• 2009 October 2

    Investment test

    Notwithstanding significant slump of car sales in Russia and growth of import charges, investors continue to launch and develop Ro-Ro terminals. In particular, main stage of construction of OJSC Petrolesport’s ferry complex was completed. The complex will become the main point of cars import for Rolf SCS. Besides, the automobile company started to accept cars in Vostochny Port in 2009.

     

    All brands to visit Russia

     

    Petrolesport’s Ro-Ro terminal development ( part of Global Ports group, N-Trans) became a part of a program on enlargement and modernization of special-purpose facilities of a stevedoring company.  In the course of renovation specialized open storage areas of more than 16 ha  for passenger cars were constructed.  Terminal capacity makes it possible to annually carry out transhipment of 190,000 cars and 40,000 units of other rolling cargo to the date. Open terminal areas are designed to store 5,300 cars at a time. There are storage areas for all car types and other rolling cargo at the terminal. Its infrastructure comprises a rail front with an operation area for loading and unloading of automotive equipment, point of transhipment onto the vehicles. SGS survey company carries out inspection and customs clearance takes place in the terminal territory.

     

    Within the period of 2008-2009 total volume of investments into the complex construction was over RUR 282 million.

     

    We continue to invest into development of specialized terminals to first of all improve the level of service provided, pointed out Nikita Mishin, Chairman of the Board of Directors of OJSC Petrolesport. As per Nikita Mishin, the investment program of Petrolesport development is adjusted to improve the quality of services and competitiveness of the stevedoring company.   

    Thus Petrolesport Ro-Ro terminal has currently become one of the largest in the North-West.


    As PortNews IAA learnt from ROLF SCS CEO Marc Brenneiser, the company has considered all the existing offers before choosing Petrolesport. We have realized that Petrolesport provided us with the widest opportunities for development. We were not looking for short-term contracts but were interested in long-term cooperation. The other ports either were not ready to accept the cars in such volumes or lacked sufficient capacities, explained Marc Brenneiser.

    It is necessary to point out that another big complex that accepts rolling cargoes in the North-West – multifunctional transhipment complex (MTC) “Ug-2” in Ust-Luga port - currently provides the opportunity of simultaneous storage of 500,000 cars and transhipment of 100,000 cars annually. Estimated capacity of MTC is 500,000 cars annually. Cooperation with MTC was planned for 2012. Toyota, Lexus and Hyundai cars are transhipped through the terminal. As PortNews IAA learnt from OJCS Ust-Luga Company the works on construction of the second MTC start-up complex that will allow increase its throughput capacity are being carried out.  As per the company’s information, over 11,000 cars were transhipped at the terminal beginning this year. For more details on MTC development refer to Relevant Topic dated July 1, 2009.


    Russian Transport Lines terminal “New Harbor” is also under construction not far from Ust-Luga. It is aimed totranship cars and containers.  When it starts to work at its capacity its throughput shall amount to 400,000 cars annually.

    On the territory of the Big Port of Saint-Petersburg there is also a terminal of automotive vehicles transhipment of “Third Stevedoring Company” ( a part of OJSC Sea Port of Saint-Petersburg). It was launched in May, 2008 and allows tranship up to 80,000 cars annually. Simultaneous storage norm is 1900 cars. As per marker participants’ information, only two small shipments with Volkswagen cars came to the terminal.

    Besides, Russian Transport Lines terminal (RTL) with its annual throughput capacity up to 300,000 cars functions in the Big Port of Saint-Petersburg. As PortNews IAA learnt from RTL, about 5000 cars of such brands as Nissan, Peugeot, Citroen and Ford are monthly transhipped at the terminal to the date.

    Petersburg Detroit, regional Singapore

    Petrolesport’s Ro-Ro terminal works with its own car brands to the date and competition may take place only for Ford. It is relevant to mention that the most popular model of this brand Focus is produced at a factory in Leningrad region, so is Mondeo. But the decreased demand makes this factory work at its partial capacity too.


    On the whole, Petrolesport seams quite a fair choice for a logistics company of an automobile holding both from the point of view of its location and transport accessibility (accessibility of the West Speed Diameter, besides road interchange is under construction at the expense of Petrolesport) and capacities availability for the potential growth.


