Vostochny Port needs more coal
Vostochny (East) Port, has invested over $15 million in the modernization and replacement of cargo handling equipment. However, the port fails to reach the projected coal volume, mainly because Russian Railways did not confirm the port’s production plans due to technical limitations of road capacity, especially on the road network of the Far Eastern destinations. The coal port’s slowdown entails an increase in payback period for the investment projects, and also reduces the attractiveness of further investments in the development of marine coal terminals.
The largest Russian Far East coal port has demonstrated only a 3-percent coal volume gain in Jan-Jul. from the same period last year. In July transshipment of coal shrank by 11% y-o-y, Vostochny Port’s official press release said. As a result, the new equipment purchased and installed in 2008-2010 for the handling of coal is idle due to lack of sufficient cargo flows. However, the demand for Russian coal exported to China and other Asian countries was growing until to the summer of 2010. Currently, there is a slight decline for coking coal in this area. According to the British Mc-Closkey consulting firm, the selling price for coal in the Russian Far East ports exceeds the cost of similar coal in the western ports by approximately $20-30 a ton. Cargo owners are interested in workload of ports capacities, but the railroad is not prepared to carry the coal to the port.
PortNews IAA’s information:
By end of 2009, the coal volumes passing via Russian seaports increased by 20% year-over-year. Overall, the country's ports transshipped for export nearly 64 million tons of coal. Coal deliveries to the Asia-Pacific Region (APR) rose by 34% from 2008’s number. The first half of this year confirms the prevailing trend: coal volumes at Russia’s seaports have increased by 10.5% from H1, 2009.
Meanwhile, over the past year the total throughput of the Russia’s Far East ports has increased by 15%, exceeding 92 million tons. In the first half of this year there were 57.4 million tons of cargoes, versus 41.1 million tons in H1, 2009. As of July 1st, the FE ports’ share in total Russian port’s cargo turnover rose by over 22% (vs 16% a year earlier).
There are several new projects that have caused a significant railroad traffic load on the FE rail network, namely the Vanino port’s Daltransugol terminal in the Muchka Bay (Khabarovsk Territory). The terminal is focused on handling coal delivered from SUEK JSC (Daltransugol’s parent company) and other Russian coal companies for exports to the Asia-Pacific countries. In Jan-Jun. the terminal handled 3.8 million tons of coal. At its completion the terminal would be able to boost the volume to 12 million tons a year. The half-year volume of Russian oil exports through the terminal of Spetsmornefteport Kozmino amounted to 7.1 million tons. So far, the oil supplies are carried out with the participation of the railroad.
The main reason for Vostochny Port’s throughput drop is the failure of Russian Railways (RZD) to comply with requests for transportation of exported coal on the stated volume by shippers in connection with ongoing repair works on the railroad infrastructure. Thus, the railroad managed to transport only 1 mln tons of coal in July, 700ths tons less than the port had ordered. The port also applied for additional volumes to be transported by RZD, Vostochny port’s coal terminals had to put off the offloading time of incoming railcars. This has enabled the port and shippers in July to compensate partly the missing rail shipments of 0.3 million tons of coal.
The railroad authorities argue the canceled volumes were caused by a surge in freight traffic throughout the Far East. According to Russian Railways statistics, only in the first half of this year the growth was at 13% compared with H1, 2009, including a 48-percent spike in coal shipments. RZD’s assets were not ready to meet the increased demand. The first cancellation of coal shipments order to FE ports occurred in April 2010, the Railroad said.
Vostochny Port consists of two terminals: Specialized Coal Complex with conveyor loading and a Universal Production and Handling Facility using grab loading. SCC handles 85-87% of all coal volume passing via the port. Coal is delivered by RZD’s Far Eastern branch to the Nakhodka Vostochnaya Station. Vostochny Port running its investment program for renovation and modernization of cargo handling equipment has purchased and launched two large wheeled Sennebogen cranes, replaced main handling equipment (with two new car dumpers), acquired crushing and screening equipment, crane-manipulators and stacker-cranes. In 2009 Vostochny Port transshipped 12,277,600 tons of coal. The Port Authority said it would boost the figure up to 17 million tons by the end of this year.
