Alexei Tyukavin: "The task - to choose real MTN projects and implement them "

Murmansk ice-free deep-water port, having great potential for development, has for several years been waiting for coming new investors and the implementation of new infrastructure projects. First Vice-Governor of Murmansk region Alexei Tyukavin told in an interview with PortNews when the region will commence the construction and modernization of marine terminals

- Alexei, please tell us at what phase is currently the project of Murmansk intermodal transportation node (MTN)?

- Today, the main work on the MTN project focuses primarily on the design and subsequent construction of a new marine terminal for handling coal on the west coast of the Kola Bay near the river Lavna, as well as of some federal facilities - a new public railway line linking the Vykhodnaya station and the new Lavna station. There is a pool of investors formed on the coal terminal, the railway line project is included in the FTP "Development of the Russian transport system for 2010-2015," which means the federal financing.

Now those villages and towns of the Murmansk region, where the railway and a coal terminal Lavna will be built, are conducting a series of public hearings and deliberations. In general, the community has positive attitude towards the project. However, there are serious questions among the Molochny village locals, where the railroad will run near residential buildings. Although the public hearings are not compulsory, we would not be willing to enter into a project with the objections of local residents. Therefore, we, in conjunction with the line designers are considering emerging issues and discuss them at meetings with villagers and local deputies. I hope that we will be able to find a compromise.

- When do you expect to get the agreed-on project?

- FGU Rostransmodernizatsiya, which is the state customer of the MTN project, plans to submit in the fall of 2012 the railway component of the project to Glavgosexpertiza. At that stage Rostransmodernizatsiya, the Government of the Murmansk region and private investors of the port of Lavna must sign an investment agreement, which has been prepared. However, private investors are now willing to ink the agreement before all issues on the land and power supply in Lavna are resolved. We will actively assist private investors in addressing these issues, so that in the fall the signing of the investment agreement could took place.

If the investment agreement is signed and the project passes Glavgosexpertiza expertise (in Sept-Nov, 2012) then in 2013 we will have a chance to start the construction both the railroad, and facilities of the coal terminal on the west coast of the Kola Bay.

- There have been some rumors recently on the possible revision of the MTN project parameters…

- Both the regional government and the Russian Transportation Ministry have an understanding that the original MTN project was a kind of a "castle built on sand." Actually, it has reasonable things, real, and some that were invented, so that the picture would look more attractive at presentation. Our task now is to choose real projects and try to implement them.

- Which one do you consider the most practical?

- The most real project - a coal terminal on the west coast of the Kola Bay. The second one, less widely-advertised in conjunction with MTN, but being under construction, is a terminal of Norilsk Nickel in Murmansk. This project does not include the creation of new public infrastructure. It is implemented only at the expense of private investment and aims at the creation of private transport infrastructure. Norilsk Nickel is completing the first phase of a marine terminal of capacity of 700,000 tons of cargo a year. If the investor makes final decision this year, the project second phase may be finalized in December 2013. Then the terminal will be able to handle up to 1.5 million tons of general cargo a year.

- Do you think the current Murmansk Commercial Sea Port (MCSP, MMTP) has a potential for expansion?

- This is still an open question. The new owner of the port – the coal company SUEK has not yet get in contact with the regional government to discuss this issue.

The expansion of MCSP is not an easy issue. The government does not accept in the future an idea of a coal port in the boundaries of the city. Let me remind you that the draft Comprehensive Development Plan of Murmansk intermodal transportation node did include the transfer of coal handling facilities to the western shore of the Kola Bay, that is, outside of Murmansk. The Russian Ministry of Transportation proposes to develop the port, not only on the west, but on the east coast of the Gulf as well. We agree with this approach, but also offer to make the transfer of the facility slowly out of the city’s boundaries, and to create on the empty site, for example, a new container terminal, which was planned to be located in the MTN project but on the north. On the other hand, I can understand the new owners of MCSP. They’ve just invested heavily in the acquisition of the port assets and they just would want to get a reward. However, they can hardly do without additional investment. The port needs major investments in berths renovation and warehousing facilities. The railway authorities have long insisted on the construction of modern railcar unloading facilities, which would allow them to avoid car’s damages. I believe there are no investment prospects for the development of east coast-based coal facilities in the port. I am sure that all coal and other bulk cargoes should be transferred in the future to the western shore, the more so because the shareholders of the coal project of Lavna, according to our information, are ready to accept other companies as co-investors in their project. Then in Lavna they could create terminals with capacity of more than 18 million tons per year. Especially because, the railway facilities were designed to ensure at least 28 million tons of cargo a year.

This issue is under discussion, and let me emphasize, we are not talking about changes in the MTN project as yet. We only evaluate this project.

- What do you think about the operation FSO Belokamenka at the port of Murmansk?

- The Murmansk region government believes it would be better to have onshore terminal, which is safer for handling crude oil, more jobs, etc. On the other hand, if the FSO Belokamenka is in demand for handling a certain amount of oil, has all the permits and regularly confirms the possibility of its safe operation, so we have no right to interfere with the operation of the offshore facility. Especially, because this is the only oil terminal for handling crude exports in the Arctic port. In the near future we foresee a growth in shipments through the port of Murmansk of oil from fields in the Arctic of Rosneft, LUKOIL, Gazprom Extraction Shelf. Probably, to meet the growing demand for transshipment of oil products, including for bunkering a large number of ships calling at the port of Murmansk, Murmansk Shipping Company in May, deployed at offshore anchorage of the Murmansk harbor the 143,000dwt tanker Natalie. So today, in my view, there is still need for the construction of the onshore terminal for crude oil and oil products.

-  Does a Murmansk passenger port project make progress?

- The city has for decades considered the possibility of a seaside embankment and marine passenger terminal. The project has become urgent right now since we started preparations for the 100-th anniversary of Murmansk (in 2016). The federal and local authorities, private investors will spend nearly RUB 7.5 billion for the event.

However, we believe some projects are too giant, which could obviously lead to a long-term construction downtown Murmansk, what we would want to avoid. On the other hand, there is an independent project of reconstruction of the seaport building, which has already been approved at the Ministry of Transport and Rosmorport. We have also an interesting project for the development of the Murmansk railway station, including the creation of a single modern complex of two stations: rail and road. So, our task now is to harmonize all the projects, to make the necessary adjustments. To do this, it is important to immediately gather all interested parties and potential investors, and indicate to them our proposals.

We’ve making some changing in the 100-th anniversary program, to make it less expansive, focusing on the projects, which could improve the life and appearance of the city.

- Maybe it makes sense to create a single managing company, to implement plans of the state and private investors for the development of port facilities?

- Most likely we will move in this direction, since the idea of a single management company has gotten the green light. Moreover, it is time to think about the future prospects of the existing management company of MTN. In addition, we need to create a management company to develop the port special economic zone (POEZ). I do not rule out the possibility to unite them all into one company.

Interviewed by Nadezhda Malysheva