III КВАРТАЛ 2022Г. - 55 баллов
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[DETAIL_TEXT] => Approximately 160 exhibitors from 14 countries have confirmed their participation in Korea Railways & Logistics Fair 2005, Asian leading international trade event for railways and logistics. The show will feature products from France, Switzerland, UK, Finland, Germany, Austria, Canada, China, Japan, Singapore, Holland, Ukraine and Russia. In particular, there will be two national pavilions from Germany and Russia.
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Korea is one of those Asian countries that are going all-out for the construction of a Trans-Asian Railway network that will consist of Trans-Siberia Railways, Trans-China Railways, Trans-Mongolian Railways and Trans-Manchurian Railways. In this globalisation, the realization and completion of the Trans-Asian Railway network could lead to a great reduction in logistics costs not only for Asian companies but also for their western partners. After long years of aspirations for becoming a logistics hub in Northeast Asia, the Korean government has been at work to establish world-class infrastructures of railways, ports, expressways and airports alike. To this end, the central government has been increasing its investments into a railway infrastructure in accordance with the mid and long-term National Inter-Modal Transportation Plan.
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In conjunction with the exhibition, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and Korea Railroad Research Institute will organize seminars concerning railways and logistics industries during the fair.
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Korea is one of those Asian countries that are going all-out for the construction of a Trans-Asian Railway network that will consist of Trans-Siberia Railways, Trans-China Railways, Trans-Mongolian Railways and Trans-Manchurian Railways. In this globalisation, the realization and completion of the Trans-Asian Railway network could lead to a great reduction in logistics costs not only for Asian companies but also for their western partners. After long years of aspirations for becoming a logistics hub in Northeast Asia, the Korean government has been at work to establish world-class infrastructures of railways, ports, expressways and airports alike. To this end, the central government has been increasing its investments into a railway infrastructure in accordance with the mid and long-term National Inter-Modal Transportation Plan.
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Maria Ghermanova
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[DETAIL_TEXT] => Approximately 160 exhibitors from 14 countries have confirmed their participation in Korea Railways & Logistics Fair 2005, Asian leading international trade event for railways and logistics. The show will feature products from France, Switzerland, UK, Finland, Germany, Austria, Canada, China, Japan, Singapore, Holland, Ukraine and Russia. In particular, there will be two national pavilions from Germany and Russia.
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Maria Ghermanova
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Maria Ghermanova
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Maria Ghermanova, Tatyana Yermakova
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Maria Ghermanova, Tatyana Yermakova
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There were traditional Innovation Awards for implementing the most innovative product or service or providing an especially valuable contribution to the rail sector. The selection criteria but innovation were inventiveness and potential market value. As a result, from 13 candidates, including AUXITEC, Combinatie ERIA, the winner was Compa Tech b.v., Rosmalen (the Netherlands) for development of Compa-rand and Comparon, designed for height and distance adjustment of rail platforms. Due to new European standards many of the existing platforms have an unacceptable high step to get in and out of the trains.The Compa-rand overcomes this problem and allows compliance to the new standards with relative small investments.
The theme of the conference was "The Separation of Operations And Infrastructure". In particular, the delegates discussed whether separation contributes to a better price/performance of the system. At the forum, the participants examined reforms in European countries, their experience and different solutions. Among the delegates there was Mr. Adriaan Veenman, the director general of NS (Railways of the Netherlands), Mr. Sander Brasser, the Head of Track Facilities Department of ProRail (a company-operator of infrastructure of the Netherlands). Representatives of Railways of the UK, the Netherlands, and Italy participated in the conference. The audience was especially interested in high-speed operation and opportunities of the sphere, and the relationship of the carriers and operators of infrastructure, which, judging by debates, is far from being perfect.
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Maria Ghermanova, Tatyana Yermakova
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Mr. Wim Oosterwijk, a representative of CER, said that Rail-Tech Europe is "an appropriate platform to share ideas and share the sense of urgency to make technological progress serving our final customers."
The unique feature of Rail-Tech compared to other rail infrastructure exhibitions were the railways tracks that were constructed in the exhibition hall in between the stands. Exhibitors were kindly invited to expose their products on this track. 151 companies were exhibited, wherein 59% were from the Netherlands and 41% - from other countries. 32% of exhibited came there for the first time. Unfortunately, The RZD-Partner magazine was the only exhibitor from Russia. Among the participants of the conference there were the largest producers of rail equipment, rolling stock, signal and lighting facilities, and companies, specializing in the sphere of city transport. Siemens and Bombardier had the most impressive stands. A new record was set this year: more than 6 thousand people visited the exhibition.
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The participants of the conference thought that the most successful separation of transportation and infrastructure management was that of the UK. The delegates also discussed cases of Sweden, the Netherlands, and the unique case of Thalys - a company-operator of high-speed transportation. Its trains use different infrastructures (of the Netherlands, Germany, Belgium, and France), so the company has to cooperate with four national operators of infrastructure.
Maria Ghermanova, Tatyana Yermakova
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[DETAIL_TEXT] => On March 22-25, in Moscow, the largest in the CIS and Baltic countries international transport exhibition TransRussia-2005 was held for the 10th time. The forum was organized by international exhibition company ITE and supported by the RF Ministry of Transport, the Federal Agency of Rail Transport, the Federal Customs Service, and OAO RZD. The general sponsor of the exhibition was Vneshtorgbank, and the general media partner - "The RZD-Partner" business magazine.
Igor Levitin, the Minister of Transport of Russia, Oleg Belozerov, the Head of the Federal Road Agency, Michail Akulov, the Head of the Federal Agency of Rail Transport, and Irina Danilova, a vice-president of Vneshtorgbank took part in the official opening ceremony. Igor Levitin marked in his speech the significant development of the Russian transport complex and generally positive developments in the country's economy. The Minister paid attention to the necessity of Russian transport competitiveness development and Russia's joining the system of international transport corridors, and improvement of transport services. In particular, he supported the process of Russian companies investment into the transport infrastructure of the neighbouring countries.
350 companies from more than 20 countries took part in the anniversary forum. Among the exhibitors of TransRussia-2005 there were companies from Byelorussia, Kazkhstan, the Netherlands, Poland, USA, Ukraine, France, Sweden, and Estonia. Belgium, Germany, Latvia, Lithuania and Finland were represented by separate national stands. It was the first time when the German Federal Ministry of Economics and Labour supported participation of German companies in the exhibition and performed as an organizer of the country's stand.
As usually, TransRussia attracted largest carriers, forwarders, stevedores, logistics and insurance companies, engineering plants, and customs services. Banking and financing services, including credits and leasing, are in requisition at the Russian transport market. So, Vneshtorgbank, TransCreditBank, Sberbank, Inpromleasing and RG-Leasing presented their stands at the exhibition.
In the forum freight car- and load-lifting equipment companies took active part in the forum. It was the first time when DaimlerChryslerCarsRus, Volvo East, DAF Trucks took part in TransRussia. A rich business programme accompanied the exhibition. There was a round table of Kazakhstan Temir Zholi. Transsystem and Strazh held their presentations. The seminar programme covered present-day problems and new solutions in the logistics and freight transportation spheres.
Over 14,000 visitors attended the show. The exhibition covered over 8,200 square meters net stand space, that was a record for the last seven years.
This year the organizers together with the RZD-Partner magazine for the first time issued TransRussia Daily newspaper, which lightened the events of the forum.
Traditionally, in the framework of TransRussia, an International Transport and Logistics conference was held. Over 300 delegates, representatives of state departments, ports, transport, industrial, investment and insurance companies, participated in the event on the first day. The main themes were: development of the national transport infrastructure, international transport corridors, methods for increasing of export turnover through development of transport connections, development of intermodal transportation, investments into sea ports" infrastructure, and transport flow management.
In the framework of the conference, the Federal Council of Industrial Policy committee organized Parliamentary hearings on the theme "Legislative security for development of rail transport and transport machine-building." It's a pity that only specially invited representatives of companies, connected with the sphere. It was the place where the most fully qualified specialists could be heard, and where you could find information of strategic and efficient character.
Sergey Gorsky, the director of the exhibition, said, that next year TransRussia would completely occupy the Olimpiysky sport complex. The extension of the exhibition space will enable to increase the number of sectors which could be involved in the show.
Sergey Grigoryev
[~DETAIL_TEXT] => On March 22-25, in Moscow, the largest in the CIS and Baltic countries international transport exhibition TransRussia-2005 was held for the 10th time. The forum was organized by international exhibition company ITE and supported by the RF Ministry of Transport, the Federal Agency of Rail Transport, the Federal Customs Service, and OAO RZD. The general sponsor of the exhibition was Vneshtorgbank, and the general media partner - "The RZD-Partner" business magazine.
Igor Levitin, the Minister of Transport of Russia, Oleg Belozerov, the Head of the Federal Road Agency, Michail Akulov, the Head of the Federal Agency of Rail Transport, and Irina Danilova, a vice-president of Vneshtorgbank took part in the official opening ceremony. Igor Levitin marked in his speech the significant development of the Russian transport complex and generally positive developments in the country's economy. The Minister paid attention to the necessity of Russian transport competitiveness development and Russia's joining the system of international transport corridors, and improvement of transport services. In particular, he supported the process of Russian companies investment into the transport infrastructure of the neighbouring countries.
350 companies from more than 20 countries took part in the anniversary forum. Among the exhibitors of TransRussia-2005 there were companies from Byelorussia, Kazkhstan, the Netherlands, Poland, USA, Ukraine, France, Sweden, and Estonia. Belgium, Germany, Latvia, Lithuania and Finland were represented by separate national stands. It was the first time when the German Federal Ministry of Economics and Labour supported participation of German companies in the exhibition and performed as an organizer of the country's stand.
As usually, TransRussia attracted largest carriers, forwarders, stevedores, logistics and insurance companies, engineering plants, and customs services. Banking and financing services, including credits and leasing, are in requisition at the Russian transport market. So, Vneshtorgbank, TransCreditBank, Sberbank, Inpromleasing and RG-Leasing presented their stands at the exhibition.
In the forum freight car- and load-lifting equipment companies took active part in the forum. It was the first time when DaimlerChryslerCarsRus, Volvo East, DAF Trucks took part in TransRussia. A rich business programme accompanied the exhibition. There was a round table of Kazakhstan Temir Zholi. Transsystem and Strazh held their presentations. The seminar programme covered present-day problems and new solutions in the logistics and freight transportation spheres.
Over 14,000 visitors attended the show. The exhibition covered over 8,200 square meters net stand space, that was a record for the last seven years.
This year the organizers together with the RZD-Partner magazine for the first time issued TransRussia Daily newspaper, which lightened the events of the forum.
Traditionally, in the framework of TransRussia, an International Transport and Logistics conference was held. Over 300 delegates, representatives of state departments, ports, transport, industrial, investment and insurance companies, participated in the event on the first day. The main themes were: development of the national transport infrastructure, international transport corridors, methods for increasing of export turnover through development of transport connections, development of intermodal transportation, investments into sea ports" infrastructure, and transport flow management.
In the framework of the conference, the Federal Council of Industrial Policy committee organized Parliamentary hearings on the theme "Legislative security for development of rail transport and transport machine-building." It's a pity that only specially invited representatives of companies, connected with the sphere. It was the place where the most fully qualified specialists could be heard, and where you could find information of strategic and efficient character.
Sergey Gorsky, the director of the exhibition, said, that next year TransRussia would completely occupy the Olimpiysky sport complex. The extension of the exhibition space will enable to increase the number of sectors which could be involved in the show.
Sergey Grigoryev
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Igor Levitin, the Minister of Transport of Russia, Oleg Belozerov, the Head of the Federal Road Agency, Michail Akulov, the Head of the Federal Agency of Rail Transport, and Irina Danilova, a vice-president of Vneshtorgbank took part in the official opening ceremony. Igor Levitin marked in his speech the significant development of the Russian transport complex and generally positive developments in the country's economy. The Minister paid attention to the necessity of Russian transport competitiveness development and Russia's joining the system of international transport corridors, and improvement of transport services. In particular, he supported the process of Russian companies investment into the transport infrastructure of the neighbouring countries.
350 companies from more than 20 countries took part in the anniversary forum. Among the exhibitors of TransRussia-2005 there were companies from Byelorussia, Kazkhstan, the Netherlands, Poland, USA, Ukraine, France, Sweden, and Estonia. Belgium, Germany, Latvia, Lithuania and Finland were represented by separate national stands. It was the first time when the German Federal Ministry of Economics and Labour supported participation of German companies in the exhibition and performed as an organizer of the country's stand.
As usually, TransRussia attracted largest carriers, forwarders, stevedores, logistics and insurance companies, engineering plants, and customs services. Banking and financing services, including credits and leasing, are in requisition at the Russian transport market. So, Vneshtorgbank, TransCreditBank, Sberbank, Inpromleasing and RG-Leasing presented their stands at the exhibition.
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Over 14,000 visitors attended the show. The exhibition covered over 8,200 square meters net stand space, that was a record for the last seven years.
This year the organizers together with the RZD-Partner magazine for the first time issued TransRussia Daily newspaper, which lightened the events of the forum.
Traditionally, in the framework of TransRussia, an International Transport and Logistics conference was held. Over 300 delegates, representatives of state departments, ports, transport, industrial, investment and insurance companies, participated in the event on the first day. The main themes were: development of the national transport infrastructure, international transport corridors, methods for increasing of export turnover through development of transport connections, development of intermodal transportation, investments into sea ports" infrastructure, and transport flow management.
In the framework of the conference, the Federal Council of Industrial Policy committee organized Parliamentary hearings on the theme "Legislative security for development of rail transport and transport machine-building." It's a pity that only specially invited representatives of companies, connected with the sphere. It was the place where the most fully qualified specialists could be heard, and where you could find information of strategic and efficient character.
Sergey Gorsky, the director of the exhibition, said, that next year TransRussia would completely occupy the Olimpiysky sport complex. The extension of the exhibition space will enable to increase the number of sectors which could be involved in the show.
Sergey Grigoryev
[~DETAIL_TEXT] => On March 22-25, in Moscow, the largest in the CIS and Baltic countries international transport exhibition TransRussia-2005 was held for the 10th time. The forum was organized by international exhibition company ITE and supported by the RF Ministry of Transport, the Federal Agency of Rail Transport, the Federal Customs Service, and OAO RZD. The general sponsor of the exhibition was Vneshtorgbank, and the general media partner - "The RZD-Partner" business magazine.
Igor Levitin, the Minister of Transport of Russia, Oleg Belozerov, the Head of the Federal Road Agency, Michail Akulov, the Head of the Federal Agency of Rail Transport, and Irina Danilova, a vice-president of Vneshtorgbank took part in the official opening ceremony. Igor Levitin marked in his speech the significant development of the Russian transport complex and generally positive developments in the country's economy. The Minister paid attention to the necessity of Russian transport competitiveness development and Russia's joining the system of international transport corridors, and improvement of transport services. In particular, he supported the process of Russian companies investment into the transport infrastructure of the neighbouring countries.
350 companies from more than 20 countries took part in the anniversary forum. Among the exhibitors of TransRussia-2005 there were companies from Byelorussia, Kazkhstan, the Netherlands, Poland, USA, Ukraine, France, Sweden, and Estonia. Belgium, Germany, Latvia, Lithuania and Finland were represented by separate national stands. It was the first time when the German Federal Ministry of Economics and Labour supported participation of German companies in the exhibition and performed as an organizer of the country's stand.
As usually, TransRussia attracted largest carriers, forwarders, stevedores, logistics and insurance companies, engineering plants, and customs services. Banking and financing services, including credits and leasing, are in requisition at the Russian transport market. So, Vneshtorgbank, TransCreditBank, Sberbank, Inpromleasing and RG-Leasing presented their stands at the exhibition.
In the forum freight car- and load-lifting equipment companies took active part in the forum. It was the first time when DaimlerChryslerCarsRus, Volvo East, DAF Trucks took part in TransRussia. A rich business programme accompanied the exhibition. There was a round table of Kazakhstan Temir Zholi. Transsystem and Strazh held their presentations. The seminar programme covered present-day problems and new solutions in the logistics and freight transportation spheres.
Over 14,000 visitors attended the show. The exhibition covered over 8,200 square meters net stand space, that was a record for the last seven years.
This year the organizers together with the RZD-Partner magazine for the first time issued TransRussia Daily newspaper, which lightened the events of the forum.
Traditionally, in the framework of TransRussia, an International Transport and Logistics conference was held. Over 300 delegates, representatives of state departments, ports, transport, industrial, investment and insurance companies, participated in the event on the first day. The main themes were: development of the national transport infrastructure, international transport corridors, methods for increasing of export turnover through development of transport connections, development of intermodal transportation, investments into sea ports" infrastructure, and transport flow management.
In the framework of the conference, the Federal Council of Industrial Policy committee organized Parliamentary hearings on the theme "Legislative security for development of rail transport and transport machine-building." It's a pity that only specially invited representatives of companies, connected with the sphere. It was the place where the most fully qualified specialists could be heard, and where you could find information of strategic and efficient character.
Sergey Gorsky, the director of the exhibition, said, that next year TransRussia would completely occupy the Olimpiysky sport complex. The extension of the exhibition space will enable to increase the number of sectors which could be involved in the show.
Sergey Grigoryev
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New customs code: pro and cons
No doubt, the introduction of the new customs code has been the most important event of the past several years. Over a year has passed since, still there is still much discussion of the advantages and disadvantages of the document.
Federal Customs Service announced in the end of 2004: The introduction of the new customs code allowed to establish principally different relations between the customs and business. Statistics by the Ministry of Economics and Development of the RF supports the statement: earnings of the state budjet from cusotms in 2004 made 1,2 billion rubles which is 462 mlrd more than in 2003. On the whole customs provides almost 40% of the income of the state budjet, the share of customs payments in GDP - about 8%.
The administrative reform has too played its role in increasing the efficiency of the customs service. In the course of the reform the State Customs Committtee (GTK) was replaced by the Federal customs service subordinated to the Ministry of Economic development in the part of legal regulation and the Ministry of Finance in the part of customs payments and the control of the cost of the goods declared. The head of the service Aleksander Zherikhov noted they managed to pass the period of reform smoothly whithout losing the dynmaics and meeting the interested of the business community.
It is based on the needs of the businees community and with its active involvement not the service is much work is being done in order to increase the efficiency of customs contol and registration. The new customs code is too being studied extensively and all suggested changes to it will be considered by the State Duma in the course of the autumn session of 2005.
For 2005 the task is set to collect customs payments worth 1,3 billion rubles which is 50% more than the amount planned for the previous year. The Service representatives are sure they will manage to hit the target. Too it is important that this eaasurance is based not on the forecast on the dynamics of oil prices but the estimation of the inner resources. Among such are the advantages brought about with the new customs code: simplification and acceleration of the process of the customs registration, application of the elements of the risk analyses and management system, post-auditing, practical implementation of electronic declaration.
Revolution in information
Last year a programme of modernisation of the customs information system was started and this is allocated a huge role in the process of the service development. This project was credited by the EBRD in the amount of mln $140. and already there can be seen the results: obsolete hardware is relaced almost in full, over a dozen of customs post are already working with electronic declarations, e-decarations are too implemented in regards to rail transport. FCS announced its intentions to start e-declaring at 56 more customs posts in all the regions.
There has been much concern about the jams at customs posts at land borders and in 2005 there has been taken a desision to totally reform the system of border crossing points mode of operations. Only two of the 7 contol services now operating at the border will be left. These are customs and frontier guards. This will allow to cut the period required for the registration of a vehicle at the border to 40-50 minits instead of the 3 hours required nowadays. Of course the possibility of thorough control will still be maintained: the inspectors of other services may be invited to a border-crossing post at any time.
All these innovations will be possible to introduce after the creation of a single database which will allow to trasfer most of the fucntions performed by border registration to FCS and some - to frontier guards. The Unified Automated Information System has been accepted as the standard on which all the technologies of the customs control and registration will be based. The unique quality of the system is the ability to interact with the systems of foreing states, customs brokers, forwarders, shippers and the systems by the regulating bodies of all levels. Yet, implementation of the new technologies will require significant changes done to the legal base. Yet as the project is supported both by the FCS and the Ministry of Economic Development it is expected that the required changes to the 331 normative documents will be passed without much delay.
Already today as a result to creating the register of the foreign trade participants the share of physical inspection by release of goods has reduced from 95% to 60%. By the forecasts by 2008 only 10% of the import and 8% of the export traffic will be subject to physical inspection. Eliminating the administrative barriers hindering the free flow of goods in international trade and thus allowing business to develope effective supply chains the customs service no doubt contribute to the development of the Russian foreign trade and its integration into the global transport system.
In harmony with EU
As an assign of the USSR Russia is the member of WTO since 1992. Within the conception of The Common European Economic Area (концепции Общего европейского экономического пространства) the russian customs service cooperated with the of the European Commission (EC). Presently FCS of the RF and EC jointly with TASIS realise the programme on harmonisation of the customs procedures of Russia and the EC. The project stipulates for the comparative analyses of the procedures currently employed by the Russian customs service against those of the Convention about the common transit procedure of the EU and suggesting a plan of the elimination of the divergence. In the course of the work there has already been prepared the list of the devergences related to the legal norms and the customs procedures and the functional of the information systems employed.
As a result there was developed and implemented on May 1, 2004 the system "Kaliningrad transit", allowing to automatically and in shortest time possible receive permissions on the transit of Russian goods across the territory of Lithuania. For the first time in the history of EU a country not being EU member was admitted to the outer system of a customs service of the EU-member state. Today the system "Kaliningrad Transit" is implemented by 20 of the 26 customs posts of the Kaliningrad region and can be accessed from all regions by all carriers.
Brokers have problems
Outlining the status quo to have developed on the market of customs services one of the major issues of the day cannot be skipped: the redistibution of the market of customs brokers is the issue.
It is the new customs code to have initiated the process by actually changing the notion of "declarant". If previously the notion implied performing all actions in the sphere of customs registration sui juris, today broker is only an intermediate between the customs and the body dealing with the goods on the customs territory of the RF. The idea of the novelty was to eliminate "black" schemes of customs registration and non-responsibility for the correspondence of the data submitted to customs. Still the effect was the opposite: the share of "grey" import has increased and the share of goods and vehicels registered by customs brokers - decreased. Also as the international trade participants had feared the "by-customs" business grew more consolidated. The latter was the result of the increased by a number of times the minimal deposit as a guarantee of a company responsibility. The security deposit was established as fixed for all companies without distinguishing the scale of business they operate. According to the President of the regional association of customs brokers "North-West" Vladimir Ignatiev the deposit amout (50 mln rubles) often sinificantly exceeds the amount of payments done by minor bbrokers which goes contrary to part 1 article 338 of the Customs Code of the RF, which stipulates that the amount of the deposit should not exceed the amount of customs payments done by a company. Thus the association proposed to introduce differentiated calculation depending on the results of operations of each particular broker: in particular to introduce classification of all-Russian, regional and zonal brokers.
The decrease of competition and establishing conditions more and more unfavorable for the new-comers to the market of the customs services have made the Antitrust authorities pay closer attention, which believes that increased costs of the services of customs registration may bring about the increased prices on imported commodities.
FCS on the contrary believes the recently revealed tendencies to consolidation are positive changes as consolidation of customs brokers will entail their higher level of professionalism and reliability. May it be this way or the other, there have emerged several key companies to control the market nowadays.
The largest?
In January 2005 the Russian Railways have introduced new system of registration of customs declarations by inner and international bonded transit (VTT and MTT correspondingly). From then on the registration can only be done by four customs brokers -contractors of the OAO Russian Railways. These are ZAO Zheldorbroker, ZAO Oktransvneshterminal, OAO Dalk and OOO Rostek-DV-Service.
According to the Railway, the innovation is introduced to eliminate the wide-spread among the shippers practice to make the railway pay all the taxes and customs dues. And as this activity is new for the carrier the work is delagated in full to the professional brokers. Presently the procedures of licensing and adding new companies to the corresponding register are not entirely defined. For over half-year in the structure of OAO Russian Railways there has been operating a special Service on customs brokerage. The service chief Alexander Kahidze told in an interview to RZD-Partner International, that the major task set for the service is entering the market of customs registration and services on systemic and large-scale basis and thus offering more sources of income for the company. No doubt such ambitious plans could not but trouble the business community. Even before the community feared OAO Russian Railways being the natural monopoly on the one hand and a commercial organisation on the other would not just limit itself by maintaining its interests but take the opportunity to redistribute the market in its favor. And these fears came true. The Federal Ahntitrust service has registered several cases of administrative pressure at the customs posts on the routes of major cargo flows. E.g. the North-Western branch of OAO Russian Railways have impeded operations of the independent broker OOO Horse long operating on the station Buslovskaya in favor of the OAO RR's nominee ZAO Oktransterminal. It should too be noted that this was being done contrary to the will of the shippers. As a result the OOO Horse registered 1119 declarations in the first two months of 2004 and only 18 in the remaining 10 months.
OAO Russian Railways classifies such cases as "local extremeties" and says to be doing much explanatory work. Our task is to find legal solutions to the tasks set says Alexander Kahidze. Still the participants of the customs brokers" market do not agree. This OAO Russian Railways insists on additional contracting with brokers representing freight-forwarders on information services. But the Railway already has a contract on information services with the forwarder, broker being only the legal representative of the latter, so why one more contract? Another issue to raise the discontent of the Railways" customers is the extra fee on the registration of customs declarations introduced by OAO Russian Railways as of December 2004, which is claimed unjustified.
