Rough weather hits freight railway traffic
Russian Railways (RZD) JSC has suspended recently loading operations on trains bound for the Far East seaports. Cars contracted to the port of Vanino stay idle as expected. Moreover, the Vladivostok port-bound container trains have gotten into “traffic jam”.
As RZD press-service reports, the company authority has ordered a break in coal loading operations on cars at the stations of the East Siberian and Krasnoyarsk railways to be delivered to Vanino-Export station for Daltransugol JSC. Average daily coal discharge rate for Daltransugol in January 2010 dropped to 93 cars, at a 325 cars contracted schedule rate, 25 trains were reported stuck, waiting to be handled.
Besides, loading operations on container trains at FER Vladivostok station heading for Vladivostok port (VCSP) JSC have been stopped since January, 10 leaving 13 trains standing idle, true also for the Churkin Cape station with reported 29 trains. The overall, 150 trains were officially confirmed standing idle on the Far East Railway.
These irregularities have become common on the Far East ports route. Recent announced cancel in scheduled operations had come over a month ago. Experts believe the interrupts in coal deliveries on the Far East direction have been largely caused by some objective reasons - namely, the high demand for coal in China. Yet it’s not true for containers transshipment, where carriers have seen a slump in the crisis time. Last year the transshipment of export containers via VCSP fell 28% as of year-over-year numbers, to 72.8 thousand TEUs. “Vladivostok Container Terminal (VCT, managed by CPV, Fesco Group) showed a total 15 percent drop in containers shipment in 2009, to 68 thousand 79 TEUs.
According to Russian Railway Authority, the stevedoring companies were responsible over the delays, who fail to keep daily discharge schedule. The port authorities, in turn, say severe cold to be blamed. Vladivostok CSP, in particular, complain late December - early January rough weather hit the port causing a drop in throughput, as well as delays in traffic of empty and laden container trains from port railway station of Vladivostok and following traffic jams on the Far East Railway.
As of mid-January, there were several VCSP-bound container trains reported stuck at FER, said Sergei Lopunov, Operational Director of Vladivostok Commercial Sea Port. The trains carry commodities intended as well for VCT as for other stevedoring companies of the port. The idle unloaded trains bar a local railway at the Vladivostok container terminal (VCT), troubling other stevedores who have to sit on their hands, Sergei Lopunov noted.
In these circumstances, the VSCP Authority initiated an emergency meeting of representatives of the FE Railways, VCT, rolling stock operators who worked out measures to help container trains delays. The crisis is said to have been resolved by January 20-es.
Nevertheless, no one can guarantee the irregularities may never come again. The stevedores do not go through the details over “traffic jams” measures.
Some extra investments are obviously needed into the port industry to boost freight transshipment, not for the stevedores though who may want to figure out further developments in economy and coal demand of Chinese industry, the major consumer of raw material shipped from Far East ports.
Meanwhile, according to provisional data, recent year the Chinese ports have seen a roughly 8% growth, compared to 2008. Besides, the cost index of Baltic Dry freight, reflecting the changes in the cost of seaborne transshipments of raw materials - metals, iron ore, coal, and grains, over the last year has appeared to be unsteady, making it nearly unpredictable.
Vitaly Chernov
To read the cover of a similar traffic crisis that came in the North West see the "Relevant Topic" on January 15, 2010.