Long-term cargo base contracts ensure investments into port and railway infrastructure – expert
Long-run cargo base is a key factor for investments into port and railway infrastructure, IAA PortNews correspondent cites Irina Olkhovskaya, Director on Long-Term Development and Interaction with Federal Authorities, Port Management Company LLC, as saying at the Transport Service Market conference in Moscow.
“Key tasks of Russian shippers amid the difficult situation of today is not only maintaining their positions in the global markets but also the expansion of their international sales market to increase Russia’s export potential,” said the speaker.
To ensure competitiveness of Russian companies in the international market it is necessary to synchronize investment processes in port and transport industries.
Irina Olkhovskaya believes long payback period of large scale investment projects and the scope of investments should be taken into consideration: “The best way to synchronize investment processes aimed at expansion of Russia’s rail and port infrastructure capacity is to ensure long-term cargo base for which this infrastructure is developed”.
Signing of 5-7 – year contracts between shippers and developing ports is a standard instrument applied worldwide. With such long-term contracts an investment process can be planned as the ensured cargo base is a guaranteed mechanism for attracting investments into the port industry.
According to Irina Olkhovskaya, Vostochny Port’s Phase 3 is a good example of successful cooperation between a seaport and a railway. The facility is to be put into operation in 2017. The project presented to RF Prime Minister Dmitry Medvedev during the Transport Week – 2016 in Moscow was highly appraised by head of RF Government.
Port Management Company was set up in 2008. From 2009 the company controls the operation of Vostochny Port JSC. Over this period, Vostochny Port’s throughput surged by 58% to 22.8 mln t in 2015. In 2010-2015, the company held optimization of production processes and implemented the programme on modernization of equipment. Rosterminalugol JSC fell under control of Port Management Company in 2016. In 2015 Rosterminalugol handled 17.5 mln t of coal, a record-high result of the company. Port Management Company is headquartered in Moscow.
Vostochny Port JSC (Vrangel Bay, Primorsky Territory, Far East) is Russia’s largest publicly available terminal equipped with cutting-edge equipment: tandem wagon dumpers, conveyor systems, stackers, reclaimers, ship loading conveyors, a defrosting system for 80 railcars and a unique multilevel system of magnetic separation. Highly efficient systems of water treatment, dust suppression and wind barrier installed at the terminal ensure the protection of the Vrangel Bay environment.
In 2015 the port handled 22.8 mln t of coal, one fifth of all coal exports via Russian seaports and about 32% of coal transshipment via the ports of Russia’s Far East Basin. The coal is exported to APR, India and Latin America.
Vostochny Port JSC is implementing an ambitious investment project on construction of the coal terminal’s Phase 3. New terminal facilities will be put into operation in 2017 allowing for port capacity to reach 39 mln t in 2019. The project is financed exclusively by private investor, without involving any state resources. Investments into the project make RUB 27 bln including RUB 5 bln for railway infrastructure facilities. The cargo base is entirely ensured by Russian coal produced in Kuzbass and other coal fields of Russia.
A sole executive body of Vostochny Port JSC is Port Management Company LLC.
Related link:
Dmitry Medvedev wished success in implementation of Vostochny Port’s Phase 3 project (photo) >>>>
