Matvienko showing mettle
Container turnover of the port of Saint Petersburg is to reach 1.44 million TEU in 2006 against 1.11 million TEU in 2005. The dynamics of cargo turnover growth could be much higher if stevedores and forwarders managed to decrease delivery period and time needed for containers to be taken out of the port. It is possible only if we stop congestion at the streets leading to the port. According to the participants of container transportation market, it takes from 7 to 10 days to clear container and to take it out of the port.
The governor is dissatisfied
Having perceived the futility of any unilateral attempt to normalize work of motor transport at the approaches to the port, Saint Petersburg Government proposed that stevedoring companies work on the problem jointly with the city. On December 6, the meeting of the Committee on coordination of transport activities operating under Saint Petersburg Government work held in Smolny. The participants reviewed the results of their half-year work. Valentina Matvienko, Saint Petersburg Governor was dissatisfied with the results reported.
Alexei Chumak, deputy chairman of the Committee on transport-and-transit policy of Saint Petersburg, told about several-kilometer long traffic jams at major thoroughfares congested with plenty of motor transport. According to him, over 40 additional traffic signs prohibiting parking for trucks were installed to the cost of city budget. Besides, patrolling and regulating of traffic was arranged by the port’s two largest stevedoring companies specializing in container cargo – First Container Terminal CJSC (FCT) and Petrolesport OJSC (PLP).
One more activity having drawn most criticism from the side of the Governor was arrangement of specialized parking grounds for the trucks. The ground built in Shushary at the plot specially arranged outside the city turned to be not occupied. The drivers continue to stay in a line at the streets of Saint Petersburg preferring not to pay 150 rubles for parking.
Time limit fixed for FCT
As Evgeny Yuzhilin, Director General of FCT CJSC told, his terminal handles about 1.5 thou trucks every day. According to his calculations it is about 70% of all transport flow coming to the port. So the ground in Shushary was built mainly for the trucks to be handled by FCT. The company is ready to cover expenses for arranged parking where trucks may stay before they are allowed to the port, Yuzhilin said. Computerized system for planning of trucks supply to FCT will be launched on December 18, 2006. The system is to start its normal operation by February. Accrediting of the carriers has been fulfilled already, Yuzhilin added.
Valentina Matvienko was not satisfied with this work. She reminded Yuzhilin that original date for implementation of all these projects was November 20, 2006. “Why do you accept cargo from the trucks violating the rules? The city is choking with congestion meanwhile. It takes you too much time to develop the instrument necessary to control cargo flow! Too much time! Unless you solve this problem by February 1 I give official instructions to close this entry,” the Governor said.
Diversity of economic measures
Similar notice was got by Petrolesport as well. The company is to finalize construction of its own parking ground by May 1. The construction is carried out at the bank of Ekarenigofka river. Before it is finished the Governor says PLP should use the ground in Shushary. Sergei Fedyayev, PLP’s Director General told at the meeting that the company is working on the problem. Besides construction of the parking ground PLP has temporally limited volume of container handling. “We are not going to increase container transshipment through the coming half-year. Besides, we intend to limit the volume of loaded containers coming from the side of the sea and empty containers coming from the side of the city,” Fedyayev said.
Another method of economic influence on stevedoring companies of the port of Saint Petersburg is new agreement for the lease of the port’s berths. She has instructed Saint Petersburg KUGI (City Property Management Committee) not to sign agreements for lease of berths without special report to be provided to her in respect of each company. “No extension of lease period is possible without my approval. First of all stevedoring companies should solve the problems at the approaches to the port, get rid of traffic jams and ensure normal existence for those who live in the city,” Matviyenko said.
Consequences
If the stevedores fail to fulfill their obligations the Governor intends to close the approaches to the port for some months or to terminate the work on extension of lease agreement, thus forcing stevedoring companies to be more active in solving the problem of traffic jam at the approaches to the port. However, such method is unlikely to be applied against companies engaged in container transportation of federal and international levels. If the Governor undertakes such a method terminating operation of the port “the consequences will result in all-Russia scandal as the losses are to be incurred by not only stevedoring companies but also by the majority of Russia companies,” Sergei Semenov, Development Director of Marine Construction and Technologies company, thinks.
In response to PortNews’s request he tried to forecast consequences of possible termination of the activities at the port’s container terminals. According to him, there are several case scenarios. First of all, cargo may be re-oriented to railway, which is unlikely to have any bright effect considering the speed of railway transportation. If the activities are terminated for 2-months all warehousing facilities will be overloaded, so the containers should be carried via Baltic states and Finland. However it would entail another problem because of the lack of motor transport allowed to cross the border. Thus, congestion at Finnish border would multiply. There is also a possibility to send part of the cargo flow to Novorossijsk but of course in limited volumes. Ust-Luga port may also be used but it would take certain time as well.