Splendid future

In the context of the race for export facilities in the Far East and therefore the deficit of available territories, the investors and the state cast their glance to Sakhalin.

The market of Asia-Pacific Region is estimated by Russian Economic Development Ministry at some $20 trillion with China markets accounting for about a half of it. Despite the crisis of 2008–2009, they increase approximately 1.5 times over the past five years. Meanwhile, Russian export infrastructure is ‘tailored’ primarily to western and south-western directions. 

To get their piece of such a desirable Asian ‘pie’, Russian exporters of raw materials, first of all coal, have recently announced their mass scale plans on expansion of the existing and construction of new sea terminals at the Far East coast, as we frequently reported earlier. In particular, coal transshipment plans were announced even by companies, which do not produce it. For example, coal is currently handled by Vostochnaya Stevedoring Company (Global Ports Group), Summa Group is going to build its own terminal … 

However, there are not so many suitable grounds in the region. In this connection, a proposal was expressed at the meeting of the State Committee on social and economic development of the Far East, the Buryat republic, the Zabaikalye territory and the Irkutsk region to boost the infrastructure development on Sakhalin with its ice-free ports. 

It should be noted, there are coal ports on Sakhalin – Shakhtersk, Kholmsk, Uglegorsk – exporting coal produced on the island. There are 24 operating coal mines there including 14 mines under control of Sakhalinugol LLC. This company has announced its plans to boost coal production in 2013 which is to grow by 80% against 2012 making 3.6 mln t. Therefore, Shakhtersk and Uglegorsk expand their capacities. There are plans for Kholmsk development as well. 

A contract has already been concluded with a Swiss company on berth reconstruction and forming of a coal terminal in Kholmsk. The current issue is whether it is to be just a coal terminal or a mixed terminal. The port has also entered into a long-term agreement with the US company on handling of oil-and-gas equipment. Foreign partners guarantee handling of 2,000 containers per year. 

At the same time, Sakhalin can be used as a ground for export of cargo from Russia’s mainland only in case of the construction of a bridge to Sakhalin. The possibility to implement this project was discussed at the above mentioned meeting, where Victor Ishayev said that the bridge would be able to solve two problems – to replace Vanino-Kholmsk ferry link, the possibilities of which are limited due to weather dependence, and to open a ‘corridor’ for transportation of ‘mainland’ cargoes to Sakhalin harbours.

Aleksandr Khoroshavin, the Governor of the Sakhalin region, in his turn, announced that the regional government is ready to participate in the bridge construction project both organizationally and financially. 

However, these talks are still quite vague as no precise calculations of costs were made yet. As IAA PortNews learnt Victor Olersky, RF Deputy Transport Minister, the Ministry did not made any estimation of the bridge costs.

This project seems to be too ‘heavy’ for Russian budget in the nearest future due to numerous infrastructure developments like the construction of a deepwater port in the Kaliningrad region, naval base in Novorossiysk, Belkomur, Northern Latitudinal Railway, Olympic facilities, expansion of BAM and Transsib capacity …

Apart from financial challenges, there are resource problems as well – Sakhalin population is below 500,000 people, social infrastructure is underdeveloped and the region is not attractive for migration. 

The scenario focused on the development of Sakhalin infrastructure in the sector of offshore field servicing seems to be more realistic.

Presently, the only Russian LNG export terminal operates here and is getting even more popular in the world. The Sakhalin Governor Khoroshavin believes that Sakhalin should also facilitate the development of infrastructure for LNG production and transportation. 

“We have a proper infrastructure and sound reputation of a successful LNG plant as well as the interest of foreign energy companies in purchase of Sakhalin gas, Aleksandr Khoroshavin says.- In our opinion, it is extra volume of Sakhalin LNG, which can, with favorable circumstances, capture the share of APR market ahead of arch-rivals from Australia and Middle East. The regional government in conjunction with operators of oil and gas project, primarily Russian companies, is willing to play an active part in solving this issue. It is a field for private investments.”

As Deputy Transport Minister Oleg Belozerov said at the governmental meeting, there is a plan to build a new port in Nabil Bay. According to the sources in the Ministry, the project is focused on cargoes from off-shore fields.

Vitaly Chernov