Chinese rail traffic jams
Railcar (loaded with coal and ferrous-metals) jams forgotten for a period of economic recession have occurred at railway approaches to a number of ports. Railroadmen accuse stevedoring companies of railcars demurrage. Nevertheless, as per experts opinion, growth of coal transhipment volumes as well as freight rate increase are explained by a resumed demand for coal on the part of China which actually may go down again due to the reserves collected in the country.
The run off the track
It was recently that press-service of RZD OJSC announced on suspension of coal shipment to Nakhodka and Vanino ports as well as ferrous-metals to Makhachkala port since November 10, 2009 till its termination, ‘due to ports unreadiness to work in winter conditions’ and ‘unsatisfactory unloading of railcars with coal’. As per RZD information, 1.5 thousand coal-loaded railcars of Vanino Commercial Seaport direction has gathered at the railways including over 900 railcars at the Far East Railways (the norm is 450). Average daily unloading amounts to 48 railcars with the norm of 100 units. There are 245 coal-loaded railcars at Mezhdurechensk station waiting to be dispatched to Hakhodka Commercial Seaport including 1000 railcars waiting at the Far East Railways
As PortNews IAA learnt from RZD, suspension of dispatches to the aforementioned directions was not terminated as of November 16, 2009 as the rail traffic jams are preserved.
Center of corporate relation Siberia of EvrazHolding LLC (Nakhodka Commercial Seaport OJSC is a part of it) on its part informed PortNews IAA that it was fully ready for a winter period. All the necessary measures on repair and preparation were taken in the port.
Besides, NMTP has elaborated and approved with the coal shippers a number of preventive measures aimed at railcars depot safety and prevention of coal freezing.
‘On November 8, 2009 two coal-loaded rolling stocks arrived at NMTP OJSC. 100%-frozen coal made it difficult to unload the coal. The enterprise has all the necessary facilities available and capable of unloading frozen coal but 100%-freezing hindered the work of the specialized equipment. The situation stabilized next day: rail cars were unloaded under the schedule,’ explained EvrazHolding LLC.
PortNews IAA learnt from FGUP Makhachkala Commercial Seaport (MMTP) that the enterprise works under its usual schedule and the volume of cargo transhipped corresponds to monthly average 2008-2009. ‘Stormy weather is the only circumstance that can affect the volume of MMTP cargo transhipment ’, highlighted stevedoring company representative.
Vanino port did not provide any comments on the matter.
Eastern neighbour awoken
As per the experts opinion the given situation is caused by objective macroeconomic circumstances, namely resumed demand for coal on the part of China, where the state supported significant funds for implementation of a number of infrastructure and industrial projects.
As per Sofia Ragulina, Senior analyst of Everest Asset Management LLC, growth of coal transhipment volumes via far-east ports is explained by procurement on the part of PRC importers. The volumes resumed its growth here after a slowdown in July-August (when import volumes decreased by 30%) unlike in other countries. ‘On the other hand there definite coal reserves in China that is why it is possible to expect temporal procurement volumes reduction as it happened in summer. Current growth of freight cost index can be explained by high demand for raw materials on the part of China,’ pointed out Sofia Ragulina in the interview with PortNews IAA.
The run off the track
It was recently that press-service of RZD OJSC announced on suspension of coal shipment to Nakhodka and Vanino ports as well as ferrous-metals to Makhachkala port since November 10, 2009 till its termination, ‘due to ports unreadiness to work in winter conditions’ and ‘unsatisfactory unloading of railcars with coal’. As per RZD information, 1.5 thousand coal-loaded railcars of Vanino Commercial Seaport direction has gathered at the railways including over 900 railcars at the Far East Railways (the norm is 450). Average daily unloading amounts to 48 railcars with the norm of 100 units. There are 245 coal-loaded railcars at Mezhdurechensk station waiting to be dispatched to Hakhodka Commercial Seaport including 1000 railcars waiting at the Far East Railways
As PortNews IAA learnt from RZD, suspension of dispatches to the aforementioned directions was not terminated as of November 16, 2009 as the rail traffic jams are preserved.
Center of corporate relation Siberia of EvrazHolding LLC (Nakhodka Commercial Seaport OJSC is a part of it) on its part informed PortNews IAA that it was fully ready for a winter period. All the necessary measures on repair and preparation were taken in the port.
Besides, NMTP has elaborated and approved with the coal shippers a number of preventive measures aimed at railcars depot safety and prevention of coal freezing.
‘On November 8, 2009 two coal-loaded rolling stocks arrived at NMTP OJSC. 100%-frozen coal made it difficult to unload the coal. The enterprise has all the necessary facilities available and capable of unloading frozen coal but 100%-freezing hindered the work of the specialized equipment. The situation stabilized next day: rail cars were unloaded under the schedule,’ explained EvrazHolding LLC.
PortNews IAA learnt from FGUP Makhachkala Commercial Seaport (MMTP) that the enterprise works under its usual schedule and the volume of cargo transhipped corresponds to monthly average 2008-2009. ‘Stormy weather is the only circumstance that can affect the volume of MMTP cargo transhipment ’, highlighted stevedoring company representative.
Vanino port did not provide any comments on the matter.
Eastern neighbour awoken
As per the experts opinion the given situation is caused by objective macroeconomic circumstances, namely resumed demand for coal on the part of China, where the state supported significant funds for implementation of a number of infrastructure and industrial projects.
As per Sofia Ragulina, Senior analyst of Everest Asset Management LLC, growth of coal transhipment volumes via far-east ports is explained by procurement on the part of PRC importers. The volumes resumed its growth here after a slowdown in July-August (when import volumes decreased by 30%) unlike in other countries. ‘On the other hand there definite coal reserves in China that is why it is possible to expect temporal procurement volumes reduction as it happened in summer. Current growth of freight cost index can be explained by high demand for raw materials on the part of China,’ pointed out Sofia Ragulina in the interview with PortNews IAA.
It is true that Baltic Dry(BDI) freight cost index reached 4220 points level as of November 16, 2009 г. Thus having approached to the annual maximum of 4291 points. The index has gone up by 1300 points since early November, 2009 which can be characterized as a very expansive growth. BDI is an index reflecting raw materials sea freight – metal, iron ore, coal and grain.
It is necessary to point out that the given tendency is confirmed by statistical data of Chinese ports cargo turnover which went up by 6.1% (3.52 bln tons) Q I-III, 2009 against the corresponding period of 2008.
Vitaliy Chernov.