Port Primorsk to introduce EDP
Oil cargo is the only segment in the market of sea shipping to have retained positive dynamics amid the crisis. Meanwhile, the crude and oil products are the main items of Russian export. The amount of shipped oil depends on the efficient operation of sea terminals closing export pipelines. One of the ways to optimize stevedoring activities in oil ports is to introduce EDP system (Early Departure Procedure), top management of port Primorsk (Leningrad region) believes.
EDP system reduces the time needed for vessel handling formalities owing to electronic document management with no need for representatives of border, customs, phytosanitary, quarantine and agricultural authorities to be physically present onboard a vessel. However, EDP unitary standard should be approved by the government to introduce the system in Russian ports.
Costly dead time
Tankers spend some 24 hours in an oil port. Besides tanks loading this time is needed for customs and border control, registration of shipping documents, take over oily mixtures, waste waters and garbage. Not all ofthose operations can be fulfilled simultaneously. So up to 1/3 of the entire dead time period is spent for auxiliary operations including call registration by state authorities, document execution and other formalities. Experts say one hour spent by any transport at the border results in a loss of 0.04 % of freight value. When speaking about sea-going tankers with the capacity of at least 100,000 tonnes, consignors’ direct loss amounts to thousands of dollars. Finally, the losses fall on oil producer, Russian oil company, thus reducing profitability of its business and competitiveness of export oil in international markets.
It is the time that could be saved through introduction of the latest computer technologies with exchange of information in standard electronic format. As PortNews IAA learnt from Andrei Tereshchenko, first deputy Director General of Primorsk Commercial Port LLC (oil terminal in port Primorsk), a working group has been formed at the terminal to launch a pilot project on EDP introduction. This generally recognized electronic system has been successfully applied for a long time at many international export-import terminals. EDP introduction is recommended by an International Convention on Facilitation of International Maritime Traffic (FAL, 1965) ratified by Russia as early as in 1967. However, it is not in practice at Russian sea terminals.
According to Yuri Matvienko, Director General of BaltTransServis LLC (Primorsk terminal handling light oil products), the main purpose of EDP introduction and application is optimization of the terminal operation and reduction of dead time. “The advantage of this system is facilitation of customs, border and sanitary-quarantine clearance of cargo as well as avoidance of time and finance loss in Russia’s foreign trade activities,” Matvienko believes. – This system will make it possible to improve performance and throughput of the terminals, make cooperation of all port structures more efficient and contribute to the port’s investment attractiveness.
How to save $4 mln?
In developed countries electronic document flow quite long ago transformed from an instrument simplifying business activities into one of priorities of the economy development and management strategy. Although none of the ports can completely exclude paper documents, EDP considerably saves time so lots of large foreign companies like Maersk, Hapag Lloyd, OOCL, P&O/Nedlloyd and Sea-Land have introduced electronic paper exchange into their daily activities.
Besides, electronic document flow is one of the key factors for successful operation of offshore terminals working with a floating loading buoy. Such terminals can carry out cargo operations even in unfavorable weather conditions when representatives of the authorities cannot get aboard. The paradox is: a terminal can operate and state authorities cannot work in bad weather. The examples of such terminals in Russia are Varandey and Yuzhnaya Ozereevka of the Caspian Pipeline Consortium. CPC experts say the terminal annually loss amounts to some $4 mln because of clearance delays caused by weather conditions. EDP application would enable the terminals to ship oil regardless weather conditions and will eliminate risks for a commission which will not have to get aboard.
“Despite its significance for Russian Economy, oil export from RF seaports is connected with a number of port formalities which are still far from international practice and standards, thus having a negative impact on cargo flow rates and, finally, on revenues of Russian sellers,” representative of one of oil trading companies told PortNews IAA. He also added accurate work of a seaport plays an important role in the logistics of Russian oil export. Amid the crisis, in particular, an opportunity to save on freight costs is a significant factor for any oil trader.