With the worsening of relations with the Baltic states, the issue of transporting goods to/from the Kaliningrad has aggravated. The sea route is virtually the only viable alternative to land transit. Vessels sail regularly to the Kaliningrad Region from both the port of Ust-Luga in the Leningrad Region and from Great Port of Saint-Petersburg.
As of today, the railway ferry line Ust-Luga – Baltiysk numbers four ferries: Ambal (owned by Oboronlogistics), Baltiysk (in a bareboat charter of Oboronlogistics, is currently undergoing scheduled repair), Marshal Rokossovsky and General Chernyakhovsky (owned by FSUE Rosmorport and operated by Oboronlogistics). Besides, multipurpose dry cargo ships Sparta and Sparta II operate on the line.
The link with Kaliningrad is also serviced by Sovfracht, Transmarine, Peleng, Algoritm Group, FESCO.
A total of 18 vessels operate on the lines between Saint-Petersburg, the Leningrad Region and the Kaliningrad Region.
Who is to blame?
However, these vessels cannot meet the demand for cargo deliveries to the exclave, as confirmed by the statements of the business.
The Association of the International Automobile Carriers (ASMAP) has addressed the presidential administration with a request to ensure operation of more ferries on the line between Saint-Petersburg and Kaliningrad. According to them, at least two vessels are needed additionally for transportation of tractor-trailer units. According to ASMAP, the current capacity “is not insufficient which results in enormous waiting lines”. The authors of the letter say that the average waiting time is up to two months. No free places are available on ferries operating on Ust-Luga-Baltiysk line until 1 June 2023, the booking has been terminated.
ASMAP also says there is no clear and transparent procedure for the ferry line booking, “hence numerous issues and abusive practice” of ferry lines operators and forwarding companies. A place in a line can cost up to RUB 100 thousand, says the association.
What is to be done?
To exclude speculation and resale of tickets for ferries operating on the Ust-Luga-Baltiysk line, the booking procedure has been changed recently: only vehicle numbers can be amended now. If the name of a payer, consignor, consignee or cargo is changed he ticket will be cancelled.
Anton Alikhanov, Governor of the Kaliningrad Region, and Zakhary Djioyev, Head of the Federal Marine and River Transport Agency, discussed the issue of increasing the capacity of the line for transportation of ro-ro cargo at the meeting held on 21 March 2023. In particular, they looked into transportation of only trailers instead of tactor-trailer units which will let additionally transport up to 150 vehicles per month.
Besides, amendments into RF Government’s Decree on subsidizing of ferry transportation to the Kaliningrad Region are under consideration. It is expected to simplify the procedure and enhance the efficiency of the system for all ferry operators. The work is underway on the federal level.
The Kaliningrad Region authorities also recommend that alternative ways of rolled metal transportation should be considered, for example by dry cargo carries owned by private shipping companies.
IAA PortNews has asked some shipping companies engaged in transportation to/from the Kaliningrad Region to comment on the issue. According to them, no additional ships are planned for deployment on the line although they can consider this if there is a confirmed demand. Oboronlogistics, in its turn, says there are no ships available for that purpose.
FESCO’s comment:
FESCO is guided by the current demand of cargo owners. Based on it, we do not currently plan any changes in the layout of our fleet on the coastal service between Kaliningrad and Saint-Petersburg, FESCO Saint-Petersburg Kaliningrad Line. However, if the cargo flow shows a stable demand there, we are ready to put more ships on the line, of course. In our opinion, FESCO offers the most stable services of the highest quality in the market. In the current market conditions, we do not see any urgent need in additional tonnage.
Comment of Karen Stepanyan, First Deputy General Director, Seaborne Transportation, Sovfracht JSC:
“In autumn-winter period of 2022, four vessels were operating on Express sealine of Sovfracht JSC between Saint-Petersburg (Port Bronka) and Kaliningrad. From January 2023 we temporarily decreased the tonnage on the line due to a seasonal decrease of the cargo flow. The number of ships and the amount of cargo on the roue is balanced now. Apart from the railway and ro-ro transportation, there are cargo ships which cope with the cargo flow. As of today, Sovfracht continues forming the cargo base for transportation between Saint-Petersburg and Kaliningrad including under privileged rates which do not exceed the cost of land transportation in force as of 17 June 2022 before the sanctions were imposed. We expect the increase of cargo flow by the summer. If necessary, we will ensure the increase of the tonnage to ensure the required scope of transportation.
Oboronlogistics’ comments:
The ships of Oboronlogistics are currently involved in transportation of state and commercial customers’ cargoes. Two dry cargo ships operate on the Novorossiysk-Tartus line, two cargo-and-passenger ferries continue operation on the Crimea-Kavkaz line. Three ships (railway ferry Ambal and two universal dry cargo ships Sparta and Sparta II) operate on the Ust-Luga – Baltiysk line. The flagship of Oboronlogistics’ fleet, Ursa Mayor, currently operates in the interests of the state customer. Railway ferry Baltiysk is under repair. Given the above, Oboronlogistics does not have free ships to put on the Ust-Luga-Baltiysk line. However, Oboronlogistics, as a single freight operator of the line, is ready to ensure the loading and transportation of metal for the needs of the Kaliningrad region with the available facilities. In March 2023, Sparta and Sparta II transported about 18,729 tonnes of cargo (3,000 tonnes more than in February 2023.