Altogether the market is much concerned about the share of the market of customs services OAO Russian Railways has now and how the situation is going to develop.
Gulsara GHilmutdinova
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New customs code: pro and cons
No doubt, the introduction of the new customs code has been the most important event of the past several years. Over a year has passed since, still there is still much discussion of the advantages and disadvantages of the document.
Federal Customs Service announced in the end of 2004: The introduction of the new customs code allowed to establish principally different relations between the customs and business. Statistics by the Ministry of Economics and Development of the RF supports the statement: earnings of the state budjet from cusotms in 2004 made 1,2 billion rubles which is 462 mlrd more than in 2003. On the whole customs provides almost 40% of the income of the state budjet, the share of customs payments in GDP - about 8%.
The administrative reform has too played its role in increasing the efficiency of the customs service. In the course of the reform the State Customs Committtee (GTK) was replaced by the Federal customs service subordinated to the Ministry of Economic development in the part of legal regulation and the Ministry of Finance in the part of customs payments and the control of the cost of the goods declared. The head of the service Aleksander Zherikhov noted they managed to pass the period of reform smoothly whithout losing the dynmaics and meeting the interested of the business community.
It is based on the needs of the businees community and with its active involvement not the service is much work is being done in order to increase the efficiency of customs contol and registration. The new customs code is too being studied extensively and all suggested changes to it will be considered by the State Duma in the course of the autumn session of 2005.
For 2005 the task is set to collect customs payments worth 1,3 billion rubles which is 50% more than the amount planned for the previous year. The Service representatives are sure they will manage to hit the target. Too it is important that this eaasurance is based not on the forecast on the dynamics of oil prices but the estimation of the inner resources. Among such are the advantages brought about with the new customs code: simplification and acceleration of the process of the customs registration, application of the elements of the risk analyses and management system, post-auditing, practical implementation of electronic declaration.
Revolution in information
Last year a programme of modernisation of the customs information system was started and this is allocated a huge role in the process of the service development. This project was credited by the EBRD in the amount of mln $140. and already there can be seen the results: obsolete hardware is relaced almost in full, over a dozen of customs post are already working with electronic declarations, e-decarations are too implemented in regards to rail transport. FCS announced its intentions to start e-declaring at 56 more customs posts in all the regions.
There has been much concern about the jams at customs posts at land borders and in 2005 there has been taken a desision to totally reform the system of border crossing points mode of operations. Only two of the 7 contol services now operating at the border will be left. These are customs and frontier guards. This will allow to cut the period required for the registration of a vehicle at the border to 40-50 minits instead of the 3 hours required nowadays. Of course the possibility of thorough control will still be maintained: the inspectors of other services may be invited to a border-crossing post at any time.
All these innovations will be possible to introduce after the creation of a single database which will allow to trasfer most of the fucntions performed by border registration to FCS and some - to frontier guards. The Unified Automated Information System has been accepted as the standard on which all the technologies of the customs control and registration will be based. The unique quality of the system is the ability to interact with the systems of foreing states, customs brokers, forwarders, shippers and the systems by the regulating bodies of all levels. Yet, implementation of the new technologies will require significant changes done to the legal base. Yet as the project is supported both by the FCS and the Ministry of Economic Development it is expected that the required changes to the 331 normative documents will be passed without much delay.
Already today as a result to creating the register of the foreign trade participants the share of physical inspection by release of goods has reduced from 95% to 60%. By the forecasts by 2008 only 10% of the import and 8% of the export traffic will be subject to physical inspection. Eliminating the administrative barriers hindering the free flow of goods in international trade and thus allowing business to develope effective supply chains the customs service no doubt contribute to the development of the Russian foreign trade and its integration into the global transport system.
In harmony with EU
As an assign of the USSR Russia is the member of WTO since 1992. Within the conception of The Common European Economic Area (концепции Общего европейского экономического пространства) the russian customs service cooperated with the of the European Commission (EC). Presently FCS of the RF and EC jointly with TASIS realise the programme on harmonisation of the customs procedures of Russia and the EC. The project stipulates for the comparative analyses of the procedures currently employed by the Russian customs service against those of the Convention about the common transit procedure of the EU and suggesting a plan of the elimination of the divergence. In the course of the work there has already been prepared the list of the devergences related to the legal norms and the customs procedures and the functional of the information systems employed.
As a result there was developed and implemented on May 1, 2004 the system "Kaliningrad transit", allowing to automatically and in shortest time possible receive permissions on the transit of Russian goods across the territory of Lithuania. For the first time in the history of EU a country not being EU member was admitted to the outer system of a customs service of the EU-member state. Today the system "Kaliningrad Transit" is implemented by 20 of the 26 customs posts of the Kaliningrad region and can be accessed from all regions by all carriers.
Brokers have problems
Outlining the status quo to have developed on the market of customs services one of the major issues of the day cannot be skipped: the redistibution of the market of customs brokers is the issue.
It is the new customs code to have initiated the process by actually changing the notion of "declarant". If previously the notion implied performing all actions in the sphere of customs registration sui juris, today broker is only an intermediate between the customs and the body dealing with the goods on the customs territory of the RF. The idea of the novelty was to eliminate "black" schemes of customs registration and non-responsibility for the correspondence of the data submitted to customs. Still the effect was the opposite: the share of "grey" import has increased and the share of goods and vehicels registered by customs brokers - decreased. Also as the international trade participants had feared the "by-customs" business grew more consolidated. The latter was the result of the increased by a number of times the minimal deposit as a guarantee of a company responsibility. The security deposit was established as fixed for all companies without distinguishing the scale of business they operate. According to the President of the regional association of customs brokers "North-West" Vladimir Ignatiev the deposit amout (50 mln rubles) often sinificantly exceeds the amount of payments done by minor bbrokers which goes contrary to part 1 article 338 of the Customs Code of the RF, which stipulates that the amount of the deposit should not exceed the amount of customs payments done by a company. Thus the association proposed to introduce differentiated calculation depending on the results of operations of each particular broker: in particular to introduce classification of all-Russian, regional and zonal brokers.
The decrease of competition and establishing conditions more and more unfavorable for the new-comers to the market of the customs services have made the Antitrust authorities pay closer attention, which believes that increased costs of the services of customs registration may bring about the increased prices on imported commodities.
FCS on the contrary believes the recently revealed tendencies to consolidation are positive changes as consolidation of customs brokers will entail their higher level of professionalism and reliability. May it be this way or the other, there have emerged several key companies to control the market nowadays.
The largest?
In January 2005 the Russian Railways have introduced new system of registration of customs declarations by inner and international bonded transit (VTT and MTT correspondingly). From then on the registration can only be done by four customs brokers -contractors of the OAO Russian Railways. These are ZAO Zheldorbroker, ZAO Oktransvneshterminal, OAO Dalk and OOO Rostek-DV-Service.
According to the Railway, the innovation is introduced to eliminate the wide-spread among the shippers practice to make the railway pay all the taxes and customs dues. And as this activity is new for the carrier the work is delagated in full to the professional brokers. Presently the procedures of licensing and adding new companies to the corresponding register are not entirely defined. For over half-year in the structure of OAO Russian Railways there has been operating a special Service on customs brokerage. The service chief Alexander Kahidze told in an interview to RZD-Partner International, that the major task set for the service is entering the market of customs registration and services on systemic and large-scale basis and thus offering more sources of income for the company. No doubt such ambitious plans could not but trouble the business community. Even before the community feared OAO Russian Railways being the natural monopoly on the one hand and a commercial organisation on the other would not just limit itself by maintaining its interests but take the opportunity to redistribute the market in its favor. And these fears came true. The Federal Ahntitrust service has registered several cases of administrative pressure at the customs posts on the routes of major cargo flows. E.g. the North-Western branch of OAO Russian Railways have impeded operations of the independent broker OOO Horse long operating on the station Buslovskaya in favor of the OAO RR's nominee ZAO Oktransterminal. It should too be noted that this was being done contrary to the will of the shippers. As a result the OOO Horse registered 1119 declarations in the first two months of 2004 and only 18 in the remaining 10 months.
OAO Russian Railways classifies such cases as "local extremeties" and says to be doing much explanatory work. Our task is to find legal solutions to the tasks set says Alexander Kahidze. Still the participants of the customs brokers" market do not agree. This OAO Russian Railways insists on additional contracting with brokers representing freight-forwarders on information services. But the Railway already has a contract on information services with the forwarder, broker being only the legal representative of the latter, so why one more contract? Another issue to raise the discontent of the Railways" customers is the extra fee on the registration of customs declarations introduced by OAO Russian Railways as of December 2004, which is claimed unjustified.
Altogether the market is much concerned about the share of the market of customs services OAO Russian Railways has now and how the situation is going to develop.
Gulsara GHilmutdinova
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New customs code: pro and cons
No doubt, the introduction of the new customs code has been the most important event of the past several years. Over a year has passed since, still there is still much discussion of the advantages and disadvantages of the document.
Federal Customs Service announced in the end of 2004: The introduction of the new customs code allowed to establish principally different relations between the customs and business. Statistics by the Ministry of Economics and Development of the RF supports the statement: earnings of the state budjet from cusotms in 2004 made 1,2 billion rubles which is 462 mlrd more than in 2003. On the whole customs provides almost 40% of the income of the state budjet, the share of customs payments in GDP - about 8%.
The administrative reform has too played its role in increasing the efficiency of the customs service. In the course of the reform the State Customs Committtee (GTK) was replaced by the Federal customs service subordinated to the Ministry of Economic development in the part of legal regulation and the Ministry of Finance in the part of customs payments and the control of the cost of the goods declared. The head of the service Aleksander Zherikhov noted they managed to pass the period of reform smoothly whithout losing the dynmaics and meeting the interested of the business community.
It is based on the needs of the businees community and with its active involvement not the service is much work is being done in order to increase the efficiency of customs contol and registration. The new customs code is too being studied extensively and all suggested changes to it will be considered by the State Duma in the course of the autumn session of 2005.
For 2005 the task is set to collect customs payments worth 1,3 billion rubles which is 50% more than the amount planned for the previous year. The Service representatives are sure they will manage to hit the target. Too it is important that this eaasurance is based not on the forecast on the dynamics of oil prices but the estimation of the inner resources. Among such are the advantages brought about with the new customs code: simplification and acceleration of the process of the customs registration, application of the elements of the risk analyses and management system, post-auditing, practical implementation of electronic declaration.
Revolution in information
Last year a programme of modernisation of the customs information system was started and this is allocated a huge role in the process of the service development. This project was credited by the EBRD in the amount of mln $140. and already there can be seen the results: obsolete hardware is relaced almost in full, over a dozen of customs post are already working with electronic declarations, e-decarations are too implemented in regards to rail transport. FCS announced its intentions to start e-declaring at 56 more customs posts in all the regions.
There has been much concern about the jams at customs posts at land borders and in 2005 there has been taken a desision to totally reform the system of border crossing points mode of operations. Only two of the 7 contol services now operating at the border will be left. These are customs and frontier guards. This will allow to cut the period required for the registration of a vehicle at the border to 40-50 minits instead of the 3 hours required nowadays. Of course the possibility of thorough control will still be maintained: the inspectors of other services may be invited to a border-crossing post at any time.
All these innovations will be possible to introduce after the creation of a single database which will allow to trasfer most of the fucntions performed by border registration to FCS and some - to frontier guards. The Unified Automated Information System has been accepted as the standard on which all the technologies of the customs control and registration will be based. The unique quality of the system is the ability to interact with the systems of foreing states, customs brokers, forwarders, shippers and the systems by the regulating bodies of all levels. Yet, implementation of the new technologies will require significant changes done to the legal base. Yet as the project is supported both by the FCS and the Ministry of Economic Development it is expected that the required changes to the 331 normative documents will be passed without much delay.
Already today as a result to creating the register of the foreign trade participants the share of physical inspection by release of goods has reduced from 95% to 60%. By the forecasts by 2008 only 10% of the import and 8% of the export traffic will be subject to physical inspection. Eliminating the administrative barriers hindering the free flow of goods in international trade and thus allowing business to develope effective supply chains the customs service no doubt contribute to the development of the Russian foreign trade and its integration into the global transport system.
In harmony with EU
As an assign of the USSR Russia is the member of WTO since 1992. Within the conception of The Common European Economic Area (концепции Общего европейского экономического пространства) the russian customs service cooperated with the of the European Commission (EC). Presently FCS of the RF and EC jointly with TASIS realise the programme on harmonisation of the customs procedures of Russia and the EC. The project stipulates for the comparative analyses of the procedures currently employed by the Russian customs service against those of the Convention about the common transit procedure of the EU and suggesting a plan of the elimination of the divergence. In the course of the work there has already been prepared the list of the devergences related to the legal norms and the customs procedures and the functional of the information systems employed.
As a result there was developed and implemented on May 1, 2004 the system "Kaliningrad transit", allowing to automatically and in shortest time possible receive permissions on the transit of Russian goods across the territory of Lithuania. For the first time in the history of EU a country not being EU member was admitted to the outer system of a customs service of the EU-member state. Today the system "Kaliningrad Transit" is implemented by 20 of the 26 customs posts of the Kaliningrad region and can be accessed from all regions by all carriers.
Brokers have problems
Outlining the status quo to have developed on the market of customs services one of the major issues of the day cannot be skipped: the redistibution of the market of customs brokers is the issue.
It is the new customs code to have initiated the process by actually changing the notion of "declarant". If previously the notion implied performing all actions in the sphere of customs registration sui juris, today broker is only an intermediate between the customs and the body dealing with the goods on the customs territory of the RF. The idea of the novelty was to eliminate "black" schemes of customs registration and non-responsibility for the correspondence of the data submitted to customs. Still the effect was the opposite: the share of "grey" import has increased and the share of goods and vehicels registered by customs brokers - decreased. Also as the international trade participants had feared the "by-customs" business grew more consolidated. The latter was the result of the increased by a number of times the minimal deposit as a guarantee of a company responsibility. The security deposit was established as fixed for all companies without distinguishing the scale of business they operate. According to the President of the regional association of customs brokers "North-West" Vladimir Ignatiev the deposit amout (50 mln rubles) often sinificantly exceeds the amount of payments done by minor bbrokers which goes contrary to part 1 article 338 of the Customs Code of the RF, which stipulates that the amount of the deposit should not exceed the amount of customs payments done by a company. Thus the association proposed to introduce differentiated calculation depending on the results of operations of each particular broker: in particular to introduce classification of all-Russian, regional and zonal brokers.
The decrease of competition and establishing conditions more and more unfavorable for the new-comers to the market of the customs services have made the Antitrust authorities pay closer attention, which believes that increased costs of the services of customs registration may bring about the increased prices on imported commodities.
FCS on the contrary believes the recently revealed tendencies to consolidation are positive changes as consolidation of customs brokers will entail their higher level of professionalism and reliability. May it be this way or the other, there have emerged several key companies to control the market nowadays.
The largest?
In January 2005 the Russian Railways have introduced new system of registration of customs declarations by inner and international bonded transit (VTT and MTT correspondingly). From then on the registration can only be done by four customs brokers -contractors of the OAO Russian Railways. These are ZAO Zheldorbroker, ZAO Oktransvneshterminal, OAO Dalk and OOO Rostek-DV-Service.
According to the Railway, the innovation is introduced to eliminate the wide-spread among the shippers practice to make the railway pay all the taxes and customs dues. And as this activity is new for the carrier the work is delagated in full to the professional brokers. Presently the procedures of licensing and adding new companies to the corresponding register are not entirely defined. For over half-year in the structure of OAO Russian Railways there has been operating a special Service on customs brokerage. The service chief Alexander Kahidze told in an interview to RZD-Partner International, that the major task set for the service is entering the market of customs registration and services on systemic and large-scale basis and thus offering more sources of income for the company. No doubt such ambitious plans could not but trouble the business community. Even before the community feared OAO Russian Railways being the natural monopoly on the one hand and a commercial organisation on the other would not just limit itself by maintaining its interests but take the opportunity to redistribute the market in its favor. And these fears came true. The Federal Ahntitrust service has registered several cases of administrative pressure at the customs posts on the routes of major cargo flows. E.g. the North-Western branch of OAO Russian Railways have impeded operations of the independent broker OOO Horse long operating on the station Buslovskaya in favor of the OAO RR's nominee ZAO Oktransterminal. It should too be noted that this was being done contrary to the will of the shippers. As a result the OOO Horse registered 1119 declarations in the first two months of 2004 and only 18 in the remaining 10 months.
OAO Russian Railways classifies such cases as "local extremeties" and says to be doing much explanatory work. Our task is to find legal solutions to the tasks set says Alexander Kahidze. Still the participants of the customs brokers" market do not agree. This OAO Russian Railways insists on additional contracting with brokers representing freight-forwarders on information services. But the Railway already has a contract on information services with the forwarder, broker being only the legal representative of the latter, so why one more contract? Another issue to raise the discontent of the Railways" customers is the extra fee on the registration of customs declarations introduced by OAO Russian Railways as of December 2004, which is claimed unjustified.
Altogether the market is much concerned about the share of the market of customs services OAO Russian Railways has now and how the situation is going to develop.
Gulsara GHilmutdinova
[~DETAIL_TEXT] =>
New customs code: pro and cons
No doubt, the introduction of the new customs code has been the most important event of the past several years. Over a year has passed since, still there is still much discussion of the advantages and disadvantages of the document.
Federal Customs Service announced in the end of 2004: The introduction of the new customs code allowed to establish principally different relations between the customs and business. Statistics by the Ministry of Economics and Development of the RF supports the statement: earnings of the state budjet from cusotms in 2004 made 1,2 billion rubles which is 462 mlrd more than in 2003. On the whole customs provides almost 40% of the income of the state budjet, the share of customs payments in GDP - about 8%.
The administrative reform has too played its role in increasing the efficiency of the customs service. In the course of the reform the State Customs Committtee (GTK) was replaced by the Federal customs service subordinated to the Ministry of Economic development in the part of legal regulation and the Ministry of Finance in the part of customs payments and the control of the cost of the goods declared. The head of the service Aleksander Zherikhov noted they managed to pass the period of reform smoothly whithout losing the dynmaics and meeting the interested of the business community.
It is based on the needs of the businees community and with its active involvement not the service is much work is being done in order to increase the efficiency of customs contol and registration. The new customs code is too being studied extensively and all suggested changes to it will be considered by the State Duma in the course of the autumn session of 2005.
For 2005 the task is set to collect customs payments worth 1,3 billion rubles which is 50% more than the amount planned for the previous year. The Service representatives are sure they will manage to hit the target. Too it is important that this eaasurance is based not on the forecast on the dynamics of oil prices but the estimation of the inner resources. Among such are the advantages brought about with the new customs code: simplification and acceleration of the process of the customs registration, application of the elements of the risk analyses and management system, post-auditing, practical implementation of electronic declaration.
Revolution in information
Last year a programme of modernisation of the customs information system was started and this is allocated a huge role in the process of the service development. This project was credited by the EBRD in the amount of mln $140. and already there can be seen the results: obsolete hardware is relaced almost in full, over a dozen of customs post are already working with electronic declarations, e-decarations are too implemented in regards to rail transport. FCS announced its intentions to start e-declaring at 56 more customs posts in all the regions.
There has been much concern about the jams at customs posts at land borders and in 2005 there has been taken a desision to totally reform the system of border crossing points mode of operations. Only two of the 7 contol services now operating at the border will be left. These are customs and frontier guards. This will allow to cut the period required for the registration of a vehicle at the border to 40-50 minits instead of the 3 hours required nowadays. Of course the possibility of thorough control will still be maintained: the inspectors of other services may be invited to a border-crossing post at any time.
All these innovations will be possible to introduce after the creation of a single database which will allow to trasfer most of the fucntions performed by border registration to FCS and some - to frontier guards. The Unified Automated Information System has been accepted as the standard on which all the technologies of the customs control and registration will be based. The unique quality of the system is the ability to interact with the systems of foreing states, customs brokers, forwarders, shippers and the systems by the regulating bodies of all levels. Yet, implementation of the new technologies will require significant changes done to the legal base. Yet as the project is supported both by the FCS and the Ministry of Economic Development it is expected that the required changes to the 331 normative documents will be passed without much delay.
Already today as a result to creating the register of the foreign trade participants the share of physical inspection by release of goods has reduced from 95% to 60%. By the forecasts by 2008 only 10% of the import and 8% of the export traffic will be subject to physical inspection. Eliminating the administrative barriers hindering the free flow of goods in international trade and thus allowing business to develope effective supply chains the customs service no doubt contribute to the development of the Russian foreign trade and its integration into the global transport system.
In harmony with EU
As an assign of the USSR Russia is the member of WTO since 1992. Within the conception of The Common European Economic Area (концепции Общего европейского экономического пространства) the russian customs service cooperated with the of the European Commission (EC). Presently FCS of the RF and EC jointly with TASIS realise the programme on harmonisation of the customs procedures of Russia and the EC. The project stipulates for the comparative analyses of the procedures currently employed by the Russian customs service against those of the Convention about the common transit procedure of the EU and suggesting a plan of the elimination of the divergence. In the course of the work there has already been prepared the list of the devergences related to the legal norms and the customs procedures and the functional of the information systems employed.
As a result there was developed and implemented on May 1, 2004 the system "Kaliningrad transit", allowing to automatically and in shortest time possible receive permissions on the transit of Russian goods across the territory of Lithuania. For the first time in the history of EU a country not being EU member was admitted to the outer system of a customs service of the EU-member state. Today the system "Kaliningrad Transit" is implemented by 20 of the 26 customs posts of the Kaliningrad region and can be accessed from all regions by all carriers.
Brokers have problems
Outlining the status quo to have developed on the market of customs services one of the major issues of the day cannot be skipped: the redistibution of the market of customs brokers is the issue.
It is the new customs code to have initiated the process by actually changing the notion of "declarant". If previously the notion implied performing all actions in the sphere of customs registration sui juris, today broker is only an intermediate between the customs and the body dealing with the goods on the customs territory of the RF. The idea of the novelty was to eliminate "black" schemes of customs registration and non-responsibility for the correspondence of the data submitted to customs. Still the effect was the opposite: the share of "grey" import has increased and the share of goods and vehicels registered by customs brokers - decreased. Also as the international trade participants had feared the "by-customs" business grew more consolidated. The latter was the result of the increased by a number of times the minimal deposit as a guarantee of a company responsibility. The security deposit was established as fixed for all companies without distinguishing the scale of business they operate. According to the President of the regional association of customs brokers "North-West" Vladimir Ignatiev the deposit amout (50 mln rubles) often sinificantly exceeds the amount of payments done by minor bbrokers which goes contrary to part 1 article 338 of the Customs Code of the RF, which stipulates that the amount of the deposit should not exceed the amount of customs payments done by a company. Thus the association proposed to introduce differentiated calculation depending on the results of operations of each particular broker: in particular to introduce classification of all-Russian, regional and zonal brokers.
The decrease of competition and establishing conditions more and more unfavorable for the new-comers to the market of the customs services have made the Antitrust authorities pay closer attention, which believes that increased costs of the services of customs registration may bring about the increased prices on imported commodities.
FCS on the contrary believes the recently revealed tendencies to consolidation are positive changes as consolidation of customs brokers will entail their higher level of professionalism and reliability. May it be this way or the other, there have emerged several key companies to control the market nowadays.
The largest?
In January 2005 the Russian Railways have introduced new system of registration of customs declarations by inner and international bonded transit (VTT and MTT correspondingly). From then on the registration can only be done by four customs brokers -contractors of the OAO Russian Railways. These are ZAO Zheldorbroker, ZAO Oktransvneshterminal, OAO Dalk and OOO Rostek-DV-Service.
According to the Railway, the innovation is introduced to eliminate the wide-spread among the shippers practice to make the railway pay all the taxes and customs dues. And as this activity is new for the carrier the work is delagated in full to the professional brokers. Presently the procedures of licensing and adding new companies to the corresponding register are not entirely defined. For over half-year in the structure of OAO Russian Railways there has been operating a special Service on customs brokerage. The service chief Alexander Kahidze told in an interview to RZD-Partner International, that the major task set for the service is entering the market of customs registration and services on systemic and large-scale basis and thus offering more sources of income for the company. No doubt such ambitious plans could not but trouble the business community. Even before the community feared OAO Russian Railways being the natural monopoly on the one hand and a commercial organisation on the other would not just limit itself by maintaining its interests but take the opportunity to redistribute the market in its favor. And these fears came true. The Federal Ahntitrust service has registered several cases of administrative pressure at the customs posts on the routes of major cargo flows. E.g. the North-Western branch of OAO Russian Railways have impeded operations of the independent broker OOO Horse long operating on the station Buslovskaya in favor of the OAO RR's nominee ZAO Oktransterminal. It should too be noted that this was being done contrary to the will of the shippers. As a result the OOO Horse registered 1119 declarations in the first two months of 2004 and only 18 in the remaining 10 months.
OAO Russian Railways classifies such cases as "local extremeties" and says to be doing much explanatory work. Our task is to find legal solutions to the tasks set says Alexander Kahidze. Still the participants of the customs brokers" market do not agree. This OAO Russian Railways insists on additional contracting with brokers representing freight-forwarders on information services. But the Railway already has a contract on information services with the forwarder, broker being only the legal representative of the latter, so why one more contract? Another issue to raise the discontent of the Railways" customers is the extra fee on the registration of customs declarations introduced by OAO Russian Railways as of December 2004, which is claimed unjustified.
