and other safety requirements.

When the law on state regulation of production and turnover of certain types of petroleum products went into effect the company transformed the process of operating activities, according to the law, investing in equipping with control accounting devices and accounting systems, processing and transmitting data from the gas station in real time, developing a module for signing an electronic daily statement.

Speaking of fuel, many people unaware that fuel is not only heat, it is also thousands of tons of transported cargo, passenger transportation, jobs. It is the whole infrastructure. In addition the company replenishes the country's budget with significant amount of taxes every year. Over 10 years the company has paid 46 billion tenge taxes.

– Do you think employees are an asset or a tool in achieving the company's goals?

– Of course, the employees of "Trade house "FEC-KAZAKHSTAN" are its key resource. The company employs 1107 specialists throughout Kazakhstan. All of them are Kazakhstanis. The company mainly employs people who have been working since its establishment. The reason for the heavy competitiveness of the company is professional employees and highly qualified specialists. There is no staff turnover in the company, that says a lot.

We invest 80-100 million tenge in staff training every year. These are the required standards for production staff including fire prevention, industrial safety. In addition, the company purchases special trainings for staff. Every year we increase the salaries of production staff by 5%. In 2022 the salary increase was 48%, in 2023 was 8.4%. The average salary in 2022 was about 245,133 tenge.

– Does "FEC-KAZAKHSTAN" LLP get involved in social projects?

 – "FEC-KAZAKHSTAN" is committed to the principles of corporate social responsibility, and in this regard we closely cooperate with local executive bodies, educational institutions and charity foundations. Now we are a part of  "Kamkor Green" program. The main objective of this program is to reduce the impact on the environment, by planting trees and building parks. Within the program our company planted plants in Ayagoz, Shalkar, Sekseul, Kazaly, in Atbasar and Karaganda cities, in schools of the Aral district of Kyzylorda region, Shu district of Zhambyl region and Aktobe.

"FEC-KAZAKHSTAN" pays attention to the social support of Kazakhstanis.  during the pandemic the company became a partner of  "Halyk" private charity fund and financed the purchase of medical equipment worth 100 535 000 tenge. For instance we provided 17 artificial lung ventilation machines, two mobile PCR diagnostic laboratories. Our company is committed to the development and popularization of knowledge on geography, nature and culture of Kazakhstan. "FEC-KAZAKHSTAN" is a partner of the QazaqGeography Republican Public Association.

I think that if you treat the world around you with love, then the world will certainly respond in kind! Therefore we are doing our best to to improve the lives of Kazakhstanis.

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