NCSP to exceed a hundred

Holding Company Novorossijsk Commercial Seaport (NCSP OJSC) plans to increase its total throughput by almost 35% - to 110 million tons within three years. The result is to be achieved through implementation of a number of investment projects with total value of at least $700 million.

Implementation of the Holding’s investment program will enable NCSP to increase the port’s annual throughput from 75 million tons to 110 million tons by 2010. Actually, it will require transport infrastructure development to ensure cargo delivery, Igor Vilinov, Director General of Novorossijsk Commercial Seaport OJSC told PortNews IAA at the international forum “Oil products trade in the Azov-and-Black Sea region”. The task is being solved within the framework of a joint project with the RF Transport Ministry, Russian Railways OJSC (RZD) and Administrations of the Krasnodar region and Novorossijsk. The project is to result with capacity improvement at Krasnodar branch of the North-Caucasus Railway (NCR), which will make it possible to deliver up to 50 million tons of railway cargo to Novorossijsk station annually. It is also planned to increase the capacity of Novorossijsk Transport Hub highways in order to handle up to 7 million tons of cargo delivered by motor transport. Besides, automatization of logistics processes is to be implemented in the region.

Reconstruction and overhaul of Sheskharis oil terminal

Sheskharis oil terminal of NCSP handles about 30% of Russia’s export oil shipped via sea terminals. The main berth of the terminal was built in 1978 and has been being operated for 28 years without overhaul. Implementation of a reconstruction project will rehabilitate export facilities of the port and preserve current volumes of crude transshipment. Besides, it will make it possible to increase transshipment of oil cargo by 15 million tons per year provided that the capacity of ChernomorTransNeft pipeline system is increased.

The project provisions implementation of two interrelated phases: reconstruction of berth No1 (construction of area “А”), as well as reconstruction and overhaul of basic technological equipment of Sheskharis oil terminal. New cargo area will make it possible to accept and handle 80,000-dwt to 150,000-dwt tankers including AFROMAX tankers.

The project is large both in terms of investments and scope of work. The investment needed total $109 million. The terminal is scheduled to be put into operation in February 2008. By March 1, 2007, RUR 1.177 million was used. Total volume of executed works makes 65%. In particular, the development of a project on Reconstruction of area А (berth No1) is coming to its finalization (RUR 13 million used) as well as the development of a project on Reconstruction of oil management and control system (RS-3) (RUR 28 million used). Total value of equipment acquired by ChernomorTransNeft OJSC makes RUR 1.75 million. Pre-project and design work has been completed.

Construction of a complex for transshipment of dark oil products

Major target of the project is redirection of dark oil products export flows from the Baltic states and Ukraine to Russian ports. According to NCSP, Russia is in short of facilities for export transshipment of dark oil products, hence considerable part of cargo goes to the terminals of the Baltic states and Ukraine. “Profitability of transshipment via Russia ports is still high owing a difference of railway tariffs,” Igor Vilinov told PortNews IAA. The project of a complex for transshipment of dark oil products implies construction of facilities for acceptance, temporary storage, accumulation of batches and filling of vessels with dark oil products at a newly acquired territory of KombinatImportPishcheprom OJSC.

New transshipment complex will be able to export up to 5 million tons of heavy fuel oil per year. Necessary volume of investments totals $104.5 million. The project is to be implemented within 1.5 year. Current stage of the project is design work.

Increase of volume of bunker services provided by NCSP Fleet OJSC

This project’s target is to increase sales of NCSP Fleet’s bunker in the port of Novorossijsk from 130 thou tons (in 2006) to 600 thou tons (in 2007). Thus, according to Vilinov, it is planned to raise market share of NCSP Fleet OJSC from 13.7% (in 2006) to 60% (in 2007).

Within the framework of the project it is planned to build a complex for transshipment of bunker heavy fuel oil and diesel fuel, which would make it possible to accept from railway, accumulate, store and deliver to the berths up to 600 thou tons of oil products per year. It is also planned to reconstruct berth No26 А of NCSP OJSC in order to arrange filling of bunkering vessels with heavy fuel oil or diesel fuel. The technology to be used at the terminal will make it possible to deliver bunker directly to the berth by pipeline (without any tanker trucks). Technological equipment used at the terminal ensures safe acceptance and shipment of oil products to the port. “Transshipment of heavy fuel oil in the ports is a stable and profitable business at the market of stevedoring services,” Vilinov added.

Increase of timber transshipment by NovoLesExport OJSC

The port of Novorossijsk is the largest player at the market of transshipment of sawn timber, plywood, fiberboard and other cargo (its share is 67%). However, the port almost does not handle fuel wood or raw wood. The main target of this project is to increase transshipment of timber via the port’s terminal NovoLesExport from 2.200 million cubic meters to 3 million cubic meters. That will make 70% of the timber transshipment market in the Black-and-Azov Sea basin. The terminal is not to be closed during construction works.

Necessary volume of investments totals $11.2 million. As of today, design work has been completed and financing has been arranged (including credit of RF Sberbank OJSC). Technological transport necessary for construction has been acquired already. Total volume of executed works makes 85%.

Construction of the II phase of the complex for transshipment of dry mineral fertilizers in the port’s Eastern district

In order to get fully-featured and efficient complex for transshipment of dry mineral fertilizers the II phase of the project provisions construction of a number of new facilities including 90,000-100,000 ton ridge warehouse for temporary storage of nitrogen-phosphoric fertilizers. Besides, the project provisions modernization of existing equipment of the phase I of the terminal complex. New facilities form integrated specialized complex for transshipment of dry mineral fertilizers, which will be integrated into existing transport-and-transshipment system of the port.