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  • 2007 July 20

    No Russian share in Sillamae Oil Terminal any more

    Estonia-based holding company AS Alexela Logistics acquired 100% of shares of AS Sillamäe Oil Terminal (SOT, Estonia) on Monday, July 3rd. New owners of the terminal believe they can increase the amount of cargo handled by the Sillamäe Oil Terminal to 2 million tonnes by the end of this year.

     

    According to mass media information, shares of Sillamаe Oil Terminal were sold by its shareholders, Russian entrepreneurs Evgeni Malov and Andrei Katkov. As PortNews IAA learnt from Alexela Logistics, “The parties have agreed not to disclose the price of the transaction”. Players of oil products export market think the deal could total EUR 55-60 million.

     

    AS Sillamäe Oil Terminal, launched in 2006, owns a 172 000 cubic metre container park. Last year its throughput totaled 0.3 million tonnes of light oil products delivered by railway mainly from Ryazan refinery (TNK-BP).

     

    AS Alexela Logistics is not a beginner at the oil product market. The company’s assets include Alexela Terminal, a sea terminal in Estonian port of Paldiski (to the west from Tallinn). In 2006, Alexela Terminal handled 2.3 million tons of light oil products, mostly petrol from Kirishi refinery (Leningrad region, Surgutneftegaz OJSC), Yaroslavl refinery (TNK OJSC and GazpromNeft OJSC) and Ryazan refinery (TNK-BP OJSC).  Alexela Terminal currently owns a 255 000 cubic metre container capacity.

     

    Trafigura is a minority shareholder in Alexela Logistics. Alexela Logistics is controlled by the management of the company. Besides, its management controls Alexela Oil, Estonia’s large fuel retail arm (a network of fuel station and oil farms) Alexela Oil. The company’s turnover in 2006 was EUR 18 mln and earned a profit of EUR 4 mln. Alexela Logistics share capital is approximately EUR 32 mln.

     

    Mr Heiti Hääl, CEO of Alexela Logistics, said that as a result of acquiring Sillamäe Oil Terminal, the company will control a total of 430 000 cubic metre-strong tank capacity that can help clients with a broader range of products. “We see continuing consolidation taking place in the transit sector. We believe we can increase the amount of cargo handled by the Sillamäe Oil Terminal from the 0.3 million tons last year to a couple of million tons by the end of this year,” Mr Heiti Hääl told PortNews IAA.

     

    As PortNews IAA told earlier, volume of cargo transported by railway to the ports of Estonia decreased considerably starting from spring 2006. According to official statement of Russian Railways OJSC, the decrease should be attributed to a scheduled track repair. However, market players associate it with aggravation of political relations by Russia and Estonia. According to Interfax, in June 2007, throughput of Eesti Raudtee (Estonian railway company) totaled 2.59 million tonnes (-25.6%, year-on-year). In May 2007, the company handled 2.9 million tonnes (-22.3%, year-on-year). Transshipment of oil and oil products decreased by 15%. Thus, Russian shareholders loose interest to sea oil terminals of Estonia. Foreign mass media told Swiss oil trader Mercuria has bought a block of shares of Eurodek terminal, Estonia’s second largest oil terminal. According to Kommersant, Russian group Severstaltrans, owner of Estonia’s largest heavy fuel oil terminal Estonian Oil Service (EOS), plans to sell its Estonian assets in the nearest future. Mass media write Severstaltrans holds such negotiations with Shell and Netherlands- based Vopak.

    Malysheva Ndezhda

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