Ice borders of the Baltic
Despite unfavorable effects Russian Baltic ports in the first month of the new year sustained positive trends emerging lately last year. Big Port of St. Petersburg in the first month of 2010 showed an impressive growth of transshipment volumes, at 3.5 million tones or 18% up from January last year, while container turnover rose by 25%, to 112.290 TEUs. At the same time, the Kaliningrad port continued its volumes decline and even the throughput of Ust-Luga port, that previously always demonstrated positive dynamics, had a slight drop. Some experts say bureaucratic obstacles in Kaliningrad as well as the weather in the Ust-Luga case contributed to the recession.
St.Petersburg’s surge
Big Port of St. Petersburg in January 2010 has seen a rebound almost in all categories of commodities as compared with same period a year earlier, save petroleum products that showed a 7% drop, to 850.5 thousand tones.
The volume of bulk cargo transshipment increased by 36%, to 606.300 tons thanks to 94 percent jump in volumes of mineral fertilizers - 384.000 tones in January 2010.
General cargo turnover was up 16% from Jan.2009, at 811.900 tons, including ferrous metals by 36%, to 317.800 tons, reefer goods by18%, up to 205.000 tons.
Noteworthy, container turnover rose as much as 25% from Jan. 2009, while the last year’s volumes dropped by one third. However, by late 2009 the downward pace slowed in December last year as the port reported the containers volumes dropped just by 7% (over December 2008).
The experts talked about hitting "rock bottom" in late 2009 and signs of slight recovery in container shipment in the leading container ports, what PortNews IAA wrote in its “Relevant Topic" on January 29, 2010. St. Petersburg Big Port’s numbers prove so far the tendency.
If this trend becomes sustainable, though it’s not yet evident, those stevedoring companies who kept investing in their container and Ro Ro facilities (in anticipation of the automobile market recovery) may eventually benefit.
According to PortNews in 2009 "Sea Port St. Petersburg" (part of Universal Cargo Logistics Holding) invested over 2.1 billion rubles to implement the program of development of port infrastructure, twice as much than in 2008.
In particular, roughly 500 million were spent for the final phase of construction and acquisition of equipment for ro-ro terminal of annual capacity of 1 million tons of ro-ro cargoes. The terminal was launched in April 2009 at the First Stevedoring Company. More than 16 million rubles were spent for the design of a universal warehouse complex at Ro-Ro terminal of total 12.700-sq.m area.
Over 1.5 billion rubles were allocated for the construction of the first stage of container terminal on the territory of the Fourth Stevedoring Company a production capacity of about 350.000 TEUs, as well as the acquisition of basic production equipment. The planned launch date of the terminal to handle all kinds of export and import containerized cargoes, including refrigerated – the second quarter of 2010
About 10 million rubles were transferred to develop an exploratory design documentation, as well as sanitary and environmental survey of the area of reefer terminal in the first and second districts of the port. The terminal of production capacity of 1.5 million tons a year would reduce the costs of major importers of food products in St. Petersburg and Russian North-West.
There were also other investments made in the development of port infrastructure.
In addition, N-Trance group of companies also invested in its facilities in the past year. The funds were transferred to the development of Petrolesport (part of the Global Ports Investments Plc, owned by N-Trance).
In particular, in late 2009, traffic interchange with the tunnel was launched. Road tunnel under the railway crossing provided technological unity of all parts of the port. Total investment in construction exceeded 521.58 million rubles.
Development of Ro-Ro terminal of Petrolesport became part of a comprehensive program of expansion and modernization of specialized facilities of the stevedore company. During the reconstruction specialized open storage areas for cars with a total area of over 16 hectares were built. Today the capacity of the terminal allows transshipment of up to 190.000 cars and 40.000 other Ro-ro cargoes a year. Outdoor terminals are designed to accommodate 5.300 cars for storage. The total investment in the construction of the complex has exceeded 282 million rubles in 2008-2009. PortNews wrote about it in “Relevant Topic" on October 1st, 2009.
