Looking into the future
A year ago, the participants of International Conference ‘The Future of Russian Ports’ (during ‘Transtec' Expo) we discussing mainly the impact of the global financial crisis and how the Russian port industry will come out of it. But this year representatives of the companies are focused more on the launch of new projects and future development plans, which in itself can not but rejoice. PortNews gives coverage of the most interesting for the port industry issues raised during the conference.
Great bulk of plans
2nd International Conference ‘The Future of Russian Ports’, held during the exhibition ‘Transtec-2010’, ended yesterday, October 7th, 2010.General sponsor of the conference was Marine Bank, which indicates growing interest of financial institutions to investment in the port industry.
For their part, the port authorities have also something to offer: they have announced new handling facilities projects in all major Russian basin ports.
First of all, we are talking about the formation of the transit transport corridors – ‘North-South’ and ‘East-West’. "The routes of transport corridors passing through the territory of Russia are of growing interest for international transport and logistics companies," said Viktor Vovk, the head of the Investment and Strategic Development Programs of the Federal Agency of Maritime and River Transport (Rosmorrechflot) speaking at the conference. With favorable geographical position, Russia has little use of existing transit capacities. For its use, when it comes to water transport, it is required the development of handling facilities at ports and improvement of current legislation.
Great bulk of plans
2nd International Conference ‘The Future of Russian Ports’, held during the exhibition ‘Transtec-2010’, ended yesterday, October 7th, 2010.General sponsor of the conference was Marine Bank, which indicates growing interest of financial institutions to investment in the port industry.
For their part, the port authorities have also something to offer: they have announced new handling facilities projects in all major Russian basin ports.
First of all, we are talking about the formation of the transit transport corridors – ‘North-South’ and ‘East-West’. "The routes of transport corridors passing through the territory of Russia are of growing interest for international transport and logistics companies," said Viktor Vovk, the head of the Investment and Strategic Development Programs of the Federal Agency of Maritime and River Transport (Rosmorrechflot) speaking at the conference. With favorable geographical position, Russia has little use of existing transit capacities. For its use, when it comes to water transport, it is required the development of handling facilities at ports and improvement of current legislation.
Among the major projects for the development of port facilities is the Murmansk Transport Hub project, which, according to the Rosmorrechflot official, will play a central role in the transit corridors network. As Sergei Semyonov, development director of MorStroyTekhnologiya Llc said speaking at the conference, the chief factor in ensuring the competitiveness of the port of Murmansk is the creation of transport schemes for the export of bulk dry cargo by 150,000dwt vessels. See more details about the MTH project in PortNews’ Relevant Topic, Sept. 30, 2010.
The MTH project is also important in terms of the functioning of the Northern Sea Route (NSR).
The MTH project is also important in terms of the functioning of the Northern Sea Route (NSR).
However, according to analysts' estimates of MorStroyTekhnologiya that had been made for the transportation of iron-ore concentrate from Murmansk to China along the NSR, the logistics would be profitable only under certain conditions. Firstly, the lift of icebreaker service fee, and secondly, on condition that the cost of ice-class vessel would not exceed over 20% of the cost of building of a ship without ice class, as well as that fuel consumption of such vessel do not surpass 20% that of a conventional ship. For more on the development of the Northern Sea Route, see Relevant Topic from August 26, 2010.
The construction of the terminals in another port of Russia’s Northwest - Ust-Luga (Leningrad region) is in progress. As Maxim Shirokov, CEO of Ust-Luga Company JSC reported at the Conference, the construction of a terminal for handling of fertilizers of HC Eurochim JSC with projected capacity of 5 million tons a year is targeted for 2011. The start up of the 2nd Phase of a multipurpose transshipment terminal Yug-2 is scheduled for late 2010 - early 2011. In 2011 the 1st Phase of Ust-Luga Container Terminal is planned to start operation (investor - National Container Company). The oil cargo terminal of oil trader Gunvor is currently operating in a test mode. Also feasibility of a grain terminal is being studied. According to Mr. Shirokov, 70% of planned terminals already have its investors. The port also will also have a warehouse logistics center, and city for port workers is planned to be built.
