Global Ports to boost capacity at St Petersburg to boost market share
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Global Ports to boost capacity at St Petersburg to boost market share

RUSSIA's Global Ports plans to expand the capacity of its St Petersburg terminal from one million TEU to 1.4 million TEU by 2021, raising optimism among shippers that the move will result in more efficient operations and lower costs. The terminal operator plans to use the expansion works to grab market share from Finnish and Baltic ports.

18 May 2017 - 20:00 - Update: 19 May 2017 - 15:08

The expansion project will involve building two berths totalling 365 metres in length, the addition of three cranes, and a 235,000-square metre warehouse at a cost of US$80 million, reported IHS Media.

Currently, Global Ports' subsidiary JSC Petrolesport controls 11.6 per cent of the container traffic passing through St Petersburg, down from one-fifth in 2014.

But deputy director Ivan Adrianov of Kitaysky Krasota, a Russian distributor of Chinese clothing, said the expansion is likely to result in overcapacity.

St Petersburg is currently operating at half its capacity owing to Russia's economic woes over the past two years amid its fallout with Europe, partly due to the unrest in Crimea. Yet, the country's economy is now showing signs of recovery. The economic slowdown caused traffic at Global Ports' terminals to plummet 19 per cent year on year in 2016 to 1.1 million TEU.

The expansion at St Petersburg is also anticipated to contribute to overcapacity in Russia's northwest port basin, where the Bronka seaport opened last year and will eventually have a capacity of two million TEU.

 

 

 

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