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2010 October 26   14:51

Igor Rusu says Rosmorport may drop unprofitable pilotage at ports, in late 2010-early 2011

Federal State Unitary Enterprise Rosmorport might cancel providing  pilotage service at the ports and market segments where it turns out unprofitable for the federal enterprise, the correspondent of PortNews reports, quoting Rosmorport CEO Igor Rusu as saying at a briefing in St. Petersburg.

"Obviously, Rosmorport is not bound to provide pilotage services at those ports where it is not profitable. In the near future Rosmorport will have to cancel such services where it is not profitable," said the head of the federal enterprise.

Igor Rusu explained the company was striving to create a unified state pilotage service: "Our strategy is clear - it is the creation of a single pilot service, the public, but not necessarily in the structure of Rosmorport, but with common standards and unified management." He was confident that the Rosmorport’s move would encourage government and businesses to boost the creation of a single union of pilots.

Currently, the pilotage services are provided at Russian ports by Rosmorport and about 12 private companies. The private pilots firms take nearly all of the most expensive operations, while the work of pilots of Rosmorport turns out unprofitable. "Of the 60 ports of the country private pilots are operating only in 9 ports," Mr. Rusu said. For example, in the northern ports such as Anadyr and Pevek only the state enterprise’s pilots provide the service. Private firms provide expensive services for pilotage of large-tonnage ships at major Russian ports, while state pilots have to enjoy piloting coasters and river-sea-going low-capacity vessels.

According to Rosmorport estimates, annual income from pilotage services at the Russian ports of the eastern Gulf exceeds 700 million rubles. This includes about 610-615-m rubles earned by private companies, while the share of Rosmorport’s pilots is 112 million rubles. The number of pilotage operations of Rosmorport is significantly higher than that of private pilots.

At the port of Novorossiysk, 30% of pilotage services (mostly at oil terminals Sheskharis and CTC) are provided by private pilots, 70% - by the state pilots. However, revenues of the private sector are much higher than the state’s revenues.

Thus, the state-owned enterprise’s pilots share work on the most low-income market segment of pilotage services, summarized Mr. Rusu.

Today, there is a direct competition in Russia in the services directly related to the safety of navigation (pilotage services), says the head of Rosmorport. This is contrary to international maritime instruments and rules. The flag Authority (in Russia - Ministry of Transport - PortNews), in accordance with international practice, should not allow competition on the pilotage service market. "In this sector - market conditions are effective, therefore we will operate using the market methods", said Mr. Rusu.

Igor Rusu believes the move will not stop the port operations, however, the intention of state pilotage service can help accelerate the process of creating a single pilot service in the country. “This may be a JSC with private equity, with a majority stake hold by the state," Mr. Rusu said.

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