A new deepwater port is projected in the Dry Sea Bay area to the north of Arkhangelsk on the basis of public-private partnership. The new port is designed to ensure year-round cargo transshipment and handling of ships with deadweight of up to 50,000 tons.
The Big Port of St. Petersburg will further be expanded through the construction of outer harbors.
A new port of Taman project and its optimal location are being considered in the southern basin. The port of Kavkaz sees construction of a Ro-Ro terminal (the project is implemented by SE Rosmorport). See more in Relevant Topic from September 23, 2010.
Novorossiysk eyes expanding rail and road access ways and container terminals at the port.
The Big Port of St. Petersburg will further be expanded through the construction of outer harbors.
A new port of Taman project and its optimal location are being considered in the southern basin. The port of Kavkaz sees construction of a Ro-Ro terminal (the project is implemented by SE Rosmorport). See more in Relevant Topic from September 23, 2010.
Novorossiysk eyes expanding rail and road access ways and container terminals at the port.
There are plans to develop ports of Olya and Makhachkala in the Caspian Sea (more details in the latest issue of Analytical Edition of Port News, “Port Service. Bunker market. Semiannual report – 2010”.
In the Far East it is planned to implement a project of East-Nakhodka transport hub. The project means gradual construction of new container terminals with a total capacity to 10 million TEUs a year. The port of Sovetskaya Gavan projects to establish a special economic port zone.
Law & Order
To become competitive it is not enough just to build a lot of handling facilities. Favorable conditions are necessary to make logistics through Russia profitable.
There are still not a few barriers to implement the projects. One of the key problems is an obsolete system of inspection of vessels, leading to long-lasting idle time. The government clearly sees this problem. Thus, the Russian Ministry of Transport worked out draft amendments to the general scheme for the Russian border crossing procedures. As a Transport Ministry official Alexei Klyavin said, speaking at the mentioned above conference, the proposed changes are aimed at the removal of current procedure of vessel inspection by border guard and customs officers, as well as permission to start handling operations upon ships arrival at the port before the completion of customs and border procedures and other controls in order to minimize the time the ship spends at the port. The new technology of state control will be based, inter alia, on the basis of the random vessel inspections, the decision to be undertaken on the analysis of preliminary information.
"Currently the draft order is being considered for approval by the state regulatory authorities. In general, the proposed changes are supported by all federal authorities. When such an order takes effect, we will facilitate the work of ports and ship owners considerably", Mr. Klyavin emphasized.
In the Far East it is planned to implement a project of East-Nakhodka transport hub. The project means gradual construction of new container terminals with a total capacity to 10 million TEUs a year. The port of Sovetskaya Gavan projects to establish a special economic port zone.
Law & Order
To become competitive it is not enough just to build a lot of handling facilities. Favorable conditions are necessary to make logistics through Russia profitable.
There are still not a few barriers to implement the projects. One of the key problems is an obsolete system of inspection of vessels, leading to long-lasting idle time. The government clearly sees this problem. Thus, the Russian Ministry of Transport worked out draft amendments to the general scheme for the Russian border crossing procedures. As a Transport Ministry official Alexei Klyavin said, speaking at the mentioned above conference, the proposed changes are aimed at the removal of current procedure of vessel inspection by border guard and customs officers, as well as permission to start handling operations upon ships arrival at the port before the completion of customs and border procedures and other controls in order to minimize the time the ship spends at the port. The new technology of state control will be based, inter alia, on the basis of the random vessel inspections, the decision to be undertaken on the analysis of preliminary information.
"Currently the draft order is being considered for approval by the state regulatory authorities. In general, the proposed changes are supported by all federal authorities. When such an order takes effect, we will facilitate the work of ports and ship owners considerably", Mr. Klyavin emphasized.
