Growth limits of Russia’s northernmost port

The port of Murmansk is implementing a number of large projects today. This year Murmansk subdivision of RosMorPort FSUE has arranged the control of navigation situation in the KolaBay waters and within 40-mile zone of the Barents Sea coastal waters. In the nearest future the subdivision plans to create a local system of safe navigation in the Kandalaksha Bay, to reconstruct the terminal building in the port of Murmansk and to build an ecological bunkering complex. Yuri Yeremin, director of Murmansk subdivision of RosMorPort FSUE, tells PortNews IAA about implementation of the above projects. 

- Mr. Yeremin, what are major results of the subdivision this year?

- The profit of Murmansk subdivision of RosMorPort FSUE in the three quarters of the current year totaled RUR 30.788 million. Themainsource of revenue is port charges. All the funds raised were used for capital investment in the federal property facilities of the port including maintenance of port infrastructure facilities, support of piloting, providing of services related to application of the Vessel Tracking Management System (VTMS) and other navigation means.

Al in all, we invested RUR 70.7 million in construction and upgrade of the port infrastructure. Some RUR 60 million was invested in the development of safe navigation system, RUR 9.1 million – in development of hydraulic engineering facilities and RUR 4.8 million – in repair of port infrastructure facilities.

- Could you, please tell about the work on the port’s safety system?

- From 2000, over RUR 160 million was invested in the Vessel Tracking Management System and Global Maritime Distress and Safety System (GMDSS) including RUR 54.5 million invested in 2008. 

In 2008 the third automated radiotechnical VTMS unit has been put into operation at Set-Navolok cape making it possible to control navigation situation in the Kola Bay waters and within 40-mile zone of the Barents Sea coastal. Besides, alternative sources of electricity (wind units) were for the first time tested and used there. In March 2008 VTMS of the Kola Bay was certified as the high-grade port VTMS.

In the nearest years we plan to create a local system of safe navigation in the Kandalaksha Bay. The long-felt need for such a work is caused by growing cargo flow via the ports of Vitino and Kandalaksha in order to ensure their safety. To implement this project RosMorPort subdivision has already signed a contract for purchase of the building and equipment of GMDSS station of А1 district in Kndalaksha commercial seaport. The system ofsafenavigation in the Kandalksha Bay is planned tobedesigned in 2009. The system is supposed to consist of VTMS, GMDSS base station of district А1 and automated identification system (AIS) to ensure servicing of Kandalaksha and Vitino water areas as well as approaches to them.

-What projects on the port development and modernization are under way or to be implemented by the subdivision?

-  Within the framework of modernization and introduction of new transshipment technologies berth No17 has been reconstructed. Besides, dredging works are going on at berth No 8.

Murmansk subdivision of RosMorPort FSUE has signed a number of state contracts for design and survey work on federal facilities in the port of Murmansk. First of all, it is a contract for reconstruction of the terminal building in the port of Murmansk valued at RUR 21.6 million and a contract valued at RUR 29.8 million for reconstruction of long line pier and bank protection in the port’s passenger district. Within the framework of reconstruction we plan to extend the main pier, upgrade and expand the terminal building and to reinforce the embankment. Upon reconstruction completion modern passenger vessels will be able to call on the port. For that purpose we suppose to raise at least RUR 300 million of budget money.

- Are there any long-term agreements on the lease of hydraulic engineering facilities with stevedoring companies of the port of Murmansk?

- Upon the task set by RosMorRechFlot and RosMorPort FSUE the subdivision cooperates with potential lessees of state property on terms and forms of new long-term agreements. Besides, we have prepared documents for agreements in compliance with the procedure developed by the Federal Agency of Marine and River Transport. The package includes the documents for the lease of port infrastructure facilities without contest.

- What are prospects of Murmansk port development?

- There is a long-felt need of radical modernization and re-equipment of the port facilities. It is necessary for attraction of extra volumes to the port and for development of transport services.

A good example of new technologies is a reconstruction of the alumina complex carried out by the subdivision jointly with CJSC MGT. The reconstruction made it possible to increase the complex annual capacity by 1.5 million tonnes. In perspective, the complex turnover may be raised to 3 million tonnes.

Murmansk Commercial Seaport OJSC currently develops a project aimed at construction of a coal terminal with a station for wagon unloading and a conveyor system, which is evidently to improve the process of coal transshipment in the port of Murmansk.

The subdivision also started development of the project aimed at construction of an ecological bunkering complex in the district of the port’s 20th berth for supply of fuel, acceptance, cleaning and utilization of bilge waters, oily waters and shipboard waste. It was initiated a long time ago due to growing transshipment of hydrocarbon feedstock in the ports of the Kola Bay and the necessity to improve environmental situation in the region. In October 2007, RosMorPort FSUE signed a contract with Marine Construction and Technologies LLC for the complex design.  For the moment being, environmental component of the project is under expertise. Simultaneously we negotiate with a number of companies on joint participation in the project implementation.

However, current projects solve mainly our local issues.

- What factors hinder the port development?

- First of all, the port is located within the limits of a large city. Limited territory prevents the port from large-scale technological solutions, especially when it comes to ecological consequences of large-scale transshipment of traditional cargoes in the vicinity of residential quarters. The other factor is a deficit of electricity in the area adjacent to the port. To solve the problem it is necessary to coordinate the efforts of port and energy sectors, to work out optimal solutions for financing of costly projects, to raise federal funds.

-What are possible solutions of these issues in your opinion?

- I think it is time to develop the West side of the Kola Bay, opportunities of which on the increase of Murmansk port throughput are actually not being used today. As for the East districts, it is reasonable to use them for handling of containers, metal and cargo supplying the regions of gas and oil production. We are sure that transshipment of high-tariff freight and efficient operation of facilities with minimal expenses for their reconstruction will make the new projects profitable.

- The possibility of creation special economic port zones, at the Kola peninsular, in particular, is  under intense discussion recently. Is it possible in your opinion and how efficient special economic port zones could be here?

- Creation of special economic zones, in particular in seaports, will, undoubtedly, give a positive result. Nevertheless, dragging out of making decisions on SEZ in the port of Murmansk should not be attributed only to the lack of efficient business projects. Drawbacks of the legislation itself are tobeblamed. There is a ban for SEZ in specific parts of the port. Seaport of Murmansk is located at separate plots of land sharing one water area. At the same time, obligatory services on piloting and radar support of vessels within SEZ is not yet regulated by any laws. To solve these issues RosMorPort FSUE initiated introduction of corresponding amendments into the existing laws.

- How is the development of the region’s key project “Comprehensive development of Murmansk Transportation Hub” going on?

- The feasibility study of the project on comprehensive development of Murmansk Transportation Hub was completed in December 2007, while the materials on the project obtained the seal of state approval in April.

For further implementation of the project RosTransModernizatsiya SUE prepares specifications for design and survey works to be implemented in 2008-2009 at the cost of the federal budget. The design and survey works are to be carried out for construction of a container terminal at the East side of the Kola Bay, coordinating & logistics center, railway branch Vykhodnoi - Lavna, approach highways, as well as reconstruction of Vykhodnoi – Komsomolsk-Murmanski railway section. The competition between project organizations is planned to be carried out before the end of 2008.