Vladislav Pertsev: CPV will increase the share of profitable goods by 2015
Commercial Port of Vladivostok (CPV) is one of the most fast growing ports of the Far East region of Russia, which handles a wide range of goods. It demonstrated amazing growth pace in the crisis year, and continues strong trend this year. In a recent interview with PortNews Vladislav Pertsev CEO of CPV told about plans of port development.
- Mr. Pertsev, please tell us how the world economic crisis affected the CPV? What lessons have you learned from the crisis?
- First of all, we have learned the lessons from our own experience. It still unpleasant to recall this, but in 2006-2007 we had a slump in cargo handling. The market has changed, but we were not ready for it. That's when we learned a lot.
A crisis does not come in no time. When we’ve weighed up the conditions in which we will have to work we could prepare for it. Operational monitoring of market conditions and individual approach to our clients’ needs enabled CPV during the economic downturn to work steadily. It’s true that we had lost significant volume of import flows. But our prompt response to replace them yielded results. The market condition of the Asia-Pacific Region (APR) was favorable for expanding exports of steel products and coke. We began actively working with the largest Russian metallurgical enterprises. Exported metal substantially increased handling dynamics. Then, CPV began handling coke. It was a new cargo nomenclature for the port. CPV’s capacity versatility enabled the company to quickly implement the necessary technology for handling the cargo.
Eventually, we ended the year with a freight turnover at 6.2 million tons, which was the best production result for the past few years.
I believe that the CPV’s operation rhythm, with which the company passed through the period of economic uncertainty, is the best proof that we were not mistaken, highlighting a particular priority in the development of factors of speed and versatility. All projects of CPV, both implemented and future ones, are focused on rapid adaptation to new market-driven freight flows.
- Mr. Pertsev, please tell us how the world economic crisis affected the CPV? What lessons have you learned from the crisis?
- First of all, we have learned the lessons from our own experience. It still unpleasant to recall this, but in 2006-2007 we had a slump in cargo handling. The market has changed, but we were not ready for it. That's when we learned a lot.
A crisis does not come in no time. When we’ve weighed up the conditions in which we will have to work we could prepare for it. Operational monitoring of market conditions and individual approach to our clients’ needs enabled CPV during the economic downturn to work steadily. It’s true that we had lost significant volume of import flows. But our prompt response to replace them yielded results. The market condition of the Asia-Pacific Region (APR) was favorable for expanding exports of steel products and coke. We began actively working with the largest Russian metallurgical enterprises. Exported metal substantially increased handling dynamics. Then, CPV began handling coke. It was a new cargo nomenclature for the port. CPV’s capacity versatility enabled the company to quickly implement the necessary technology for handling the cargo.
Eventually, we ended the year with a freight turnover at 6.2 million tons, which was the best production result for the past few years.
I believe that the CPV’s operation rhythm, with which the company passed through the period of economic uncertainty, is the best proof that we were not mistaken, highlighting a particular priority in the development of factors of speed and versatility. All projects of CPV, both implemented and future ones, are focused on rapid adaptation to new market-driven freight flows.
- What is your forecast of this year’s throughput of the port and annual financial results of JSC "CPV"?
- At the annual plan of 6,011,000 tons by the end of first ten days November this year, CPV’s cargo turnover was over 6,176,000 tons. There is every reason to believe that by the 12-month performance we are going to have a good leap from projected annual volume.
With regard to financial results, I will not yet use the numbers, but the forecast for them is also optimistic.
- Has the temporary ban on Russian grain exports had any impact on the plans of CPV to construct a specialized complex for transshipment of grain?
- Actually, measures that restrict the export of grain, are temporary, and therefore they can not affect the long-term plans of CPV. Construction of a specialized grain terminal with capacity of 3 million tons a year is stipulated by the company's development strategy until 2015. We are going to start implementing the project next year.
- You have mentioned the development strategy of CPV. Can you highlight its key points and tell about the work being done to implement them?
- The development strategy of CPV provides growth in cargo handling by 2015, up to 10,300,000 tons. Moreover, we expect to increase in the overall freight volume handled at the port the share of cost-effective cargoes - containers, vehicles, heavy-lifts and project cargoes.
