Streamlining logistics
There have been scores of projects announced in Russia for creation of industrial, port and logistics zones, located within the ports’ boundaries or nearby. This is very common for foreign countries as the scheme greatly enhance the logistics and helps forming the huge ports’ logistics and production centers.
Two ports - one principle
Actually, located in Leningrad region Port of Ust-Luga was built from scratch. This gave as well the advantages of a new, pre-planned port, located outside the major populated localities as the difficulties associated with the need for integrated area development. Currently, main investors have come to the port, most of the projected terminals have been operating. This allows launching the next phase of port development, namely the development of the territory, the construction of warehouse logistics center and an industrial zone.
As Ust-Luga Company (owner of the Multipurpose Transshipment Terminal ‘Yug-2’) told PortNews, it will become an investor of the project for construction of the port’s logistics center encompassing over 100 ha, including outdoor and indoor warehouses. The center will be handling containers, rolling cargoes, packaged unit-loads. According to Ust-Luga CEO Maxim Shirokov, the logistics hub location within the boundaries of the port will save up to 20% for logistic operations. Savings will be provided by VAT exemptions, and proximity to the docks.
Two ports - one principle
Actually, located in Leningrad region Port of Ust-Luga was built from scratch. This gave as well the advantages of a new, pre-planned port, located outside the major populated localities as the difficulties associated with the need for integrated area development. Currently, main investors have come to the port, most of the projected terminals have been operating. This allows launching the next phase of port development, namely the development of the territory, the construction of warehouse logistics center and an industrial zone.
As Ust-Luga Company (owner of the Multipurpose Transshipment Terminal ‘Yug-2’) told PortNews, it will become an investor of the project for construction of the port’s logistics center encompassing over 100 ha, including outdoor and indoor warehouses. The center will be handling containers, rolling cargoes, packaged unit-loads. According to Ust-Luga CEO Maxim Shirokov, the logistics hub location within the boundaries of the port will save up to 20% for logistic operations. Savings will be provided by VAT exemptions, and proximity to the docks.
Besides, an industrial zone is projected to be created in close proximity to the port. The project is expected to be implemented by interested investors. In particular, the zone is planned to include a petroleum refinery, which might be of interest for oil traders. The port is the end point of the Baltic Pipeline System 2 (BPS-2), located near the European Union and provides rail logistics. The Federal government supports the idea of establishing such a zone near the port, said during a recent visit to Ust-Luga the Regional Development Minister of Russia Viktor Basargin.
Meanwhile, the creation of similar industrial zones in the river port of Ust-Donetsk (Rostov region) has already started. Evraz Group, the first investor here, has announced plans for building of the rolling mill in close proximity to the berth. Azov-Don Shipping Company, the developer of the port, is encouraging investments in the port’s industrial zone. As Konstantin Shvalev, CEO of Azov-Don Development Company (part of ADSC) told in an interview with PortNews, the port may become ‘an anchor’ for all regional enterprises. It is not necessary that all these enterprises will deliver their cargoes by water transport, but investors have the opportunity to take advantage of logistics schemes that would include not only the railway and road transport, but the water transport as well to optimize logistics and make it more flexible. The full text of the interview with Konstantin Shvalev is available at PortNews.
Turning into a trend
It is not possible to create something similar to Ust-Luga at Big Port St. Petersburg, due to infrastructural constraints of the city. However, the technology of "dry ports" could help here. Global Ports Group in cooperation with Transgarant (part of FESCO) have launched from February rail service connecting the container terminal of Petrolesport and logistics center in Yanino (both assets are owned by Global Ports). The new service will provide a direct link between marine terminal and logistics park.
We believe the practice of ‘beefing up’ the Russian ports with new logistics hubs and industrial enterprises may become the trend consistent with international experience. So, according to the Murmansk region Governor Dmitry Dmitrenko, implementation of the Murmansk Transport Hub project will have a "multiplier" effect and attract more investors to businesses and services related to port’s activity.
If this is not about new projects, but about the ports that are integrated into the infrastructure of major cities, the "dry ports" and the rear terminals might be a solution. Most importantly, the legislation and customs regulation should lift barriers to let this trend to develop. After all, besides the economic benefits of setting the new clusters around the ports will help reduce overcrowding in major cities and encourage the development of once-depressed areas.
It is not possible to create something similar to Ust-Luga at Big Port St. Petersburg, due to infrastructural constraints of the city. However, the technology of "dry ports" could help here. Global Ports Group in cooperation with Transgarant (part of FESCO) have launched from February rail service connecting the container terminal of Petrolesport and logistics center in Yanino (both assets are owned by Global Ports). The new service will provide a direct link between marine terminal and logistics park.
We believe the practice of ‘beefing up’ the Russian ports with new logistics hubs and industrial enterprises may become the trend consistent with international experience. So, according to the Murmansk region Governor Dmitry Dmitrenko, implementation of the Murmansk Transport Hub project will have a "multiplier" effect and attract more investors to businesses and services related to port’s activity.
If this is not about new projects, but about the ports that are integrated into the infrastructure of major cities, the "dry ports" and the rear terminals might be a solution. Most importantly, the legislation and customs regulation should lift barriers to let this trend to develop. After all, besides the economic benefits of setting the new clusters around the ports will help reduce overcrowding in major cities and encourage the development of once-depressed areas.
Vitaly Chernov