Port of Murmansk is the gate to Russian shelf, Alexandr Davydenko
I International Economic Forum took place in Murmansk last week. As PortNews IAA learnt from Alexandr Davydenko, Head of Federal Marine and River Transport Agency, in the a number of issues course of forum: on the development of North ports of Russia, what will be Murmansk port like, on the change of port charges, and whether FGUP Rosmorport will be reincorporated as a joint-stock company.
Alexandr Alexandrovich, will the Murmansk port be able to keep up with scale projects of Arctic shelf development? Will it become the country’s largest coal port? And what is your evaluation of container hub construction here?
- First of all it is necessary to point out that Ministry of Transport (Mintrans) completed elaboration of draft on Murmansk port sea and land boundaries. We managed to find consent with Ministry of Defense after several months of mitigation committee work. Draft regulation of the RF Government on Murmansk port boundaries definition is handed over to the Government.
Murmansk port boundaries are closely connected with the project of Murmansk Transportation joint development (MTU). Under the Federal Target Program ‘Russian transportation system development 2010-2015’ construction of a new port and railway infrastructure in the Murmansk port and western part of Kola Bay. In particular, construction of maritime container terminal (up to 1 mln. TEU annual cargo turnover), building of coal transhipment complex (annual capacity of 18 mln tons) in western part of Kola Bay in the Lavna river region and coal terminal development (annual capacity of 12 mln tons) in the eastern coast of Kola Bay, creation of crude oil loading terminal (annual capacity of 35 mln tons) in western coast of Kola Bay, construction of a new railway line (27 km) along the western cost of the bay as well as a special logistic centre development is envisaged in the project of Murmansk Transportation joint development.
Murmansk Transportation joint development and scheduled cargo turnover growth of operating terminals in the Murmansk port requires opening additional offshore posts to cross the RF boarder. Rosmorrechflot finds it advisable to open such a post in Liinahamari village (Murmansk region).
Implementation of any port project, and Murmansk Transportation joint will not be an exception, is possible only on condition of private-public partnership. It is necessary for us to make the project attractive for investors. That is why I am sure we need to go back to the issue of special economic zone in the Murmansk port. It will improve business and investment activity in the port, create conditions for up-to-date innovations involvement into the region and give an impetus for arctic freight development.
When is the active stage of MTU development expected?
- Murmansk Transportation joint development will actually begin in 2010-2015; the project will be of the priority already in 2010. An investment memorandum on co-operation between the Management company on Murmansk Transportation joint project implementation and potential investors will be prepared in the nearest future.
Murmansk port does not freeze and has a great depth which provides an opportunity of heavy-tonnage vessels operation that would directly precede European ports and the ports of North America. This is the gate to shelf deposits of Russia. That is why we will not able to implement our arctic projects unless we construct a transportation joint in Murmansk.
FGUP Rosmorport is one of the shareholders of MTU managing company. How is the process of state enterprise reconstruction into OJSC? What share shall belong to the state in a new joint-stock company?
- In 2008 FGUP Rosmorport ordered the explanation of this legal step in Vegas Lex. The decision is about to be issued. state will hold 100% of Rosmorport shares at an initial stage.
Is there possibility of further share sale?
- Possible.
What is your evaluation of FST decision of port charges change?
- Port charges in Russian port reduced instead of increase. As your remember in 2008 we started to calculate port charges in RUR. Dollar (the currency Russia took charges in) was going down. Dollar has went up by now. That is why irrespective of the fact port charges grew by 27% on the whole due to the difference in ruble and dollar exchange rate they still went down by 5%.
The concept of Russian inland water system restructuring was accepted by the RF Government several months ago. How is the concept implementation going?
- Minister of Transport approved the concept by the order. The plan will be implemented in two stages. First one – by 2011; next one will take another 3 years. First of all we need to prepare and make amendments into the existing legislation for the reform not to violate country’s laws. Oyr task in the course of the reform implementation is to differentiate between economic and administrative responsibilities (GBU fulfills both of them to the date); to create a single managing unit – Rosvodput with branches in basins. Each basin shall have its Administration of river basin (ARP) instead of GBU of waterways and shipping.
Can there be any changes introduced into the plan due to lack of funds?
- No investment will be required at the first stage. We have mainly scheduled preparation measures on the existing legislation modification: it is necessary to restructure our GBU into Administration of river basin (ARP) and create FGUP Rosvodput.
Who is able to run Rosvodput?
- There are several candidates whose names I would not like to mention today. It must be a specialist both with experience of work in river with administrative skills.
Will private investments be taken into consideration in inland waterways reform?
- We always need private investments! Bur private business does not almost invest into rivers to the date. Our task is to make inland water transport investment-attractive for private businesses including investments in construction and reconstruction of hydrotechnical structures.
There investors to the date but there is none to work in inland waterways with. The legislation does not permit to work with state basin authorities, because they are federal state enterprises.
Can you name investors ready to work within the reform?
-They are Palmali shipping line, Rostov port (administration of Rostov region is ready to invest into logistic centre), North-West Shipping Company, Volga Shipping, Moscow Shipping. Foreign investments are expected.