Altogether the market is much concerned about the share of the market of customs services OAO Russian Railways has now and how the situation is going to develop.
Gulsara GHilmutdinova
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The economic improvement in Russia coincided with the creation of CJSC Transmashholding - the largest company which set a goal of reviving the railway engineering in Russia. In just three years Transmashholding managed to become the unquestioned leader in the Russian railway engineering market.
The company has successfully implemented its strategy of consolidating the isolated enterprises of the industry and pulling them out of the crisis. The Holding has consistently implemented a series of well thought-out measures aimed at financial restucturing and streamlining the management system at its constituent companies. The accounting system at the Group's plants has been brought into compliance with modern standards; order books have been filled up and are growing; and investments are being attracted to replace capital assets, replenish the current capital and develop new types of machinery. Transmashholding's companies are successfully meeting production targets, increasing their capitalization. Revenues from sales in 2004 totaled 22.4 billion rubles, a 49.3 percent increase over the previous year. There are plans to increase this figure by another 50 percent in 2005.
The phasing out of investment in replacement and development of productive assets of Russia's enterprises, as well as in development and introduction of new engineering technologies was a major problem arising from the long-lasting industry stagnation. Today we can say with confidence that for the Russian engineering plants this tough period is over. The Russian Railways Open Joint-Stock Company has adopted and is implementing a program of renovating the fleet of locomotives. The program, which is to be completed by 2010, provides both for the modernization of life-expired locomotives and for purchasing new ones. In the process, not only the problem of quantitative shortage of locomotives needs to be adrresed, but also, and more importantly, the technological gap problem is to be solved. The equipment that was produced during the 1990s based on technologies from the 1960-70s does not meet modern requirements any more. This makes the Russian railway engineering enterprises to take vigorous efforts at developing and launching production of new models of locomotives and freight cars.
Among other newly developed products Transmashholding offers the market the following types of new macninery:
- 2ES5К "Yermak" - the 2ES5K class main line AC locomotive which production has been launched at the Novocherkassk Electric Locomotive Plant; designed to pull freight trains on lines with 1,520 mm track gauge. The locomotive is equipped with sanitary devices (wash-stand, toilet, and refrigerator); the undercarriage has an axle-mounted support arrangement for the traction motors. The electric circuit provides for operation in the mode of traction, electrical (regenerative) breaking, slowing-down and standing. The locomotive has a smooth 4-zone voltage control for traction motors, control system, monitoring system, automatic train control system and railway safety sytem.
- Electric locomotives class 2ES4К (Novocherkassk Electric Locomotive Plant) -high-performance modern freight 2-unit 8-axle DC locomotives with 750 kW axle power collector traction motors and maximum operating speed of 120 km/h. The locomotives have been developed as a good alternative to performing service-life extension overhaul operations on the VL10 and VL11 class locomotives currently operated by the JSC Russian Railways. The 2ES4К locomotives are standardized with with the 2ES5К locomotives in terms of their mechanical assemblies and control cab. They are characterized by very low power consumption and maintenance and repair costs. Negotiations are under way with foreign producers to develop transformers for these locomotives, and offers have been invited from a number of them for the development and supplies of transformers.
- 2ТE25К "Peresvet". Bryansk Engineering Plant is developing a pre-production model of a freight 2-unit 12-axle diesel locomotive with collector traction motors. The new model provides for the AC/DC electric transmission and an individual axle traction control. The locomotive has a design speed of 120 km/h, a diesel power output power of no less than 2х2,500 kW, and a continuous duty tractive force of no less than 2х30.6 tf. The new engineering solutions provide for an improved tractive performance of the locomotive in conditions of poor contact between the wheels and the rails. Moreover, the fuel consumption will be reduced, due to the reduction of losses caused by inefficient wheel spinning.
- TEM 21. The TEM 21 class 4-axle diesel shunter with AC transmission has successfully passed the field tests. The locomotive is designed for shipping, shunting and light-duty operations on rail roads of the JSC Russian Railways, the CIS states and other countries, as well as on lines of industrial facilities. The driver's cab is equipped with a radio communications set, an electric hot plate to warm meals, a refrigerator, cab ventilation and heating systems, and an air conditioning unit.
- TEM18G. The TEM18G class gas-turbine locomotive (Bryansk Engineering Plant) operates on compressed natural gas with addition of diesel fuel or on diesel fuel. The locomotive is designed for shipping, shunting and light-duty operations on rail roads of the JSC Russian Railways and industrial facilities.
- TEM 10К. In 2006, the Bryansk Engineering Plant plans to produce a pre-production model of a one-unit 6-axle diesel shunter with collector traction motors and engine and AC/DC electric transmission. The locomotive will have a design speed of be 100 km/h and a diesel power output of 1,000 кW.
By 2010, series production of these and other new models of rolling stock will be launched. To facilitate a more dynamic and successfull indroduction of new technologies Transmashholding is fostering collaboration with major foreign railway machinery manufacturers. In this way, a joint venture with Germany's Siemens has been established to produce reversible converters and other auxiliary electrical equipment used to manufacture passenger cars, with a turnover of 10 million Euro per annum. The first supplies of jointly manufactured products will come to the market in late 2005.
Transmashholding is developing new markets for production and sales of railway machinery. The Company has launched a program of penetrating the markets of the CIS, Central and South-Eastern Asia and Eastern Europe. It has been expanding partnerships with the Ukrainian railway engineering industries and the Ukrainian Railways. The Company has set up opened representative offices in Ukraine, Kazakhstan and in a number of other regions.
Thus, Transmashholding is already de-facto growing into a world industry leader and everything is in place for this leadership to successfully develop.
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The economic improvement in Russia coincided with the creation of CJSC Transmashholding - the largest company which set a goal of reviving the railway engineering in Russia. In just three years Transmashholding managed to become the unquestioned leader in the Russian railway engineering market.
The company has successfully implemented its strategy of consolidating the isolated enterprises of the industry and pulling them out of the crisis. The Holding has consistently implemented a series of well thought-out measures aimed at financial restucturing and streamlining the management system at its constituent companies. The accounting system at the Group's plants has been brought into compliance with modern standards; order books have been filled up and are growing; and investments are being attracted to replace capital assets, replenish the current capital and develop new types of machinery. Transmashholding's companies are successfully meeting production targets, increasing their capitalization. Revenues from sales in 2004 totaled 22.4 billion rubles, a 49.3 percent increase over the previous year. There are plans to increase this figure by another 50 percent in 2005.
The phasing out of investment in replacement and development of productive assets of Russia's enterprises, as well as in development and introduction of new engineering technologies was a major problem arising from the long-lasting industry stagnation. Today we can say with confidence that for the Russian engineering plants this tough period is over. The Russian Railways Open Joint-Stock Company has adopted and is implementing a program of renovating the fleet of locomotives. The program, which is to be completed by 2010, provides both for the modernization of life-expired locomotives and for purchasing new ones. In the process, not only the problem of quantitative shortage of locomotives needs to be adrresed, but also, and more importantly, the technological gap problem is to be solved. The equipment that was produced during the 1990s based on technologies from the 1960-70s does not meet modern requirements any more. This makes the Russian railway engineering enterprises to take vigorous efforts at developing and launching production of new models of locomotives and freight cars.
Among other newly developed products Transmashholding offers the market the following types of new macninery:
- 2ES5К "Yermak" - the 2ES5K class main line AC locomotive which production has been launched at the Novocherkassk Electric Locomotive Plant; designed to pull freight trains on lines with 1,520 mm track gauge. The locomotive is equipped with sanitary devices (wash-stand, toilet, and refrigerator); the undercarriage has an axle-mounted support arrangement for the traction motors. The electric circuit provides for operation in the mode of traction, electrical (regenerative) breaking, slowing-down and standing. The locomotive has a smooth 4-zone voltage control for traction motors, control system, monitoring system, automatic train control system and railway safety sytem.
- Electric locomotives class 2ES4К (Novocherkassk Electric Locomotive Plant) -high-performance modern freight 2-unit 8-axle DC locomotives with 750 kW axle power collector traction motors and maximum operating speed of 120 km/h. The locomotives have been developed as a good alternative to performing service-life extension overhaul operations on the VL10 and VL11 class locomotives currently operated by the JSC Russian Railways. The 2ES4К locomotives are standardized with with the 2ES5К locomotives in terms of their mechanical assemblies and control cab. They are characterized by very low power consumption and maintenance and repair costs. Negotiations are under way with foreign producers to develop transformers for these locomotives, and offers have been invited from a number of them for the development and supplies of transformers.
- 2ТE25К "Peresvet". Bryansk Engineering Plant is developing a pre-production model of a freight 2-unit 12-axle diesel locomotive with collector traction motors. The new model provides for the AC/DC electric transmission and an individual axle traction control. The locomotive has a design speed of 120 km/h, a diesel power output power of no less than 2х2,500 kW, and a continuous duty tractive force of no less than 2х30.6 tf. The new engineering solutions provide for an improved tractive performance of the locomotive in conditions of poor contact between the wheels and the rails. Moreover, the fuel consumption will be reduced, due to the reduction of losses caused by inefficient wheel spinning.
- TEM 21. The TEM 21 class 4-axle diesel shunter with AC transmission has successfully passed the field tests. The locomotive is designed for shipping, shunting and light-duty operations on rail roads of the JSC Russian Railways, the CIS states and other countries, as well as on lines of industrial facilities. The driver's cab is equipped with a radio communications set, an electric hot plate to warm meals, a refrigerator, cab ventilation and heating systems, and an air conditioning unit.
- TEM18G. The TEM18G class gas-turbine locomotive (Bryansk Engineering Plant) operates on compressed natural gas with addition of diesel fuel or on diesel fuel. The locomotive is designed for shipping, shunting and light-duty operations on rail roads of the JSC Russian Railways and industrial facilities.
- TEM 10К. In 2006, the Bryansk Engineering Plant plans to produce a pre-production model of a one-unit 6-axle diesel shunter with collector traction motors and engine and AC/DC electric transmission. The locomotive will have a design speed of be 100 km/h and a diesel power output of 1,000 кW.
By 2010, series production of these and other new models of rolling stock will be launched. To facilitate a more dynamic and successfull indroduction of new technologies Transmashholding is fostering collaboration with major foreign railway machinery manufacturers. In this way, a joint venture with Germany's Siemens has been established to produce reversible converters and other auxiliary electrical equipment used to manufacture passenger cars, with a turnover of 10 million Euro per annum. The first supplies of jointly manufactured products will come to the market in late 2005.
Transmashholding is developing new markets for production and sales of railway machinery. The Company has launched a program of penetrating the markets of the CIS, Central and South-Eastern Asia and Eastern Europe. It has been expanding partnerships with the Ukrainian railway engineering industries and the Ukrainian Railways. The Company has set up opened representative offices in Ukraine, Kazakhstan and in a number of other regions.
Thus, Transmashholding is already de-facto growing into a world industry leader and everything is in place for this leadership to successfully develop.
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[DETAIL_TEXT] => Today Russia's forwarding market is extremely attractive for foreign companies which can be explained by the impressing positive dynamics. The current state of affairs is commented upon by the Swiss company Intergate AG Chief of Rail Transportation Department Irina Alexandrova.
- Intergate AG has been providing transport and forwarding services for over 5 years. What objectives were set when you entered the Russian transport market? What allowed Intergate AG to turn into one of the leaders in export, import and transit transportation in Russia, the CIS and Baltic countries?
- When we entered the Russian transport market we set ourselves quite an ambitious goal to win the forwarders competition and become the leader in the sector. And I believe we are there. In 2000, the first year our company operated the rail transport market Intergate AG carried 7.8 mln tones of cargo, mostly metals. Today the number of our clients has significantly grown. We annually deliver over 20 mln tons of various cargoes, particularly ferrous and non-ferrous metal products, mineral fertilisers, coal, raw iron ore, liquid bulk and chemicals.
At present Russian economy is focused on raw materials and metal products export thus the forwarding business is developing in proportion to the growth of industrial sector. However in order to win in a rather tough competition a forwarding company providing door-to-door delivery has to offer a consignor a complex package of accompanying services. And we do offer competitive rail tariff rates, rail car rent services, transportation route planning, optimal transportation schemes development, on-line monitoring of cargo location, transshipment and chartering. One of the main advantages of our company is that we provide multimodal transportation within the shortest period of time. Having offices in the CIS and Baltic countries Intergate AG acts for its clients throughout the whole transportation process. We work in tight cooperation with rail infrastructure owners, stevedoring and chartering companies in Russian and neighbouring countries, thus the consignor always counts on prompt delivery despite the number of transshipments.
- What problems did you face entering the Russian transport market? Which of them do you consider typical of our market only?
- Today one of the key issues for private operators is to get equal access to rail infrastructure owned by OAO Russian Railways (OAO RZD) which performs both as a carrier and the owner of the infrastructure. Nowadays private operators face delay in rail car supply, problems with rolling stock repair etc that affect turnover and thus efficiency of the transport business. The European Union has decided to separate infrastructure operating from transportation process. And the international experience proved the efficiency of this way. I assume that in a few years Russia will also come to this after some appropriate legislation improvement.
Another crucial problem is unsmooth interaction of ports and railway. For a transport chain to operate efficiently all links must interact and coordinate their activities. Unfortunately, today ports often confirm larger cargo volumes than they can really cope with or railway fail to supply ports with rail cars. Within the delivery process involving rail and sea transport developing of the procedure of setting acceptable loading quota and determining parties' reliabilities for rolling stock idling are crucially important.
However, the majority of Russian ports and railways have already signed contracts on mutual responsibility for insufficient rail car supply and rolling stock idling.
- Could you make any comments on the company's turnover dynamics and geography of freight transportation? Was the year 2004 successful for the company and what objectives are set for the current year?
- In 2004 Intergate AG's turnover exceeded 20 mln tones, wherein metal products amounted to 8.9 mln tones, mineral fertilizers - to 4.1 mln tones, coal - to 3.7 mln tones, raw ore - to 1.7 mln tones and oil bulk - to 830 thousand tones. The major destinations are the CIS and Baltic countries, Eastern and Western Europe and Asia.
The overall results of Intergate AG and other independent forwarders and operators activities in 2004 show the increase of private companies" share in the rail transportation market of the CIS countries. Independent companies raise freight transportation volume and take significant share of the transport market in Russia and its neighbouring countries. For instance in 2004 Intergate AG considerably increased transportation of high profitable cargoes: the volume of metal products carriage grew by almost a third year-on-year, oil and oil products - by over 20%. The development of industrial sector and the mining volume of raw resources growth in Russia and the CIS allow to predict that the positive dynamic will remain in 2005.
Speaking of the long-term objectives, the company plan expansion of transportation geography, getting bigger share in the Middle Asia market where oil production, petrochemistry and other industrial sectors are fast developing. For example our company delivered over 2.8 mln export cargo from Kazakhstan, one of the oil production leaders. Kazzink, National company KazMunayGaz, Tenghizshevroil, Atyraus refinery, the largest companies in Kazakhstan are among our clients.
- Which Russian companies does Intergate AG cooperate with? Are you planning to attract new partners?
- Among the transport companies our long term and strategic partner is the Severstaltrans group of companies, the largest private operator in the transport services market in Russia and the CIS. Severstaltrans incorporates stevedoring companies in Vostochny, Saint-Petersburg, Novorossiysk and other ports; rail carriers; forwarding and chartering companies. Tight business relationships with the Severstaltrans group of companies enable Intergate AG to offer its clients complex transporting and handling services under most favourable conditions. We also cooperate with large companies such as MMK-Trans and Mechel-Trans.
At present Intergate AG is providing export cargo transportation for leading Russian producers such as Russky Aluminy, Mechel, Severstal, Gazpromtrubinvest, Uralkaly, Rossoshansky OAO Minudobreniya, Tula-Chermet, Novolipetsk, Magnitogorsk and Zlatoust metallurgical works.
With the growth of production in the industrial sectors and seller market expansion in Russia and the CIS the transport market is also developing. Our company takes a significant part of it. I believe that the number of our clients in Russia as well as in the foreign countries will be increased.
- Which Russian and foreign ports do you cooperate with? How would you estimate the development of Russian port infrastructure?
- Offering multimodal transportation we cooperate with major ports in Russia, Ukraine and the Baltic States. They are Saint-Petersburg, Vostochny, Tuapse, Taganrog among Russian ports; Mariupol, Odessa, Ilyichevsk, Izmail among Ukrainian; and Klaipeda, Ventspils, Muuga, Tallinn in the Baltic region.
Russian port infrastructure has been developing extensively within the last five years due to private investments. According to the Program of modernisation of the Russian transport system the volume of investment into ports is to exceed USD 1.036 bln in 2005, the share of private companies amounts to USD965 mln. In 2008 some USD 1.6 bln is to be invested into port modernisation. The development in the sphere is connected with the necessity to service foreign trade turnover of the country because, as you know, Russia is export-orientated. A favourable market situation for exporting raw materials, metal and chemical products allowed large industrial companies to acquire stevedoring companies assets. In the previous years ambitious projects initiated by key cargo owners and their operators were implemented to develop and modernize the Russian port infrastructure. Mineral fertiliser terminals were constructed and put into operation in the Baltic region and the Russian Far East together with the new coal handling capacities in Baltic region. New oil terminals are operating in Primorsk and Vysotsk. Programs to modernize the existing capacities are underway, equipment, fleet and berth infrastructure are being renewed. In the last three years terminal capacities increased by 100 mln tons. Further port infrastructure improvement envisaging rail port stations and rail approaches development will allow to increase the handling capacity and result in the country's economic growth. Among the successfully implemented projects I would mention construction of the rail sector connecting the port Olya with the railway network, which enables to offer the shortest way for European export to Iran and the Persian Gulf region. The Transsiberian railway carrying capacity in the sectors near the Chinese border is being increased. This will allow to increase loading volume on the railway and develop this backbone of the East-West international transport corridor.
- Could you comment on your company's cooperation with OAO RZD? Is the competitive sector forming successfully? Could you estimate the company's tariff policy?
- At present Russian railways are being reformed. Without doubts, this is a positive process that will increase the efficiency of the branch. A lot has been done. For instance, the administrative and economy functions formerly performed by one body - the Ministry of Railways are now separated.
In my opinion however there are some bottlenecks which are to be removed to speed up a further development of railway transport. A question of vital importance is eliminating barriers to competition development in the sphere of rail transportation. Unfortunately, the process is unsmooth as we face the problem of competition between private companies and the natural monopoly OAO RZD which still has a privileged position in the market as it performs as both a carrier and the owner of the infrastructure. And the longer it remains in this position the less competition in this sphere will develop. That is why it is necessary to improve the legislation, defining the rules of the game for all players, create transparent conditions for the private investment in the rail transport. All of this is included into long-term plans, which will be realised as part of this reformation process.
Meanwhile some OAO RZD initiatives contradict the intentions to develop competition in the sphere of cargo transportation that were declared. Last year Russian Railways suggested an increase in the tariff component of the infrastructure use for the companies who use their own rolling stocks and locomotives. At the same time today the infrastructure component for a number of cargoes exceeds globally accepted (35-40% of cargo tariff rate). If RZD's initiative is accepted, private companies will face profit drop financially preventing independent operators and cargo owners from utilizing their own rolling stock and locomotives within transportation process.
Moreover in my opinion in order to increase the volume of foreign trade turnover Russia needs to reduce rail tariff on cargo destined for the ports. It is clear that lower tariffs on cargo destined for the Russian ports will allow the ports to increase their handling volume. And we should not forget that transport system must work in the interest of consignors who ensure the Russian export growth.
[~DETAIL_TEXT] => Today Russia's forwarding market is extremely attractive for foreign companies which can be explained by the impressing positive dynamics. The current state of affairs is commented upon by the Swiss company Intergate AG Chief of Rail Transportation Department Irina Alexandrova.
- Intergate AG has been providing transport and forwarding services for over 5 years. What objectives were set when you entered the Russian transport market? What allowed Intergate AG to turn into one of the leaders in export, import and transit transportation in Russia, the CIS and Baltic countries?
- When we entered the Russian transport market we set ourselves quite an ambitious goal to win the forwarders competition and become the leader in the sector. And I believe we are there. In 2000, the first year our company operated the rail transport market Intergate AG carried 7.8 mln tones of cargo, mostly metals. Today the number of our clients has significantly grown. We annually deliver over 20 mln tons of various cargoes, particularly ferrous and non-ferrous metal products, mineral fertilisers, coal, raw iron ore, liquid bulk and chemicals.
At present Russian economy is focused on raw materials and metal products export thus the forwarding business is developing in proportion to the growth of industrial sector. However in order to win in a rather tough competition a forwarding company providing door-to-door delivery has to offer a consignor a complex package of accompanying services. And we do offer competitive rail tariff rates, rail car rent services, transportation route planning, optimal transportation schemes development, on-line monitoring of cargo location, transshipment and chartering. One of the main advantages of our company is that we provide multimodal transportation within the shortest period of time. Having offices in the CIS and Baltic countries Intergate AG acts for its clients throughout the whole transportation process. We work in tight cooperation with rail infrastructure owners, stevedoring and chartering companies in Russian and neighbouring countries, thus the consignor always counts on prompt delivery despite the number of transshipments.
- What problems did you face entering the Russian transport market? Which of them do you consider typical of our market only?
- Today one of the key issues for private operators is to get equal access to rail infrastructure owned by OAO Russian Railways (OAO RZD) which performs both as a carrier and the owner of the infrastructure. Nowadays private operators face delay in rail car supply, problems with rolling stock repair etc that affect turnover and thus efficiency of the transport business. The European Union has decided to separate infrastructure operating from transportation process. And the international experience proved the efficiency of this way. I assume that in a few years Russia will also come to this after some appropriate legislation improvement.
Another crucial problem is unsmooth interaction of ports and railway. For a transport chain to operate efficiently all links must interact and coordinate their activities. Unfortunately, today ports often confirm larger cargo volumes than they can really cope with or railway fail to supply ports with rail cars. Within the delivery process involving rail and sea transport developing of the procedure of setting acceptable loading quota and determining parties' reliabilities for rolling stock idling are crucially important.
However, the majority of Russian ports and railways have already signed contracts on mutual responsibility for insufficient rail car supply and rolling stock idling.
- Could you make any comments on the company's turnover dynamics and geography of freight transportation? Was the year 2004 successful for the company and what objectives are set for the current year?
- In 2004 Intergate AG's turnover exceeded 20 mln tones, wherein metal products amounted to 8.9 mln tones, mineral fertilizers - to 4.1 mln tones, coal - to 3.7 mln tones, raw ore - to 1.7 mln tones and oil bulk - to 830 thousand tones. The major destinations are the CIS and Baltic countries, Eastern and Western Europe and Asia.
The overall results of Intergate AG and other independent forwarders and operators activities in 2004 show the increase of private companies" share in the rail transportation market of the CIS countries. Independent companies raise freight transportation volume and take significant share of the transport market in Russia and its neighbouring countries. For instance in 2004 Intergate AG considerably increased transportation of high profitable cargoes: the volume of metal products carriage grew by almost a third year-on-year, oil and oil products - by over 20%. The development of industrial sector and the mining volume of raw resources growth in Russia and the CIS allow to predict that the positive dynamic will remain in 2005.
Speaking of the long-term objectives, the company plan expansion of transportation geography, getting bigger share in the Middle Asia market where oil production, petrochemistry and other industrial sectors are fast developing. For example our company delivered over 2.8 mln export cargo from Kazakhstan, one of the oil production leaders. Kazzink, National company KazMunayGaz, Tenghizshevroil, Atyraus refinery, the largest companies in Kazakhstan are among our clients.
- Which Russian companies does Intergate AG cooperate with? Are you planning to attract new partners?
- Among the transport companies our long term and strategic partner is the Severstaltrans group of companies, the largest private operator in the transport services market in Russia and the CIS. Severstaltrans incorporates stevedoring companies in Vostochny, Saint-Petersburg, Novorossiysk and other ports; rail carriers; forwarding and chartering companies. Tight business relationships with the Severstaltrans group of companies enable Intergate AG to offer its clients complex transporting and handling services under most favourable conditions. We also cooperate with large companies such as MMK-Trans and Mechel-Trans.
At present Intergate AG is providing export cargo transportation for leading Russian producers such as Russky Aluminy, Mechel, Severstal, Gazpromtrubinvest, Uralkaly, Rossoshansky OAO Minudobreniya, Tula-Chermet, Novolipetsk, Magnitogorsk and Zlatoust metallurgical works.
With the growth of production in the industrial sectors and seller market expansion in Russia and the CIS the transport market is also developing. Our company takes a significant part of it. I believe that the number of our clients in Russia as well as in the foreign countries will be increased.
- Which Russian and foreign ports do you cooperate with? How would you estimate the development of Russian port infrastructure?
- Offering multimodal transportation we cooperate with major ports in Russia, Ukraine and the Baltic States. They are Saint-Petersburg, Vostochny, Tuapse, Taganrog among Russian ports; Mariupol, Odessa, Ilyichevsk, Izmail among Ukrainian; and Klaipeda, Ventspils, Muuga, Tallinn in the Baltic region.
