Russia sees trend towards more complex and ambitious investment projects – Irina Olkhovskaya
At the strategic session “Financial Instruments in Railway Projects, How to Spend and not Lose?” held in the framework of the “PRO//Motion.1520” International Transport and Logistics Forum, Irina Olkhovskaya, Director for Port and Railway Projects, Ural Mining Metallurgical Company OJSC (UMMC), drew the attention of the discussion participants to a new investment trend developing in Russia, says press center of UMMC.
According to Irina Olkhovskaya, investments in a project and its management in 2010-2017 used to be normally covered by a single investor. Implementation and financing of complex project that began to appear from 2018 is covered by several distinguished investors.
As an example, Irina Olkhovskaya mentioned Vostochny Port JSC with its experience of reinvestment of profits from transshipment into the Phase 3 construction. The RUB 40 billion project includes investments in both port and railway infrastructure.
“Such investors have the experience of successful projects, so called favorable history. It lets them invest in related industries. Meanwhile, it is necessary to ensure careful attitude to realized investments so that a private investor could have a favorable history”, said Irina Olkhovskaya.
When discussing sufficiency of the existing railway infrastructure, Irina Olkhovskaya emphasized that new projects appear regularly, both the east and in the west of Russia. And that requires permanent development of transport infrastructure.
“The more infrastructure, the better it is for the market, both port and railway ones, due to competition which is always good for the economy. In this context, careful attitude to realized investments is of high significance”, emphasized the speaker.
Vostochny Port JSC (Vrangel settlement, Primorsky Region) is Russia’s largest specialized terminal with high-tech coal transshipment.
Vostochny Port is a free access facility open for all coal manufacturers of Russia. In 2018, it handled 24.3 million tonnes of cargo.
The terminal features covered stations for unloading and transfer of coal, conveyor equipment, rotary car dumpers, shiploaders and the second-to-none system of multi-stage magnetic coal separation.
Vostochny Port is the first coal port in the Far East that obtained a certificate of compliance with ISO 14001:2015 “Environmental Management System: Requirements and Application Guide.” The certificate confirms the company’s compliance with both Russian and international requirements on environmental risk management.
Phase 3 of Vostochny Port’s coal terminal is the most ambitious private investment project costing over RUB 40 billion and implemented through public private partnership without involving state financing. Phase 3 lets the terminal increase its annual throughput to 50-55 million tonnes. The Phase 3 project has generated more than 600 new high skill jobs. By 2026, the project will ensure a total of RUB 25 billion of tax payments that will give a powerful impetus to the social and economic development of the Primorsky Territory.