• 2006 May 11

    Herman Gref is the last one to sign the new order for the rent of berths, according to Serik Zhusupov.

    Executive director of the Association of Sea Trading Ports of Russia (ASTP) Serik Zhusupov tells about promotion of two new documents which are of significant importance for the development of the port business - the Law of the ports and the new order of real estate rent in the seaports of the Russian Federation in the interview to a correspondent of PortNews IAA.
     
    -How is the work on creation of a stable legal field for companies operating in the port going? Is it possible to expect the decision concerning the rent of the state property to the stevedore companies in the first half on the current year? What steps have been undertaken?
    - Speaking about a legal field it is necessary to pay attention to two basic documents, which should regulate activity of the stevedore companies in the seaports. First of all it is a law about seaports, which currently is in the Ministry or Justice on the coordination. We hope, that the given document will be forwarded on consideration within the second quarter to the government of the Russian Federation. Quite probably, the law draft of seaports will be forwarded on consideration to the State Duma in the second quarter also.
    This document is of great importance, as the seaport might be a unique kind of transport junction, which provides joining almost all types of transport on its territory, but however not possessing a legal field. A necessity of development of the given law is only mentioned in the Code of trading navigation. Here as well it is specified, that all mutual relations should be adjusted within the limits of the law concerning the seaports. Therefore, as I have told above, we expect the corresponding draft law to be forwarded to the State Duma in the near future.
    I would like to note that the given draft law was developed by the Ministry of Transport in collaboration with the Association of Seaports (ASTP). Unfortunately, during coordination a number of items important for us were excluded for some reasons that are connected with the opinions of various Ministries. But the Association of Seaports hopes, that we can pay an additional attention to these items while the consideration of this draft law at the State Duma.
     
    - Can you specify, which items were excluded from the document?
    -A number of items concerning a commercial activity in the port, these are questions of status of the ports. We suggested entering a gradation of the ports i.e. the ports of the state value, regional value and municipal value, depending on the structure of processed cargoes. Also we suggested a number of additional concepts regarding objects of the basic means, which are components of the port infrastructure. Besides some questions were excluded from the draft law, connected with development of the ports, hydro-technical construction and reconstruction.
    There are lots of questions, which have not appeared in the text of the draft law at the given stage. But we believe, that we can pay attention to them while considering them in the State Duma, and we hope for corresponding support. Is the MEDT able to change anything in the draft law? - The MEDT has coordinated the law concerning the ports and currently the document is in the Ministry of Justice. This is the last instance.
     
    - Is it possible to expect deputies to consider this law quickly so by the end of year the law concerning the ports will be accepted?
    - There is such a possibility.

    - You have told that two new documents are of current importance for the port business. What is the second one?
    - Another document concerns’ the rent of federal real estate to the seaports. At the moment, the given document is set at the Ministry of Transport in the collaboration with experts of the Association of the Seaports. In the near future it is to be forwarded to the Ministry of Economic Development and Trade (MEDT). We hope that within the second quarter of the current year we will coordinate the given document in the MEDT, and companies operating in the port will obtain a legal base adjusting rent relation at the seaports.
     
    - Can you influence anyhow the passing of the document to the MEDT?
    We will try to do it. But we cannot influence the executive bodies of federal authority. We will the contribute by drawing attention of the Association to it and by carrying out different consultations by experts, who will take part in consideration of this document within the limits of the MEDT.

    - What are the terms of rent according to the new document?
    - The maximal term of rent is defined as 49 years. The minimal term under which the tenant is obliged to carry out the major repairs is 15 years. I believe, that almost all rent contracts will bind the tenant to carry out major repairs; thus, companies operating in the port will be guaranteed not less than 15-year rent of federal property.
    Also it is very important in this document that quotation of rent price is made according to the precise and clear formula that excludes subjectivity at setting the rent price. This formula is based on data of renewal, balance cost of property with application of various rates, which depends on a geographical location of the port, structure of processed cargoes and a technical condition of berths of the state property.
    Thus, by our calculations, the increase in rent payments will be insignificant - approximately 10-15%. But it is caused by inflation. Also it is planned to use the precise system of indexation of payments depending on a rate of inflation, which is set by the federal law on the federal budget. Such order is simple, “transparent”, and it is based on certain components, which quote a rent price.

    - Will there be a competitive procedure of renewal of rent contracts?
    - In most cases competition will be not carried out. Because if the property for rent is technologically indissolubly connected with other property belonging to the private investor, the competition will not be carried out. First of all, an adjoining infrastructure as basic means and the real estate are important.
    Almost all the stevedore companies have the infrastructure adjoining the berth, so the technological interrelation of the given property with the property is indissoluble. Therefore in most cases, I think for 90% of all our stevedore companies the competition will not be held.

    - If this document is considered at the Ministry of Economy and development by the end of the second quarter, what will its further destiny be? Should it be accepted by the Governmental order of the Russian Federation?
    - No. It is the interdepartmental document, which has to be signed by two heads of the Ministries: Minister of Transport, Igor Levitin and Minister of Economic and Development, Herman Gref.
     
    - So now all that’s left for you is to get Herman Gref's signature, isn’t it?
    - Yes, actually.

    - When is the new order of rent of federal property in the ports possible to come into force?
    - Most likely, this document after signing is to be registered at the Ministry of Justice, as the interdepartmental Act. And after the registration it immediately becomes effective. During the administrativel legal reform in the ports of Russia the system of control and supervision of the port activity had been infringed i.e. lots of state bodies have an excessive demands to private companies without possessing powers for this purpose. In particular, in the port of St.-Petersburg the management of Rosprirodonadzor (Federal Service on Nature Supervision of the Russian Federation) on the North-West Federal District demands from tenants of berths to show declarations on safety of hydraulic engineering structures (HES). According to Rostechnadzor (Federal Service on ecological, technological, nuclear supervision of the Russian Federation), the management of Rosprirodonadzor and the Ministry of Transport of the Russian Federation, such a requirement is illegal. However the conflict is not solved, and requirements of the State Administration of Rosprirodonadzor on the North-West Federal District in the port of St.-Petersburg are supported by the Office of Public Prosecutor of the city. Probably, the ASTP could help to clear the situation?
    - Concerning the declaration of safety, I would like to note, that there are letters from the management of Rosprirodonadzor, which precisely define, that Rostransnadzor (Supervision on transport of the Russian Federation) is responsible for supervision of the port and technical constructions. Instead of Resprirodonadzor. There is a specific letter signed by the deputy head.
    There is a private judgment over St.-Petersburg concerning the Fishing Port, but not the Office of Public Prosecutor. The Fishing Port, as far as I know, will challenge this decision. If necessary we can help the Fishing Port, though this company is not a member of the Association of Seaports.
    I want to note, that the general recommendations are given to all stevedore companies i.e. requirements of the State Administration of Rosprirodonadzor on North-West Federal District concerning registration of declarations of safety HES do not correspond to the powers of the given federal enforcement authority, and supervision of the given constructions are to be carried out by Rostransnadzor, that is written in the official letter of the deputy head of Rosprirodnadzor.