Fertilog Oy commissions new fertilizer terminal at HaminaKotka
Fertilog Oy’s fertilizer terminal has started shipments at the Mussalo Harbour at the Port of HaminaKotka in Finland, the HaminaKotka Port Authority said Wednesday.
The shipments are made via two warehouses located on the A-quay. The warehouses have been converted applicable to the transport of fertilizers. The fertilizers are nitrogen and phosphorus fertilizers and urea, which are brought by rail from Siberia and the Ural region in Russia. The first train consisted of 52 railcars.
The terminal will become fully operational at the beginning of 2012, when the terminal will have the third modern fertilizer warehouse with conveyor and loading equipment. In 2012, the terminal will handle approximately 1.5 million tonnes of fertilizers to be shipped to destinations in Central America, Europe and South-East Asia.
According to Alexey Sladkov, Chairman of the Board of Directors of Fertilog Oy, fertilizers have previously been exported from Russia mainly through Russian ports. The government of Russia has favored the use of Russian ports, to which the state-owned railway company OAO RZD has carried the freight at a special price. The future membership of Russia in the World Trade Organization (WTO) will change this set-up, since Russia will have to harmonize the rail transport tariffs, and only the geographical distance will have an impact on the costs.
Alexey Sladkov points out that the main reasons why Fertilog chose the Mussalo Harbour of the Port of HaminaKotka as its fertilizer carriage port are its excellent location, complete infrastructure, good rail connections, skilled labor, deep-water fairway of 15.3 meters, and a business-friendly atmosphere.
“The fertilizer terminal will become a significant logistics service unit with unique environmental features,” Alexey Sladkov says. The total capacity of the terminal is approx. 2 million tonnes per year. A single unloading station can handle some 25 to 35 cars per day. There will be a total of 4 unloading stations. In the future, Fertilog Oy will also endeavor to take as much advantage as possible of the same railway stock and the same ocean vessels in outward and return transport.
Even though the situation with the world economy is unstable right now, Alexey Sladkov believes in an increase in the demand for fertilizers. The global population is still growing, and there are already more than seven billion people on the Globe. Agriculture will need more and more mineral fertilizers.
“We can abandon cars and mobile phones by changing back to horses and letters written on paper, but we have not come up with a substitute for food yet.”
Fertilog’s investments total approx. 20 million euros. Co-financing for the project has been provided by OP-Pohjola, among others. The project master plan was drawn up by EP-Logistics Oy. CHS Solids & Bulk Oy has been in charge of the consulting and service production of the logistics solutions. Fertilog has outsourced the actual stowage work to operators operating at Mussalo. The start of the fertilizer transport is also important for the Finnish railway operator VR, which is responsible for the rail carriage of the fertilizers in Finland.
“This transport will increase both exports and imports. The new fertilizer transport can replace almost completely the transport for the natural gas pipeline project, which is now finishing,” said Kimmo Naski, CEO of Port of HaminaKotka Ltd, in commenting on the new operations. The fertilizer carriage will account for approx. 10 per cent of the total volume of the Port of HaminaKotka.
The shipments are made via two warehouses located on the A-quay. The warehouses have been converted applicable to the transport of fertilizers. The fertilizers are nitrogen and phosphorus fertilizers and urea, which are brought by rail from Siberia and the Ural region in Russia. The first train consisted of 52 railcars.
The terminal will become fully operational at the beginning of 2012, when the terminal will have the third modern fertilizer warehouse with conveyor and loading equipment. In 2012, the terminal will handle approximately 1.5 million tonnes of fertilizers to be shipped to destinations in Central America, Europe and South-East Asia.
According to Alexey Sladkov, Chairman of the Board of Directors of Fertilog Oy, fertilizers have previously been exported from Russia mainly through Russian ports. The government of Russia has favored the use of Russian ports, to which the state-owned railway company OAO RZD has carried the freight at a special price. The future membership of Russia in the World Trade Organization (WTO) will change this set-up, since Russia will have to harmonize the rail transport tariffs, and only the geographical distance will have an impact on the costs.
Alexey Sladkov points out that the main reasons why Fertilog chose the Mussalo Harbour of the Port of HaminaKotka as its fertilizer carriage port are its excellent location, complete infrastructure, good rail connections, skilled labor, deep-water fairway of 15.3 meters, and a business-friendly atmosphere.
“The fertilizer terminal will become a significant logistics service unit with unique environmental features,” Alexey Sladkov says. The total capacity of the terminal is approx. 2 million tonnes per year. A single unloading station can handle some 25 to 35 cars per day. There will be a total of 4 unloading stations. In the future, Fertilog Oy will also endeavor to take as much advantage as possible of the same railway stock and the same ocean vessels in outward and return transport.
Even though the situation with the world economy is unstable right now, Alexey Sladkov believes in an increase in the demand for fertilizers. The global population is still growing, and there are already more than seven billion people on the Globe. Agriculture will need more and more mineral fertilizers.
“We can abandon cars and mobile phones by changing back to horses and letters written on paper, but we have not come up with a substitute for food yet.”
Fertilog’s investments total approx. 20 million euros. Co-financing for the project has been provided by OP-Pohjola, among others. The project master plan was drawn up by EP-Logistics Oy. CHS Solids & Bulk Oy has been in charge of the consulting and service production of the logistics solutions. Fertilog has outsourced the actual stowage work to operators operating at Mussalo. The start of the fertilizer transport is also important for the Finnish railway operator VR, which is responsible for the rail carriage of the fertilizers in Finland.
“This transport will increase both exports and imports. The new fertilizer transport can replace almost completely the transport for the natural gas pipeline project, which is now finishing,” said Kimmo Naski, CEO of Port of HaminaKotka Ltd, in commenting on the new operations. The fertilizer carriage will account for approx. 10 per cent of the total volume of the Port of HaminaKotka.
