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January 2016

Heads of Russian and Kazakh Railways agree on common approach for further development of Integrated Transport & Logistics Company

Heads of Russian and Kazakh Railways agree on common approach for further development of Integrated Transport & Logistics CompanyOleg Belozerov, President of Russian Railways, and Askar Mamin, Chairman and President of Kazakhstan Temir Zholy, met in Moscow on 18 January 2016 to discuss the further development of the Integrated Transport & Logistics Company (ITLC).

The development of the project for the ITLC envisages the formation of a single integrated platform in the Eurasia Economic Union space with the aim of uniting efforts to build the global competitiveness of the Eurasian corridor with optimal customer routes passing through the territory of countries participating in the project.

In this context, the parties emphasised that the ITLC’s initial practical results validate the company’s business idea as an integrator of container services.

The parties noted that for the successful implementation of the ITLC’s business model, it was important to continue harmonising national projects in the field of transport and logistics infrastructure, to provide a guaranteed logistics through service for freight delivery, develop a long-term tariff policy and synchronise the timetables of container trains.

These measures will help the Transport & Logistics Company to respond flexibly to market changes and offer the participants the most competitive logistics product.

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Total cargo turnover of Russian seaports in 2015

Total cargo turnover of Russian seaports in 2015In 2015, Russian seaports handled 676.7 mln t of cargo (+5.7%, year-on-year), says the press center of Association of Commercial Sea Ports.

Transshipment of dry bulk cargo totaled  312.2 mln t (+5.3%) including 123.2 mln t of coal (+6.0%), 34.4 mln t of grain (+15.1%), 26.2 mln t of ferrous metal (+12.2%), 21.6 mln t of cargo carried by ferries (up 1.9 times), 16.0 mln t of mineral fertilizers (+8.8%), 6.7 mln t of ore (+10.8%), 5.3 mln t of forest cargo (+10.7%) and 3.5 mln t of non-ferrous metal (+10.7%). Transshipment of containerized cargo fell to 40.1 mln t (-14.4%), metal scrap – 4.2 mln t (-8.8%) and reefer cargo – 3.2 mln t (-11.4%).

Transshipment of liquid bulk cargo totaled 364.5 mln t (+6.0%) including 202.1 mln t of crude oil (+8.0%), 146.0 mln t of oil products (+3.7%) and 12.9 mln t of liquefied gas (+5.1%).

Transshipment of export cargo totaled 539.1 mln t (+ 7.7%), import – 33.3 mln t (-23.3%), transit – 48.2 mln t (+1.2%), coastal trade cargo 56.1 mln t (+15.6%).

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2015 year in review

2015 year in reviewThe year was full both of accomplishments and disappointments. The port complex of the country as usual demonstrated freight throughput growth, and once again largely Russian raw product exports contributed to cargo volumes gain. Inland shipping again teetered on the brink of collapse, now closer to a halt of transit cargo shipping.

Raw growth

By the 2015 year-end results cargo volumes handled at Russian seaports rose 3% y-o-y to about 650 million tonnes (provisional figures). More than half of this volume accounted for exports crude oil and oil products from Russia. This year, the increase in liquid bulk segment was 5% compared to last year. The third in terms of volumes handled at the country’s sea ports was coal, yet another Russian export raw commodity.

Despite oil prices dive, the upward trend will most likely continue in oil liquid bulk segment. In 2015, several new port projects were announced for the export of hydrocarbons. The total volume of oil product exports through Novorossiysk based Sheskharis Terminal is expected to jump by more than twofold in 2018 and amount to 20 million tonnes per year. Marine Terminal of Neftegazindustriya Group controlled by Vladimir Kogan of annual capacity of 11 million tonnes could be built on the Black Sea in the Bay of Tsemess, near PenaiCape. The terminal is projected to handle products produced at modernized Afipsky refineries. The terminal for handling Russian crude exports “Transneft – Port Kozmino” based in Vostochny, Primorskiy Kray plans to boost its capacity by 20% in 2017 to 36 million tonnes annually.

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