Vysotsky’s heights
Port Vysotsky LLC specializing in transshipment of coal delivered from Kuzbass mines plans to increase the throughput by 18.2%, year-on-year, to 3.5 million tonnes in 2009. However, the investment program aimed at the terminal capacity expansion and cargo flow diversification was laid aside because of the global financial crisis.
The state will help us
The main activity of Port Vysotsky LLC is transshipment of Russian coal for export to Western Europe. Before the crisis the company was eyeing expansion of the coal terminal annual capacity to 10 million tonnes in 2010 with a further increase to 15 million tonnes. With the 10-mln t capacity in mind, specifications for the development of railway approaches were obtained as early as in 2008 but the economic decline entailed the fall of coal supply so earlier plans were postponed for an indefinite term.
As PortNews IAA learnt from Andrei Litvin, leading analyst of FC Otkritie, Russian coal industry severely suffered from the crisis. According to him, the forth quarter of 2008 and the first quarter of 2009 were the worst as coal consumption was the lowest.
Nevertheless, dredging works and reconstruction of berths without suspension of stevedoring activities is being carried out in the port within the framework of the federal special-purpose program “Modernization of Russia’s Transport System in 2002-2010” to the order of RosMorPort FSUE. According to Igor Dubrovsky, Director General of Port Vysotsky LLC, this work is to be completed in 2010. All the four berths of the port were reconstructed in 2008 while this year is focused on deepening of the approach channel and the port’s water area. Upon completion of this work the port will be able to handle vessels up to 40,000 tonnes in deadweight.
Besides, the stevedore’s management hopes it will be able to diversify the cargo flow in future and to handle general cargo and containers due to works financed by the state. “We worked through plans to handle metal, mineral fertilizers and containers in the port but our potential customers started to put away their plans because of the crisis so all our projects were laid aside,” Igor Dubrovsky said.
Waiting for growth
Despite the rejection of the plans on capacity increase and cargo diversification, Port Vysotsky LLC invested in the purchase of new equipment allowing it to handle vessels of up to 40,000 tonnes in deadweight. In particular, in 2009, it acquired 2 Dutch tug boats, Volvo loader and two English units for cleaning of coal from metal tie. In 2010, the company plans purchase of 4 German cranes, 1 manipulator and 1 loader. The company does not disclose the volume of investments but says they are to be made from the company’s own resources and its foreign incorporator the name of which is not disclosed either. No loans are to be raised.
According to Vadim Pavlov, Executive Director of Port Vysotsky LLC, the new equipment made it possible to cut turnover of wagons (through application of hydraulic manipulators) and to tune up cleaning of coal from metal tie which is required by certain customers. “” Five manipulators at our disposal are enough for annual transshipment of 5 million tonnes of coal,” Vadim Pavlov said.
Next year the company plans to handle 4.5-5 million tonnes which is a limit according to Igor Dubrovski. Further increase of cargo turnover will require implementation of an investment program aimed at capacity expansion.
In the North-West region of Russia there is another terminal specializing in coal transshipment - Rosterminalugol (Ust-Luga port). In the 8-month period of the current year it handled 4.5 million tonnes of coal (during the same period port Vysotsk handled 2.1 million tonnes). Besides, Forth Stevedoring Company (Sea Port of Saint Petersburg OJSC) also handles comparable volumes. Apart from them, a 18-mln coal terminal is to be built on the west site of the Kola Bay.
According to Igor Dubrovski, not Russian coal terminals but foreign Baltic ports are considered to be the competitors of port Vysotsk. Coal transshipment in Ventspils totaled 3.79 million tonnes in January-August, 2009 while the port of Riga increased coal transshipment by 14%, year-on-year, to 10 million tonnes.
Leading analyst of FC Otkritie Andrei Litvin says Europe is a significant though not a key market for Russian coal companies.
“Coal consumption has declined because of the crisis though the fall was not as evident in the sector of thermal coal as that in the sector of metallurgical coal. With the recovery of the global economy the growth of coal consumption is likely to recover and supply of Russian coal is to increase, in particular. We think the bottom of the cycle is over and we are to expect gradual improvement of the situation in the industry with the growth of prices and consumption,” Andrei Litvin said.