• 2018 March 29

    Victor Olersky, Deputy Transport Minister of Russia – head of Rosmorrechflot

    On port infrastructure development and financial mechanisms for port projects implementation.

    - Between 2001 and 2017, Russian seaport’s capacity surged over 3-fold – from 300 million tonnes to 1.025 billion.

    Implementation of some investment projects in 2017 allowed to increase port facilities’ capacity by 22 million tonnes, particularly with the first phase facilities put into operation at Sabetta port (+6 million tonnes), facilities upgraded and put into operation at the ports of the Baltic basin (+11.4 million tonnes) and at the ports of the Azov-Black Sea basin (+2.7 million tonnes).

    In 2017, allocations of the federal budget for implementation of investment projects on the development of port infrastructure totaled about RUB 22 billion.

    In the nearest years, only three investment projects will be implemented with the federal budget financing: construction of a coal terminal in the Muchke Bay (Khabarovsk Territory), construction of a terminal for cruise and passenger ships in Pionersky and construction of shore infrastructure facilities at the seaport of Gelendzhik.

    The planned expansion of private-public partnership mechanisms will result in state/private allocations ratio to change from 1/8 (1 ruble of state resources versus to 8 rubles of private resources) to 1/50 (1 ruble of state resources versus to 50 rubles of private resources).

    Among the forms of private-public partnership applied by Rosmorport is the investment-contract model when contractor invests in federally-owned facilities. The costs incurred by contractors will later compensated by Rosmorport by installments after the facilities are put into operation and port dues provide additional revenue.

    Construction of the terminal for cruise and passenger ships in Pionersky began in 2017. For the first time, state contract was signed under special terms specified by the Government with an investor undertaking to build facilities in the framework of the project at his own expense.

    A mechanism of concession agreements is getting relevant amid limited budget financing of activities on construction and reconstruction of seaports’ infrastructure facilities. In November 2017, a proposal was submitted to RF Government on signing of a concession agreement under the project on construction of a coal terminal on the western coast of the Kola Bay as part of comprehensive development of Murmansk Transport Hub. Rosmorrechflot, as an authorized body, is currently in negotiations with the concession agreement initiator.  

    A private concession initiative related to Vostochny-Nakhodka transport hub facilities was submitted to the Government in March 2018. 
    Introduction of the concession mechanism and, consequently, increase of non-budget investments into construction and reconstruction of federally owned facilities is supported by the Federal Law on Seaports amendments  introduced in November 2017 and providing for a possibility to create such facilities at the expense of legal entities or private entrepreneurs under the terms and according to procedures established by the laws on concession agreements.

    Yet another source of investments in port infrastructure will appear with introduction of port investment due as required by the mentioned amendments into the Federal Law on Seaports. Investment due is an obligatory amount targeted at modernization of seaports infrastructure and imposed only on foreign going ships.

    It should be noted that today, despite annual expansion of port facilities, there is a deficit of competitive terminals dedicated for transportation of dry bulk cargo (coal, ore, mineral fertilizers) and grain.

    For a well-balanced development of port facilities, and particularly for covering the deficit of port facilities in the mentioned segments, Rosmorrechflot developed and the Government approved a roadmap for the development of Azov-Black Sea basin’s ports and approaches to them by 2020 with a possibility for extension till 2030. In March 2018, similar roadmaps were approved for the ports of the North-West and the Far East regions. Those documents define key activities for the development of ports in the Russian Federation synchronized with the plans on the development highway and railway infrastructure at the approaches to them.

    The deficit of facilities on transshipment of certain types of cargo revived the necessity to approve the Rules of equal-opportunity access to the services of natural monopoly entities at the ports. Those Rules were approved by the Government in October 2017.

    In 2018, we set ourselves a task to expand the capacity of Russian seaports by 28 million tonnes, particularly with the commissioning of the port Sabetta’s Phase 2 (6 million tonnes per year), reconstruction of facilities at Murmansk port’s second cargo district (2 million tonnes per year) and development of port facilities at the ports of Novorossiysk, Azov and Taman (6.5 million tonnes) as well as the ports of the Baltic basin (3.5 million tonnes).

    From the report at the final meeting of Rosmorrechflot’s Board and Public Council .