Russian port infrastructure has been developing extensively within the last five years due to private investments. According to the Program of modernisation of the Russian transport system the volume of investment into ports is to exceed USD 1.036 bln in 2005, the share of private companies amounts to USD965 mln. In 2008 some USD 1.6 bln is to be invested into port modernisation. The development in the sphere is connected with the necessity to service foreign trade turnover of the country because, as you know, Russia is export-orientated. A favourable market situation for exporting raw materials, metal and chemical products allowed large industrial companies to acquire stevedoring companies assets. In the previous years ambitious projects initiated by key cargo owners and their operators were implemented to develop and modernize the Russian port infrastructure. Mineral fertiliser terminals were constructed and put into operation in the Baltic region and the Russian Far East together with the new coal handling capacities in Baltic region. New oil terminals are operating in Primorsk and Vysotsk. Programs to modernize the existing capacities are underway, equipment, fleet and berth infrastructure are being renewed. In the last three years terminal capacities increased by 100 mln tons. Further port infrastructure improvement envisaging rail port stations and rail approaches development will allow to increase the handling capacity and result in the country's economic growth. Among the successfully implemented projects I would mention construction of the rail sector connecting the port Olya with the railway network, which enables to offer the shortest way for European export to Iran and the Persian Gulf region. The Transsiberian railway carrying capacity in the sectors near the Chinese border is being increased. This will allow to increase loading volume on the railway and develop this backbone of the East-West international transport corridor.
- Could you comment on your company's cooperation with OAO RZD? Is the competitive sector forming successfully? Could you estimate the company's tariff policy?
- At present Russian railways are being reformed. Without doubts, this is a positive process that will increase the efficiency of the branch. A lot has been done. For instance, the administrative and economy functions formerly performed by one body - the Ministry of Railways are now separated.
In my opinion however there are some bottlenecks which are to be removed to speed up a further development of railway transport. A question of vital importance is eliminating barriers to competition development in the sphere of rail transportation. Unfortunately, the process is unsmooth as we face the problem of competition between private companies and the natural monopoly OAO RZD which still has a privileged position in the market as it performs as both a carrier and the owner of the infrastructure. And the longer it remains in this position the less competition in this sphere will develop. That is why it is necessary to improve the legislation, defining the rules of the game for all players, create transparent conditions for the private investment in the rail transport. All of this is included into long-term plans, which will be realised as part of this reformation process.
Meanwhile some OAO RZD initiatives contradict the intentions to develop competition in the sphere of cargo transportation that were declared. Last year Russian Railways suggested an increase in the tariff component of the infrastructure use for the companies who use their own rolling stocks and locomotives. At the same time today the infrastructure component for a number of cargoes exceeds globally accepted (35-40% of cargo tariff rate). If RZD's initiative is accepted, private companies will face profit drop financially preventing independent operators and cargo owners from utilizing their own rolling stock and locomotives within transportation process.
Moreover in my opinion in order to increase the volume of foreign trade turnover Russia needs to reduce rail tariff on cargo destined for the ports. It is clear that lower tariffs on cargo destined for the Russian ports will allow the ports to increase their handling volume. And we should not forget that transport system must work in the interest of consignors who ensure the Russian export growth.
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[DETAIL_TEXT] => Today Russia's forwarding market is extremely attractive for foreign companies which can be explained by the impressing positive dynamics. The current state of affairs is commented upon by the Swiss company Intergate AG Chief of Rail Transportation Department Irina Alexandrova.
- Intergate AG has been providing transport and forwarding services for over 5 years. What objectives were set when you entered the Russian transport market? What allowed Intergate AG to turn into one of the leaders in export, import and transit transportation in Russia, the CIS and Baltic countries?
- When we entered the Russian transport market we set ourselves quite an ambitious goal to win the forwarders competition and become the leader in the sector. And I believe we are there. In 2000, the first year our company operated the rail transport market Intergate AG carried 7.8 mln tones of cargo, mostly metals. Today the number of our clients has significantly grown. We annually deliver over 20 mln tons of various cargoes, particularly ferrous and non-ferrous metal products, mineral fertilisers, coal, raw iron ore, liquid bulk and chemicals.
At present Russian economy is focused on raw materials and metal products export thus the forwarding business is developing in proportion to the growth of industrial sector. However in order to win in a rather tough competition a forwarding company providing door-to-door delivery has to offer a consignor a complex package of accompanying services. And we do offer competitive rail tariff rates, rail car rent services, transportation route planning, optimal transportation schemes development, on-line monitoring of cargo location, transshipment and chartering. One of the main advantages of our company is that we provide multimodal transportation within the shortest period of time. Having offices in the CIS and Baltic countries Intergate AG acts for its clients throughout the whole transportation process. We work in tight cooperation with rail infrastructure owners, stevedoring and chartering companies in Russian and neighbouring countries, thus the consignor always counts on prompt delivery despite the number of transshipments.
- What problems did you face entering the Russian transport market? Which of them do you consider typical of our market only?
- Today one of the key issues for private operators is to get equal access to rail infrastructure owned by OAO Russian Railways (OAO RZD) which performs both as a carrier and the owner of the infrastructure. Nowadays private operators face delay in rail car supply, problems with rolling stock repair etc that affect turnover and thus efficiency of the transport business. The European Union has decided to separate infrastructure operating from transportation process. And the international experience proved the efficiency of this way. I assume that in a few years Russia will also come to this after some appropriate legislation improvement.
Another crucial problem is unsmooth interaction of ports and railway. For a transport chain to operate efficiently all links must interact and coordinate their activities. Unfortunately, today ports often confirm larger cargo volumes than they can really cope with or railway fail to supply ports with rail cars. Within the delivery process involving rail and sea transport developing of the procedure of setting acceptable loading quota and determining parties' reliabilities for rolling stock idling are crucially important.
However, the majority of Russian ports and railways have already signed contracts on mutual responsibility for insufficient rail car supply and rolling stock idling.
- Could you make any comments on the company's turnover dynamics and geography of freight transportation? Was the year 2004 successful for the company and what objectives are set for the current year?
- In 2004 Intergate AG's turnover exceeded 20 mln tones, wherein metal products amounted to 8.9 mln tones, mineral fertilizers - to 4.1 mln tones, coal - to 3.7 mln tones, raw ore - to 1.7 mln tones and oil bulk - to 830 thousand tones. The major destinations are the CIS and Baltic countries, Eastern and Western Europe and Asia.
The overall results of Intergate AG and other independent forwarders and operators activities in 2004 show the increase of private companies" share in the rail transportation market of the CIS countries. Independent companies raise freight transportation volume and take significant share of the transport market in Russia and its neighbouring countries. For instance in 2004 Intergate AG considerably increased transportation of high profitable cargoes: the volume of metal products carriage grew by almost a third year-on-year, oil and oil products - by over 20%. The development of industrial sector and the mining volume of raw resources growth in Russia and the CIS allow to predict that the positive dynamic will remain in 2005.
Speaking of the long-term objectives, the company plan expansion of transportation geography, getting bigger share in the Middle Asia market where oil production, petrochemistry and other industrial sectors are fast developing. For example our company delivered over 2.8 mln export cargo from Kazakhstan, one of the oil production leaders. Kazzink, National company KazMunayGaz, Tenghizshevroil, Atyraus refinery, the largest companies in Kazakhstan are among our clients.
- Which Russian companies does Intergate AG cooperate with? Are you planning to attract new partners?
- Among the transport companies our long term and strategic partner is the Severstaltrans group of companies, the largest private operator in the transport services market in Russia and the CIS. Severstaltrans incorporates stevedoring companies in Vostochny, Saint-Petersburg, Novorossiysk and other ports; rail carriers; forwarding and chartering companies. Tight business relationships with the Severstaltrans group of companies enable Intergate AG to offer its clients complex transporting and handling services under most favourable conditions. We also cooperate with large companies such as MMK-Trans and Mechel-Trans.
At present Intergate AG is providing export cargo transportation for leading Russian producers such as Russky Aluminy, Mechel, Severstal, Gazpromtrubinvest, Uralkaly, Rossoshansky OAO Minudobreniya, Tula-Chermet, Novolipetsk, Magnitogorsk and Zlatoust metallurgical works.
With the growth of production in the industrial sectors and seller market expansion in Russia and the CIS the transport market is also developing. Our company takes a significant part of it. I believe that the number of our clients in Russia as well as in the foreign countries will be increased.
- Which Russian and foreign ports do you cooperate with? How would you estimate the development of Russian port infrastructure?
- Offering multimodal transportation we cooperate with major ports in Russia, Ukraine and the Baltic States. They are Saint-Petersburg, Vostochny, Tuapse, Taganrog among Russian ports; Mariupol, Odessa, Ilyichevsk, Izmail among Ukrainian; and Klaipeda, Ventspils, Muuga, Tallinn in the Baltic region.
Russian port infrastructure has been developing extensively within the last five years due to private investments. According to the Program of modernisation of the Russian transport system the volume of investment into ports is to exceed USD 1.036 bln in 2005, the share of private companies amounts to USD965 mln. In 2008 some USD 1.6 bln is to be invested into port modernisation. The development in the sphere is connected with the necessity to service foreign trade turnover of the country because, as you know, Russia is export-orientated. A favourable market situation for exporting raw materials, metal and chemical products allowed large industrial companies to acquire stevedoring companies assets. In the previous years ambitious projects initiated by key cargo owners and their operators were implemented to develop and modernize the Russian port infrastructure. Mineral fertiliser terminals were constructed and put into operation in the Baltic region and the Russian Far East together with the new coal handling capacities in Baltic region. New oil terminals are operating in Primorsk and Vysotsk. Programs to modernize the existing capacities are underway, equipment, fleet and berth infrastructure are being renewed. In the last three years terminal capacities increased by 100 mln tons. Further port infrastructure improvement envisaging rail port stations and rail approaches development will allow to increase the handling capacity and result in the country's economic growth. Among the successfully implemented projects I would mention construction of the rail sector connecting the port Olya with the railway network, which enables to offer the shortest way for European export to Iran and the Persian Gulf region. The Transsiberian railway carrying capacity in the sectors near the Chinese border is being increased. This will allow to increase loading volume on the railway and develop this backbone of the East-West international transport corridor.
- Could you comment on your company's cooperation with OAO RZD? Is the competitive sector forming successfully? Could you estimate the company's tariff policy?
- At present Russian railways are being reformed. Without doubts, this is a positive process that will increase the efficiency of the branch. A lot has been done. For instance, the administrative and economy functions formerly performed by one body - the Ministry of Railways are now separated.
In my opinion however there are some bottlenecks which are to be removed to speed up a further development of railway transport. A question of vital importance is eliminating barriers to competition development in the sphere of rail transportation. Unfortunately, the process is unsmooth as we face the problem of competition between private companies and the natural monopoly OAO RZD which still has a privileged position in the market as it performs as both a carrier and the owner of the infrastructure. And the longer it remains in this position the less competition in this sphere will develop. That is why it is necessary to improve the legislation, defining the rules of the game for all players, create transparent conditions for the private investment in the rail transport. All of this is included into long-term plans, which will be realised as part of this reformation process.
Meanwhile some OAO RZD initiatives contradict the intentions to develop competition in the sphere of cargo transportation that were declared. Last year Russian Railways suggested an increase in the tariff component of the infrastructure use for the companies who use their own rolling stocks and locomotives. At the same time today the infrastructure component for a number of cargoes exceeds globally accepted (35-40% of cargo tariff rate). If RZD's initiative is accepted, private companies will face profit drop financially preventing independent operators and cargo owners from utilizing their own rolling stock and locomotives within transportation process.
Moreover in my opinion in order to increase the volume of foreign trade turnover Russia needs to reduce rail tariff on cargo destined for the ports. It is clear that lower tariffs on cargo destined for the Russian ports will allow the ports to increase their handling volume. And we should not forget that transport system must work in the interest of consignors who ensure the Russian export growth.
[~DETAIL_TEXT] => Today Russia's forwarding market is extremely attractive for foreign companies which can be explained by the impressing positive dynamics. The current state of affairs is commented upon by the Swiss company Intergate AG Chief of Rail Transportation Department Irina Alexandrova.
- Intergate AG has been providing transport and forwarding services for over 5 years. What objectives were set when you entered the Russian transport market? What allowed Intergate AG to turn into one of the leaders in export, import and transit transportation in Russia, the CIS and Baltic countries?
- When we entered the Russian transport market we set ourselves quite an ambitious goal to win the forwarders competition and become the leader in the sector. And I believe we are there. In 2000, the first year our company operated the rail transport market Intergate AG carried 7.8 mln tones of cargo, mostly metals. Today the number of our clients has significantly grown. We annually deliver over 20 mln tons of various cargoes, particularly ferrous and non-ferrous metal products, mineral fertilisers, coal, raw iron ore, liquid bulk and chemicals.
At present Russian economy is focused on raw materials and metal products export thus the forwarding business is developing in proportion to the growth of industrial sector. However in order to win in a rather tough competition a forwarding company providing door-to-door delivery has to offer a consignor a complex package of accompanying services. And we do offer competitive rail tariff rates, rail car rent services, transportation route planning, optimal transportation schemes development, on-line monitoring of cargo location, transshipment and chartering. One of the main advantages of our company is that we provide multimodal transportation within the shortest period of time. Having offices in the CIS and Baltic countries Intergate AG acts for its clients throughout the whole transportation process. We work in tight cooperation with rail infrastructure owners, stevedoring and chartering companies in Russian and neighbouring countries, thus the consignor always counts on prompt delivery despite the number of transshipments.
- What problems did you face entering the Russian transport market? Which of them do you consider typical of our market only?
- Today one of the key issues for private operators is to get equal access to rail infrastructure owned by OAO Russian Railways (OAO RZD) which performs both as a carrier and the owner of the infrastructure. Nowadays private operators face delay in rail car supply, problems with rolling stock repair etc that affect turnover and thus efficiency of the transport business. The European Union has decided to separate infrastructure operating from transportation process. And the international experience proved the efficiency of this way. I assume that in a few years Russia will also come to this after some appropriate legislation improvement.
Another crucial problem is unsmooth interaction of ports and railway. For a transport chain to operate efficiently all links must interact and coordinate their activities. Unfortunately, today ports often confirm larger cargo volumes than they can really cope with or railway fail to supply ports with rail cars. Within the delivery process involving rail and sea transport developing of the procedure of setting acceptable loading quota and determining parties' reliabilities for rolling stock idling are crucially important.
However, the majority of Russian ports and railways have already signed contracts on mutual responsibility for insufficient rail car supply and rolling stock idling.
- Could you make any comments on the company's turnover dynamics and geography of freight transportation? Was the year 2004 successful for the company and what objectives are set for the current year?
- In 2004 Intergate AG's turnover exceeded 20 mln tones, wherein metal products amounted to 8.9 mln tones, mineral fertilizers - to 4.1 mln tones, coal - to 3.7 mln tones, raw ore - to 1.7 mln tones and oil bulk - to 830 thousand tones. The major destinations are the CIS and Baltic countries, Eastern and Western Europe and Asia.
The overall results of Intergate AG and other independent forwarders and operators activities in 2004 show the increase of private companies" share in the rail transportation market of the CIS countries. Independent companies raise freight transportation volume and take significant share of the transport market in Russia and its neighbouring countries. For instance in 2004 Intergate AG considerably increased transportation of high profitable cargoes: the volume of metal products carriage grew by almost a third year-on-year, oil and oil products - by over 20%. The development of industrial sector and the mining volume of raw resources growth in Russia and the CIS allow to predict that the positive dynamic will remain in 2005.
Speaking of the long-term objectives, the company plan expansion of transportation geography, getting bigger share in the Middle Asia market where oil production, petrochemistry and other industrial sectors are fast developing. For example our company delivered over 2.8 mln export cargo from Kazakhstan, one of the oil production leaders. Kazzink, National company KazMunayGaz, Tenghizshevroil, Atyraus refinery, the largest companies in Kazakhstan are among our clients.
- Which Russian companies does Intergate AG cooperate with? Are you planning to attract new partners?
- Among the transport companies our long term and strategic partner is the Severstaltrans group of companies, the largest private operator in the transport services market in Russia and the CIS. Severstaltrans incorporates stevedoring companies in Vostochny, Saint-Petersburg, Novorossiysk and other ports; rail carriers; forwarding and chartering companies. Tight business relationships with the Severstaltrans group of companies enable Intergate AG to offer its clients complex transporting and handling services under most favourable conditions. We also cooperate with large companies such as MMK-Trans and Mechel-Trans.
At present Intergate AG is providing export cargo transportation for leading Russian producers such as Russky Aluminy, Mechel, Severstal, Gazpromtrubinvest, Uralkaly, Rossoshansky OAO Minudobreniya, Tula-Chermet, Novolipetsk, Magnitogorsk and Zlatoust metallurgical works.
With the growth of production in the industrial sectors and seller market expansion in Russia and the CIS the transport market is also developing. Our company takes a significant part of it. I believe that the number of our clients in Russia as well as in the foreign countries will be increased.
- Which Russian and foreign ports do you cooperate with? How would you estimate the development of Russian port infrastructure?
- Offering multimodal transportation we cooperate with major ports in Russia, Ukraine and the Baltic States. They are Saint-Petersburg, Vostochny, Tuapse, Taganrog among Russian ports; Mariupol, Odessa, Ilyichevsk, Izmail among Ukrainian; and Klaipeda, Ventspils, Muuga, Tallinn in the Baltic region.
Russian port infrastructure has been developing extensively within the last five years due to private investments. According to the Program of modernisation of the Russian transport system the volume of investment into ports is to exceed USD 1.036 bln in 2005, the share of private companies amounts to USD965 mln. In 2008 some USD 1.6 bln is to be invested into port modernisation. The development in the sphere is connected with the necessity to service foreign trade turnover of the country because, as you know, Russia is export-orientated. A favourable market situation for exporting raw materials, metal and chemical products allowed large industrial companies to acquire stevedoring companies assets. In the previous years ambitious projects initiated by key cargo owners and their operators were implemented to develop and modernize the Russian port infrastructure. Mineral fertiliser terminals were constructed and put into operation in the Baltic region and the Russian Far East together with the new coal handling capacities in Baltic region. New oil terminals are operating in Primorsk and Vysotsk. Programs to modernize the existing capacities are underway, equipment, fleet and berth infrastructure are being renewed. In the last three years terminal capacities increased by 100 mln tons. Further port infrastructure improvement envisaging rail port stations and rail approaches development will allow to increase the handling capacity and result in the country's economic growth. Among the successfully implemented projects I would mention construction of the rail sector connecting the port Olya with the railway network, which enables to offer the shortest way for European export to Iran and the Persian Gulf region. The Transsiberian railway carrying capacity in the sectors near the Chinese border is being increased. This will allow to increase loading volume on the railway and develop this backbone of the East-West international transport corridor.
- Could you comment on your company's cooperation with OAO RZD? Is the competitive sector forming successfully? Could you estimate the company's tariff policy?
- At present Russian railways are being reformed. Without doubts, this is a positive process that will increase the efficiency of the branch. A lot has been done. For instance, the administrative and economy functions formerly performed by one body - the Ministry of Railways are now separated.
In my opinion however there are some bottlenecks which are to be removed to speed up a further development of railway transport. A question of vital importance is eliminating barriers to competition development in the sphere of rail transportation. Unfortunately, the process is unsmooth as we face the problem of competition between private companies and the natural monopoly OAO RZD which still has a privileged position in the market as it performs as both a carrier and the owner of the infrastructure. And the longer it remains in this position the less competition in this sphere will develop. That is why it is necessary to improve the legislation, defining the rules of the game for all players, create transparent conditions for the private investment in the rail transport. All of this is included into long-term plans, which will be realised as part of this reformation process.
Meanwhile some OAO RZD initiatives contradict the intentions to develop competition in the sphere of cargo transportation that were declared. Last year Russian Railways suggested an increase in the tariff component of the infrastructure use for the companies who use their own rolling stocks and locomotives. At the same time today the infrastructure component for a number of cargoes exceeds globally accepted (35-40% of cargo tariff rate). If RZD's initiative is accepted, private companies will face profit drop financially preventing independent operators and cargo owners from utilizing their own rolling stock and locomotives within transportation process.
Moreover in my opinion in order to increase the volume of foreign trade turnover Russia needs to reduce rail tariff on cargo destined for the ports. It is clear that lower tariffs on cargo destined for the Russian ports will allow the ports to increase their handling volume. And we should not forget that transport system must work in the interest of consignors who ensure the Russian export growth.
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[DETAIL_TEXT] => The Russian branch of the Finnish concern KCI Konecranes, which is one of the world's leading producers of hoisting gears, was launched in Saint-Petersburg in 1993. During the 12 year working practice at the Russian market the company turned into an organization with the annual turnover worth about EUR 50 m.ZAO Konecranes General Director Fedor Elagin considers the peculiarities of running business in Russia.
Up to the 90s of the 20th century the production of the Finnish concern Kone and its crane department, which became an independent concern KCI Konecranes in 1994, were imported to the USSR by means of the state foreign trade system companies. Russia's political and economical changes allowed the company to develop its business in Russia in the same way it happens all over the world. It is technical servicing of the cranes that is supposed to be one of the company's major activities, which means always keeping in touch with the clients. KCI Konecranes has its subsidiary enterprises in 34 countries, where the company does not only design and deliver reliable equipment, but provides for its clients" technology uninterrupted operation, servicing 215 000 hoisting gears.
Volumes of the equipment delivered to Russian enterprises have increased significantly since the Russian branch of the concern KCI Konecranes was established. During the period 2003-2004 we were given the orders to be regarded unique not only for Russia but for the whole concern KCI Konecranes. We supplied 2 modern berth container loading cranes for the First Container Terminal of Saint-Petersburg Port.
We have entered into a number of agreements with Magnitogorskiy metallurgical plant and now they are successfully being put into practice. According to one of them 26 hoisting gears for arc-furnace and sorting-rolling industries will be supplied, which is the largest loading crane delivery contract ever to be concluded by concern KCI Konecranes.
The company EvrazHolding is among our partners as well. We have 2 contracts on 28 loading cranes delivery in total for Zapadno-Sibirskiy (West-Siberian) metallurgical plant reconstruction. All these agreements became possible due to the credit financing scheme offered by the foreign banks against the security of the Finnish export credit agency Finnvera. The total agreement amount exceeded EUR 80 m. Foreign bankers" interest in long term crediting of the Russian enterprises has Russia's crediting rate progressing as its ground.
The market of the loading cranes technical servicing is just starting to develop. Our company as the world's largest company providing crane servicing is among the first introducing these facilities in Russia.
In the Soviet period there was a special department at each enterprise whose responsibility covered equipment and machinery maintenance and repair works. Nowadays, with most industrial establishments being private, maintenance works outsourcing appears one of the most effective ways of cutting down fixed expenses and improving production competitiveness. The technological process being uninterrupted is an essential factor for any manufacture.
At the present moment we are working with a considerable number of enterprises, but there are some strategically important ones, who we associate our business development with. Among them can be found large metallurgical plants, pulp-and-paper mills, sea ports having at their disposal up to 1500 hoisting gears. To fully perform the tasks our company aims at, we must be keeping in touch with our customers all the time. That is why during the current year we are launching three branches of our company in the strategically important regions of Russia - in the North-Western region, the Southern-Ural region and in Siberia. It will allow us to offer the whole range of hoisting gears services in the same way KCI Konecranes has been doing worldwide.
For several decades concern KCI Konecranes has been getting control over 20% of the world crane production market. In Russia the company's market share amounts to 40%. They are permanent designing research and engineering development, advanced technology application, team working practices that made such an achievement possible.
It should be mentioned, the main problem we have been facing for 12 years is the staff recruitment. It is not an easy assignment to chose the personnel who are able to meet the company's high requirements. Our employees have to possess deep special knowledge, be well-educated, speak foreign languages and have good communicational skills.
The recruitment policy is of a special importance now, when we are opening our regional branches. Partnership with the higher institutional establishments of Saint-Petersburg seem to be a way of this problem solving. We all the time keep in touch with university professors in order to distinguish the students showing their interest in our company's activity sphere, on our advice some of them are recommended certain Degree paper themes to be researched.
Our regional departments basic workforce will consist without doubt of the local specialists, therefore the company should contribute to their educating and training. That is why partnership with the local regional higher educational institutions can become our next step to be performed. It is one of the vital constituents of our further business development. As it is said, one should run fast to keep one's place. This principle is applied to running business on the whole as well as to Russian business in particular. Those who respond immediately to the market changes, those who are flexible at finding solutions are likely to win. In order to be the leader, one must always be a step ahead.
Julia Alekseyeva
[~DETAIL_TEXT] => The Russian branch of the Finnish concern KCI Konecranes, which is one of the world's leading producers of hoisting gears, was launched in Saint-Petersburg in 1993. During the 12 year working practice at the Russian market the company turned into an organization with the annual turnover worth about EUR 50 m.ZAO Konecranes General Director Fedor Elagin considers the peculiarities of running business in Russia.
Up to the 90s of the 20th century the production of the Finnish concern Kone and its crane department, which became an independent concern KCI Konecranes in 1994, were imported to the USSR by means of the state foreign trade system companies. Russia's political and economical changes allowed the company to develop its business in Russia in the same way it happens all over the world. It is technical servicing of the cranes that is supposed to be one of the company's major activities, which means always keeping in touch with the clients. KCI Konecranes has its subsidiary enterprises in 34 countries, where the company does not only design and deliver reliable equipment, but provides for its clients" technology uninterrupted operation, servicing 215 000 hoisting gears.
Volumes of the equipment delivered to Russian enterprises have increased significantly since the Russian branch of the concern KCI Konecranes was established. During the period 2003-2004 we were given the orders to be regarded unique not only for Russia but for the whole concern KCI Konecranes. We supplied 2 modern berth container loading cranes for the First Container Terminal of Saint-Petersburg Port.