Isn’t it necessary to open inland waterways for foreign vessels calling?
- This issue is related to shipping and not to the investment into the river infrastructure on the part of foreign companies.
Nadezhda Malysheva
Alexandr Alexandrovich, will the Murmansk port be able to keep up with scale projects of Arctic shelf development? Will it become the country’s largest coal port? And what is your evaluation of container hub construction here?
- First of all it is necessary to point out that Ministry of Transport (Mintrans) completed elaboration of draft on Murmansk port sea and land boundaries. We managed to find consent with Ministry of Defense after several months of mitigation committee work. Draft regulation of the RF Government on Murmansk port boundaries definition is handed over to the Government.
Murmansk port boundaries are closely connected with the project of Murmansk Transportation joint development (MTU). Under the Federal Target Program ‘Russian transportation system development 2010-2015’ construction of a new port and railway infrastructure in the Murmansk port and western part of Kola Bay. In particular, construction of maritime container terminal (up to 1 mln. TEU annual cargo turnover), building of coal transhipment complex (annual capacity of 18 mln tons) in western part of Kola Bay in the Lavna river region and coal terminal development (annual capacity of 12 mln tons) in the eastern coast of Kola Bay, creation of crude oil loading terminal (annual capacity of 35 mln tons) in western coast of Kola Bay, construction of a new railway line (27 km) along the western cost of the bay as well as a special logistic centre development is envisaged in the project of Murmansk Transportation joint development.
Murmansk Transportation joint development and scheduled cargo turnover growth of operating terminals in the Murmansk port requires opening additional offshore posts to cross the RF boarder. Rosmorrechflot finds it advisable to open such a post in Liinahamari village (Murmansk region).
Implementation of any port project, and Murmansk Transportation joint will not be an exception, is possible only on condition of private-public partnership. It is necessary for us to make the project attractive for investors. That is why I am sure we need to go back to the issue of special economic zone in the Murmansk port. It will improve business and investment activity in the port, create conditions for up-to-date innovations involvement into the region and give an impetus for arctic freight development.
When is the active stage of MTU development expected?
- Murmansk Transportation joint development will actually begin in 2010-2015; the project will be of the priority already in 2010. An investment memorandum on co-operation between the Management company on Murmansk Transportation joint project implementation and potential investors will be prepared in the nearest future.
Murmansk port does not freeze and has a great depth which provides an opportunity of heavy-tonnage vessels operation that would directly precede European ports and the ports of North America. This is the gate to shelf deposits of Russia. That is why we will not able to implement our arctic projects unless we construct a transportation joint in Murmansk.
FGUP Rosmorport is one of the shareholders of MTU managing company. How is the process of state enterprise reconstruction into OJSC? What share shall belong to the state in a new joint-stock company?
- In 2008 FGUP Rosmorport ordered the explanation of this legal step in Vegas Lex. The decision is about to be issued. state will hold 100% of Rosmorport shares at an initial stage.
Is there possibility of further share sale?
- Possible.
What is your evaluation of FST decision of port charges change?
- Port charges in Russian port reduced instead of increase. As your remember in 2008 we started to calculate port charges in RUR. Dollar (the currency Russia took charges in) was going down. Dollar has went up by now. That is why irrespective of the fact port charges grew by 27% on the whole due to the difference in ruble and dollar exchange rate they still went down by 5%.
The concept of Russian inland water system restructuring was accepted by the RF Government several months ago. How is the concept implementation going?
- Minister of Transport approved the concept by the order. The plan will be implemented in two stages. First one – by 2011; next one will take another 3 years. First of all we need to prepare and make amendments into the existing legislation for the reform not to violate country’s laws. Oyr task in the course of the reform implementation is to differentiate between economic and administrative responsibilities (GBU fulfills both of them to the date); to create a single managing unit – Rosvodput with branches in basins. Each basin shall have its Administration of river basin (ARP) instead of GBU of waterways and shipping.
Can there be any changes introduced into the plan due to lack of funds?
- No investment will be required at the first stage. We have mainly scheduled preparation measures on the existing legislation modification: it is necessary to restructure our GBU into Administration of river basin (ARP) and create FGUP Rosvodput.
Who is able to run Rosvodput?
- There are several candidates whose names I would not like to mention today. It must be a specialist both with experience of work in river with administrative skills.
Will private investments be taken into consideration in inland waterways reform?
- We always need private investments! Bur private business does not almost invest into rivers to the date. Our task is to make inland water transport investment-attractive for private businesses including investments in construction and reconstruction of hydrotechnical structures.
There investors to the date but there is none to work in inland waterways with. The legislation does not permit to work with state basin authorities, because they are federal state enterprises.
Can you name investors ready to work within the reform?
-They are Palmali shipping line, Rostov port (administration of Rostov region is ready to invest into logistic centre), North-West Shipping Company, Volga Shipping, Moscow Shipping. Foreign investments are expected.
Isn’t it necessary to open inland waterways for foreign vessels calling?
- This issue is related to shipping and not to the investment into the river infrastructure on the part of foreign companies.
Nadezhda Malysheva