Konstantin Goncharov: “adjusting of Baltijsk line is both politically important and profitable for us”

One of the long-awaited projects in Ust-Luga port is a ferry line to link Leningrad and Kaliningrad Regions is no longer just a project. Ust-Luga branch of Rosmorport FSUE created a year ago will officially open Ust-Luga - Baltijsk line in September. Konstantin Goncharov, Director General of Ust-Luga branch of Rosmorport FSUE, told PortNews IAA correspondent about perspectives of new ferry service.

- When will Ust-Luga - Baltijsk line be put into operation?

- Ferry service has already started its test run. We have had three test voyages already. First vessel to go along the line was Mukran-103. At that time we adjusted bridge structures to check their mooring with the vessel. A little bit later we arranged another test Rider-type vessel called Baltijsk. The third test run took first loaded wagons to Kaliningrad. So it was a test run with maintenance, rolling-on of wagons, fastening of them, with complete package of all necessary documents for sea transportation. Thus we carried out all ordinary loading operations that are usually done in the port. Everything has been carried out under routine mode within reasonable time. Though in the course of the first test run the mooring proved to be a difficult task since we had to check the knots, carry out some research work, this time everything took quite little time. Next call of the vessel has been scheduled for September 7. The ferry will carry two types of wagons: those with strategic cargo and with macroeconomical cargo like coal, crushed stone and sawn timber. We intend to send about 40-45, may be 70 wagons to Baltijsk.

- Is container cargo to be transported by the line?

- Container cargo operates under different mode. We are going to carry ro-ro cargo, that is contrailers. The line will also service a large amount of cargo in trucks, not only in railroad wagons.

- What frequency is planned for the ferry at the line?

- We think it will be twice a week so far.

- It is up to Baltijsk, and what about after that?

- Till Baltijskа for the moment being. In order to start international service, we need to open a cross point. I hope this issue will be finally solved in September- October. We want to open one more line: Ust-Luga ports of Germany. I believe it will be bossible to implement at the beginning of the next year. Today our task is to adjust Ust-Luga – Baltijsk line. We have to finalize motorcar component – it is necessary to arrange a platform for motor cars. The work is going on but we need additional finances to complete work on the first launch complex and we hope to implement all the work we have planned.

- Port of Zasnitz proposed its facilities for cargo transshipment…

- Our relations with Zasnitz are very close as well as with its Director – Zivers Harm. He wants very much to include Zasnitz into this system: ports of Germany - Ust-Luga - Baltijsk. They have vast territories and Zasnitz is also looking for additional cargo. As soon as we open this line and Mukran starts to come here we’ll be able to carry automotive vehicles, for example. Today they go to Kotka (Finland). It is unacceptable for RussiaLithuania, Finland and many other countries. Many cargo owners know about intense construction process being carried out in Ust-Luga. They are interested in a direct container line - it is profitable for them as well. In order to commence full-scale operation of Ust-Luga ferry line the facilities delivery should be as it has been planned. Today there is some structural finishing to be done but we are ready to accept any types of cargo that is actually being done under test run terms. So the wagons and the vessels have commenced to go and coastal structures are ready to accept cargoes while all communications are to be finalized in the course of the line operation. being such a large country to employ services of

- Are there any plans for including other cities (non-German ports) into the line?

- You know, everything is possible. We are not against such a development. Everything will depend on how business will go on. If we have proposals from other ports we’ll think them over with pleasure. We consider this direction. For the moment being it is important to adjust the line till Baltijsk. It is a politically significant thing for us the more especially as besides linking Kaliningrad and Russia our line was initially conceived as an alternative to road transportation via Byelorussia and Lithuinia.

- Ust-Luga port is ready for operation of a ferry line. What about Baltijsk?

- Baltijsk was ready one year before we started the construction. A number of very interesting structural decisions have been taken there. Now Baltijsk is almost ready. There are just several minor technical things to be done. It may take two-three days.

- Your branch used to carry out work on attracting additional cargo flows. Have you finished this work? Where can the freight be attracted from?

- We work with German companies. The Port of Saint Petersburg is completely loaded and the access to it is rather difficult. But the region enjoys high interest. So, our port may provide carriers with alternative routes. Ust-Luga enables to take away some cargoes not typical for a large city in order to transfer them to our port. It is coal, for example. How could coal be transshipped in the city? So cargoes related to chemical substances and mineral fertilizers should be transshipped outside the city. And we actively develop this approach.

- What are through rates to be like?

- This issue is under development today. We participated in a meeting at the railroad transport agency, sea-and-river fleet agency. Railway, especially Oktyabrskoye and Vitebskoye departments, support us here, through searching for cargo. Today we try to estimate cost of our services jointly with RZHD OJSC. It is quite difficult process. The expenses incurred in relation with the construction of the ferry are very high. Thus, now we try to measure income and costs so that the rates were convenient for customers on the one hand, and not unprofitable for the ferry owners.

- Railway sometimes makes discounts for cargo going to ferries. Is it possible for you to have such agreements?

- We try to come to such agreements. We’d also like to consider the issue on redistribution of all cargo flows to Kaliningrad – Saint Petersburg. Having the ferry complex built we should earn money from its operation. At the same time we should not pass all the load on the customers’ shoulders. So it should be profitable for us and useful for customers. These are the tasks we set up for ourselves. The tasks are quite difficult but we gradually move to their achievement.

- Who is to become an operator of the ferry line?

- The owner of the ferry is Rosmorport. Now the ferry is being operated under bare boat charter terms by Baltic transport systems CJSC. Today we consider the issue of correct management of ferry complex jointly with RZHD OJSC. I think that final decision will be adopted in the nearest future.
So the issue of who is to become an operator is still under consideration. I believe that all the participants of the process will have their position. One of them is BTS CJSC being an operator for the moment being. Besides, these are two branches of Rosmorport – Ust-Luga and Kaliningrad - the owners of coastal structures, and RZHD OJSC. I think it is to be joint business, a kind of unified structure.

-When is everything to be solved?

- I think the issue should be finally decided in November. Before that we shall go on working out of separate operations, searching cargoes through our joint efforts, working on attraction of customers.

- Which types of vessels are to be able to call to Ust-Luga?

- Our port is from 16 to 10 meters deep. Dredging works have been carried out at container terminal up to 13.5 m – it is the first phase. The second phase of dredging works is aimed at 16 meters.
Dredging works at the coal terminal resulted in 14 meters; one of the terminals will have depth of 16 meters. This enables us to accept Panamax-type vessels, which may carry more cargo. It is very profitable from the point of view of cargo owners and consignors. Any foreign port is attractive since it is deep enough to accept any types of vessels. It is considered to be a norm.
We have finalized dredging works at ferry complex and the depth is 10 meters. It means that we can easily accept any types of ferries. Representing state interests we should be interested in extension of shipping that is port charges and development. Today we are responsible for the water area having ferry complex at our balance.
Owing to the initiative of Ust-Luga OJSC today’s development of port has proved to be an irreversible process. Co-operation of sea-and-river agency, Leningrad Region government, Ust-Luga OJSC RZHD OJSC and Rosmorport FSUE has resulted in delivery of first complex at Ust-Luga – Baltijsk line. It is joint work of many people.

Larisa Chausova