We have entered into a number of agreements with Magnitogorskiy metallurgical plant and now they are successfully being put into practice. According to one of them 26 hoisting gears for arc-furnace and sorting-rolling industries will be supplied, which is the largest loading crane delivery contract ever to be concluded by concern KCI Konecranes.
The company EvrazHolding is among our partners as well. We have 2 contracts on 28 loading cranes delivery in total for Zapadno-Sibirskiy (West-Siberian) metallurgical plant reconstruction. All these agreements became possible due to the credit financing scheme offered by the foreign banks against the security of the Finnish export credit agency Finnvera. The total agreement amount exceeded EUR 80 m. Foreign bankers" interest in long term crediting of the Russian enterprises has Russia's crediting rate progressing as its ground.
The market of the loading cranes technical servicing is just starting to develop. Our company as the world's largest company providing crane servicing is among the first introducing these facilities in Russia.
In the Soviet period there was a special department at each enterprise whose responsibility covered equipment and machinery maintenance and repair works. Nowadays, with most industrial establishments being private, maintenance works outsourcing appears one of the most effective ways of cutting down fixed expenses and improving production competitiveness. The technological process being uninterrupted is an essential factor for any manufacture.
At the present moment we are working with a considerable number of enterprises, but there are some strategically important ones, who we associate our business development with. Among them can be found large metallurgical plants, pulp-and-paper mills, sea ports having at their disposal up to 1500 hoisting gears. To fully perform the tasks our company aims at, we must be keeping in touch with our customers all the time. That is why during the current year we are launching three branches of our company in the strategically important regions of Russia - in the North-Western region, the Southern-Ural region and in Siberia. It will allow us to offer the whole range of hoisting gears services in the same way KCI Konecranes has been doing worldwide.
For several decades concern KCI Konecranes has been getting control over 20% of the world crane production market. In Russia the company's market share amounts to 40%. They are permanent designing research and engineering development, advanced technology application, team working practices that made such an achievement possible.
It should be mentioned, the main problem we have been facing for 12 years is the staff recruitment. It is not an easy assignment to chose the personnel who are able to meet the company's high requirements. Our employees have to possess deep special knowledge, be well-educated, speak foreign languages and have good communicational skills.
The recruitment policy is of a special importance now, when we are opening our regional branches. Partnership with the higher institutional establishments of Saint-Petersburg seem to be a way of this problem solving. We all the time keep in touch with university professors in order to distinguish the students showing their interest in our company's activity sphere, on our advice some of them are recommended certain Degree paper themes to be researched.
Our regional departments basic workforce will consist without doubt of the local specialists, therefore the company should contribute to their educating and training. That is why partnership with the local regional higher educational institutions can become our next step to be performed. It is one of the vital constituents of our further business development. As it is said, one should run fast to keep one's place. This principle is applied to running business on the whole as well as to Russian business in particular. Those who respond immediately to the market changes, those who are flexible at finding solutions are likely to win. In order to be the leader, one must always be a step ahead.
Julia Alekseyeva
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[DETAIL_TEXT] => The Russian branch of the Finnish concern KCI Konecranes, which is one of the world's leading producers of hoisting gears, was launched in Saint-Petersburg in 1993. During the 12 year working practice at the Russian market the company turned into an organization with the annual turnover worth about EUR 50 m.ZAO Konecranes General Director Fedor Elagin considers the peculiarities of running business in Russia.
Up to the 90s of the 20th century the production of the Finnish concern Kone and its crane department, which became an independent concern KCI Konecranes in 1994, were imported to the USSR by means of the state foreign trade system companies. Russia's political and economical changes allowed the company to develop its business in Russia in the same way it happens all over the world. It is technical servicing of the cranes that is supposed to be one of the company's major activities, which means always keeping in touch with the clients. KCI Konecranes has its subsidiary enterprises in 34 countries, where the company does not only design and deliver reliable equipment, but provides for its clients" technology uninterrupted operation, servicing 215 000 hoisting gears.
Volumes of the equipment delivered to Russian enterprises have increased significantly since the Russian branch of the concern KCI Konecranes was established. During the period 2003-2004 we were given the orders to be regarded unique not only for Russia but for the whole concern KCI Konecranes. We supplied 2 modern berth container loading cranes for the First Container Terminal of Saint-Petersburg Port.
We have entered into a number of agreements with Magnitogorskiy metallurgical plant and now they are successfully being put into practice. According to one of them 26 hoisting gears for arc-furnace and sorting-rolling industries will be supplied, which is the largest loading crane delivery contract ever to be concluded by concern KCI Konecranes.
The company EvrazHolding is among our partners as well. We have 2 contracts on 28 loading cranes delivery in total for Zapadno-Sibirskiy (West-Siberian) metallurgical plant reconstruction. All these agreements became possible due to the credit financing scheme offered by the foreign banks against the security of the Finnish export credit agency Finnvera. The total agreement amount exceeded EUR 80 m. Foreign bankers" interest in long term crediting of the Russian enterprises has Russia's crediting rate progressing as its ground.
The market of the loading cranes technical servicing is just starting to develop. Our company as the world's largest company providing crane servicing is among the first introducing these facilities in Russia.
In the Soviet period there was a special department at each enterprise whose responsibility covered equipment and machinery maintenance and repair works. Nowadays, with most industrial establishments being private, maintenance works outsourcing appears one of the most effective ways of cutting down fixed expenses and improving production competitiveness. The technological process being uninterrupted is an essential factor for any manufacture.
At the present moment we are working with a considerable number of enterprises, but there are some strategically important ones, who we associate our business development with. Among them can be found large metallurgical plants, pulp-and-paper mills, sea ports having at their disposal up to 1500 hoisting gears. To fully perform the tasks our company aims at, we must be keeping in touch with our customers all the time. That is why during the current year we are launching three branches of our company in the strategically important regions of Russia - in the North-Western region, the Southern-Ural region and in Siberia. It will allow us to offer the whole range of hoisting gears services in the same way KCI Konecranes has been doing worldwide.
For several decades concern KCI Konecranes has been getting control over 20% of the world crane production market. In Russia the company's market share amounts to 40%. They are permanent designing research and engineering development, advanced technology application, team working practices that made such an achievement possible.
It should be mentioned, the main problem we have been facing for 12 years is the staff recruitment. It is not an easy assignment to chose the personnel who are able to meet the company's high requirements. Our employees have to possess deep special knowledge, be well-educated, speak foreign languages and have good communicational skills.
The recruitment policy is of a special importance now, when we are opening our regional branches. Partnership with the higher institutional establishments of Saint-Petersburg seem to be a way of this problem solving. We all the time keep in touch with university professors in order to distinguish the students showing their interest in our company's activity sphere, on our advice some of them are recommended certain Degree paper themes to be researched.
Our regional departments basic workforce will consist without doubt of the local specialists, therefore the company should contribute to their educating and training. That is why partnership with the local regional higher educational institutions can become our next step to be performed. It is one of the vital constituents of our further business development. As it is said, one should run fast to keep one's place. This principle is applied to running business on the whole as well as to Russian business in particular. Those who respond immediately to the market changes, those who are flexible at finding solutions are likely to win. In order to be the leader, one must always be a step ahead.
Julia Alekseyeva
[~DETAIL_TEXT] => The Russian branch of the Finnish concern KCI Konecranes, which is one of the world's leading producers of hoisting gears, was launched in Saint-Petersburg in 1993. During the 12 year working practice at the Russian market the company turned into an organization with the annual turnover worth about EUR 50 m.ZAO Konecranes General Director Fedor Elagin considers the peculiarities of running business in Russia.
Up to the 90s of the 20th century the production of the Finnish concern Kone and its crane department, which became an independent concern KCI Konecranes in 1994, were imported to the USSR by means of the state foreign trade system companies. Russia's political and economical changes allowed the company to develop its business in Russia in the same way it happens all over the world. It is technical servicing of the cranes that is supposed to be one of the company's major activities, which means always keeping in touch with the clients. KCI Konecranes has its subsidiary enterprises in 34 countries, where the company does not only design and deliver reliable equipment, but provides for its clients" technology uninterrupted operation, servicing 215 000 hoisting gears.
Volumes of the equipment delivered to Russian enterprises have increased significantly since the Russian branch of the concern KCI Konecranes was established. During the period 2003-2004 we were given the orders to be regarded unique not only for Russia but for the whole concern KCI Konecranes. We supplied 2 modern berth container loading cranes for the First Container Terminal of Saint-Petersburg Port.
We have entered into a number of agreements with Magnitogorskiy metallurgical plant and now they are successfully being put into practice. According to one of them 26 hoisting gears for arc-furnace and sorting-rolling industries will be supplied, which is the largest loading crane delivery contract ever to be concluded by concern KCI Konecranes.
The company EvrazHolding is among our partners as well. We have 2 contracts on 28 loading cranes delivery in total for Zapadno-Sibirskiy (West-Siberian) metallurgical plant reconstruction. All these agreements became possible due to the credit financing scheme offered by the foreign banks against the security of the Finnish export credit agency Finnvera. The total agreement amount exceeded EUR 80 m. Foreign bankers" interest in long term crediting of the Russian enterprises has Russia's crediting rate progressing as its ground.
The market of the loading cranes technical servicing is just starting to develop. Our company as the world's largest company providing crane servicing is among the first introducing these facilities in Russia.
In the Soviet period there was a special department at each enterprise whose responsibility covered equipment and machinery maintenance and repair works. Nowadays, with most industrial establishments being private, maintenance works outsourcing appears one of the most effective ways of cutting down fixed expenses and improving production competitiveness. The technological process being uninterrupted is an essential factor for any manufacture.
At the present moment we are working with a considerable number of enterprises, but there are some strategically important ones, who we associate our business development with. Among them can be found large metallurgical plants, pulp-and-paper mills, sea ports having at their disposal up to 1500 hoisting gears. To fully perform the tasks our company aims at, we must be keeping in touch with our customers all the time. That is why during the current year we are launching three branches of our company in the strategically important regions of Russia - in the North-Western region, the Southern-Ural region and in Siberia. It will allow us to offer the whole range of hoisting gears services in the same way KCI Konecranes has been doing worldwide.
For several decades concern KCI Konecranes has been getting control over 20% of the world crane production market. In Russia the company's market share amounts to 40%. They are permanent designing research and engineering development, advanced technology application, team working practices that made such an achievement possible.
It should be mentioned, the main problem we have been facing for 12 years is the staff recruitment. It is not an easy assignment to chose the personnel who are able to meet the company's high requirements. Our employees have to possess deep special knowledge, be well-educated, speak foreign languages and have good communicational skills.
The recruitment policy is of a special importance now, when we are opening our regional branches. Partnership with the higher institutional establishments of Saint-Petersburg seem to be a way of this problem solving. We all the time keep in touch with university professors in order to distinguish the students showing their interest in our company's activity sphere, on our advice some of them are recommended certain Degree paper themes to be researched.
Our regional departments basic workforce will consist without doubt of the local specialists, therefore the company should contribute to their educating and training. That is why partnership with the local regional higher educational institutions can become our next step to be performed. It is one of the vital constituents of our further business development. As it is said, one should run fast to keep one's place. This principle is applied to running business on the whole as well as to Russian business in particular. Those who respond immediately to the market changes, those who are flexible at finding solutions are likely to win. In order to be the leader, one must always be a step ahead.
Julia Alekseyeva
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[DETAIL_TEXT] => "We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha."We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha.
- Mr.Ruksha, could you, please, comment on the results of the Russian sea and river transport operation in 2004?
- The results are quite positive. According to our data, in 2004 foreign trade cargo volume amounted to 420 mln tones, wherein the Russian ports handled 336 mln tones, while in 2000 the corresponding indexes were 238 and 170 million tones. Throughput of the Russian ports in 2004 grew by 20-25% year-on-year. I doubt that there is any other sector with such dynamics.
- What do export, import and transit amount to?
- In the total foreign trade cargo volume carried by all transport modes transit took some 15 mln tones, import - 20 mln tones and the rest was export.
Today in order to service growing cargo flows investment into transport infrastructure development is crucially important. Last year no less than RUR10-12 bln was invested.
- What are the thorny problems of the sector?
- The key problem is shipping locks wear and tear, as almost all of them were built 40 years ago. The Volga-Don canal was constructed within 3 years and now we need the same period of time to modernize it, but we have faced fund deficiency. The Volgo-Baltiysky canal is two-way only by 30%. If in 1990 the way from Cherepovets to Saint-Petersburg, which is 867 km long, took 3 days, now it is a 7-8-day journey. Naturally, transport expenses grow as well as the transport component in the product cost.
Speaking about port infrastructure, we need to develop oil products, container and coal terminals, since if we do not, in a couple of years such capacities deficiency will prevent cargo flows from growing.
In the Far-Eastern ports we have started reducing cargo handling growth, as there is no clear understanding which way these ports should be developed. The decision on the Vanino port modernization is a strategically important goal for the Transport Ministry this year.
And if container and oil terminals development is catalyzed by the market situation, the construction of new coal terminals needs state support. Today the port Vysotsk could increase coal handling by 15 mln tones, but a canal must be dug and offshore zone formed. The state should take part in the project and investment will pay back soon.
Thus, other important projects are the construction of the Transnefteproduct oil terminal in Primorsk, of a new passenger terminal in Saint-Petersburg, as well as of new coal terminals in the North-Western, Southern and Far-Eastern basins.
- You state that terminal development is the state's objective, but today private companies are highly interested in the sector. Vyborg and Vysotsk are private terminals.
- I agree that businesspeople show great interest and to my mind they should develop the terminal infrastructure. Although making export technology efficient require serious funds and without the state's support the development is almost impossible.
The most serious problem we have faced is that of the coal terminal condition. That is why there should be budget investments into their development. The state made a right decision to construct a coal handling capacity in Ust-Luga. Budget funds were spent on the canal and water area construction, while "Rosterminalugol" invested some USD 80 mln into the equipment. If Russia is to export some 100-110 mln tones of coal by 2010, it can become possible if the state invests into the infrastructure development.
- What is the technical condition of our fleet?
- Today serious projects of fleet renovation are being implemented. This sector has already received an investment potential, although small. The key problem is, as I have already mentioned, insufficient infrastructure development, whereas the fleet has been maintained and renovated. It is worth noting that for example in the Ob-Irtysh river basin we face overcapacity. Our inland shipping needs structuring. For instance, in the European part of the country rivers are overloaded with passenger and mazut carrying - by 20-40% over their capacity, while other routes are underloaded. The new trend is an increase in passenger transportation on the route Saint-Petersburg - Moscow, although this causes problems for freight transportation. Thus, if we do not improve infrastructure in a couple of years we won't be able to ship anything. And the Ministry of Transport is to develop cargo flows schemes to plan the transport system development.
- Have such schemes been developed yet?
- Surely, every port has a development scheme, which envisages all measures to be taken to be capable of handling cargo flows. Unfortunately, sometimes the process is stopped by other sectors, as the scheme could be implemented in case of the whole structure development - new border crossing check-points construction, for example.
- Mr. Ruksha, today port and railway interaction improvement is often discussed. You know, some problems arise. Could you share your opinion?
- The situation is quite usual. Every year railwaymen report that ports are unable to unload the cargo destined for them, while stevedores point out uneven rail delivery. Anyway railcars are idling, parties try to find out who is to pay for it. This year OAO RZD decided to sign contracts with stevedores to set reliabilities. To my mind, the problem is evident: cargo is concentrated in the 3 main ports. And the port can't just double its daily throughput - it is impossible to place extra cranes to the terminal. Another reason for unsmooth interaction is difficult weather conditions. Evidently, in winter the handling volume is much lower. The most difficult cargoes from this point of view is mazut and coal. And last but not least factor affecting the two sectors' interaction is, to my mind, insufficient investment into port railways.
- Speaking of the competition between railways and water transport, the latter used to offer lower tariffs, however today due to fuel price rise tariffs have grown considerably. Could you make any forecast of the situation?
- Water transport is always competitive in terms of tariffs as they are created taking into consideration the necessity to be lower by 10-15% than those of railways. Generally speaking, our goal is to create competition for cargo flows with other countries not between our transport modes. I firmly believe that inland shipping in the European part of Russia should be considered a seasonal partner of railways which could take some cargo flows.
By the way, I'd like to mention that we are blamed for discriminative tariffs by foreigners. I absolutely disagree with the point. Russians are those who are discriminated. Transit rates could be equal for both Russian and foreign carriers, but export tariffs should be made in favour of our operators. Otherwise, we will give out our cargo to Finnish, Lithuanian and Estonian carriers.
- Could you make any comments on the legislative base of shipping?
- Unfortunately, in this field much remains to be done. The draft bill "On Russian international vessel register" has not been amended yet. Today some 50 thousand of Russians are employed at foreign vessels due to tax preferences. The "Register" amendment enables us to increase the Russian fleet up to 750 vessels, with the total deadweight of 17 mln tones worth USD 13 bn without attracting budget funds. We could soon turn into the only country in the world that does not have such a bill. Even Belorussia, who has no seas, has amended such a bill.
Another difficulty is that our legislation make shipper sell his cargo as soon as possible. The global practice is that cargo owners are encouraged to look for new markets, usually far from the production location. In Russia cargo owners are worried about fast selling, which results in the situation when shipping terms are set by the buyer.
- What are the key objectives of the Federal Agency of Sea and River Transport?
- Today inland waters of Russia amount to 100 thousand km, which is more than the total length of our roads, although the federal rivers are 25-30 thousand km long. I hardly understand why the Agency is responsible for small rivers, which should be controlled by local authorities. Thus, by autumn we will have offered to implement the term main inland water as opposed to federal.
The next objective is to divide state regulation and economic functions.
And the last one is implementing paid access to artificial sectors of inland waters. I do not understand why we should lock through for free. Today inland waters are used by private, and I should say really expensive yachts, so free service here is nonsense.
- What tariffs do you plan to offer?
- We have not made our final proposal yet. But in my experience, it is really efficient. For example, in the port of Magadan every winter we face icebreaker shortage. The decision turned out to be surprisingly simple: we raised icebreaker fee almost 15-fold.In any casy, even after the rise it took only 2.5% of cargo price. If our offer is accepted by autumn, the 2006 navigation will be opened with a new structure of the Agency.
- What are the functions of the Agency?
- The Agency is supposed to maintain, develop and control the state infrastructure. The Ministry of Transport also includes the Control Service of Sea and River Transport. The Ministry is a planning body, while we're an executive one. The Control Service is to check whether the sea and river transport process participants' follow the norms set by the Ministry.
- What is the forecast of Russia's joining the WTO impact on sea and river transport operating?
- I suppose that joining the WTO won't be too difficult for the Russian transport. Today our sailors are working under the WTO norms performing foreign trade shipping.
Western companies are likely to invest into up-to-date fleet construction for inland shipping and in the field of passenger transportation our vessels will face stiff competition. This could result in quite an unpleasant situation when our companies simply can't win as our vessels are rather old. Our state has not created a leasing scheme for vessel construction yet, while foreign companies will do it immediately.
- What about our freight vessels?
- Freight fleet will compete. Fortunately, our freight vessels are constructed for maximum cargo flow taking and using all opportunities of inland water ways, while foreign ones are of smaller capacity if we are speaking of inland shipping. Thus our fleet is quite competitive.
Today the tariff unification took place in 1990-s is much blamed for our ports competitiveness reduction. I strongly disagree: competitiveness is quite a complex phenomenon, which includes investment volume and period, the state's support and infrastructure development, thus tariff unification simply can not affect it in such a dramatic way.
Interviewed Ivan Denisenko
[~DETAIL_TEXT] => "We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha."We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha.
- Mr.Ruksha, could you, please, comment on the results of the Russian sea and river transport operation in 2004?
- The results are quite positive. According to our data, in 2004 foreign trade cargo volume amounted to 420 mln tones, wherein the Russian ports handled 336 mln tones, while in 2000 the corresponding indexes were 238 and 170 million tones. Throughput of the Russian ports in 2004 grew by 20-25% year-on-year. I doubt that there is any other sector with such dynamics.
- What do export, import and transit amount to?
- In the total foreign trade cargo volume carried by all transport modes transit took some 15 mln tones, import - 20 mln tones and the rest was export.
Today in order to service growing cargo flows investment into transport infrastructure development is crucially important. Last year no less than RUR10-12 bln was invested.
- What are the thorny problems of the sector?
- The key problem is shipping locks wear and tear, as almost all of them were built 40 years ago. The Volga-Don canal was constructed within 3 years and now we need the same period of time to modernize it, but we have faced fund deficiency. The Volgo-Baltiysky canal is two-way only by 30%. If in 1990 the way from Cherepovets to Saint-Petersburg, which is 867 km long, took 3 days, now it is a 7-8-day journey. Naturally, transport expenses grow as well as the transport component in the product cost.
Speaking about port infrastructure, we need to develop oil products, container and coal terminals, since if we do not, in a couple of years such capacities deficiency will prevent cargo flows from growing.
In the Far-Eastern ports we have started reducing cargo handling growth, as there is no clear understanding which way these ports should be developed. The decision on the Vanino port modernization is a strategically important goal for the Transport Ministry this year.
And if container and oil terminals development is catalyzed by the market situation, the construction of new coal terminals needs state support. Today the port Vysotsk could increase coal handling by 15 mln tones, but a canal must be dug and offshore zone formed. The state should take part in the project and investment will pay back soon.
Thus, other important projects are the construction of the Transnefteproduct oil terminal in Primorsk, of a new passenger terminal in Saint-Petersburg, as well as of new coal terminals in the North-Western, Southern and Far-Eastern basins.
- You state that terminal development is the state's objective, but today private companies are highly interested in the sector. Vyborg and Vysotsk are private terminals.
- I agree that businesspeople show great interest and to my mind they should develop the terminal infrastructure. Although making export technology efficient require serious funds and without the state's support the development is almost impossible.
The most serious problem we have faced is that of the coal terminal condition. That is why there should be budget investments into their development. The state made a right decision to construct a coal handling capacity in Ust-Luga. Budget funds were spent on the canal and water area construction, while "Rosterminalugol" invested some USD 80 mln into the equipment. If Russia is to export some 100-110 mln tones of coal by 2010, it can become possible if the state invests into the infrastructure development.
- What is the technical condition of our fleet?
- Today serious projects of fleet renovation are being implemented. This sector has already received an investment potential, although small. The key problem is, as I have already mentioned, insufficient infrastructure development, whereas the fleet has been maintained and renovated. It is worth noting that for example in the Ob-Irtysh river basin we face overcapacity. Our inland shipping needs structuring. For instance, in the European part of the country rivers are overloaded with passenger and mazut carrying - by 20-40% over their capacity, while other routes are underloaded. The new trend is an increase in passenger transportation on the route Saint-Petersburg - Moscow, although this causes problems for freight transportation. Thus, if we do not improve infrastructure in a couple of years we won't be able to ship anything. And the Ministry of Transport is to develop cargo flows schemes to plan the transport system development.
- Have such schemes been developed yet?
- Surely, every port has a development scheme, which envisages all measures to be taken to be capable of handling cargo flows. Unfortunately, sometimes the process is stopped by other sectors, as the scheme could be implemented in case of the whole structure development - new border crossing check-points construction, for example.
- Mr. Ruksha, today port and railway interaction improvement is often discussed. You know, some problems arise. Could you share your opinion?
- The situation is quite usual. Every year railwaymen report that ports are unable to unload the cargo destined for them, while stevedores point out uneven rail delivery. Anyway railcars are idling, parties try to find out who is to pay for it. This year OAO RZD decided to sign contracts with stevedores to set reliabilities. To my mind, the problem is evident: cargo is concentrated in the 3 main ports. And the port can't just double its daily throughput - it is impossible to place extra cranes to the terminal. Another reason for unsmooth interaction is difficult weather conditions. Evidently, in winter the handling volume is much lower. The most difficult cargoes from this point of view is mazut and coal. And last but not least factor affecting the two sectors' interaction is, to my mind, insufficient investment into port railways.
- Speaking of the competition between railways and water transport, the latter used to offer lower tariffs, however today due to fuel price rise tariffs have grown considerably. Could you make any forecast of the situation?
- Water transport is always competitive in terms of tariffs as they are created taking into consideration the necessity to be lower by 10-15% than those of railways. Generally speaking, our goal is to create competition for cargo flows with other countries not between our transport modes. I firmly believe that inland shipping in the European part of Russia should be considered a seasonal partner of railways which could take some cargo flows.
By the way, I'd like to mention that we are blamed for discriminative tariffs by foreigners. I absolutely disagree with the point. Russians are those who are discriminated. Transit rates could be equal for both Russian and foreign carriers, but export tariffs should be made in favour of our operators. Otherwise, we will give out our cargo to Finnish, Lithuanian and Estonian carriers.
- Could you make any comments on the legislative base of shipping?
- Unfortunately, in this field much remains to be done. The draft bill "On Russian international vessel register" has not been amended yet. Today some 50 thousand of Russians are employed at foreign vessels due to tax preferences. The "Register" amendment enables us to increase the Russian fleet up to 750 vessels, with the total deadweight of 17 mln tones worth USD 13 bn without attracting budget funds. We could soon turn into the only country in the world that does not have such a bill. Even Belorussia, who has no seas, has amended such a bill.
