Russian cranes conquer the market

The situation in the market of lifting and handling equipment (LHE) for Russian seaports attracts high interest today as the expression “the crisis plays into the hands” is quite applicable for Russian crane producers.  Andrei Pochtennov, Director General of Tehnoros Group, covers the situation in his interview to PortNews IAA.

Mr. Pchtennov, what changes were brought by the crisis into the market of lifting and handling equipment in Russia? 

- The main trend of the market typical not only for LHE segment but for any other one is the search for cost optimization. It is individual for each business sector with the common desire of all businessmen to control costs and to save their pockets.

Just some years ago our proposals to representatives of the transport industry to eye the purchase of Russian equipment used to be responded with a smile and we could not understand their position: competitiveness of the national equipment was out of question for a long time – western manufacturers were carrying the palm in terms of quality while certain LHE were out of production in the USSR and then in Russia.

The situation has changed beyond recognition recently: representatives of modern crane production industry in Russia including our company supply equipment comparable to that of foreign manufacturers with the customers to choose between extra payment for a famous western name and a well-weighted rational choice.

So the answer to your question as regards the trend of Russian transport industry is the following: the share of cranes in total number of purchased LHE is growing.  

Isn’t your forecast too optimistic? Are the customers really ready to choose domestic manufacturers instead of import producers? 

- One outside the industry could consider this to be impossible indeed but in reality it a result of long processes going back to a long time ago when market economy was in its infancy period in Russia. You know, the main requirement to be met for being competitive with western manufacturers is a permanently high quality of work at all stages of production. Tehnoros has traveled an enormous way in this direction during the last 19 years. All this time we were fighting for raising the quality of our equipment to the level of western counterparts and we succeed in it!

Of course, we haven’t started from nothing – the basis of our activities is a 70-year design and production experience of LHE Plant named after S.М. Kirov, which was the main supplier of gantry cranes in the Soviet period. From 2003, the plant fulfils the function of our production facility where we manufacture major units of the equipment. Our company is also a sole owner of a unique engineering archive of the Kirov LHE Plant comprising over 3,000 designs of cranes and units. Moreover, when the plant entered Tehnoros Group, our design bureau obtained leading engineers of the company representing Leningrad school of crane building. Admit that it is quite a thing. Besides, we apply up-to-date business and production practices being fruitful in combination with the experience and traditions: the quality of our equipment is equal to that of the western one.

 
The second component of the efficient competitiveness is a deep understanding of the customer’s requirements. Here we are quite ahead of both domestic manufacturers and foreign representatives of the industry. How could we reach it? It is quite obvious: 70-year experience of Kirov Plant and 19-year experience of Tehnoros provide us with sustainable links with representatives of different industries and we also keep our finger on the pulse through servicing the equipment installed all around the country hence we have a good understanding of specific requirements of our customers. It is something enabling us to take into consideration all the requirements at the stage of specifications development and to make proposals to find an optimal solution. Of course, neither 30-year experience of a post-soviet plant nor foreign commercial project developed thousands of kilometers from the site of installation is able to fully meet the customers’ requirements.

Al last, the third element of competitiveness, oftenbeing the most important one, is the price. There are crane producers trying decrease the price to the level being unreal for other market players through maximal unification of units, use of the cheapest components and application of “subsistence production”. There are also foreign manufacturers using their financial resources for dumping bringing their prices to ours with the purpose to enter and to hold in this or that industry. However we do not give up and follow our customers’ requirements though application of individual financing schemes, payment by installments with advanced payment and leasing. 

It only remains to exult at your positive look on the present and the future. However, there is a question: do you set to any projects in the current market situation or do you have any priorities? 

- Our doors are open for any customers, of course, though ports and railway are still the most preferable customers for us.

What is new in the current situation? Good opportunities will appear if authorities confirm their interest in the development of inland waterways as the federal special-purpose program “Development of Russia’s transport system in 2010-2015” suggests. As I have already said, we know this industry firsthand. Today almost all river ports of Russia are equipped with so called Kirovets cranes manufactured to the design of Kirov Plant. They are overage though equipment experts call them “unassailable” as those cranes are still on their labor duty. If the state decides to “reanimate” the industry we will be glad to propose our services on equipment modernization as experts in fitting river ports. If crane replacement is required, our new solutions based on the experience of the past years and deep knowledge of river port operation could not have come at a better time. 

Could you, please tell about about Tehnoros equipment for ports and railway stations 

- As for river ports: we produce 5 to 32-tonne gantry cranes with 24 to 32-meeter boom. All cranes are fitted with frequency control systems and energy recovery systems ensuring reduction of energy consumption.

Busier seaports require 63-tonne cranes with 45-meter boom.     
Another product line for hinterland ports being as efficient for container terminals of railway stations includes our 36 to 50-tonne specialized heavy duty goliath cranes for container handling and making container stacks of up to 5 levels.