Neva-Metal CJSC (owned by Severstal JSC) also gains volumes of container cargoes. In 2009, the number of overloaded containers at its terminal grew by 30% to 34.000. “In 2010 we expect to bring the volume of container handling up to 60.000 tons, including by further expanding the range of goods. The launch in November of a container depot for storage of empty containers will also contribute to increase in turnover", Igor Nechaev, commercial manager of Cherepovets Severstal, in charge of the business of Neva-Metal said.
Port of Primorsk showed in January 2010 as expected, a 2% growth in shipment volumes as compared with January 2009, at 6.64 million tons.
Vyborg in January gained 4% over the same period last year, up to 95.200 tons, thanks to handled volumes of mineral fertilizers.
Big Port of St. Petersburg in January 2010 has seen a rebound almost in all categories of commodities as compared with same period a year earlier, save petroleum products that showed a 7% drop, to 850.5 thousand tones.
The volume of bulk cargo transshipment increased by 36%, to 606.300 tons thanks to 94 percent jump in volumes of mineral fertilizers - 384.000 tones in January 2010.
General cargo turnover was up 16% from Jan.2009, at 811.900 tons, including ferrous metals by 36%, to 317.800 tons, reefer goods by18%, up to 205.000 tons.
Noteworthy, container turnover rose as much as 25% from Jan. 2009, while the last year’s volumes dropped by one third. However, by late 2009 the downward pace slowed in December last year as the port reported the containers volumes dropped just by 7% (over December 2008).
The experts talked about hitting "rock bottom" in late 2009 and signs of slight recovery in container shipment in the leading container ports, what PortNews IAA wrote in its “Relevant Topic" on January 29, 2010. St. Petersburg Big Port’s numbers prove so far the tendency.
If this trend becomes sustainable, though it’s not yet evident, those stevedoring companies who kept investing in their container and Ro Ro facilities (in anticipation of the automobile market recovery) may eventually benefit.
According to PortNews in 2009 "Sea Port St. Petersburg" (part of Universal Cargo Logistics Holding) invested over 2.1 billion rubles to implement the program of development of port infrastructure, twice as much than in 2008.
In particular, roughly 500 million were spent for the final phase of construction and acquisition of equipment for ro-ro terminal of annual capacity of 1 million tons of ro-ro cargoes. The terminal was launched in April 2009 at the First Stevedoring Company. More than 16 million rubles were spent for the design of a universal warehouse complex at Ro-Ro terminal of total 12.700-sq.m area.
Over 1.5 billion rubles were allocated for the construction of the first stage of container terminal on the territory of the Fourth Stevedoring Company a production capacity of about 350.000 TEUs, as well as the acquisition of basic production equipment. The planned launch date of the terminal to handle all kinds of export and import containerized cargoes, including refrigerated – the second quarter of 2010
About 10 million rubles were transferred to develop an exploratory design documentation, as well as sanitary and environmental survey of the area of reefer terminal in the first and second districts of the port. The terminal of production capacity of 1.5 million tons a year would reduce the costs of major importers of food products in St. Petersburg and Russian North-West.
There were also other investments made in the development of port infrastructure.
In addition, N-Trance group of companies also invested in its facilities in the past year. The funds were transferred to the development of Petrolesport (part of the Global Ports Investments Plc, owned by N-Trance).
In particular, in late 2009, traffic interchange with the tunnel was launched. Road tunnel under the railway crossing provided technological unity of all parts of the port. Total investment in construction exceeded 521.58 million rubles.
Development of Ro-Ro terminal of Petrolesport became part of a comprehensive program of expansion and modernization of specialized facilities of the stevedore company. During the reconstruction specialized open storage areas for cars with a total area of over 16 hectares were built. Today the capacity of the terminal allows transshipment of up to 190.000 cars and 40.000 other Ro-ro cargoes a year. Outdoor terminals are designed to accommodate 5.300 cars for storage. The total investment in the construction of the complex has exceeded 282 million rubles in 2008-2009. PortNews wrote about it in “Relevant Topic" on October 1st, 2009.
Neva-Metal CJSC (owned by Severstal JSC) also gains volumes of container cargoes. In 2009, the number of overloaded containers at its terminal grew by 30% to 34.000. “In 2010 we expect to bring the volume of container handling up to 60.000 tons, including by further expanding the range of goods. The launch in November of a container depot for storage of empty containers will also contribute to increase in turnover", Igor Nechaev, commercial manager of Cherepovets Severstal, in charge of the business of Neva-Metal said.
