Amid sanctions and ‘logistics pivot’, much attention is paid to the development of the North-South ITC. The recent weeks have seen active launching of services on this route. However, it has some challenges and bottlenecks.

The share of Russian crude exports to Western aligned nations has been decreasing from 2015 whilst BRICS countries have been increasing their share. Moreover, with its considerable discounts Russia can build up crude oil supplies to India and China as well as supplies of clean petroleum products to Brazil and South Africa, Gibson Shipbrokers experts believe. New routes are to intensify shipping

RF Government can start subsidizing loans of those investing in backbone network of transport and logistics centers (TLC) in view of cargo flows turning eastwards and lack of facilities on those routes. The Government’s document foresees preferential interest rate - 50% of the key rate. The market players estimate total investments in new TLCs at RUB 140 billion. Their capacity is to surge almost 2.5 times to 8.6 million TEU

Cargo turnover in Russia’s Baltic Basin is dwindling amid the sanctions and ‘eastward turn’, especially in the container segment. Logistics experts suggest loading the facilities with containers from the Central Transport Hub while Belarus is offering its cargo. Is that enough?

A ban imposed on some goods transit through Lithuania to the Kaliningrad region and the tensions that ensued were not followed by any measures to significantly increase seaborne traffic to the Russian exclave. The fleet that operates on ferry route from Ust-Luga is currently enough, the Ministry of Transport has said. At the end of June, the Northern Shipping Company owned universal dry cargo carrier will be added to four vessels operated by Rosmorport and Oboronlogistics

The share of the Russian flagged fleet in the transportation of domestic export cargo accounts for only about two percent. Now, amid the severe sanctions and withdrawal of several large shipping lines from the Russian market, there is much concern about the existing own ship tonnage which fall far behind and the greatest shortage is seen in the segment of bulk carriers and containerships.

According to PortNews, shipbuilding enterprises can receive financial support from the Russian government, similar to the support provided previously to the aviation and road building sectors of the country. The measure involves an increase of authorized capital of state-owned shipyards (nearly 40 enterprises) that are members of United Shipbuilding Corporation. This will require overall about RUB 130 billion. More than half of the funds will reportedly be directed to the North-West region based shipyards specializing in building cargo ships, fishing fleet and icebreaking vessels for the Arctic routes. Experts believe that the funds partially offset the cost of components and materials amid general inflation and sanctions.

The safety of sea shipping and the commercially efficient operation of ships depend to a great extent on how the shipping companies organize technical maintenance of their fleets. Aleksandr Dennemark, Technical Superintendent of PAO Sovcomflot, told IAA PortNews about the specifics of his profession and about the process of shaping merchant fleet management

Leningrad Region Governor Aleksandr Drozdenko promised Belarus President to place “some port facilities” in the region under Belarus’ management and to provide some sites for construction of a port. Those sites and facilities are behind a shroud of secrecy while experts speak about the need to build a dedicated covered terminal.

Rosmorport has a negative outlook on possible effect from cutting payments for berths rented in Great Port of Saint-Petersburg. Amid the sanctions, general turnover has reduced by almost a half, which affected the stevedoring companies, says the Smolny (Saint-Petersburg Government). Together with the decrease of calls and, consequently, port revenues, potential reduction of rental rates will worsen financial results of Rosmorport, the company responsible for investments into port infrastructure