Russian port Ust-Luga loses backing for container terminal
Plans for a container terminal at the Russian port of Ust-Luga have met a set-back. Russia's largest container shipping company Fesco has said it is pulling out of the project. According to the maritime news service TradeWinds, the company said it would no longer be involved in financing and constructing the terminal.
It quoted Russia's leading container handler, National Container Company (NCC), as saying Fesco did not have the funds.
Ust-Luga has been identified as one of Russia's fastest-growing ports. It is in the Gulf of Finland, south-west of St. Petersburg, and will be at the end of a planned expansion of Russia’s Baltic Pipeline System. The Russian oil giant Rosneft said in June that was considering using the port for exports.
Gazpromneft Marine Bunker, the bunkering arm of Russian oil company Gazprom Neft started supplying in the port this year.
Plans had called for a container terminal with a handling capacity of three million container units (TEUs) a year.
But latests reports say work on the container terminal is likely to be suspended following Fesco's move.
Delivery of equipment for the Ust-Luga container terminal had been scheduled before the end of the year. Construction work on the terminal started in 2007.
It quoted Russia's leading container handler, National Container Company (NCC), as saying Fesco did not have the funds.
Ust-Luga has been identified as one of Russia's fastest-growing ports. It is in the Gulf of Finland, south-west of St. Petersburg, and will be at the end of a planned expansion of Russia’s Baltic Pipeline System. The Russian oil giant Rosneft said in June that was considering using the port for exports.
Gazpromneft Marine Bunker, the bunkering arm of Russian oil company Gazprom Neft started supplying in the port this year.
Plans had called for a container terminal with a handling capacity of three million container units (TEUs) a year.
But latests reports say work on the container terminal is likely to be suspended following Fesco's move.
Delivery of equipment for the Ust-Luga container terminal had been scheduled before the end of the year. Construction work on the terminal started in 2007.