Port of Primorsk showed in January 2010 as expected, a 2% growth in shipment volumes as compared with January 2009, at 6.64 million tons.
Vyborg in January gained 4% over the same period last year, up to 95.200 tons, thanks to handled volumes of mineral fertilizers.
The ice has not yet been broken
Kaliningrad and Ust-Luga ports could not boast the same numbers the St. Petersburg has had. In January 2010, the port of Ust-Luga has slightly reduced is volumes, just 1% up from January last year, but so far this new port has been demonstrating a steady growth. Mainly due to coal transshipment, still much demanded. However, as Harbor Master Oleg Glukhov said in his interview with PortNews IAA, that was barely caused by the economic reason. The rough weather, severe ice conditions led to recession. Therefore it is possible to expect a revival in cargo turnover at Ust-Luga by this spring.
The project of a Ust-Luga Container Terminal (ULCT) at the port has also been delayed due to a conflict between the stockholders of National Container Company (NCC) the project investor (a detailed coverage in an August 6th “Relevant Topic” by PortNews). The project launch schedule has not been set as yet.
More troubles emerged in Kaliningrad. New problems contributed to the old ones (see PortNews’ October 21st, 2009 “Relevant Topic”).
The problem arose when the Russian FSB Border Guard Service authorities had ordered to cease all registration and customs operations at loading berths of several companies at Kaliningrad port (until the crossing points and boundaries issues were settled). These companies had suffered losses ensued as a result of the order, Union-TTM Ltd., Union-Soya CJSC, Lukoil-KaliningradMorNeft JSC, NCP RosBunker CJSC, BaltNafta CJSC, BOC company.
To resolve the conflict Kaliningrad Governor Georgy Boos had to step in, who proposed to establish an acceptable timetable to bring check-points at the port of Kaliningrad to the new requirements imposed by Russian legislation. He suggested the regulatory agencies should not rush banning all the trade operations at the terminals.
"The administrative procedures should not build barriers for the regional economy", said Mr. Boos at a working meeting with heads of regional offices, border agency, customs officials and Kaliningrad Port Authority. He also said that the smooth, trouble-free operations to be resumed at the port complex, as the conflict had hit the regional economy.
Kaliningrad and Ust-Luga ports could not boast the same numbers the St. Petersburg has had. In January 2010, the port of Ust-Luga has slightly reduced is volumes, just 1% up from January last year, but so far this new port has been demonstrating a steady growth. Mainly due to coal transshipment, still much demanded. However, as Harbor Master Oleg Glukhov said in his interview with PortNews IAA, that was barely caused by the economic reason. The rough weather, severe ice conditions led to recession. Therefore it is possible to expect a revival in cargo turnover at Ust-Luga by this spring.
The project of a Ust-Luga Container Terminal (ULCT) at the port has also been delayed due to a conflict between the stockholders of National Container Company (NCC) the project investor (a detailed coverage in an August 6th “Relevant Topic” by PortNews). The project launch schedule has not been set as yet.
More troubles emerged in Kaliningrad. New problems contributed to the old ones (see PortNews’ October 21st, 2009 “Relevant Topic”).
The problem arose when the Russian FSB Border Guard Service authorities had ordered to cease all registration and customs operations at loading berths of several companies at Kaliningrad port (until the crossing points and boundaries issues were settled). These companies had suffered losses ensued as a result of the order, Union-TTM Ltd., Union-Soya CJSC, Lukoil-KaliningradMorNeft JSC, NCP RosBunker CJSC, BaltNafta CJSC, BOC company.
To resolve the conflict Kaliningrad Governor Georgy Boos had to step in, who proposed to establish an acceptable timetable to bring check-points at the port of Kaliningrad to the new requirements imposed by Russian legislation. He suggested the regulatory agencies should not rush banning all the trade operations at the terminals.
"The administrative procedures should not build barriers for the regional economy", said Mr. Boos at a working meeting with heads of regional offices, border agency, customs officials and Kaliningrad Port Authority. He also said that the smooth, trouble-free operations to be resumed at the port complex, as the conflict had hit the regional economy.