Andrei Kyachin: the project of Belomorsk port was positively influenced by the crisis

Preparatory work on creation of Belomorsk seaport (Karelia) to start as early as this year. The results of the work done since the project announcement a year ago and its prospects are disclosed to PortNews IAA by Andrei Kyachin, Director General of Belomorsk Port CJSC.

Mr. Kyachin, could you, please, tell about the Belomorsk port project?

- Our project implies the development of the territory and the water area of the future port, construction of port and transport infrastructure facilities in Belomorsk.  In particular, approach canal is to be deepened to 12.5 m, operational water zone is to be created (water area of the coal and multi-purpose complexes to be deepened to 12.5 m; water area of the port fleet base – to 5.5 m), territory development to +3.2 m), construction of berth facilities and equipment of the facilities of navigational support system and ship-traffic control as well as RF state border check point.

The project implies construction and equipment of a coal and multi-purpose handling complexes as well as port infrastructure facilities, industrial railway park Belomorsk-Port, coal and exhibition parks and a railway approach adjacent to Belomorsk station of Oktyabrskaya railway (Russian Railways OJSC).

Railway transport is very significant for any port and Belomorsk is not an exclusion: there is a number of principal agreements with Russian Railways on reconstruction and expansion of Belomorsk station. The construction of an intermediate station and a railway approach is to be financed jointly with Russian Railways.

What cargo base is the port focused on?

- At the first phase the new port will be able to handle vessels of up to 30,000 tonnes in deadweight and handle 9 million tonnes per year. According to preliminary estimations, the volume of investments will make some RUR 16 bln (in prices forecasted for 2010-2012, VAT included). In the future the capacity is to be increased to 15 million tonnes per year through extra dredging and expansion of transshipment facilities.

What is the current stage of the project implementation? How many private and public money is spent already?

- The Project implementation period is 2010-2012 years. The preliminary stage (2009 – 2010) will comprise design-and-survey work, raising of financing, signing of documents for supply of equipment and construction & assembling operations. Investment stage (2010 – 2012) implies construction of port facilities and related infrastructure, opening of a port for vessels. The Project’s operational stage (2013-2062): adjustment of technological equipment, attainment of projected capacity, return of investments and completion of settlements with creditors as well as production development.

As of today, Directorate of State Contracting Authority for Marine Transport Development Programmes has approved the Declaration of Intent. The project is included into sub-program “Marine Transport” of the federal special-purpose program “Development of Russian Transport System (2010-2015)” and FSPP “State Border of the Russian Federation (2010-2015)”. Implementation of such projects without state financing is almost impossible as there is a number of port infrastructure facilities the investments into which should be only made by the state. It is preconditioned by requirements of the Law on Ports. We hope to implement the project in the shortest possible time with the state support.

We have also signed long-term lease agreements (for 49 years) for the plots of land occupied by the property of the former fishing port with total area of 23.9 hectares.

Initial project preparation has been completed for construction of an intermediate railway station and port railway infrastructure. An approval has been obtained for promising targets of the port’s throughput and conditions of infrastructure adjacent to Belomorsk station of Oktyabrskaya railway. The Project’s detailed business plan has been developed.

Has the global financial crisis influenced the Project implementation?

- Yes, it has, though in a positive way. In particular, our estimates show the cost of design work will be lower than it was earlier supposed. Major parameters of the Project have not changed despite the crisis and we do not plan to review implementation period. I hope, we will start design work by the end of the current year.

Who is to own the port’s berths?

- We plan that the port’s berths will be a private property. Belomorsk Port CJSC has already purchased the property of the former fishing port (coal terminal, radio station building, highway, northern protective breakwater pier, salt storage facility).

The state is in charge of dredging works, construction and equipment of the facilities of navigational support system and ship-traffic control as well as RF state border check point. The rest is within the zone of responsibility of the business.

What effect do you expect from the reform of inland waterways in respect of your project taking into consideration its closeness to the White Sea – BalticCanal?

- As I understand the essence of the reform is in creation of an efficient inland water transport system, up-to-date infrastructure of inland waterways. Achievement of the objective will improve competitiveness of our project. Its closeness to the White Sea – Baltic Canal is a unique opportunity to create an up-to-date intermodal transshipment complex ensuring availability of sea and inland water transport as well as railway and automobile transport.