Another difficulty is that our legislation make shipper sell his cargo as soon as possible. The global practice is that cargo owners are encouraged to look for new markets, usually far from the production location. In Russia cargo owners are worried about fast selling, which results in the situation when shipping terms are set by the buyer.
- What are the key objectives of the Federal Agency of Sea and River Transport?
- Today inland waters of Russia amount to 100 thousand km, which is more than the total length of our roads, although the federal rivers are 25-30 thousand km long. I hardly understand why the Agency is responsible for small rivers, which should be controlled by local authorities. Thus, by autumn we will have offered to implement the term main inland water as opposed to federal.
The next objective is to divide state regulation and economic functions.
And the last one is implementing paid access to artificial sectors of inland waters. I do not understand why we should lock through for free. Today inland waters are used by private, and I should say really expensive yachts, so free service here is nonsense.
- What tariffs do you plan to offer?
- We have not made our final proposal yet. But in my experience, it is really efficient. For example, in the port of Magadan every winter we face icebreaker shortage. The decision turned out to be surprisingly simple: we raised icebreaker fee almost 15-fold.In any casy, even after the rise it took only 2.5% of cargo price. If our offer is accepted by autumn, the 2006 navigation will be opened with a new structure of the Agency.
- What are the functions of the Agency?
- The Agency is supposed to maintain, develop and control the state infrastructure. The Ministry of Transport also includes the Control Service of Sea and River Transport. The Ministry is a planning body, while we're an executive one. The Control Service is to check whether the sea and river transport process participants' follow the norms set by the Ministry.
- What is the forecast of Russia's joining the WTO impact on sea and river transport operating?
- I suppose that joining the WTO won't be too difficult for the Russian transport. Today our sailors are working under the WTO norms performing foreign trade shipping.
Western companies are likely to invest into up-to-date fleet construction for inland shipping and in the field of passenger transportation our vessels will face stiff competition. This could result in quite an unpleasant situation when our companies simply can't win as our vessels are rather old. Our state has not created a leasing scheme for vessel construction yet, while foreign companies will do it immediately.
- What about our freight vessels?
- Freight fleet will compete. Fortunately, our freight vessels are constructed for maximum cargo flow taking and using all opportunities of inland water ways, while foreign ones are of smaller capacity if we are speaking of inland shipping. Thus our fleet is quite competitive.
Today the tariff unification took place in 1990-s is much blamed for our ports competitiveness reduction. I strongly disagree: competitiveness is quite a complex phenomenon, which includes investment volume and period, the state's support and infrastructure development, thus tariff unification simply can not affect it in such a dramatic way.
Interviewed Ivan Denisenko
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[DETAIL_TEXT] => "We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha."We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha.
- Mr.Ruksha, could you, please, comment on the results of the Russian sea and river transport operation in 2004?
- The results are quite positive. According to our data, in 2004 foreign trade cargo volume amounted to 420 mln tones, wherein the Russian ports handled 336 mln tones, while in 2000 the corresponding indexes were 238 and 170 million tones. Throughput of the Russian ports in 2004 grew by 20-25% year-on-year. I doubt that there is any other sector with such dynamics.
- What do export, import and transit amount to?
- In the total foreign trade cargo volume carried by all transport modes transit took some 15 mln tones, import - 20 mln tones and the rest was export.
Today in order to service growing cargo flows investment into transport infrastructure development is crucially important. Last year no less than RUR10-12 bln was invested.
- What are the thorny problems of the sector?
- The key problem is shipping locks wear and tear, as almost all of them were built 40 years ago. The Volga-Don canal was constructed within 3 years and now we need the same period of time to modernize it, but we have faced fund deficiency. The Volgo-Baltiysky canal is two-way only by 30%. If in 1990 the way from Cherepovets to Saint-Petersburg, which is 867 km long, took 3 days, now it is a 7-8-day journey. Naturally, transport expenses grow as well as the transport component in the product cost.
Speaking about port infrastructure, we need to develop oil products, container and coal terminals, since if we do not, in a couple of years such capacities deficiency will prevent cargo flows from growing.
In the Far-Eastern ports we have started reducing cargo handling growth, as there is no clear understanding which way these ports should be developed. The decision on the Vanino port modernization is a strategically important goal for the Transport Ministry this year.
And if container and oil terminals development is catalyzed by the market situation, the construction of new coal terminals needs state support. Today the port Vysotsk could increase coal handling by 15 mln tones, but a canal must be dug and offshore zone formed. The state should take part in the project and investment will pay back soon.
Thus, other important projects are the construction of the Transnefteproduct oil terminal in Primorsk, of a new passenger terminal in Saint-Petersburg, as well as of new coal terminals in the North-Western, Southern and Far-Eastern basins.
- You state that terminal development is the state's objective, but today private companies are highly interested in the sector. Vyborg and Vysotsk are private terminals.
- I agree that businesspeople show great interest and to my mind they should develop the terminal infrastructure. Although making export technology efficient require serious funds and without the state's support the development is almost impossible.
The most serious problem we have faced is that of the coal terminal condition. That is why there should be budget investments into their development. The state made a right decision to construct a coal handling capacity in Ust-Luga. Budget funds were spent on the canal and water area construction, while "Rosterminalugol" invested some USD 80 mln into the equipment. If Russia is to export some 100-110 mln tones of coal by 2010, it can become possible if the state invests into the infrastructure development.
- What is the technical condition of our fleet?
- Today serious projects of fleet renovation are being implemented. This sector has already received an investment potential, although small. The key problem is, as I have already mentioned, insufficient infrastructure development, whereas the fleet has been maintained and renovated. It is worth noting that for example in the Ob-Irtysh river basin we face overcapacity. Our inland shipping needs structuring. For instance, in the European part of the country rivers are overloaded with passenger and mazut carrying - by 20-40% over their capacity, while other routes are underloaded. The new trend is an increase in passenger transportation on the route Saint-Petersburg - Moscow, although this causes problems for freight transportation. Thus, if we do not improve infrastructure in a couple of years we won't be able to ship anything. And the Ministry of Transport is to develop cargo flows schemes to plan the transport system development.
- Have such schemes been developed yet?
- Surely, every port has a development scheme, which envisages all measures to be taken to be capable of handling cargo flows. Unfortunately, sometimes the process is stopped by other sectors, as the scheme could be implemented in case of the whole structure development - new border crossing check-points construction, for example.
- Mr. Ruksha, today port and railway interaction improvement is often discussed. You know, some problems arise. Could you share your opinion?
- The situation is quite usual. Every year railwaymen report that ports are unable to unload the cargo destined for them, while stevedores point out uneven rail delivery. Anyway railcars are idling, parties try to find out who is to pay for it. This year OAO RZD decided to sign contracts with stevedores to set reliabilities. To my mind, the problem is evident: cargo is concentrated in the 3 main ports. And the port can't just double its daily throughput - it is impossible to place extra cranes to the terminal. Another reason for unsmooth interaction is difficult weather conditions. Evidently, in winter the handling volume is much lower. The most difficult cargoes from this point of view is mazut and coal. And last but not least factor affecting the two sectors' interaction is, to my mind, insufficient investment into port railways.
- Speaking of the competition between railways and water transport, the latter used to offer lower tariffs, however today due to fuel price rise tariffs have grown considerably. Could you make any forecast of the situation?
- Water transport is always competitive in terms of tariffs as they are created taking into consideration the necessity to be lower by 10-15% than those of railways. Generally speaking, our goal is to create competition for cargo flows with other countries not between our transport modes. I firmly believe that inland shipping in the European part of Russia should be considered a seasonal partner of railways which could take some cargo flows.
By the way, I'd like to mention that we are blamed for discriminative tariffs by foreigners. I absolutely disagree with the point. Russians are those who are discriminated. Transit rates could be equal for both Russian and foreign carriers, but export tariffs should be made in favour of our operators. Otherwise, we will give out our cargo to Finnish, Lithuanian and Estonian carriers.
- Could you make any comments on the legislative base of shipping?
- Unfortunately, in this field much remains to be done. The draft bill "On Russian international vessel register" has not been amended yet. Today some 50 thousand of Russians are employed at foreign vessels due to tax preferences. The "Register" amendment enables us to increase the Russian fleet up to 750 vessels, with the total deadweight of 17 mln tones worth USD 13 bn without attracting budget funds. We could soon turn into the only country in the world that does not have such a bill. Even Belorussia, who has no seas, has amended such a bill.
Another difficulty is that our legislation make shipper sell his cargo as soon as possible. The global practice is that cargo owners are encouraged to look for new markets, usually far from the production location. In Russia cargo owners are worried about fast selling, which results in the situation when shipping terms are set by the buyer.
- What are the key objectives of the Federal Agency of Sea and River Transport?
- Today inland waters of Russia amount to 100 thousand km, which is more than the total length of our roads, although the federal rivers are 25-30 thousand km long. I hardly understand why the Agency is responsible for small rivers, which should be controlled by local authorities. Thus, by autumn we will have offered to implement the term main inland water as opposed to federal.
The next objective is to divide state regulation and economic functions.
And the last one is implementing paid access to artificial sectors of inland waters. I do not understand why we should lock through for free. Today inland waters are used by private, and I should say really expensive yachts, so free service here is nonsense.
- What tariffs do you plan to offer?
- We have not made our final proposal yet. But in my experience, it is really efficient. For example, in the port of Magadan every winter we face icebreaker shortage. The decision turned out to be surprisingly simple: we raised icebreaker fee almost 15-fold.In any casy, even after the rise it took only 2.5% of cargo price. If our offer is accepted by autumn, the 2006 navigation will be opened with a new structure of the Agency.
- What are the functions of the Agency?
- The Agency is supposed to maintain, develop and control the state infrastructure. The Ministry of Transport also includes the Control Service of Sea and River Transport. The Ministry is a planning body, while we're an executive one. The Control Service is to check whether the sea and river transport process participants' follow the norms set by the Ministry.
- What is the forecast of Russia's joining the WTO impact on sea and river transport operating?
- I suppose that joining the WTO won't be too difficult for the Russian transport. Today our sailors are working under the WTO norms performing foreign trade shipping.
Western companies are likely to invest into up-to-date fleet construction for inland shipping and in the field of passenger transportation our vessels will face stiff competition. This could result in quite an unpleasant situation when our companies simply can't win as our vessels are rather old. Our state has not created a leasing scheme for vessel construction yet, while foreign companies will do it immediately.
- What about our freight vessels?
- Freight fleet will compete. Fortunately, our freight vessels are constructed for maximum cargo flow taking and using all opportunities of inland water ways, while foreign ones are of smaller capacity if we are speaking of inland shipping. Thus our fleet is quite competitive.
Today the tariff unification took place in 1990-s is much blamed for our ports competitiveness reduction. I strongly disagree: competitiveness is quite a complex phenomenon, which includes investment volume and period, the state's support and infrastructure development, thus tariff unification simply can not affect it in such a dramatic way.
Interviewed Ivan Denisenko
[~DETAIL_TEXT] => "We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha."We are blamed for discriminatory tariffs by foreigners but I seriously believe that in fact Russian carriers are the ones who suffer from discrimination", says the Chief of the Federal Agency of Sea and River Transport of the RF Transport Ministry Vyacheslav Ruksha.
- Mr.Ruksha, could you, please, comment on the results of the Russian sea and river transport operation in 2004?
- The results are quite positive. According to our data, in 2004 foreign trade cargo volume amounted to 420 mln tones, wherein the Russian ports handled 336 mln tones, while in 2000 the corresponding indexes were 238 and 170 million tones. Throughput of the Russian ports in 2004 grew by 20-25% year-on-year. I doubt that there is any other sector with such dynamics.
- What do export, import and transit amount to?
- In the total foreign trade cargo volume carried by all transport modes transit took some 15 mln tones, import - 20 mln tones and the rest was export.
Today in order to service growing cargo flows investment into transport infrastructure development is crucially important. Last year no less than RUR10-12 bln was invested.
- What are the thorny problems of the sector?
- The key problem is shipping locks wear and tear, as almost all of them were built 40 years ago. The Volga-Don canal was constructed within 3 years and now we need the same period of time to modernize it, but we have faced fund deficiency. The Volgo-Baltiysky canal is two-way only by 30%. If in 1990 the way from Cherepovets to Saint-Petersburg, which is 867 km long, took 3 days, now it is a 7-8-day journey. Naturally, transport expenses grow as well as the transport component in the product cost.
Speaking about port infrastructure, we need to develop oil products, container and coal terminals, since if we do not, in a couple of years such capacities deficiency will prevent cargo flows from growing.
In the Far-Eastern ports we have started reducing cargo handling growth, as there is no clear understanding which way these ports should be developed. The decision on the Vanino port modernization is a strategically important goal for the Transport Ministry this year.
And if container and oil terminals development is catalyzed by the market situation, the construction of new coal terminals needs state support. Today the port Vysotsk could increase coal handling by 15 mln tones, but a canal must be dug and offshore zone formed. The state should take part in the project and investment will pay back soon.
Thus, other important projects are the construction of the Transnefteproduct oil terminal in Primorsk, of a new passenger terminal in Saint-Petersburg, as well as of new coal terminals in the North-Western, Southern and Far-Eastern basins.
- You state that terminal development is the state's objective, but today private companies are highly interested in the sector. Vyborg and Vysotsk are private terminals.
- I agree that businesspeople show great interest and to my mind they should develop the terminal infrastructure. Although making export technology efficient require serious funds and without the state's support the development is almost impossible.
The most serious problem we have faced is that of the coal terminal condition. That is why there should be budget investments into their development. The state made a right decision to construct a coal handling capacity in Ust-Luga. Budget funds were spent on the canal and water area construction, while "Rosterminalugol" invested some USD 80 mln into the equipment. If Russia is to export some 100-110 mln tones of coal by 2010, it can become possible if the state invests into the infrastructure development.
- What is the technical condition of our fleet?
- Today serious projects of fleet renovation are being implemented. This sector has already received an investment potential, although small. The key problem is, as I have already mentioned, insufficient infrastructure development, whereas the fleet has been maintained and renovated. It is worth noting that for example in the Ob-Irtysh river basin we face overcapacity. Our inland shipping needs structuring. For instance, in the European part of the country rivers are overloaded with passenger and mazut carrying - by 20-40% over their capacity, while other routes are underloaded. The new trend is an increase in passenger transportation on the route Saint-Petersburg - Moscow, although this causes problems for freight transportation. Thus, if we do not improve infrastructure in a couple of years we won't be able to ship anything. And the Ministry of Transport is to develop cargo flows schemes to plan the transport system development.
- Have such schemes been developed yet?
- Surely, every port has a development scheme, which envisages all measures to be taken to be capable of handling cargo flows. Unfortunately, sometimes the process is stopped by other sectors, as the scheme could be implemented in case of the whole structure development - new border crossing check-points construction, for example.
- Mr. Ruksha, today port and railway interaction improvement is often discussed. You know, some problems arise. Could you share your opinion?
- The situation is quite usual. Every year railwaymen report that ports are unable to unload the cargo destined for them, while stevedores point out uneven rail delivery. Anyway railcars are idling, parties try to find out who is to pay for it. This year OAO RZD decided to sign contracts with stevedores to set reliabilities. To my mind, the problem is evident: cargo is concentrated in the 3 main ports. And the port can't just double its daily throughput - it is impossible to place extra cranes to the terminal. Another reason for unsmooth interaction is difficult weather conditions. Evidently, in winter the handling volume is much lower. The most difficult cargoes from this point of view is mazut and coal. And last but not least factor affecting the two sectors' interaction is, to my mind, insufficient investment into port railways.
- Speaking of the competition between railways and water transport, the latter used to offer lower tariffs, however today due to fuel price rise tariffs have grown considerably. Could you make any forecast of the situation?
- Water transport is always competitive in terms of tariffs as they are created taking into consideration the necessity to be lower by 10-15% than those of railways. Generally speaking, our goal is to create competition for cargo flows with other countries not between our transport modes. I firmly believe that inland shipping in the European part of Russia should be considered a seasonal partner of railways which could take some cargo flows.
By the way, I'd like to mention that we are blamed for discriminative tariffs by foreigners. I absolutely disagree with the point. Russians are those who are discriminated. Transit rates could be equal for both Russian and foreign carriers, but export tariffs should be made in favour of our operators. Otherwise, we will give out our cargo to Finnish, Lithuanian and Estonian carriers.
- Could you make any comments on the legislative base of shipping?
- Unfortunately, in this field much remains to be done. The draft bill "On Russian international vessel register" has not been amended yet. Today some 50 thousand of Russians are employed at foreign vessels due to tax preferences. The "Register" amendment enables us to increase the Russian fleet up to 750 vessels, with the total deadweight of 17 mln tones worth USD 13 bn without attracting budget funds. We could soon turn into the only country in the world that does not have such a bill. Even Belorussia, who has no seas, has amended such a bill.
Another difficulty is that our legislation make shipper sell his cargo as soon as possible. The global practice is that cargo owners are encouraged to look for new markets, usually far from the production location. In Russia cargo owners are worried about fast selling, which results in the situation when shipping terms are set by the buyer.
- What are the key objectives of the Federal Agency of Sea and River Transport?
- Today inland waters of Russia amount to 100 thousand km, which is more than the total length of our roads, although the federal rivers are 25-30 thousand km long. I hardly understand why the Agency is responsible for small rivers, which should be controlled by local authorities. Thus, by autumn we will have offered to implement the term main inland water as opposed to federal.
The next objective is to divide state regulation and economic functions.
And the last one is implementing paid access to artificial sectors of inland waters. I do not understand why we should lock through for free. Today inland waters are used by private, and I should say really expensive yachts, so free service here is nonsense.
- What tariffs do you plan to offer?
- We have not made our final proposal yet. But in my experience, it is really efficient. For example, in the port of Magadan every winter we face icebreaker shortage. The decision turned out to be surprisingly simple: we raised icebreaker fee almost 15-fold.In any casy, even after the rise it took only 2.5% of cargo price. If our offer is accepted by autumn, the 2006 navigation will be opened with a new structure of the Agency.
- What are the functions of the Agency?
- The Agency is supposed to maintain, develop and control the state infrastructure. The Ministry of Transport also includes the Control Service of Sea and River Transport. The Ministry is a planning body, while we're an executive one. The Control Service is to check whether the sea and river transport process participants' follow the norms set by the Ministry.
- What is the forecast of Russia's joining the WTO impact on sea and river transport operating?
- I suppose that joining the WTO won't be too difficult for the Russian transport. Today our sailors are working under the WTO norms performing foreign trade shipping.
Western companies are likely to invest into up-to-date fleet construction for inland shipping and in the field of passenger transportation our vessels will face stiff competition. This could result in quite an unpleasant situation when our companies simply can't win as our vessels are rather old. Our state has not created a leasing scheme for vessel construction yet, while foreign companies will do it immediately.
- What about our freight vessels?
- Freight fleet will compete. Fortunately, our freight vessels are constructed for maximum cargo flow taking and using all opportunities of inland water ways, while foreign ones are of smaller capacity if we are speaking of inland shipping. Thus our fleet is quite competitive.
Today the tariff unification took place in 1990-s is much blamed for our ports competitiveness reduction. I strongly disagree: competitiveness is quite a complex phenomenon, which includes investment volume and period, the state's support and infrastructure development, thus tariff unification simply can not affect it in such a dramatic way.
Interviewed Ivan Denisenko
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Former MAPs become AMPs
For almost ten years the Russian commercial ports had been managed by Maritime Administrations (MAPs), founded in 1993. But the analysis of their operation revealed that their legal status has not been accurately defined. As a result they in fact turned into independent economic subjects, only formally remaining state bodies. MAPs became in fact commercial structure, with the only difference - they were operating state property, leaving the profits in accordance with the Civil Code. Thus, the main goal pursued by their founding had not been reached - the function of state control had not been delimitated from (or rather subjected to) economic component of the MAPs activity.
To repair the situation the RF Government and the Ministry of Transport developed a series of administrative steps to improve the system of state management of seaports. The reform was focused on delimitating the administrative authority from the economic functions of subjects, increasing the efficiency of managing the state property in seaports and transfer to real market mechanisms of regulating their operation.
On this ground there was taken the decision to reform MAPs into the Seaports Administrations State Enterprise with no right to run economic operations and state unitary enterprises carrying out the ports property management and carrying out economic activity within the framework of the law, not entering competition with the other enterprises.
The newly founded state unitary enterprises were not profit-oriented in the conditions of competition with private transport operators. They were meant to create favourable, equal and safe conditions for the use of infrastructure, ensure the demands of the economy and the consumers in the yet unprofitable market segments are met, to provide for the state responsibility for the steady and reliable transport operation.
And there comes Rosmorport
In September 2003 in the course of the reform of the system of seaports state management there was founded the State Federal Unitary Enterprise Rosmorport. As is stated in official sources "founding the enterprise is due to objective factors, in particular "the changes in the basics of management in the conditions of market economy, as well as the task set now before Russia of increasing the export-import operations in the seaports operation". By now the reformation process has almost been completed: the ports administrative functions remained with the maritime administrations, while the economic activity on behalf of the state is run by the enterprise and its subsidiaries.
Rosmorport's responsibilities include the maintenance and operation, development and efficient exploitation of the federal property it is in charge of, including the property complex ensuring the navigation safety, and the coordination of operations on creating and developing the transport hubs infrastructure, as well as coordination with the investor companies.
According to the Rosmorport general director Nikolay Negodov, the new body can attract investments for the port infrastructure modernization: "Currently 75% of the Russian export goes via seaports; naturally, its further growth is limited. This means the ports" operation needs to be improved".
To carry out the tasks set before the industry, by forming the Rosmorport subsidiaries there were created services responsible for capital development, repairs, deepening works and the system of traffic guiding. At present almost any large port's cabotage basin has a Rosmorport subsidiary, with the headquarters in Moscow. The first of them was formed in St.Petersburg in February 2004, the last - this February in the Vyborg-Vysotsk basin. There are the total of 25 subsidiaries all over the country from Kaliningrad to Posyet.
Rosmorport is aimed to ensure the stable operation and development of the Russian seaports" infrastructure. The Government has set before the new body important state tasks related to the international agreements requirements. As commented the Rosmorport deputy general director Gennady Batalin, the enterprise is to provide all vessels irrespective of their flag a complex of various services, offer the best possible conditions of navigation safety in the seaports" water areas, in particular to carry out the deepening works to maintain the necessary depths in the water areas, on the roadsteads and in the approach channels. One of the major activities is the realization of the East-West and North-South transport corridors program being part of the Federal Target Program of the Russian transport complex modernization.
No time has been lost
At present the Rosmorport is in charge of property for 11,7 bln. rubles, including over 700 waterworks, 190 transport, auxiliary and technical ships, as well as linear and port diesel ice breakers, 20 coastal stations of the emergency notification global system and 12 systems of traffic guidance.
The best results were achieved lat year in the North-Western basin, where the ports turnover increased against 2003 by 47%. The St.Petersburg subsidiary was responsible last year for the major share of revenue received by Rosmorport in the amount of 2,1 bln. rubles or 41,2%. The Rosmorport general director Nikolay Negodov said by 2010 the company's turnover may reach 500 mln.tons.
According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, the Russian seaports" turnover in January-February 2005 grew by 120,4%; the demand for the modern fleet to serve the transport vessels in seaports and around them, the quality navigation safety system keeps growing accordingly. Rosmorport calculated that for the period of 2006-2015 it would need 157 of technical fleet units.
In 2004 Rosmorport carried out the construction of the second stage of the navigation safety regional system in the Eastern part of the Gulf of Finland. At present the construction-assembling works for locating the electronic equipment on the islands of Seskar, Sommers and Gogland are nearly completed.
Rosmorport is developing the system of vessels guidance in the region of the Strait of Kerch, in the Murmansk Commercial Seaport vicinity; it plans the systems modernization in the regions of Arkhangelsk and Astrakhan seaports and creating the system in the port of Sochi.
Moreover, taking into account the significance of approach channels and the operational zones in the ports water areas, special attention is being paid to maintaining their dimensions. In this relation last year there were carried out the repair scooping works of 6,4 mln.cub.m.; the deepening works of 5 mln.cub.m. as part of the St.Petersburg, Kaliningrad, Ust-Luga and Astrakhan channels construction and reconstruction.
As commented the Rosmorport deputy general director Gennady Batalin, the realization of the state transport policy in respect to developing ferry communication was an important Rosmorport activity in 2004. In particular, the organization of regular transport communication with the Kaliningrad oblast. By now Baltiysk has become a full-value cargo-passenger ferry complex, a link between the ports of the Kaliningrad oblast and St.Petersburg. During the 2004 navigation the "Georg Ots" ferry vessel on the cargo-passenger ferry line St.Petersburg - Kaliningrad carried 7 360 of passengers and 2 100 t. of cargoes. The revenue from the cargo-passenger transportation in 2004 amounted to 25,6 mln.rubles.
According to the Rosmorport drafting and development department, the work on organizing ferry communication between the ports of Germany, Ust-Luga and Baltiysk is still under way. In 2004 the Baltiysk complex received 310 mln.rubles of budget funding, Ust-Luga - 900 mln.rubles.
Another focus was on the construction of connecting and internal port railway lines for the Olya port, commissioned in July 2004; the construction of the railway ferry complex in the port of Kavkaz, new port near the cape of Zhelezny Rog, completing the construction of berth No 106 in the port of St.Petersburg, that required 216,9 mln.rubles of investment.