    Moreover, Rolf SCS “Elite-Trans” terminal designed to store 2500,000 cars is located less than 10 km away from Petrolesport. There the cars can pass customs clearance, technical maintenance, can be filled and washed.  The cars can be dispatched to the point of destination by rail (the terminal has a rail connection with Oktyabrskaya railway).

     

    The Cars are currently shipped to Petrolesport Ro-Ro terminal in feeder vessels including Baltic ports (there are regular feeder calls arranged between Petrolesport and Hango, Kotka ports and others). Nevertheless, there is a possibility of direct calls in future, said  Marc Brenneiser.  

     

    The logistics company tranships Mitsubishi, SsangYong, Geely, Mercedes and Ford cars through Petrolesport. As PortNews IAA learnt from Marc Brenneiser the possibility of other brands delivery is currently negotiated.

     

    At the same time experts estimate car sales in Russia down to 40-60% within the first eight month of the current year as compared to the corresponding period of the previous year.


    Besides, there is a tendency of foreign brand cars manufacturing localization in Russia that may stop large scale import of the localized models from abroad because in Saint-Petersburg  and Leningrad region there is a strong cluster of such assembly factories as Toyota, Nissan, Ford, GM, Hyundai. It is logic to assume that the range of localized models at such factories will be widened.  Nikolai Asaul, Head of St. Petersburg Committee for Transit Transport Policy, who was present at Petrolesport Ro-Ro terminal presentation pointed out, we hope the city will not only import but export cars in future, the required port capacities are already available.

    Petrolesport Administration do not exclude the possibility of cargoes diversification – it is possible to accept not only passenger cars but also other types of rolling cargo.

     

    As per opinion expressed by Elena Zhadanova, RTL Marketing Director, on condition of active ust-luzhsky port business development Ro-Ro cargo flow to Saint-Petersburg will gradually go down.  The growth after the  recession slump is possible only in several years but it will scarcely reach its annual 60% increase, we shall witness 20% annual growth at best, mentioned Elena Zhadanova in the interview with PortNews IAA. Petersburg terminals shall lag behind Ust-Luga due to more interesting price offers in this port. Moreover, most car manufactures due to small volumes of sales are not ready to change the existing logistic ways, the expert is sure.   

     

    As PortNews IAA learnt from Mikhail Schevelkov, Sales Director of Alarm-Motors Ford, the largest Ford dealer in the North-West, sales market of new foreign cars in Russia is 60% average as compared to the corresponding period of 2008 to the date. Still, depending on the policy of each definite manufacturer in the Russian market, on the volumes of 2008-made cars made left, from the model range all the figures significantly vary from brand to brand, from model to model. It goes without saying that all car manufacturers have taken losses, to a smaller or a greater extent, said Mikhail Schevelkov.

     

    As for Ford cars sales a significant growth took place in Alarm-Motors company in September, namely by 90% as compared to the results of summer months.  As per Mikhail Schevelkov’s opinion the reason of growth was first of all sales of Ford Focus models under loan rate assistance governmental program. At the same time some brands ceased to be sold fist of all because the cars manufactured in 2008 had been sold at bargain prices and the ones produced in 2009 became up to 20-25% more expensive in comparison with 2008 prices, the expert pointed out.

     

    As per his opinion, “deferred demand” for foreign cars occurred in spring-summer 2009, that sooner or later would turn into a sales lift. Another thing is that it will be a lift as a result of which another slump to 50-60% level of 2008 sales figures would take place after which we will witness a gradual increase on condition of positive economic development in our country, pondered Mikhail Schevelkov.

     

     As for the perspectives of foreign brand cars manufacturing localization in the territory of Russia, the expert pointed out that the prime cost of cars production in the countries of East Europe  is lower than in Russia. And in relation to the matter only quite heavy duties on foreign cars import “assist” us. Without them our industry does not almost have perspectives to locate new motorcar factories in its territory. That is why everything is in the Government’s hands. If the country is interested in new plants construction the duties will remain the same. In case foreign motorcars manufacturers are interested in work in the Russian market they will have to locate their factories in our territory. It is first of all related to large scale brands and models, highlighted dealer company representative.


    Vitaly Chernov.