Stumbling coal

In 2006, Russia’s coal production totaled about 308 million tons. National coal producers increased their results by 3%, year-on-year. They also intend to preserve the dynamics this year. Despite certain boom in coal-mining industry export of Russian coal is limited by insufficient capacity of the ports. Experts think Russian ports are not able to provide the complete range of services necessary for coal transshipment.

Limited capacity

Today, about 80% of Russian coal is exported by sea. About 46% of transshipment terminals are those located in the Far East. Baltic ports hold the second place (42%). Growth rates of coal export are higher than those of coal production.

High production of coal producers results in demand of additional port facilities for coal shipment. In 2007 production growth rates should make about 5%. These results will be achieved through increased production of both thermal and coking coal. In particular, our largest coal producers like SUEK, Kuzbassrazrezugol, Raspadskaya and Yuzhni Kuzbass plan to increase production by 7 - 10% annually.

“National ports are short of coal transshipment facilities,” Sergei Semenov, Development Director of a research-and-development enterprise Marine Construction and Technologies, told PortNews IAA. “According to market analysis, the demand for coal transshipment via the North-West ports will amount to 36 - 40 million tons by 2010 and to 40 - 48 million tons by 2015”. At the same time, optimistic forecast of Energy Strategy says that the capacity of Baltic coal ports will total 21 million tons by 2010. If so, experts think Russian coal flows may go to our neighbors in Baltic countries, where coal terminals are under more intensive construction.

By sea

According to preliminary figures, Russian ports handled 45.9 million tons of coal in 2006, a 10%-growth against the results of the previous year. As usual, Vostochny port demonstrated high results in transshipment of this type of cargo. Total cargo turnover of the port totaled 20.5 million tons of cargo including 16.2 million tons of coal (+8.7%, against year-on-year result). Coal shipment in the port was carried out mainly by a stevedoring company Vostochny Port OJSC. In 2006, the company handled 15.7 million tons of coal, which is 97% of total coal volume handled by the port. The rest coal was handled by SK Malyi Port LLC (490.1 thou tons).

The highest results among the ports of the North-West basin in terms of transshipment volumes and growth dynamics were demonstrated by Murmansk. In 2006, Murmansk Commercial Seaport OJSC (MCS) doubled its coal transshipment to 11.089 million tons. Coal is one of the port’s major cargoes. Its transshipment is carried out in the interest of three major customers: SUEK AG. Metcel and Krutrade AG. Besides, master plan for the port development provisions expansion of a coal terminal in order to increase the port’s capacity. According to Semenov, there are two main ways for development of coal transshipment facilities of Murmansk transport center. “First of all, it is a possible reconstruction of existing facilities, - he told PortNews IAA, - The other way is to develop coal terminal at the western coast of the Kola Bay”. Semenov also told that the project for reconstruction of facilities at the eastern coast is under development today and that the construction is carried out at the western coast of the Kola Bay. Today, equipment modernization and acquisition of modern machinery is being successfully implemented at MCS.

The port of Arkhangelsk is a traditional center of coal transit. In 2006, the port has partially preserved its positions in coal transshipment. Its share in the volume of outgoing coastal trade cargo grew by 26.5% to 40.355 thou tons, in export – by 11.7% to 164.487 thou tons. However, transshipment of coal in the sector of incoming coastal trade cargo was terminated in 2006. Transshipment of coal in the port of Arkhangelsk is performed by Arkhangelsk Commercial Seaport OJSC (stevedoring company ACS). In 2006, ACS exported 163.2 thou tons of coal. This year the company intends to raise coal transshipment volume to 200 thou tons. As PortNews IAA was told, this forecast is quite realistic since all the customers of the port has confirmed their plans to continue cooperating in 2007. In particular, it is planned to increase cargo turnover through increase in transit of Kuzbass export coal. In its perspective projects the port considers the possibility to build new coal terminal. However, the construction has not been planned for 2007 as the existing facilities are not completely loaded.

Considering the volume of coal transshipment in the ports of the North-West region Sergei Semenov said that the volume of Russian coal handled by Baltic states’ ports is growing permanently every year. Even introduction of a new modern terminal of Rosterminalugol in the port of Ust-Luga has neither influenced the tendency nor eliminated the deficit of the port coal facilities.

In 2006, Rosterminalugol increased coal transshipment 6.8 times to 3.5 million tons. The port of Vysotsk handled 4.1 million tons of coal. The company has already announced its plans to increase coal transshipment to 4.5 million tons. One more port of the North-West region – Kandalaksha Commercial Seaport CJSC – intends to raise its cargo turnover through increase of coal transshipment, the port’s Director General Boris Yushmanov, reported. At last, among 30 stevedoring companies operating in the port of Saint Petersburg three companies are engaged in transshipment of coal: First Stevedoring Company CJSC, Forth Stevedoring Company CJSC (subsidiaries of Sea Port of Saint Petersburg OJSC) as well as Neva-Metall CJSC. All in all, these companies handled 2485.9 thou tons of coal (-27.4%).

However, construction of coal terminals in the North-West region is being carried out only in the port of Ust-Luga and planed in Murmansk. The plans of ROSA-Holding LLC (coal producer managed by the port of Vysotsk) on development of the Vysotsk port have not been implemented yet. The list of new project also includes construction of a bulk-cargo terminal for transshipment of coal in the Muchka Bay of Khabarovsk region. Last year, its construction was announced by Siberian Coal Energy Company (SUEK). The terminal valued at $150 million is to handle 13 million tons of coal per year. The construction is scheduled to be finalized by spring 2008. SUEK plans that coal is to be delivered to the terminal by Baikal-Amur Minline from coal mines owned by the company.

Experts think the most important thing today for the ports is to develop their capacities in order to ensure forecasted cargo turnover. The master plan for development of special transportation-and-technological port complexes of the Gulf of Finland provisions construction of specialized complexes including coal terminals.

Chausova Larisa