The further increase of the cargo turnover requires the constant development of the operational basis, first of all the ice breaking fleet. At present Rosmorport has 20 ice breakers, 12 of them are the company's own. This amount is insufficient, as evinces from the tendency of the turnover increase. Therefore Rosmorport announced a tender and chose the Baltiysky Zavod shipyard to construct for the company 2 ice breakers (the shipyard has received 250 mln. rubles for the construction of the first diesel electric ice breaker). They would allow to ensure the vessels safe traveling, of large-capacity tankers in particular, in the Gulf of Finland. In January-February 2005 the ports of Primorsk and Vysotsk increased their turnover by 59,9% and 183,7% respectively.
Enough to do in 2005
This year Rosmorport will have no rest as well. The company plans to develop the multi-purpose cargo-passenger ferry project Ust-Luga - Baltiysk - German ports. In 2006 the construction of the first complex of the ferry bridge is to be completed, for which the federal budget allotted 900 mln.rubles to Ust-Luga and 539 mln.rubles to Baltiysk.
Another project is the first state of the Olya Commercial Seaport. Opening the approach railway line and the by-port station will allow to increase the turnover of the existing handling facilities. Rosmorport is working on attracting investors for the internal port infrastructure creation and development.
In 2005 there will be continued the construction of the port near the cape of Zhelezny Rog. The complex on handling liquid ammonia is to be commissioned; another task is to attract investors for the oil and oil products handling capacities construction.
The St.Petersburg main navigation channel awaits reconstruction; there is to be designed and constructed the passenger terminal on the Valilyevsky island, that would allow to serve large cruise liners of over 200 m. long and up to 3 th. passengers capacity. The complex will be capable of serving over 1100 vessels a year, with the estimated passenger throughput of 2 mln. people a year. The project of the federal target investment program for 2005 provides for 600 mln. rubles for the construction of the approach channel to the terminal.
The Rosmorport experts are studying the deepening fleet market and preparing the long-term program of operating the newly created or reconstructed port handling complexes.
The plans of the Rosmorport drafting and development department include further construction and development of the navigation safety systems, first of all in the Gulf of Finland in accordance with the undertaken international responsibilities, in Kaliningrad, port of Zhelezny Rog, as well as in Taganrog, Astrakhan, Novorossiysk, Arkhangelsk, Vanino and Murmansk.
Despite the notable expansion of the port infrastructure to meet the increasing turnover of the sea transport, the demand for it keeps growing. According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, lack of the law on seaports to determine the legal principles of seaports functioning is a factor hampering their further development. In this respect there are many urgent unsolved issues related to the new water areas borders and seaports territories, new seaports and separate complexes construction, opening infrastructure objects for general customer access, as well as determining the order of setting and paying the port dues in the conditions of the management system reform.
The land and water legislature needs to be harmonized with the law on seaports in respect to the legal modes of using land and water areas in the process of seaports operation. The discordance between the Water Code and the legislature in the sphere of sea trade navigation has become only to evident.
UP to now the organizations in port business are renting lots largely within the settlement borders. In the light of accepting the law "On transfer of lands from one catergory into another" of 21 December 2004 No 172-FZ the process of registering the ports territories as transport zones needs to be accelerated. At that, basing on the experience of the Morskoy Facade construction on the Vasilyevsky island in St.Petersburg, special attention needs to be paid to the legal status of the inwashed areas. According to the experts, the coastal waters in our country are owned by the state, but none of the laws include the inwashed territories in the land cadastre. In this case the construction of waterworks in legal terms is carried out on water. The European countries have long developed the coastal legislature; so if Russia is striving to attract investments for its port infrastructure projects, ensuring the legal basis should become a priority of the state.
The time has come for the realization of new ideas as to increasing the port operation efficiency and creating highly efficient ports, such as Primorsk, the prospected port in the Perevoznaya bay, facilities in Vysotsk. In this respect the main task of Rosmorport is to provide navigation safety systems in the water areas and their further maintenance. Otherwise there can be no talk of a new strategy, new approach to seaports management and the further infrastructure development. Taking into account the present attention to seaports and the realization of their specificity on all the levels of state government and in the business sector, its time when the new ideas may be conceived and claimed.
It's not so easy
Despite the significance of the Rosmorport achievements in such a short period of operation, not all in the port industry share the optimism in respect to the company's certain administrative authorities and the unrestricted possibility for economic activity, as they believe this put the other port services market participants in unfavourable situation.
The ports chiefs beware of Rosmorport. Of a dozen questioned by "RZD-Partner" companies in the sea transport business and several non-commercial organizations coordinating the port and other bodies" activities, no-one dared to publicly evaluate the Rosmorport's operation results for the first year of its existence, which indicates the important role it plays in the modern transport system.
Summing up the opinions voiced by the market players as incognitos, there outlined the following picture. Creating such an enterprise may entail the restoration of state monopoly for port services. In the long run it may lead to the market monopolization, unfair competition and deteriorated quality of vessels servicing in the Russian seaports. Some hope that the Rosmorport status will be adjusted, the doubling services - eliminated, and Rosmorport will become a truly efficient organization on managing state property in seaports. Others foretell its soon death, as an utterly redundant element of port infrastructure.
The reorganization implies, first of all the concentration of financial potential to be directed on the realization of state programs in the sphere of sea transport, i.e. port infrastructure development, in order to avoid situations when a single port accumulates means excessive for port facilities repair and development. But the financial flows (port dues) centralization by the Rosmorport headquarters leaves the ports administrations unable to control their targeted use and allows for prejudice in respect to these means efficient management. There is a point of view, according to which expropriation of part of the dues of some ports to finance construction of other ports is faulty in its essence, as it cannot but damage the operation and development of the donating port. As a result there emerges the situation of a specific port having no means to maintain its waterworks.
Some in the port business consider the situation when all the means for the waterworks reconstruction, repair and maintenance - port dues, in particular the moorage and vessel ones - are received by the port administration, while the costs for these works are to be born by the renters. Such system does not contribute to the sea transport hubs development and attracting investments, does not ensure due control over the order of levying and spending the port dues. Besides, the Ministry of Transport has not finally determined the status of captains, partly heading the seaports administrations, partly acting independently.
Taking into account that the reform is still under way, it is yet possible to eliminate the faults and flatten the multi-level structure of ports management. But this possibility should not be lost.
Nadezhda Vtorushina
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Former MAPs become AMPs
For almost ten years the Russian commercial ports had been managed by Maritime Administrations (MAPs), founded in 1993. But the analysis of their operation revealed that their legal status has not been accurately defined. As a result they in fact turned into independent economic subjects, only formally remaining state bodies. MAPs became in fact commercial structure, with the only difference - they were operating state property, leaving the profits in accordance with the Civil Code. Thus, the main goal pursued by their founding had not been reached - the function of state control had not been delimitated from (or rather subjected to) economic component of the MAPs activity.
To repair the situation the RF Government and the Ministry of Transport developed a series of administrative steps to improve the system of state management of seaports. The reform was focused on delimitating the administrative authority from the economic functions of subjects, increasing the efficiency of managing the state property in seaports and transfer to real market mechanisms of regulating their operation.
On this ground there was taken the decision to reform MAPs into the Seaports Administrations State Enterprise with no right to run economic operations and state unitary enterprises carrying out the ports property management and carrying out economic activity within the framework of the law, not entering competition with the other enterprises.
The newly founded state unitary enterprises were not profit-oriented in the conditions of competition with private transport operators. They were meant to create favourable, equal and safe conditions for the use of infrastructure, ensure the demands of the economy and the consumers in the yet unprofitable market segments are met, to provide for the state responsibility for the steady and reliable transport operation.
And there comes Rosmorport
In September 2003 in the course of the reform of the system of seaports state management there was founded the State Federal Unitary Enterprise Rosmorport. As is stated in official sources "founding the enterprise is due to objective factors, in particular "the changes in the basics of management in the conditions of market economy, as well as the task set now before Russia of increasing the export-import operations in the seaports operation". By now the reformation process has almost been completed: the ports administrative functions remained with the maritime administrations, while the economic activity on behalf of the state is run by the enterprise and its subsidiaries.
Rosmorport's responsibilities include the maintenance and operation, development and efficient exploitation of the federal property it is in charge of, including the property complex ensuring the navigation safety, and the coordination of operations on creating and developing the transport hubs infrastructure, as well as coordination with the investor companies.
According to the Rosmorport general director Nikolay Negodov, the new body can attract investments for the port infrastructure modernization: "Currently 75% of the Russian export goes via seaports; naturally, its further growth is limited. This means the ports" operation needs to be improved".
To carry out the tasks set before the industry, by forming the Rosmorport subsidiaries there were created services responsible for capital development, repairs, deepening works and the system of traffic guiding. At present almost any large port's cabotage basin has a Rosmorport subsidiary, with the headquarters in Moscow. The first of them was formed in St.Petersburg in February 2004, the last - this February in the Vyborg-Vysotsk basin. There are the total of 25 subsidiaries all over the country from Kaliningrad to Posyet.
Rosmorport is aimed to ensure the stable operation and development of the Russian seaports" infrastructure. The Government has set before the new body important state tasks related to the international agreements requirements. As commented the Rosmorport deputy general director Gennady Batalin, the enterprise is to provide all vessels irrespective of their flag a complex of various services, offer the best possible conditions of navigation safety in the seaports" water areas, in particular to carry out the deepening works to maintain the necessary depths in the water areas, on the roadsteads and in the approach channels. One of the major activities is the realization of the East-West and North-South transport corridors program being part of the Federal Target Program of the Russian transport complex modernization.
No time has been lost
At present the Rosmorport is in charge of property for 11,7 bln. rubles, including over 700 waterworks, 190 transport, auxiliary and technical ships, as well as linear and port diesel ice breakers, 20 coastal stations of the emergency notification global system and 12 systems of traffic guidance.
The best results were achieved lat year in the North-Western basin, where the ports turnover increased against 2003 by 47%. The St.Petersburg subsidiary was responsible last year for the major share of revenue received by Rosmorport in the amount of 2,1 bln. rubles or 41,2%. The Rosmorport general director Nikolay Negodov said by 2010 the company's turnover may reach 500 mln.tons.
According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, the Russian seaports" turnover in January-February 2005 grew by 120,4%; the demand for the modern fleet to serve the transport vessels in seaports and around them, the quality navigation safety system keeps growing accordingly. Rosmorport calculated that for the period of 2006-2015 it would need 157 of technical fleet units.
In 2004 Rosmorport carried out the construction of the second stage of the navigation safety regional system in the Eastern part of the Gulf of Finland. At present the construction-assembling works for locating the electronic equipment on the islands of Seskar, Sommers and Gogland are nearly completed.
Rosmorport is developing the system of vessels guidance in the region of the Strait of Kerch, in the Murmansk Commercial Seaport vicinity; it plans the systems modernization in the regions of Arkhangelsk and Astrakhan seaports and creating the system in the port of Sochi.
Moreover, taking into account the significance of approach channels and the operational zones in the ports water areas, special attention is being paid to maintaining their dimensions. In this relation last year there were carried out the repair scooping works of 6,4 mln.cub.m.; the deepening works of 5 mln.cub.m. as part of the St.Petersburg, Kaliningrad, Ust-Luga and Astrakhan channels construction and reconstruction.
As commented the Rosmorport deputy general director Gennady Batalin, the realization of the state transport policy in respect to developing ferry communication was an important Rosmorport activity in 2004. In particular, the organization of regular transport communication with the Kaliningrad oblast. By now Baltiysk has become a full-value cargo-passenger ferry complex, a link between the ports of the Kaliningrad oblast and St.Petersburg. During the 2004 navigation the "Georg Ots" ferry vessel on the cargo-passenger ferry line St.Petersburg - Kaliningrad carried 7 360 of passengers and 2 100 t. of cargoes. The revenue from the cargo-passenger transportation in 2004 amounted to 25,6 mln.rubles.
According to the Rosmorport drafting and development department, the work on organizing ferry communication between the ports of Germany, Ust-Luga and Baltiysk is still under way. In 2004 the Baltiysk complex received 310 mln.rubles of budget funding, Ust-Luga - 900 mln.rubles.
Another focus was on the construction of connecting and internal port railway lines for the Olya port, commissioned in July 2004; the construction of the railway ferry complex in the port of Kavkaz, new port near the cape of Zhelezny Rog, completing the construction of berth No 106 in the port of St.Petersburg, that required 216,9 mln.rubles of investment.
The further increase of the cargo turnover requires the constant development of the operational basis, first of all the ice breaking fleet. At present Rosmorport has 20 ice breakers, 12 of them are the company's own. This amount is insufficient, as evinces from the tendency of the turnover increase. Therefore Rosmorport announced a tender and chose the Baltiysky Zavod shipyard to construct for the company 2 ice breakers (the shipyard has received 250 mln. rubles for the construction of the first diesel electric ice breaker). They would allow to ensure the vessels safe traveling, of large-capacity tankers in particular, in the Gulf of Finland. In January-February 2005 the ports of Primorsk and Vysotsk increased their turnover by 59,9% and 183,7% respectively.
Enough to do in 2005
This year Rosmorport will have no rest as well. The company plans to develop the multi-purpose cargo-passenger ferry project Ust-Luga - Baltiysk - German ports. In 2006 the construction of the first complex of the ferry bridge is to be completed, for which the federal budget allotted 900 mln.rubles to Ust-Luga and 539 mln.rubles to Baltiysk.
Another project is the first state of the Olya Commercial Seaport. Opening the approach railway line and the by-port station will allow to increase the turnover of the existing handling facilities. Rosmorport is working on attracting investors for the internal port infrastructure creation and development.
In 2005 there will be continued the construction of the port near the cape of Zhelezny Rog. The complex on handling liquid ammonia is to be commissioned; another task is to attract investors for the oil and oil products handling capacities construction.
The St.Petersburg main navigation channel awaits reconstruction; there is to be designed and constructed the passenger terminal on the Valilyevsky island, that would allow to serve large cruise liners of over 200 m. long and up to 3 th. passengers capacity. The complex will be capable of serving over 1100 vessels a year, with the estimated passenger throughput of 2 mln. people a year. The project of the federal target investment program for 2005 provides for 600 mln. rubles for the construction of the approach channel to the terminal.
The Rosmorport experts are studying the deepening fleet market and preparing the long-term program of operating the newly created or reconstructed port handling complexes.
The plans of the Rosmorport drafting and development department include further construction and development of the navigation safety systems, first of all in the Gulf of Finland in accordance with the undertaken international responsibilities, in Kaliningrad, port of Zhelezny Rog, as well as in Taganrog, Astrakhan, Novorossiysk, Arkhangelsk, Vanino and Murmansk.
Despite the notable expansion of the port infrastructure to meet the increasing turnover of the sea transport, the demand for it keeps growing. According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, lack of the law on seaports to determine the legal principles of seaports functioning is a factor hampering their further development. In this respect there are many urgent unsolved issues related to the new water areas borders and seaports territories, new seaports and separate complexes construction, opening infrastructure objects for general customer access, as well as determining the order of setting and paying the port dues in the conditions of the management system reform.
The land and water legislature needs to be harmonized with the law on seaports in respect to the legal modes of using land and water areas in the process of seaports operation. The discordance between the Water Code and the legislature in the sphere of sea trade navigation has become only to evident.
UP to now the organizations in port business are renting lots largely within the settlement borders. In the light of accepting the law "On transfer of lands from one catergory into another" of 21 December 2004 No 172-FZ the process of registering the ports territories as transport zones needs to be accelerated. At that, basing on the experience of the Morskoy Facade construction on the Vasilyevsky island in St.Petersburg, special attention needs to be paid to the legal status of the inwashed areas. According to the experts, the coastal waters in our country are owned by the state, but none of the laws include the inwashed territories in the land cadastre. In this case the construction of waterworks in legal terms is carried out on water. The European countries have long developed the coastal legislature; so if Russia is striving to attract investments for its port infrastructure projects, ensuring the legal basis should become a priority of the state.
The time has come for the realization of new ideas as to increasing the port operation efficiency and creating highly efficient ports, such as Primorsk, the prospected port in the Perevoznaya bay, facilities in Vysotsk. In this respect the main task of Rosmorport is to provide navigation safety systems in the water areas and their further maintenance. Otherwise there can be no talk of a new strategy, new approach to seaports management and the further infrastructure development. Taking into account the present attention to seaports and the realization of their specificity on all the levels of state government and in the business sector, its time when the new ideas may be conceived and claimed.
It's not so easy
Despite the significance of the Rosmorport achievements in such a short period of operation, not all in the port industry share the optimism in respect to the company's certain administrative authorities and the unrestricted possibility for economic activity, as they believe this put the other port services market participants in unfavourable situation.
The ports chiefs beware of Rosmorport. Of a dozen questioned by "RZD-Partner" companies in the sea transport business and several non-commercial organizations coordinating the port and other bodies" activities, no-one dared to publicly evaluate the Rosmorport's operation results for the first year of its existence, which indicates the important role it plays in the modern transport system.
Summing up the opinions voiced by the market players as incognitos, there outlined the following picture. Creating such an enterprise may entail the restoration of state monopoly for port services. In the long run it may lead to the market monopolization, unfair competition and deteriorated quality of vessels servicing in the Russian seaports. Some hope that the Rosmorport status will be adjusted, the doubling services - eliminated, and Rosmorport will become a truly efficient organization on managing state property in seaports. Others foretell its soon death, as an utterly redundant element of port infrastructure.
The reorganization implies, first of all the concentration of financial potential to be directed on the realization of state programs in the sphere of sea transport, i.e. port infrastructure development, in order to avoid situations when a single port accumulates means excessive for port facilities repair and development. But the financial flows (port dues) centralization by the Rosmorport headquarters leaves the ports administrations unable to control their targeted use and allows for prejudice in respect to these means efficient management. There is a point of view, according to which expropriation of part of the dues of some ports to finance construction of other ports is faulty in its essence, as it cannot but damage the operation and development of the donating port. As a result there emerges the situation of a specific port having no means to maintain its waterworks.
Some in the port business consider the situation when all the means for the waterworks reconstruction, repair and maintenance - port dues, in particular the moorage and vessel ones - are received by the port administration, while the costs for these works are to be born by the renters. Such system does not contribute to the sea transport hubs development and attracting investments, does not ensure due control over the order of levying and spending the port dues. Besides, the Ministry of Transport has not finally determined the status of captains, partly heading the seaports administrations, partly acting independently.
Taking into account that the reform is still under way, it is yet possible to eliminate the faults and flatten the multi-level structure of ports management. But this possibility should not be lost.
Nadezhda Vtorushina
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Former MAPs become AMPs
For almost ten years the Russian commercial ports had been managed by Maritime Administrations (MAPs), founded in 1993. But the analysis of their operation revealed that their legal status has not been accurately defined. As a result they in fact turned into independent economic subjects, only formally remaining state bodies. MAPs became in fact commercial structure, with the only difference - they were operating state property, leaving the profits in accordance with the Civil Code. Thus, the main goal pursued by their founding had not been reached - the function of state control had not been delimitated from (or rather subjected to) economic component of the MAPs activity.
To repair the situation the RF Government and the Ministry of Transport developed a series of administrative steps to improve the system of state management of seaports. The reform was focused on delimitating the administrative authority from the economic functions of subjects, increasing the efficiency of managing the state property in seaports and transfer to real market mechanisms of regulating their operation.
On this ground there was taken the decision to reform MAPs into the Seaports Administrations State Enterprise with no right to run economic operations and state unitary enterprises carrying out the ports property management and carrying out economic activity within the framework of the law, not entering competition with the other enterprises.
The newly founded state unitary enterprises were not profit-oriented in the conditions of competition with private transport operators. They were meant to create favourable, equal and safe conditions for the use of infrastructure, ensure the demands of the economy and the consumers in the yet unprofitable market segments are met, to provide for the state responsibility for the steady and reliable transport operation.
And there comes Rosmorport
In September 2003 in the course of the reform of the system of seaports state management there was founded the State Federal Unitary Enterprise Rosmorport. As is stated in official sources "founding the enterprise is due to objective factors, in particular "the changes in the basics of management in the conditions of market economy, as well as the task set now before Russia of increasing the export-import operations in the seaports operation". By now the reformation process has almost been completed: the ports administrative functions remained with the maritime administrations, while the economic activity on behalf of the state is run by the enterprise and its subsidiaries.
Rosmorport's responsibilities include the maintenance and operation, development and efficient exploitation of the federal property it is in charge of, including the property complex ensuring the navigation safety, and the coordination of operations on creating and developing the transport hubs infrastructure, as well as coordination with the investor companies.
According to the Rosmorport general director Nikolay Negodov, the new body can attract investments for the port infrastructure modernization: "Currently 75% of the Russian export goes via seaports; naturally, its further growth is limited. This means the ports" operation needs to be improved".
To carry out the tasks set before the industry, by forming the Rosmorport subsidiaries there were created services responsible for capital development, repairs, deepening works and the system of traffic guiding. At present almost any large port's cabotage basin has a Rosmorport subsidiary, with the headquarters in Moscow. The first of them was formed in St.Petersburg in February 2004, the last - this February in the Vyborg-Vysotsk basin. There are the total of 25 subsidiaries all over the country from Kaliningrad to Posyet.
Rosmorport is aimed to ensure the stable operation and development of the Russian seaports" infrastructure. The Government has set before the new body important state tasks related to the international agreements requirements. As commented the Rosmorport deputy general director Gennady Batalin, the enterprise is to provide all vessels irrespective of their flag a complex of various services, offer the best possible conditions of navigation safety in the seaports" water areas, in particular to carry out the deepening works to maintain the necessary depths in the water areas, on the roadsteads and in the approach channels. One of the major activities is the realization of the East-West and North-South transport corridors program being part of the Federal Target Program of the Russian transport complex modernization.
No time has been lost
At present the Rosmorport is in charge of property for 11,7 bln. rubles, including over 700 waterworks, 190 transport, auxiliary and technical ships, as well as linear and port diesel ice breakers, 20 coastal stations of the emergency notification global system and 12 systems of traffic guidance.
The best results were achieved lat year in the North-Western basin, where the ports turnover increased against 2003 by 47%. The St.Petersburg subsidiary was responsible last year for the major share of revenue received by Rosmorport in the amount of 2,1 bln. rubles or 41,2%. The Rosmorport general director Nikolay Negodov said by 2010 the company's turnover may reach 500 mln.tons.
According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, the Russian seaports" turnover in January-February 2005 grew by 120,4%; the demand for the modern fleet to serve the transport vessels in seaports and around them, the quality navigation safety system keeps growing accordingly. Rosmorport calculated that for the period of 2006-2015 it would need 157 of technical fleet units.
In 2004 Rosmorport carried out the construction of the second stage of the navigation safety regional system in the Eastern part of the Gulf of Finland. At present the construction-assembling works for locating the electronic equipment on the islands of Seskar, Sommers and Gogland are nearly completed.
Rosmorport is developing the system of vessels guidance in the region of the Strait of Kerch, in the Murmansk Commercial Seaport vicinity; it plans the systems modernization in the regions of Arkhangelsk and Astrakhan seaports and creating the system in the port of Sochi.
Moreover, taking into account the significance of approach channels and the operational zones in the ports water areas, special attention is being paid to maintaining their dimensions. In this relation last year there were carried out the repair scooping works of 6,4 mln.cub.m.; the deepening works of 5 mln.cub.m. as part of the St.Petersburg, Kaliningrad, Ust-Luga and Astrakhan channels construction and reconstruction.
As commented the Rosmorport deputy general director Gennady Batalin, the realization of the state transport policy in respect to developing ferry communication was an important Rosmorport activity in 2004. In particular, the organization of regular transport communication with the Kaliningrad oblast. By now Baltiysk has become a full-value cargo-passenger ferry complex, a link between the ports of the Kaliningrad oblast and St.Petersburg. During the 2004 navigation the "Georg Ots" ferry vessel on the cargo-passenger ferry line St.Petersburg - Kaliningrad carried 7 360 of passengers and 2 100 t. of cargoes. The revenue from the cargo-passenger transportation in 2004 amounted to 25,6 mln.rubles.
According to the Rosmorport drafting and development department, the work on organizing ferry communication between the ports of Germany, Ust-Luga and Baltiysk is still under way. In 2004 the Baltiysk complex received 310 mln.rubles of budget funding, Ust-Luga - 900 mln.rubles.
Another focus was on the construction of connecting and internal port railway lines for the Olya port, commissioned in July 2004; the construction of the railway ferry complex in the port of Kavkaz, new port near the cape of Zhelezny Rog, completing the construction of berth No 106 in the port of St.Petersburg, that required 216,9 mln.rubles of investment.
The further increase of the cargo turnover requires the constant development of the operational basis, first of all the ice breaking fleet. At present Rosmorport has 20 ice breakers, 12 of them are the company's own. This amount is insufficient, as evinces from the tendency of the turnover increase. Therefore Rosmorport announced a tender and chose the Baltiysky Zavod shipyard to construct for the company 2 ice breakers (the shipyard has received 250 mln. rubles for the construction of the first diesel electric ice breaker). They would allow to ensure the vessels safe traveling, of large-capacity tankers in particular, in the Gulf of Finland. In January-February 2005 the ports of Primorsk and Vysotsk increased their turnover by 59,9% and 183,7% respectively.
Enough to do in 2005
This year Rosmorport will have no rest as well. The company plans to develop the multi-purpose cargo-passenger ferry project Ust-Luga - Baltiysk - German ports. In 2006 the construction of the first complex of the ferry bridge is to be completed, for which the federal budget allotted 900 mln.rubles to Ust-Luga and 539 mln.rubles to Baltiysk.