Sophia Vinarova
The largest Russian Far East coal port has demonstrated only a 3-percent coal volume gain in Jan-Jul. from the same period last year. In July transshipment of coal shrank by 11% y-o-y, Vostochny Port’s official press release said. As a result, the new equipment purchased and installed in 2008-2010 for the handling of coal is idle due to lack of sufficient cargo flows. However, the demand for Russian coal exported to China and other Asian countries was growing until to the summer of 2010. Currently, there is a slight decline for coking coal in this area. According to the British Mc-Closkey consulting firm, the selling price for coal in the Russian Far East ports exceeds the cost of similar coal in the western ports by approximately $20-30 a ton. Cargo owners are interested in workload of ports capacities, but the railroad is not prepared to carry the coal to the port.
PortNews IAA’s information:
By end of 2009, the coal volumes passing via Russian seaports increased by 20% year-over-year. Overall, the country's ports transshipped for export nearly 64 million tons of coal. Coal deliveries to the Asia-Pacific Region (APR) rose by 34% from 2008’s number. The first half of this year confirms the prevailing trend: coal volumes at Russia’s seaports have increased by 10.5% from H1, 2009.
Meanwhile, over the past year the total throughput of the Russia’s Far East ports has increased by 15%, exceeding 92 million tons. In the first half of this year there were 57.4 million tons of cargoes, versus 41.1 million tons in H1, 2009. As of July 1st, the FE ports’ share in total Russian port’s cargo turnover rose by over 22% (vs 16% a year earlier).
There are several new projects that have caused a significant railroad traffic load on the FE rail network, namely the Vanino port’s Daltransugol terminal in the Muchka Bay (Khabarovsk Territory). The terminal is focused on handling coal delivered from SUEK JSC (Daltransugol’s parent company) and other Russian coal companies for exports to the Asia-Pacific countries. In Jan-Jun. the terminal handled 3.8 million tons of coal. At its completion the terminal would be able to boost the volume to 12 million tons a year. The half-year volume of Russian oil exports through the terminal of Spetsmornefteport Kozmino amounted to 7.1 million tons. So far, the oil supplies are carried out with the participation of the railroad.
The main reason for Vostochny Port’s throughput drop is the failure of Russian Railways (RZD) to comply with requests for transportation of exported coal on the stated volume by shippers in connection with ongoing repair works on the railroad infrastructure. Thus, the railroad managed to transport only 1 mln tons of coal in July, 700ths tons less than the port had ordered. The port also applied for additional volumes to be transported by RZD, Vostochny port’s coal terminals had to put off the offloading time of incoming railcars. This has enabled the port and shippers in July to compensate partly the missing rail shipments of 0.3 million tons of coal.
The railroad authorities argue the canceled volumes were caused by a surge in freight traffic throughout the Far East. According to Russian Railways statistics, only in the first half of this year the growth was at 13% compared with H1, 2009, including a 48-percent spike in coal shipments. RZD’s assets were not ready to meet the increased demand. The first cancellation of coal shipments order to FE ports occurred in April 2010, the Railroad said.
Vostochny Port consists of two terminals: Specialized Coal Complex with conveyor loading and a Universal Production and Handling Facility using grab loading. SCC handles 85-87% of all coal volume passing via the port. Coal is delivered by RZD’s Far Eastern branch to the Nakhodka Vostochnaya Station. Vostochny Port running its investment program for renovation and modernization of cargo handling equipment has purchased and launched two large wheeled Sennebogen cranes, replaced main handling equipment (with two new car dumpers), acquired crushing and screening equipment, crane-manipulators and stacker-cranes. In 2009 Vostochny Port transshipped 12,277,600 tons of coal. The Port Authority said it would boost the figure up to 17 million tons by the end of this year.
Sophia Vinarova