Where to find bread

Last year grain turnover showed impressive growth (in accordance with the data of Aconitum in 2.3 times ) in Russian ports, which was mainly predefined by reduced transport tariffs, which stimulated the trans-shipment of grain in the domestic offshore terminals. The first quarter of 2010, although not as fast, but generally carried on the growth trend. 

The main volume of handled grain in the 1st quarter of 2010, as before, was provided by the capacities of the port of Novorossiysk. For example, a group of Novorossiysk Commercial Sea Port handled 2 million 222 thousand tons of grain, 6.5% more than in the corresponding period last year. 

In addition to the existing facilities new one also are put into operatio - in particular, the grain terminal in Tuapse Commercial Sea Port (a part of Universal Cargo Logistics Holding BV) launched in February this year, allowed to handle 253 thousand tons of grain, increasing the rate of cargo transshipment for export in 3 times compared with last year. 

At the same time, in Yeisk, Azov and Rostov the volume of grain transshipment is reduced. In particular, according to PortNews IAA, volume of transshipment through terminal of Yeysk Port Elevator JSC dropped more than by 25% - up to 160 thousand tons 

Azov Port Elevator handled 112 thousand tons, almost 30% year-over-year decrease. Azov Grain terminal (purchased by RIAS from Valars Group), in the first quarter handled 85.5 thousand tons 

Rostov Grain Terminal, in its turn, reduced turnover by almost 16% - up to 84 tons 

Noteworthy that companies engaged in transshipment of grain in the ports of Russia, may be inspired by   statements of representatives of the Government of Russia. In particular, Prime Minister Vladimir Putin during his recent speech in the State Duma, expressed his opinion that investment in the development of ports are particularly relevant in connection with the growth of agricultural sector. Viktor Zubkov, First Deputy Prime Minister, during a meeting with President Dmitry Medvedev said that increase of Russian grain export is expected in 2010 - up to 22.5 million tons 

"Over the past ten years grain production has expanded in two times. When in 1999 it made up around 54 million tones, then you know that in 2008 – it reached 108 million tons – in two times more, last year - 97 million tons. Thus, average figure over the last two years is about 100 million tons. Our domestic consumption reaches 80 million tons. By July 1st we plan to have carry-overs in the amount of $ 20-21 million tons. Of course in recent years we have gained much more grain”, - said Mr. Zubkov. 

From the other hand, there are also negative factors. For example, Iran plans to export in May 2010 about 2 million tons of wheat to the UAE, Oman and Egypt. Russian exporters have been caught by quite an unpleasant surprise. However, it is unlikely to affect the whole situation - trend of growth of export cargo flow will keep on in 2010. It concerns the flow not just to the Middle East, but also to the Asia-Pacific Region (APR). 

 

 

 

Not by South alone

 Indeed, lately the opportunities of grain handling have pretty interested the Far East stevedoring companies. 

Thus Vladivostok Sea Commercial Port JSC and the administration of Novosibirsk region have recently announced their intention to contribute to Russian grain export of to the countries of the Asia-Pacific region. They determined the main aspects of cooperation in reducing transport costs for grain transportation to the Far Eastern ports, joint work on development of transport infrastructure for the storage, handling, transportation of grain in the grain of the Far Eastern Corridor and, in particular, a grain terminal in the port of Vladivostok. Also, representatives of the VCSP and the administration considered the possible scheme of financing and arrangement of grain shipments from Novosibirsk region to the Asia-Pacific region through the port of Vladivostok. 

  

Noteworthy that currently VCSP is the only Far eatern stevedoring company that can provide transshipment of grain in all directions: the import, export and cabotage. Existing production capacity allows to handle in accordance with the scheme "car - ship up to 1 million tons of grain per year. 

In the 1st quarter of 2010 the volume of transshipment of grain in VCSP was 38 152.4 thousand tons, including  28 thousand 174.7 exported,  9 977.7 thousand tons- transshipped in coasting trade. 

Now VCSP builds a specialized terminal for grain cargo handling with capacity of 3 million tons per year. 

What concerns the North-West Basin, there is growth also. Thus, Kaliningrad Port Elevator in the 1st  quarter handled grain crops in 3.3 times more than in the previous year.