3 minute read
Down But Not Out
RUSSIA DOWN BUT NOT OUT
With the notable exception of Kaliningrad, Russia has seen cargo growth stagnate during the pandemic but now, as Eugene Gerden explains, extensive plans are being laid for better times ahead
The Russian port sector is gradually recovering from the pandemic and its consequences, which have seen growth rates registered signifi cantly lower than those of prepandemic times.
According to the latest data, provided by the Federal Agency for Maritime and River Transport of Russia (Rosmorrechflot), in the period January - June 2021 total cargo traffic at Russian seaports grew by only 0.3% compared to the same period last year, amounting to 412.13 million tons.
For over 20 years, cargo traffic at Russian seaports was in the “green” zone of continuous growth, however the beginning of the pandemic led to the interruption of this impressive cycle.
KALININGRAD THE EXCEPTION
The notable exception to this general trend is the port of Kaliningrad, where since the beginning of this year traffic has grown by 70% compared to the equivalent period last year, with this growth currently ongoing.
Interestingly, Andrey Moshkov, Deputy Director-Head of the Kaliningrad Department of the North-Western Basin Branch of “Rosmorport” notes:
“We expect that this year we will achieve the best growth figures since 2012. There is every reason to believe that we will exceed the level of 400,000TEU for the first time in the history of the port. This became possible due to the development of the transit flows of cargo from China through the port of Kaliningrad to the ports of Europe. We are currently getting closer to the container turnover of the Latvian port of Riga.”
The development of the port of Kaliningrad is currently a top priority for Russia with state plans aiming to achieve the re-direction of the remaining 40 million tonnes of Russian cargo flows moving via the ports of Lithuania and Latvia to Russian Baltic ports. For this purpose, the modernisation of the port of Kaliningrad and other Baltics seaports, particularly the Big Port of St. Petersburg, is ongoing.
ST PETERSBURG PROJECTS
An official spokesman for the port of St Petersburg confirms that this year the Port plans to implement some major investment projects directed at developing port facilities, modernising existing infrastructure and thereby building cargo traffic. Speaking exclusively to Port Strategy he points out:
“One of the most important projects involves building a terminal for the handling of wood pellets, which will raise the handling capacity for this cargo up to one million tonnes annually. There are also plans to facilitate an increase in the handling of ferrous metals. For this purpose, new areas for open and covered storage of cargo will be established as well as new berth and rail system capacity.”
There is also a strong possibility that the proposed initiative for the transfer of the certain port facilities outside the boundaries of the city of St. Petersburg will soon be implemented (see Port Strategy, June p21). Significantly, on July 26 during a meeting on the development of the St. Petersburg transport hub Vladimir Putin, Russian President, once again supported this initiative.
Russia aims to ‘bring home’ the 40 million tonnes/yr of Russian cargo still moving via ‘‘ Latvia and Lithuania
NOVOROSSYISK DOUBLING DRAFT
Also figuring strongly in state plans are comprehensive development works at the port of Novorossyisk, Russia’s major Black Sea port. Igor Terentyev, Deputy General Director of the port, points out:
“The volume of investment in the development of the port this year will amount to RUB 46 billion (US$625 million). A major output will be almost doubling the available depth at the port which will allow it to accommodate larger capacity vessels. Additionally, the warehouse capacity of the port will be doubled as well as new quay line established.”
Implementation of these plans forms part of a large-scale investment programme for Novorossiysk seaport, which foresees a total investment of RUB 108 billion (US$1.46 billion) in the period to 2029.
Looking at the bigger picture, the projects highlighted above represent key components of ambitious state plans for an overall increase in the capacity of Russian seaports by 300 million tons of cargo per year by 2024.
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