Baltijsk is launched

The construction of the ferry complex has been finalized at the sea trade port of Ust-Luga. The project implementation will enable to stop delivery of military cargo by transit via Baltic countries, since it provides direct link of Leningrad and Kaliningrad regions. By the end of this year the ferry will operate under test run terms and from January 1, 2007 the ferry line will start operation according to the schedule – two voyages per week.

The construction of a ferry complex started in 2003 at Ust-Luga and in 2004 at Baltijsk. Design cargo turnover is 5.5 million tons per year. Next year cargo turnover at the line Ust-Luga - Baltijsk - German ports will amount to 800 thou tons. By 2009 the figure may grow to 1.9 million tons per year.

First voyage
Official ceremony opening the highway-and-ferry complex in Ust-Luga sea trade port was held on September 7, 2006. However, the line has been operating for over a month under test run terms already. First mooring was held at the end of July by Mukran-type vessel (Klaipeda). The second one was held two weeks later by the ferry of another type — Rider (Baltijsk).
Opening of the ferry complex coincided with dispatch of Baltijsk ferry to Kaliningrad region. The vessel carried 48 railroad wagons at its first commercial voyage. According to Konstantin Goncharov, Director General of Ust-Luga branch of Rosmorport FSUE, the ferry will be loaded with 48 rail wagons: 20 wagons with heavy fuel oil, 16 – with coal, 10 – with sand, 2 – with mineral fertilizers. The ferry was only half-loaded for its first voyage, Goncharov said. Baltijsk’s full capacity enables it to carry 115 wagons and up to 90 motor cars.

Investments
Total volume of investments into the project from the beginning of the construction in 2003 amounted to 4.4 billion rubles. The construction of the ferry complex is carried out today for the funds of Federal budget and Rosmorport FSUE. According to Vadim Morozov, first vice-president of Russian Railways OJSC, who attended the opening of the ferry line, RZHD plans to invest over 6 billion rubles in 2008 and over 2 billion rubles in 2009 into the development of approaches to Ust-Luga port. Morozov noted that additional development of close and remote approaches to the port is necessary today. In his opinion state support is needed for approaches development. The company counts for necessary allocations from the Investment Fund of the Russian Federation, Morozov underlined.

Advantages
Major advantage of the new ferry line is considered to be its ability to by-pass Lithuania without crossing the border for delivery of cargo to Kaliningrad region. Today the cargo is taken to Kalinigrad by railroad via Byelorussia and Lithuania. According to Igor Levitin, Minister of Transport of RF, who attended the opening ceremony of the ferry complex, Russia is in a very difficult situation today because of the quotas set for domestic cargo entering Europe. Russia has to give part of Russian cargo to other carriers. We surely redirect part of motorcar carriers to this ferry so that they could come to Germany without any quotas, Levitin said.

Perspectives
According to Konstantin Goncharov the project should, first of all, be based on economical principles. However, according to estimations made by the experts the ferry will not make profit before it starts to call into the ports of Germany. Zasnits is to become the first port of them. Finalization of the international line is scheduled for the end of 2007. Igor Levitin, when talking to pressmen, underlined that during the whole period of test run operation of the ferry to last till the end of 2006 the «economy will limp». Nobody waits that the project will become profitable in a moment, Levitin remarked. Experts say that today’s results may be estimated as planned loss-making ones. According to Yurij Parfenov, Directo General of Rosmorport FSUE, any ferry line should declare itself before its repayment starts. Of course, today we just evaluate depreciation norms, property tax and overhead costs. But cargo owners and shippers should first pf all get information about this line, should see how it works. So, any ferry line makes no profit or has a zero-result within two-three years, he said. Experts of Petrolesport OJSC, one of the largest stevedoring companies of Saint Petersburg also think that payback period of the line will be from three to five years.

Information
Today the ferry line includes the terminals in Baltijsk and Ust-Luga. Their areas are 10.7 hectares and 24.7 hectares correspondingly. Baltijsk ferry operating at the line will be used for transportation of railroad trains of Russian standard with track width of 1520 mm as well as for transportation of wheeled vehicles.

Baltijsk ferry has been modified on the basis of Rider sea railroad ferry of reinforced ice-class, acquired in 2006 by Rosmorport FSUE. It was built at the same shipyard in 1984 for transportation of European standard wagons and worked at the line Travemunde (Germany) – Turku (Finland). The ferry was purchased and modified via State Transport Leasing Company OJSC (STLC) with participation of Russian Bank for Development OJSC. The ferry is operated under bareboat charted by Baltic Transport Systems CJSC. Basic characteristics of Baltijsk ferry after modification: length – 187.36 m; width - 22 m; depth – 18.95 m; deadweight - 9800 tons.