Will Ust-Luga stay afloat?
Ust-Luga had hardly started operation when it found itself in a severe economic storm of the global financial crisis. Nevertheless, the port steadily continues its development and is likely to reach the throughput of 9 million tonnes in 2009 having increased it by almost a third as compared with that of 2008.
Yug -2 abased itself to diversification
Multipurpose transshipment complex (MTC) Yug-2, intended mainly for handling ro-ro cargo, is to be in low demand due to a steep decline in production of automobiles in the crisis context. As Aleksandr Goloviznin, deputy Director General of Ust-LugaCompany OJSC (the project investor), told journalists, the complex managed to get a piece of the last December automobile boom while now the company is to prepare itself for a hard period. This year the terminal handled 3,500 automobileswith March accounting for over 2,000 units. “In April we expectthe increase of the transshipment volume though it is difficult to forecast with the current economic situation.
In this context the company began to think about the necessity to invest into the program on cargo diversification. In particular, the complex may handle containers though within the scope which cannon be acknowledged as serious. “It is not a container terminal and containers may be handled as additional cargo at ro-ro carriers,” the head explained.
Moreover, MTC was initially intended for transshipment of different general cargoes. Anyway, there are resources still available for its development. First of all, financing from Russian investment fund has not been sequestered yet and the company expects over RUR 1 bln by the end of summer. Secondly, Ust-Luga Company has recently obtained a $100 mln credit from Eurasian Development Bank. In 2009, some RUR 3 bln is to be invested in the development of MTC Yug-2.
However, Maksim Shirokov, Director General of the company, said the company’s investments into the port development are to be cut by 30-40% of the earlier planed volume. In April the Board of Directors is to discuss the issue and to determine the volume of investments for this year.
At the same time, the company dismissed 20% of the personnel before the New Year though no further cut is supposed.
The company rejects making any specific forecasts in view of a fast-changing situation. “The main thing today is the end of the crisis,” Maksim Shirokov sums up.
Till prime-time
Port projects of other Ust-Luga investors also encounter problems. In particular, Maksim Shirokov doubts that the first phase of the Baltic Container Terminal is to be launched according to the schedule – in the third quarter of the current year.
“Accounting for a general situation with the decline of container traffic, the schedule is quite possibly to be adjusted, though I do not yet know how,” Director of Ust-Luga Company said. The project’s designed capacity is 3 mln TEU per year.
The construction of terminals for transshipment of aluminum with Rusal intending to be the project’s investor is also likely to be postponed. “This project is strategically very important for Rusal which has confirmed this interest. However, the project implementation is likely to be postponed for two-three years,” Maksim Shirokov comments.
Nevertheless, prime time is the reality for other projects. In particular, the first vessel was accepted for loading at European Sulfur Terminal on March 25. As journalists learnt from Oleg Glukhov, Harbor Master of Ust-Luga seaport, the terminal is to handle 300,000 tonnes of sulfur by June f the current year. By 2015, when the terminal is to reach its design capacity, it will handle 9 million tonnes per year. The project’s investor is Interfinans LLC.
Apart from this, Zarubezhneft oil terminal is to be put into operation in October 2009. The terminal will handle heavy fuel oil, diesel fuel and gasoline. According to the forecasts of the market players the terminal is capable of drawing over oil products from Petersburg Oil terminal and Estonian ports.
Thus, it should be acknowledged that despite certain difficulties caused by the global economic recession, the port project has been implemented and put into operation. Experts say the port’s throughput is likely to reach 9 million tonnes in 2009 against 6.8 million tonnes handled a year ago.
Vitalij Chernov
Yug -2 abased itself to diversification
Multipurpose transshipment complex (MTC) Yug-2, intended mainly for handling ro-ro cargo, is to be in low demand due to a steep decline in production of automobiles in the crisis context. As Aleksandr Goloviznin, deputy Director General of Ust-LugaCompany OJSC (the project investor), told journalists, the complex managed to get a piece of the last December automobile boom while now the company is to prepare itself for a hard period. This year the terminal handled 3,500 automobileswith March accounting for over 2,000 units. “In April we expectthe increase of the transshipment volume though it is difficult to forecast with the current economic situation.
In this context the company began to think about the necessity to invest into the program on cargo diversification. In particular, the complex may handle containers though within the scope which cannon be acknowledged as serious. “It is not a container terminal and containers may be handled as additional cargo at ro-ro carriers,” the head explained.
Moreover, MTC was initially intended for transshipment of different general cargoes. Anyway, there are resources still available for its development. First of all, financing from Russian investment fund has not been sequestered yet and the company expects over RUR 1 bln by the end of summer. Secondly, Ust-Luga Company has recently obtained a $100 mln credit from Eurasian Development Bank. In 2009, some RUR 3 bln is to be invested in the development of MTC Yug-2.
However, Maksim Shirokov, Director General of the company, said the company’s investments into the port development are to be cut by 30-40% of the earlier planed volume. In April the Board of Directors is to discuss the issue and to determine the volume of investments for this year.
At the same time, the company dismissed 20% of the personnel before the New Year though no further cut is supposed.
The company rejects making any specific forecasts in view of a fast-changing situation. “The main thing today is the end of the crisis,” Maksim Shirokov sums up.
Till prime-time
Port projects of other Ust-Luga investors also encounter problems. In particular, Maksim Shirokov doubts that the first phase of the Baltic Container Terminal is to be launched according to the schedule – in the third quarter of the current year.
“Accounting for a general situation with the decline of container traffic, the schedule is quite possibly to be adjusted, though I do not yet know how,” Director of Ust-Luga Company said. The project’s designed capacity is 3 mln TEU per year.
The construction of terminals for transshipment of aluminum with Rusal intending to be the project’s investor is also likely to be postponed. “This project is strategically very important for Rusal which has confirmed this interest. However, the project implementation is likely to be postponed for two-three years,” Maksim Shirokov comments.
Nevertheless, prime time is the reality for other projects. In particular, the first vessel was accepted for loading at European Sulfur Terminal on March 25. As journalists learnt from Oleg Glukhov, Harbor Master of Ust-Luga seaport, the terminal is to handle 300,000 tonnes of sulfur by June f the current year. By 2015, when the terminal is to reach its design capacity, it will handle 9 million tonnes per year. The project’s investor is Interfinans LLC.
Apart from this, Zarubezhneft oil terminal is to be put into operation in October 2009. The terminal will handle heavy fuel oil, diesel fuel and gasoline. According to the forecasts of the market players the terminal is capable of drawing over oil products from Petersburg Oil terminal and Estonian ports.
Thus, it should be acknowledged that despite certain difficulties caused by the global economic recession, the port project has been implemented and put into operation. Experts say the port’s throughput is likely to reach 9 million tonnes in 2009 against 6.8 million tonnes handled a year ago.
Vitalij Chernov