• 2009 October 21

    Kaliningrad is out of the way

    Seaport of Kaliningrad was affected by the world economic recession most of all. Overall cargo turnover of stevedoring companies decreased by 20.5% (to 9 million 335 thousand tons) in January-September 2009 as compared to the corresponding period of the previous year. To manage the situation the anclave port has to attract a part of cargo flow from the Baltics. But state support is required for the undertaking especially railway rates reduction. .

    Worrying statistics

    Main part cargo throughput of the port falls onto 3 stevedoring companies – Kaliningrad Commercial Seaport OJSC (about 17%), LUKOIL Kaliningrad Morneft LLC (29%) and FGUP Kaliningrad Sea Fishing port (about 19%). Oil loading in Kaliningrad alongside other Russian ports is relatively stable (insignificant decrease), whereas dry cargo transhipment volumes decreased by 32.4% (3 million 989 thousand tons) in January-September, 2009 as compared to the corresponding period of 2008..

    In particular, Kaliningrad Commercial Seaport OJSC (KMTP) cargo turnover decreased by 2.3 times (to 1 million 578.7 thousand tons) in January-September, 2009 against the corresponding period of 2008, as per the stevedoring company’s data. KMTP cargo turnover showed double reduction and amounted to 155.4 thousand tons in September, 2009. Throughput of ferrous-metals decreased by 2.2 times (555.3 thousand tons) in January-September, 2009 as compared to the corresponding period of 2008. KMTP box turnover amounted to 11 thousand 506 TEUs (3.7-time decrease) in January-September, 2009 against 9-month figure of 2008.


    Cargo turnover of FGUP Kaliningrad Sea Fishing port (KMRP) decreased by 28% (1.423 million tons) in January-September, 2009 against the corresponding period of 2008, as per the company’s information. The port handled 262 thousand tons of cargo in July current year which is almost 8.7% time less as compared to the figures of July 2008. The greatest cargo flow reduction took place in containerized cargo and mineral fertilizers freight.

    Thus, it becomes obvious the anclave is in quite difficult conditions.

    Russia wants its share

    As per the Government concept, Seaport of Kaliningrad would be able to attract a part of cargo from foreign Baltic ports, but it is necessary to develop its compatibility to implement the idea.

     

    In particular, at a September meeting of the Marine Board of the Government of the Russian Federation, of Commission of Federation Council for national marine policy and of the committee of State Duma for transport that took place at Sergei Ivanov’s, Vice-Chairman of the Government, , Chairman of the Marine Board of the Government of the Russian Federation, Mintrans of Russia Federal Teriff Service (FST) in co-operation with RZD OJSC were ordered to continue work on reduction of the existing railway rates in Kaliningrad direction. As per the minutes of meeting available to PortNews IAA, tariffs reduction is aimed at ‘creation of equal compatible conditions with the Baltics ports and cargo volumes recovery of Seaport of Kaliningrad due to decrease of foreign ports transhipment volumes’

     

    For comparison, Ventspils port (Latvia) transhipped 20.71 million tons of cargo (-2.8%) within 9 months of 2009 as compared to the corresponding period of 2008, including 707 thousand tons of mineral fertilizers.


    Cargo turnover of the Free port of Riga (Latvia) increased by 1.9% (22 million 367.1 thousand tons) within 9 months of 2009 as compared to the corresponding period of 2008. Including 14 million 384.6 thousand tons of bulk cargo transhipped within the reporting period (+ 0.3%), 3 million 53.9 thousand tons of general cargo (- 19%), 4 million 928.6 thousand tons of liquid cargo (+ 28%).

    Port of Klaipeda (Lithuania) cargo turnover decreased by 13.1% (to 20.12 million tons) in January-September, 2009 against the corresponding period of 2008. The most rapid cargo turnover growth was recorded in the sector of bulk cargo, agricultural goods shipments (+22%) and bulk peat (3.2-time growth) in January-September, 2009. Increase in molasses shipments (+7.9%) and packed fertilizers (+3,3%) was recorded in 3-quatre period of 2009 as compared to the corresponding period of 2008 Container turnover of the port decreased by 34.8% (to 181 thousand 608 TEUs) in the reporting period.

    Cargo turnover of the port of Tallinn (Estonia) increased by 6.7% (down to 23.337 million tons) in January-September, 2009 against the corresponding period of 2008. The volume of bulk cargo handled in January-September, 2009 increased by 24.9% (up to 2.809 million tons). Coal transhipment volumes increased by 4.7 times, cracked stone – by 42%, fertilizers - by 39.6%. Oil products throughput increased by 14.2% (up to 17.357 million tons) within 9 months of 2009. Box throughput of Tallinna Sadam reduced by 28.2% (down to 98 thousand 951 TEUs) within 9 months of 2009 as compared to the corresponding period of 2008.


    As per the opinion of Sergei Semenov, the Development Director of NPO Morstroitekhnologii, the main problem of Seaport of Kaliningrad is high railway rates. ‘It is more cost-efficient to ship the cargo by sea on a ferry because of the rates growth, and it explicitly characterizes the situation. It is difficult to say how to get away with it – it is possible that through negotiations between the relevant parties it will be feasible to optimize railway rates or maybe it is necessary to look for another niches. In particular, there is a project of construction of container port-hub in Kalinigrad region. In case this project is successfully implemented it will allow create related businesses and environment, that will positively influence compatibility of Seaport of Kaliningrad,’ assumes the expert.


    At the same time, as per Igor Nosikov, Head of forwarding department of North-Western Marine Company, opinion, project of port-hub construction in Kaliningrad region looks doubtful as there are such projects being implemented in foreign Baltic ports to the date. Such ports will be able to accept ocean container carriers and peculiarities of Russian legislation and the procedures of customs clearance and boarder control make local ports less attractive for shipping lines. PortNews IAA gives more details here.

    Port future of the Russian anclave will depend on political will of the Government required for approval of port and rail ways representatives interests as well as on development of Russian ports attractiveness for the international business.


    Vitalii Chernov