To achieve this goal we have developed and implemented programs to modernize and renovate cargo handling equipment, building up productive potential.
- At the annual plan of 6,011,000 tons by the end of first ten days November this year, CPV’s cargo turnover was over 6,176,000 tons. There is every reason to believe that by the 12-month performance we are going to have a good leap from projected annual volume.
With regard to financial results, I will not yet use the numbers, but the forecast for them is also optimistic.
- Has the temporary ban on Russian grain exports had any impact on the plans of CPV to construct a specialized complex for transshipment of grain?
- Actually, measures that restrict the export of grain, are temporary, and therefore they can not affect the long-term plans of CPV. Construction of a specialized grain terminal with capacity of 3 million tons a year is stipulated by the company's development strategy until 2015. We are going to start implementing the project next year.
- You have mentioned the development strategy of CPV. Can you highlight its key points and tell about the work being done to implement them?
- The development strategy of CPV provides growth in cargo handling by 2015, up to 10,300,000 tons. Moreover, we expect to increase in the overall freight volume handled at the port the share of cost-effective cargoes - containers, vehicles, heavy-lifts and project cargoes.
To achieve this goal we have developed and implemented programs to modernize and renovate cargo handling equipment, building up productive potential.
We are actively working on building up facilities for handling containerized cargo through upgrade of existing terminals. By 2015, the container throughput of CPV should boost to 650,000 TEUs.
Also, we’ve planned to implement a project to build a transport and logistics complex that will carry out containers handling related to loading/offloading operations and will work in tandem with Commercial Port of Vladivostok.
In addition, as I have previously mentioned, in the short term we start a project to build a grain complex. We will deal with the reconstruction of bunkering depot of CPV to increase turnover of petroleum products up to 1, 5 million tons a year.
We also have some plans for the development of passenger terminal.
We began active work on the development of local railway infrastructure of CPV in order to ensure sufficient traffic capacity of rail access railroads to the port, taking into account projected freight volume growth.
- Does the port's investment program matches with JSC RZD plans for the development of railway infrastructure in the region?
- I think for CPV it would be more proper to talk about what concerns the development of Vladivostok transport hub (WTH). So, let me reduce a little bit the ‘regional’ scale that you specified.
Unfortunately, we have not yet come to an understanding with RZD representatives in terms of CPV development plans.
In our opinion, the main factor that hampers the active development of the Commercial Port of Vladivostok and the Port Railway Station Vladivostok – Gruzovaya, is a single access railroad at the port, whose throughput is not enough for further development of port’s capacities. Resolving this problem requires the development of general scheme of rail infrastructure development of CPV, including the construction of loop railway siding around the peninsula Shkot, the organization of a second access railway to the CPV territory.
As to JSC RZD, they believe referring to ‘the General Scheme for the development of RZD ‘s rail transport until 2015 and 2020’, that the development of Vladivostok transport hub until 2020 should be carried out within the existing railway infrastructure, which is capable today to cope with the freight traffic volume of 9.5 million tons a year.
To date we have failed to convince our partners that the problem is not in the throughput of the station itself, but in a "bottleneck" at the junction Port - the railroad. In such a situation is useless to talk about the capacity if access ways to the port will not be able to handle the flows.
We are actively working with Russian Railways and I hope that we can work out a constructive solution in terms of development of rail component of the CPV.
- Please tell about the port’s plans to modernize the port handling equipment and upgrade the port fleet.
The meaning of "handling equipment" is rather broad. For Vladivostok commercial sea port, as well as for other universal ports, the main types of equipment are the cranes, so I suppose we should focus on them.
Nine years ago we had started to actively deal with the CPV’s crane fleet. Over these years the port has upgraded 10 portal harbor cranes and purchased 12 new units of equipment: mobile, fixed harbor cranes, container cranes from leading manufacturers of the port equipment.
I emphasize that CPV purchases only new equipment. Over the past two years, CPV’s cranes fleet was replenished by a Gottwald Portal Harbor Crane, of lifting capacity of 100 tons, and by two Sennebogen manipulators. The next year we expect to take delivery of two Liebherr container cranes. The company plans to buy 7 more harbor cranes, container cranes by 2015.
