DRASTIC changes in container logistics within Russia have resulted in facility downtime in the north-west region and congestion in the Far East, reports St Petersburg PortNews.
This situation calls for investments in two areas: creating new facilities in overloaded regions and optimising and diversifying existing facilities in underloaded areas. However, investors encounter several challenges.
The Russian construction terminal sector requires investments for expanding certain terminals as well as modernising and diversifying others.
While Rosmorport applies a contract model for most investments, Russian Railways does not. The business community also highlights the need to streamline the process of obtaining relevant export approvals.
For many years, the container segment of Russia's foreign trade predominantly focused on the west. The Great Port of St Petersburg and other north west ports experienced the most active development in their container sectors prior to the pandemic.
As early as 2017, PortNews highlighted the great growth of the Baltic container segment, estimating an excess capacity of 3.7 million TEU annually.
The total annual capacity of container terminals in the north west seaports is five million TEU, with global ports' terminals accounting for 3.1 million TEU.
'The industry is feeling the impact. Some terminals are shifting towards handling dry bulk cargo, while others are venturing into the handling of mineral fertilisers, which is atypical for container terminals,' said Rosmorrechflot head Ruslan Mukhametov.
While the north west facilities are underutilised, the Far East region demonstrates significant growth in container volumes.
Igor Pukhov reported a 17 per cent year-on-year increase in container handling by Vostochnaya Stevedoring Company of global ports during the first quarter of 2023.
The Far East region necessitates investments for both expanding container facilities and optimizing railway logistics.
For example, Vostochny Port JSC has implemented the transportation of containers in gondola cars. In 2023, the number of containers shipped in gondolas is expected to double, exceeding 22,000 TEU nearly. The share of containers transported in gondolas is planned to rise from 35 per cent in 2022 to 90 per cent.
SeaNews Turkey
This situation calls for investments in two areas: creating new facilities in overloaded regions and optimising and diversifying existing facilities in underloaded areas. However, investors encounter several challenges.
The Russian construction terminal sector requires investments for expanding certain terminals as well as modernising and diversifying others.
While Rosmorport applies a contract model for most investments, Russian Railways does not. The business community also highlights the need to streamline the process of obtaining relevant export approvals.
For many years, the container segment of Russia's foreign trade predominantly focused on the west. The Great Port of St Petersburg and other north west ports experienced the most active development in their container sectors prior to the pandemic.
As early as 2017, PortNews highlighted the great growth of the Baltic container segment, estimating an excess capacity of 3.7 million TEU annually.
The total annual capacity of container terminals in the north west seaports is five million TEU, with global ports' terminals accounting for 3.1 million TEU.
'The industry is feeling the impact. Some terminals are shifting towards handling dry bulk cargo, while others are venturing into the handling of mineral fertilisers, which is atypical for container terminals,' said Rosmorrechflot head Ruslan Mukhametov.
While the north west facilities are underutilised, the Far East region demonstrates significant growth in container volumes.
Igor Pukhov reported a 17 per cent year-on-year increase in container handling by Vostochnaya Stevedoring Company of global ports during the first quarter of 2023.
The Far East region necessitates investments for both expanding container facilities and optimizing railway logistics.
For example, Vostochny Port JSC has implemented the transportation of containers in gondola cars. In 2023, the number of containers shipped in gondolas is expected to double, exceeding 22,000 TEU nearly. The share of containers transported in gondolas is planned to rise from 35 per cent in 2022 to 90 per cent.
SeaNews Turkey
