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  • 2011 February 12

    Ust-Luga’s CEO Maxim Shirokov: "We have changed the negative investment trend"

    A pool of investors of the seaport of Ust-Luga will be formed before the end of 2012. Ust-Luga Company CEO Maxim Shirokov told in an interview with PortNews about current development of the newest Russian port.

     

    - Mr. Shirokov, was the last year successful for Ust-Luga Company?

     

    - I think so. In my opinion, the most important thing is that we’ve managed to change the negative investment trend, which started forming at the peak of the crisis. Our team has managed to encourage our businesses, for which, despite the global crisis, investment in their own logistics infrastructure in Ust-Luga turned out profitable.

     

    - Does this mean that in the coming year Ust-Luga port may see new investors?

     

    - This means that in 2011-2012 we will be able to talk about the formation of the final pool of investors and, consequently, the completion of Ust-Luga development project.

     

    - The expansion of marine terminals at the port of Ust-Luga makes urgent development of intra-port logistics. How are you going to solve the problem of trains movement interfering trucks traffic inside the port?

     

    - We are developing the project of intra-port road network intended for general use. It provides for multi-level interchanges, in both the northern area of the port and in the southern. Actually, the resolving of this problem took longer than expected. However, we have every reason to believe that within the next few years the road infrastructure will have been built. We simply have no other choice. Otherwise, due to increased railroad freight activity in the port trucks traffic will just stop. And in this issue we are seriously counting on federal aid.

     

    - Was Ust-Luga company investing in port’s facilities in 2010?

     

    - Very heavily. We have completed the upgrade of Multipurpose Transshipment Complex Yug-2. Our investments only in handling equipment totaled more than € 12 million. The terminal took delivery Liebherr cranes, Hyster and Kalmar forklift trucks, Kalmar tractors and reachstackers and Seacom roll trailers. The equipment is highly reliable and meets all modern requirements.

     

    Overall investments in the port’s construction last year totaled 2.3 billion rubles. In 2010, we completed the construction of the eastern part of 2nd launch complex, the berth No 5 and the port’s railway siding. We are completing the construction of western part, 2nd and 3rd launching complexes of the port. Last year we commissioned water facilities at the port.

     

    - What are the sources of funding?

     

    - We are investing our own funds and partly are financing the project through loans. To date, we are using various financial instruments to attract investment and credit facilities.

     

    - Are you planning new investment projects for this year?

     

    - One of our major projects is the construction of warehouse logistics center. We are now completing a preparation phase of the project. Soon the works will begin on the construction site.

     

    - By 2018, the volume of cargo handled at the port of Ust-Luga should reach the 180-m ton mark, and over 8 years freight turnover should increase 15 times as much. How can it be? In 2010,  the cargo throughput rose by only 13.6%.

     

    - Let's make it clear, the volume growth was reported only for operating terminals. This year we are launching three new terminals: for handling liquid bulk cargo, container terminal and Ust-Luga tank farm (the terminus the pipeline BPS-2). If we add the projected capacity, we’ll have a larger figure. Of course, the facilities are not expected to reach full capacity this year, but the increase would be significant. Plus, there will be more terminals of new investors.

     

    - Meanwhile, handling of imported vehicles soared as much as 4 times!

     

    - We projected nearly the same figure. We expect to keep the growth trend next year, not exactly at the same level, but it will be the growth.

     

    - What factors have contributed to the increase?

     

    - The autos market has recovered, we have attracted new car manufacturers. And what is more important - our services for handling cars are quite competitive. The terminal is operating like clockwork. This was possible, in the first place, thanks to the people who work there. We’ve proved that that we can successfully compete with the ports of Finland and the Baltic States.

     

    Interviewed by Nadezhda Malysheva

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