Noteworthy, the current procedure of vessel inspection, in particular, makes it unprofitable transit container traffics by river-sea going vessels through Russia, because the cargo is to be offloaded any time the ships arrive at the Russian ports for customs clearance. This alone might frustrate the above mentioned government’s plans to develop a transit corridor North-South. As Mr. Bespalov, Chief of Checkpoint operations department of the Russian FCS’ NW Customs Directorate told the correspondent of Port NewsIAA, the problem can be resolved when the system of in-advance informing will come into force. In this connection, in neighboring Finland the port customs already knows 2-3 days before ship arrival whether the carried goods bear any risk factors, making a spot check necessary.
Another change in legislation that might help water transport in Russia is the bill for support of shipbuilding and shipping prepared by the Ministry of Transport. According to Alexei Klyavin when this bill is passed, it will create favorable conditions for the Russian-flagged vessels and at the same time will provide social protection to crew members, and will also contribute to the placement of ship orders at the Russian shipyards.
Cassettes, cranes, tractors
Another port industry’s burning issue is the upgrade of terminals equipment, and primarily handling equipment. According to E. Leyphert, an expert of St. Petersburg State University of Water Communications, who was speaking at the conference, the average age of crane equipment operated by Russian stevedoring companies is about 30 years. While the facilities of seaports are being renovated, the river ports, according to the expert, can not afford the equipment upgrade. Basically, only major container terminals have state-of-the-art equipment. The level of training of Russian operators of crane equipment still remains unacceptable.
We note in this context that the Conference was attended by representatives from several major manufacturers of crane equipment, who spoke of their new products. The main trend in crane industry is the manufacture of energy-saving equipment with automated control systems that increase accuracy and reduces the impact of the "human factor".
If we talk about new trends, it is impossible not to mention the technology developed in Finland for loading, unloading and transportation of goods with use of cargo cassettes. According to Andrei Yegorov, an expert of the Adm. Makarov State Maritime Academy who attended the Conference, the cargo cassette technology allows achieving maximum space saving of the ship or warehouse up to 25% and significantly boosts the process of unloading at the port. At the same time, the Russian ports use for offloading cargo from Ro-Ro vessels mainly roll-trailers, the cost of each is about €20,000 vs €8,000 for a cassette. Eventually, special cassette can be applied for transportation of cars. The disadvantage of cassette technology is that it requires at the port of entry, special trans-lift trucks.
Vitaly Chernov
Another change in legislation that might help water transport in Russia is the bill for support of shipbuilding and shipping prepared by the Ministry of Transport. According to Alexei Klyavin when this bill is passed, it will create favorable conditions for the Russian-flagged vessels and at the same time will provide social protection to crew members, and will also contribute to the placement of ship orders at the Russian shipyards.
Cassettes, cranes, tractors
Another port industry’s burning issue is the upgrade of terminals equipment, and primarily handling equipment. According to E. Leyphert, an expert of St. Petersburg State University of Water Communications, who was speaking at the conference, the average age of crane equipment operated by Russian stevedoring companies is about 30 years. While the facilities of seaports are being renovated, the river ports, according to the expert, can not afford the equipment upgrade. Basically, only major container terminals have state-of-the-art equipment. The level of training of Russian operators of crane equipment still remains unacceptable.
We note in this context that the Conference was attended by representatives from several major manufacturers of crane equipment, who spoke of their new products. The main trend in crane industry is the manufacture of energy-saving equipment with automated control systems that increase accuracy and reduces the impact of the "human factor".
If we talk about new trends, it is impossible not to mention the technology developed in Finland for loading, unloading and transportation of goods with use of cargo cassettes. According to Andrei Yegorov, an expert of the Adm. Makarov State Maritime Academy who attended the Conference, the cargo cassette technology allows achieving maximum space saving of the ship or warehouse up to 25% and significantly boosts the process of unloading at the port. At the same time, the Russian ports use for offloading cargo from Ro-Ro vessels mainly roll-trailers, the cost of each is about €20,000 vs €8,000 for a cassette. Eventually, special cassette can be applied for transportation of cars. The disadvantage of cassette technology is that it requires at the port of entry, special trans-lift trucks.
Vitaly Chernov