In 2021, the share of Russia’s foreign trade cargo handled in the ports of Baltic states, Finland and Ukraine decreased by 0.61% to 3.22%. Nevertheless, some segments, namely grain and metal, saw an increase. About one third of ore and mineral fertilizers still goes via foreign ports. Coal exports via the ports of Finland increased.
In 2021, the share of Russia’s foreign trade cargo handled in the ports of Baltic states, Finland and Ukraine decreased by 0.61% to 3.22% (according to data provided by RF Ministry of Transport). Nevertheless, some segments, namely grain and metal, saw an increase. Dependence in the segments of ore and mineral fertilizers is still high: about one third of them still goes via foreign ports. Coal exports via the ports of Finland increased.
Shortage of dry bulk handling facilities in the North-West of Russia is still a weak point of Russia’s port infrastructure. Although the share of foreign ports in handling of ore and mineral fertilizers slightly decreased in 2021 it is still very high (33.75% and 32.54% accordingly). Russian ore was mainly exported via the ports of Riga (Latvia), Klaipeda (Lithuania), Yuzhny and Izmail (Ukraine), Russian mineral fertilizers – via Riga (Latvia), Muuga and Sillamae (Estonia).
The process gained momentum last year: Russia managed to take over considerable volumes of ore and mineral fertilizers to its ports with the launching of new dry bulk handling facilities and due to efficient operation of the existing terminals. Ultramar, new terminal in Ust-Luga, handled almost 650,000 tonnes of ore and about 850,000 tonnes of mineral fertilizers. Ore handling also grew at another terminal in Ust-Luga – Noviye Kommunalniye Tekhnologiyee LLC, and at Sea Port of Saint-Petersburg. As for mineral fertilizers, positive dynamics was shown by Baltic Bulk Terminal, Petrolesport, Sea Fish Port, Port Logistic (Vyborg). In the result, handling of Russian ore at the ports of neighboring states decreased by 17%, mineral fertilizers – by about 10%.
Not only Baltic Basin terminals contributed 925,000 tonnes to the decrease of ore transshipment via foreign ports which totaled about 2.7 million tonnes. It should also be attributed to redirection of ore exports to the Far East ports (+16%) and general decrease of ore exports via ports due to the market situation (-10%).
As for grain exports, the shortage of grain handling facilities in the Baltic Basin of Russia is essential. The project on construction of grain terminal Sodrugestvo Soya in the Batareynaya Bay (Leningrad Region) was suspended due to the protests of the locals and the environmentalists. Therefore, exports of Russian grain via the ports of the Baltic States and Finland rose by 14% to almost 3 million tonnes in 2021.
Meanwhile, some terminals in the basin plan partial conversion to grain handling. Port Vysotsky operating in the port of Vysotsk is going to use two berths for that purpose.
Although coal exports via the Baltic states decreased, its volumes handled in the ports of Finland doubled amid reduction of coal throughput at the largest terminals of Russia’s Baltic Sea Basin.
Earlier we wrote about the reasons behind coal handling growth in Finland: an automated coal terminal in Tahkoluoto was put into operation in 2021. With its automated process, the Finnish terminal has achieved a considerable optimization of railcar traffic and costs.
In general, development of Ultramar terminal, introduction of new dry bulk cargo facilities in Ust-Luga and in Primorsk can really cover the shortage of required facilities in the Baltic Basin of Russia. That will be possible if those terminals offer shippers competitive terms, them more so as our neighbors are wide awake.
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