In general, to date, the CPV’s fleet of 60 cranes is the most powerful among the Far Eastern ports. Thus, the company has a unique opportunity for simultaneous lifting of cargo weighing up to 200 tons with portal fixed and mobile cranes.
As for CPV’s vessels fleet, until recently, it consisted of six vessels: four tugboats, a pilot boat and a floating crane. Their average age is 23 years.
This year, we have completed the construction of two new vessels. One of them – a pilot boat from a S. Korean shipyard, which has been delivered to CPV, the other - ocean-going ice-class tug, built at Damen Shipyards in China, is scheduled for delivery early December. By and large, with these two vessels we launched the CPV’s project for upgrade of port’s ships fleet.
Interviewed by Nadezhda Malysheva
Also, we’ve planned to implement a project to build a transport and logistics complex that will carry out containers handling related to loading/offloading operations and will work in tandem with Commercial Port of Vladivostok.
In addition, as I have previously mentioned, in the short term we start a project to build a grain complex. We will deal with the reconstruction of bunkering depot of CPV to increase turnover of petroleum products up to 1, 5 million tons a year.
We also have some plans for the development of passenger terminal.
We began active work on the development of local railway infrastructure of CPV in order to ensure sufficient traffic capacity of rail access railroads to the port, taking into account projected freight volume growth.
- Does the port's investment program matches with JSC RZD plans for the development of railway infrastructure in the region?
- I think for CPV it would be more proper to talk about what concerns the development of Vladivostok transport hub (WTH). So, let me reduce a little bit the ‘regional’ scale that you specified.
Unfortunately, we have not yet come to an understanding with RZD representatives in terms of CPV development plans.
In our opinion, the main factor that hampers the active development of the Commercial Port of Vladivostok and the Port Railway Station Vladivostok – Gruzovaya, is a single access railroad at the port, whose throughput is not enough for further development of port’s capacities. Resolving this problem requires the development of general scheme of rail infrastructure development of CPV, including the construction of loop railway siding around the peninsula Shkot, the organization of a second access railway to the CPV territory.
As to JSC RZD, they believe referring to ‘the General Scheme for the development of RZD ‘s rail transport until 2015 and 2020’, that the development of Vladivostok transport hub until 2020 should be carried out within the existing railway infrastructure, which is capable today to cope with the freight traffic volume of 9.5 million tons a year.
To date we have failed to convince our partners that the problem is not in the throughput of the station itself, but in a "bottleneck" at the junction Port - the railroad. In such a situation is useless to talk about the capacity if access ways to the port will not be able to handle the flows.
We are actively working with Russian Railways and I hope that we can work out a constructive solution in terms of development of rail component of the CPV.
- Please tell about the port’s plans to modernize the port handling equipment and upgrade the port fleet.
The meaning of "handling equipment" is rather broad. For Vladivostok commercial sea port, as well as for other universal ports, the main types of equipment are the cranes, so I suppose we should focus on them.
Nine years ago we had started to actively deal with the CPV’s crane fleet. Over these years the port has upgraded 10 portal harbor cranes and purchased 12 new units of equipment: mobile, fixed harbor cranes, container cranes from leading manufacturers of the port equipment.
I emphasize that CPV purchases only new equipment. Over the past two years, CPV’s cranes fleet was replenished by a Gottwald Portal Harbor Crane, of lifting capacity of 100 tons, and by two Sennebogen manipulators. The next year we expect to take delivery of two Liebherr container cranes. The company plans to buy 7 more harbor cranes, container cranes by 2015.
In general, to date, the CPV’s fleet of 60 cranes is the most powerful among the Far Eastern ports. Thus, the company has a unique opportunity for simultaneous lifting of cargo weighing up to 200 tons with portal fixed and mobile cranes.
As for CPV’s vessels fleet, until recently, it consisted of six vessels: four tugboats, a pilot boat and a floating crane. Their average age is 23 years.
This year, we have completed the construction of two new vessels. One of them – a pilot boat from a S. Korean shipyard, which has been delivered to CPV, the other - ocean-going ice-class tug, built at Damen Shipyards in China, is scheduled for delivery early December. By and large, with these two vessels we launched the CPV’s project for upgrade of port’s ships fleet.
Interviewed by Nadezhda Malysheva