Another project is the first state of the Olya Commercial Seaport. Opening the approach railway line and the by-port station will allow to increase the turnover of the existing handling facilities. Rosmorport is working on attracting investors for the internal port infrastructure creation and development.
In 2005 there will be continued the construction of the port near the cape of Zhelezny Rog. The complex on handling liquid ammonia is to be commissioned; another task is to attract investors for the oil and oil products handling capacities construction.
The St.Petersburg main navigation channel awaits reconstruction; there is to be designed and constructed the passenger terminal on the Valilyevsky island, that would allow to serve large cruise liners of over 200 m. long and up to 3 th. passengers capacity. The complex will be capable of serving over 1100 vessels a year, with the estimated passenger throughput of 2 mln. people a year. The project of the federal target investment program for 2005 provides for 600 mln. rubles for the construction of the approach channel to the terminal.
The Rosmorport experts are studying the deepening fleet market and preparing the long-term program of operating the newly created or reconstructed port handling complexes.
The plans of the Rosmorport drafting and development department include further construction and development of the navigation safety systems, first of all in the Gulf of Finland in accordance with the undertaken international responsibilities, in Kaliningrad, port of Zhelezny Rog, as well as in Taganrog, Astrakhan, Novorossiysk, Arkhangelsk, Vanino and Murmansk.
Despite the notable expansion of the port infrastructure to meet the increasing turnover of the sea transport, the demand for it keeps growing. According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, lack of the law on seaports to determine the legal principles of seaports functioning is a factor hampering their further development. In this respect there are many urgent unsolved issues related to the new water areas borders and seaports territories, new seaports and separate complexes construction, opening infrastructure objects for general customer access, as well as determining the order of setting and paying the port dues in the conditions of the management system reform.
The land and water legislature needs to be harmonized with the law on seaports in respect to the legal modes of using land and water areas in the process of seaports operation. The discordance between the Water Code and the legislature in the sphere of sea trade navigation has become only to evident.
UP to now the organizations in port business are renting lots largely within the settlement borders. In the light of accepting the law "On transfer of lands from one catergory into another" of 21 December 2004 No 172-FZ the process of registering the ports territories as transport zones needs to be accelerated. At that, basing on the experience of the Morskoy Facade construction on the Vasilyevsky island in St.Petersburg, special attention needs to be paid to the legal status of the inwashed areas. According to the experts, the coastal waters in our country are owned by the state, but none of the laws include the inwashed territories in the land cadastre. In this case the construction of waterworks in legal terms is carried out on water. The European countries have long developed the coastal legislature; so if Russia is striving to attract investments for its port infrastructure projects, ensuring the legal basis should become a priority of the state.
The time has come for the realization of new ideas as to increasing the port operation efficiency and creating highly efficient ports, such as Primorsk, the prospected port in the Perevoznaya bay, facilities in Vysotsk. In this respect the main task of Rosmorport is to provide navigation safety systems in the water areas and their further maintenance. Otherwise there can be no talk of a new strategy, new approach to seaports management and the further infrastructure development. Taking into account the present attention to seaports and the realization of their specificity on all the levels of state government and in the business sector, its time when the new ideas may be conceived and claimed.
It's not so easy
Despite the significance of the Rosmorport achievements in such a short period of operation, not all in the port industry share the optimism in respect to the company's certain administrative authorities and the unrestricted possibility for economic activity, as they believe this put the other port services market participants in unfavourable situation.
The ports chiefs beware of Rosmorport. Of a dozen questioned by "RZD-Partner" companies in the sea transport business and several non-commercial organizations coordinating the port and other bodies" activities, no-one dared to publicly evaluate the Rosmorport's operation results for the first year of its existence, which indicates the important role it plays in the modern transport system.
Summing up the opinions voiced by the market players as incognitos, there outlined the following picture. Creating such an enterprise may entail the restoration of state monopoly for port services. In the long run it may lead to the market monopolization, unfair competition and deteriorated quality of vessels servicing in the Russian seaports. Some hope that the Rosmorport status will be adjusted, the doubling services - eliminated, and Rosmorport will become a truly efficient organization on managing state property in seaports. Others foretell its soon death, as an utterly redundant element of port infrastructure.
The reorganization implies, first of all the concentration of financial potential to be directed on the realization of state programs in the sphere of sea transport, i.e. port infrastructure development, in order to avoid situations when a single port accumulates means excessive for port facilities repair and development. But the financial flows (port dues) centralization by the Rosmorport headquarters leaves the ports administrations unable to control their targeted use and allows for prejudice in respect to these means efficient management. There is a point of view, according to which expropriation of part of the dues of some ports to finance construction of other ports is faulty in its essence, as it cannot but damage the operation and development of the donating port. As a result there emerges the situation of a specific port having no means to maintain its waterworks.
Some in the port business consider the situation when all the means for the waterworks reconstruction, repair and maintenance - port dues, in particular the moorage and vessel ones - are received by the port administration, while the costs for these works are to be born by the renters. Such system does not contribute to the sea transport hubs development and attracting investments, does not ensure due control over the order of levying and spending the port dues. Besides, the Ministry of Transport has not finally determined the status of captains, partly heading the seaports administrations, partly acting independently.
Taking into account that the reform is still under way, it is yet possible to eliminate the faults and flatten the multi-level structure of ports management. But this possibility should not be lost.
Nadezhda Vtorushina
[~DETAIL_TEXT] =>
Former MAPs become AMPs
For almost ten years the Russian commercial ports had been managed by Maritime Administrations (MAPs), founded in 1993. But the analysis of their operation revealed that their legal status has not been accurately defined. As a result they in fact turned into independent economic subjects, only formally remaining state bodies. MAPs became in fact commercial structure, with the only difference - they were operating state property, leaving the profits in accordance with the Civil Code. Thus, the main goal pursued by their founding had not been reached - the function of state control had not been delimitated from (or rather subjected to) economic component of the MAPs activity.
To repair the situation the RF Government and the Ministry of Transport developed a series of administrative steps to improve the system of state management of seaports. The reform was focused on delimitating the administrative authority from the economic functions of subjects, increasing the efficiency of managing the state property in seaports and transfer to real market mechanisms of regulating their operation.
On this ground there was taken the decision to reform MAPs into the Seaports Administrations State Enterprise with no right to run economic operations and state unitary enterprises carrying out the ports property management and carrying out economic activity within the framework of the law, not entering competition with the other enterprises.
The newly founded state unitary enterprises were not profit-oriented in the conditions of competition with private transport operators. They were meant to create favourable, equal and safe conditions for the use of infrastructure, ensure the demands of the economy and the consumers in the yet unprofitable market segments are met, to provide for the state responsibility for the steady and reliable transport operation.
And there comes Rosmorport
In September 2003 in the course of the reform of the system of seaports state management there was founded the State Federal Unitary Enterprise Rosmorport. As is stated in official sources "founding the enterprise is due to objective factors, in particular "the changes in the basics of management in the conditions of market economy, as well as the task set now before Russia of increasing the export-import operations in the seaports operation". By now the reformation process has almost been completed: the ports administrative functions remained with the maritime administrations, while the economic activity on behalf of the state is run by the enterprise and its subsidiaries.
Rosmorport's responsibilities include the maintenance and operation, development and efficient exploitation of the federal property it is in charge of, including the property complex ensuring the navigation safety, and the coordination of operations on creating and developing the transport hubs infrastructure, as well as coordination with the investor companies.
According to the Rosmorport general director Nikolay Negodov, the new body can attract investments for the port infrastructure modernization: "Currently 75% of the Russian export goes via seaports; naturally, its further growth is limited. This means the ports" operation needs to be improved".
To carry out the tasks set before the industry, by forming the Rosmorport subsidiaries there were created services responsible for capital development, repairs, deepening works and the system of traffic guiding. At present almost any large port's cabotage basin has a Rosmorport subsidiary, with the headquarters in Moscow. The first of them was formed in St.Petersburg in February 2004, the last - this February in the Vyborg-Vysotsk basin. There are the total of 25 subsidiaries all over the country from Kaliningrad to Posyet.
Rosmorport is aimed to ensure the stable operation and development of the Russian seaports" infrastructure. The Government has set before the new body important state tasks related to the international agreements requirements. As commented the Rosmorport deputy general director Gennady Batalin, the enterprise is to provide all vessels irrespective of their flag a complex of various services, offer the best possible conditions of navigation safety in the seaports" water areas, in particular to carry out the deepening works to maintain the necessary depths in the water areas, on the roadsteads and in the approach channels. One of the major activities is the realization of the East-West and North-South transport corridors program being part of the Federal Target Program of the Russian transport complex modernization.
No time has been lost
At present the Rosmorport is in charge of property for 11,7 bln. rubles, including over 700 waterworks, 190 transport, auxiliary and technical ships, as well as linear and port diesel ice breakers, 20 coastal stations of the emergency notification global system and 12 systems of traffic guidance.
The best results were achieved lat year in the North-Western basin, where the ports turnover increased against 2003 by 47%. The St.Petersburg subsidiary was responsible last year for the major share of revenue received by Rosmorport in the amount of 2,1 bln. rubles or 41,2%. The Rosmorport general director Nikolay Negodov said by 2010 the company's turnover may reach 500 mln.tons.
According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, the Russian seaports" turnover in January-February 2005 grew by 120,4%; the demand for the modern fleet to serve the transport vessels in seaports and around them, the quality navigation safety system keeps growing accordingly. Rosmorport calculated that for the period of 2006-2015 it would need 157 of technical fleet units.
In 2004 Rosmorport carried out the construction of the second stage of the navigation safety regional system in the Eastern part of the Gulf of Finland. At present the construction-assembling works for locating the electronic equipment on the islands of Seskar, Sommers and Gogland are nearly completed.
Rosmorport is developing the system of vessels guidance in the region of the Strait of Kerch, in the Murmansk Commercial Seaport vicinity; it plans the systems modernization in the regions of Arkhangelsk and Astrakhan seaports and creating the system in the port of Sochi.
Moreover, taking into account the significance of approach channels and the operational zones in the ports water areas, special attention is being paid to maintaining their dimensions. In this relation last year there were carried out the repair scooping works of 6,4 mln.cub.m.; the deepening works of 5 mln.cub.m. as part of the St.Petersburg, Kaliningrad, Ust-Luga and Astrakhan channels construction and reconstruction.
As commented the Rosmorport deputy general director Gennady Batalin, the realization of the state transport policy in respect to developing ferry communication was an important Rosmorport activity in 2004. In particular, the organization of regular transport communication with the Kaliningrad oblast. By now Baltiysk has become a full-value cargo-passenger ferry complex, a link between the ports of the Kaliningrad oblast and St.Petersburg. During the 2004 navigation the "Georg Ots" ferry vessel on the cargo-passenger ferry line St.Petersburg - Kaliningrad carried 7 360 of passengers and 2 100 t. of cargoes. The revenue from the cargo-passenger transportation in 2004 amounted to 25,6 mln.rubles.
According to the Rosmorport drafting and development department, the work on organizing ferry communication between the ports of Germany, Ust-Luga and Baltiysk is still under way. In 2004 the Baltiysk complex received 310 mln.rubles of budget funding, Ust-Luga - 900 mln.rubles.
Another focus was on the construction of connecting and internal port railway lines for the Olya port, commissioned in July 2004; the construction of the railway ferry complex in the port of Kavkaz, new port near the cape of Zhelezny Rog, completing the construction of berth No 106 in the port of St.Petersburg, that required 216,9 mln.rubles of investment.
The further increase of the cargo turnover requires the constant development of the operational basis, first of all the ice breaking fleet. At present Rosmorport has 20 ice breakers, 12 of them are the company's own. This amount is insufficient, as evinces from the tendency of the turnover increase. Therefore Rosmorport announced a tender and chose the Baltiysky Zavod shipyard to construct for the company 2 ice breakers (the shipyard has received 250 mln. rubles for the construction of the first diesel electric ice breaker). They would allow to ensure the vessels safe traveling, of large-capacity tankers in particular, in the Gulf of Finland. In January-February 2005 the ports of Primorsk and Vysotsk increased their turnover by 59,9% and 183,7% respectively.
Enough to do in 2005
This year Rosmorport will have no rest as well. The company plans to develop the multi-purpose cargo-passenger ferry project Ust-Luga - Baltiysk - German ports. In 2006 the construction of the first complex of the ferry bridge is to be completed, for which the federal budget allotted 900 mln.rubles to Ust-Luga and 539 mln.rubles to Baltiysk.
Another project is the first state of the Olya Commercial Seaport. Opening the approach railway line and the by-port station will allow to increase the turnover of the existing handling facilities. Rosmorport is working on attracting investors for the internal port infrastructure creation and development.
In 2005 there will be continued the construction of the port near the cape of Zhelezny Rog. The complex on handling liquid ammonia is to be commissioned; another task is to attract investors for the oil and oil products handling capacities construction.
The St.Petersburg main navigation channel awaits reconstruction; there is to be designed and constructed the passenger terminal on the Valilyevsky island, that would allow to serve large cruise liners of over 200 m. long and up to 3 th. passengers capacity. The complex will be capable of serving over 1100 vessels a year, with the estimated passenger throughput of 2 mln. people a year. The project of the federal target investment program for 2005 provides for 600 mln. rubles for the construction of the approach channel to the terminal.
The Rosmorport experts are studying the deepening fleet market and preparing the long-term program of operating the newly created or reconstructed port handling complexes.
The plans of the Rosmorport drafting and development department include further construction and development of the navigation safety systems, first of all in the Gulf of Finland in accordance with the undertaken international responsibilities, in Kaliningrad, port of Zhelezny Rog, as well as in Taganrog, Astrakhan, Novorossiysk, Arkhangelsk, Vanino and Murmansk.
Despite the notable expansion of the port infrastructure to meet the increasing turnover of the sea transport, the demand for it keeps growing. According to the Department of State Policy in Respect to the Railway, Sea and River Transport of the RF Ministry of Transport, lack of the law on seaports to determine the legal principles of seaports functioning is a factor hampering their further development. In this respect there are many urgent unsolved issues related to the new water areas borders and seaports territories, new seaports and separate complexes construction, opening infrastructure objects for general customer access, as well as determining the order of setting and paying the port dues in the conditions of the management system reform.
The land and water legislature needs to be harmonized with the law on seaports in respect to the legal modes of using land and water areas in the process of seaports operation. The discordance between the Water Code and the legislature in the sphere of sea trade navigation has become only to evident.
UP to now the organizations in port business are renting lots largely within the settlement borders. In the light of accepting the law "On transfer of lands from one catergory into another" of 21 December 2004 No 172-FZ the process of registering the ports territories as transport zones needs to be accelerated. At that, basing on the experience of the Morskoy Facade construction on the Vasilyevsky island in St.Petersburg, special attention needs to be paid to the legal status of the inwashed areas. According to the experts, the coastal waters in our country are owned by the state, but none of the laws include the inwashed territories in the land cadastre. In this case the construction of waterworks in legal terms is carried out on water. The European countries have long developed the coastal legislature; so if Russia is striving to attract investments for its port infrastructure projects, ensuring the legal basis should become a priority of the state.
The time has come for the realization of new ideas as to increasing the port operation efficiency and creating highly efficient ports, such as Primorsk, the prospected port in the Perevoznaya bay, facilities in Vysotsk. In this respect the main task of Rosmorport is to provide navigation safety systems in the water areas and their further maintenance. Otherwise there can be no talk of a new strategy, new approach to seaports management and the further infrastructure development. Taking into account the present attention to seaports and the realization of their specificity on all the levels of state government and in the business sector, its time when the new ideas may be conceived and claimed.
It's not so easy
Despite the significance of the Rosmorport achievements in such a short period of operation, not all in the port industry share the optimism in respect to the company's certain administrative authorities and the unrestricted possibility for economic activity, as they believe this put the other port services market participants in unfavourable situation.
The ports chiefs beware of Rosmorport. Of a dozen questioned by "RZD-Partner" companies in the sea transport business and several non-commercial organizations coordinating the port and other bodies" activities, no-one dared to publicly evaluate the Rosmorport's operation results for the first year of its existence, which indicates the important role it plays in the modern transport system.
Summing up the opinions voiced by the market players as incognitos, there outlined the following picture. Creating such an enterprise may entail the restoration of state monopoly for port services. In the long run it may lead to the market monopolization, unfair competition and deteriorated quality of vessels servicing in the Russian seaports. Some hope that the Rosmorport status will be adjusted, the doubling services - eliminated, and Rosmorport will become a truly efficient organization on managing state property in seaports. Others foretell its soon death, as an utterly redundant element of port infrastructure.
The reorganization implies, first of all the concentration of financial potential to be directed on the realization of state programs in the sphere of sea transport, i.e. port infrastructure development, in order to avoid situations when a single port accumulates means excessive for port facilities repair and development. But the financial flows (port dues) centralization by the Rosmorport headquarters leaves the ports administrations unable to control their targeted use and allows for prejudice in respect to these means efficient management. There is a point of view, according to which expropriation of part of the dues of some ports to finance construction of other ports is faulty in its essence, as it cannot but damage the operation and development of the donating port. As a result there emerges the situation of a specific port having no means to maintain its waterworks.
Some in the port business consider the situation when all the means for the waterworks reconstruction, repair and maintenance - port dues, in particular the moorage and vessel ones - are received by the port administration, while the costs for these works are to be born by the renters. Such system does not contribute to the sea transport hubs development and attracting investments, does not ensure due control over the order of levying and spending the port dues. Besides, the Ministry of Transport has not finally determined the status of captains, partly heading the seaports administrations, partly acting independently.
Taking into account that the reform is still under way, it is yet possible to eliminate the faults and flatten the multi-level structure of ports management. But this possibility should not be lost.
Nadezhda Vtorushina
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[DETAIL_TEXT] => Mrs. Anna Belova, the corporation's Vice President, announced that OAO RZD was going to found up to 30 new subsidiaries with various functions, on April 20 in her report at the session of the corporation's Administration, which was devoted to the structural reform of railway transport.
The reform is now in its second stage that is being carried out in 2003-2005.
Mrs. Anna Belova reminded that according to the Programme for the structural reform of railway transport, "the second stage of the reform is aimed at strengthening the competition in freight transport, reducing cross-financing of passenger traffic, better organizing the functions of the Federal executive bodies that regulate transport, and creating subsidiaries of Russian Railways that will provide services in suburban traffic and other fields'.
The Vice President informed that 22 out of 32 actions planned for 2003-2005 have been completed, and 7 actions that are to be completed in 2005 are in the process.
"Due to some objective reasons 3 actions that had been planned to be completed in 2004 are still in the process, namely: business accounting of the corporation, the foundation of the Federal passenger company, and the organisation of operation of Petropavlovsk branch of the Southern-Ural railroad', said Mrs. Anna Belova.
In the course of the reform, the corporation has prepared over 35 basic administrative documents and drafts of 15 standard documents, which have to be approved by the Government. Unfortunately, only 4 out of those standard documents have been approved by the Government, the rest are still under consideration, 8 of them being not yet approved by the Federal authorities.
It was pointed out at the corporation's Administration session that without those standard documents it would be very hard to establish real carriers and develop competition in passenger and freight traffic.
OAO RZD has provided all necessary arrangements for equal access of independent carriers to the services offered to the owners of the infrastructure of generals use railway transport, and is actively creating subsidiaries on the basis of the property of its structural branches open to competition.
"We plan to found 15 subsidiaries already in the first half of 2005', said Mrs. Anna Belova.
At the same time, OAO RZD public corporation is realizing programmes aimed at developing the corporation's market potential, improving its corporate management system, and making it more attractive for investors. This will reduce the risk associated with the reform due to creating stronger competition, losing highly profitable market segments, and inevitable growth of expenses because of appearance of many independent juridical persons.
New vessels for Ukrrechflot
Ukrainian Ukrrechflot will build 4 dry cargo carriers, a tug and several barges with the payload of 10 000 tons before 2009.
The construction will involve several national plants in different regions. The program costs $30m. Apart from that the shipping company will spend UAH300m on ship repair. There is another newbuilding program: before 2006 Ukrrechflot wants to build 3 Bug type ships and six more Bugs before 2008. Bug has dwt of 6300 tons, draught - 4.67m. The universal ship is one of the biggest among river projects.
KAMAZ Inc. Reinforces its Dealer Network in Ukraine
Every forth truck marketed in CIS countries is purchased in the Ukraine. In 2004 KAMAZ Inc. sold 1 461 trucks in that country and that is by two times more vs. 2003.
The Company increased its spare parts sales volume by 1.6 times valued 466 million roubles. These numbers were given on the meeting of Ukrainian dealers of KAMAZ Inc., which was held in Naberezhnye Chelny.
According to 2004 results the best Ukrainian companies are Evroskladservis Ltd., a group of enterprises AVTEK, the Trade House KAMAZ and Agro-Soyuz Ltd.
The Director general of KAMAZ Inc. announced on the meeting that since 2005 the Company proceeds (pass) to another cooperating scheme with its Ukrainian dealers. Firstly, each of the dealer is introduced a plan following which it is guaranteed to remain the Company's official dealer for a year more. Secondly, every KAMAZ dealer should have its own service center. Type design of service centers was represented on the meeting.
KAMAZ Inc. also plans to build up depots for spare parts on the territory of the Ukraine to facilitate the process of spare parts acquiring. In total, this all provides for a high service quality for KAMAZ customers.
As to KAMAZ Inc. current year targets it was announced on the meeting that the Ukrainian market may contain 1500 trucks valued 1 milliard 320 million rubles and spare parts valued 550 million rubles. KAMAZ trucks sales share on the Ukrainian domestic market is planned to increase up to 35%.
Northern Line Is Open
More than 40 ths. tones of coal was shipped by First Handling Terminal of Vostochny Port JSC on Vessels providing Northern ports.
This year, the first vessels rising for loading in Vostochny Port within the Northern line were `Zolotay Kolyma` - 27,7 thousand tones of coal on Magadan and `Kapitan Shevchenko` which will deliver to Petropavlovsk - Kamchatsky 13 thousand tones of coal.
As a whole, for period of northern navigation, which will be prolonged till September, Vostochny Port JSC plans to handle about 300 thousand tones of coal to northern territories. It is necessary to mark, that with the cargoes of Northern (direction) Vostochny Port JSC works already more than ten years.
EvrazHolding Reports High Figures
EvrazHolding, Russia's largest steel company, posted its annual report for 2004 on May 12. The group's revenue climbed 2.8 times, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The company says the impressive performance is due to improved operational effectiveness and continuing efforts to cut production costs. Industry analysts point to high price for rolled products and consolidation of mining assets as key growth factors. Yet, EvrazHolding's returns remain significantly lower compared with its rival, Novolipetsk metal works.
EvrazHolding is the largest metal group in Russia. Last year, its three main companies - Nizhny Tagil, Novokuznetsk and West-Siberian works - produced a total of 13.7 million tons of steel, 0.07 percent less than the year before, and 12.2 million tons of rolled products, 0.02 percent less than in 2003. The group also includes ore mining companies: Kachkanarsky, Vysokogorsky, and Evrazruda, and well as coal mining assets - Yuzkuzbassugol, in which EvrazHolding has 50 percent, Raspadskaya mine (40 percent), and Neryungriugol. EvrazHolding's revenue was $2.8 million in the first half of last year, and net profit was $508.9 million.
EvrazHolding posted its 2004 report on Wednesday. Revenue of Luxembourg-based group Evraz Group S.A., now controlling all assets of EvrazHolding, climbed 2.8 times last year, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The group was more successful in the second half of the year. In July-December, EvrazHolding's revenue climbed 12 percent, at $3.1 billion, and net profit surged by nearly 45 percent, at $740 million compared with the previous six months. Net returns almost doubled from 12 percent to 21 percent, through remaining far behind Russia's best performing metal company - Novolipetsk metal works.
Alexander Frolov, senior executive vice president of EvrazHolding, says the five-fold increase in the company's profit was achieved through measures to improve operational effectiveness and reduce production costs. For their part, industry watchers point to rising steel prices, the company's vertical integration and modernization of production as the main factors behind the group's impressive performance.
"Last year, the group scaled down production of steel and rolled products; so, the good financial results were achieved not through greater production volumes but through higher prices for steel products, as well as concentration on high-profit manufacturing of rolled products," said Sergei Suverov, head of Gazprombank's information and analytical department. Vertical integration also played a part. "There is significant synergy due to control over ore and coal prices, which boosted the group's total effectiveness," he noted.
Timothy McCachen at Aton Capital called EvrazHolding's figures a positive result, which will help the group in its upcoming IPO in London. Though, he expressed disappointment that last year's high profits were not reflected in the company's balance sheet, with EvrazHolding reporting only $304 million cash as last year closed, $100 million more than 12 months before. McCachen thinks the group had used its cash to pay high dividends.
But Kirill Chuiko at Uralsib believes that EvrazHolding invested heavily in production modernization. "The value of its fixed assets increased from $1.2 billion to $2.1 billion, which implies significant investment," he said. Denis Nushtayev at Metropol investment consultants agrees that the company apparently spent much of its earnings on capital investment, but notes that EvrazHolding was also buying mining assets last year. In his estimation, the company will have about $450 to $500 million in cash by the end of this year, and its net profit will be $1.2 billion.
OAO RZD: LeSsors Found
OAO RZD summed up the results of the open tender on leasing technic supply for the sum of RUR20.4 bln.
Four companies - TramsFin-M JSC, Investment Partner JSC, Joint Investors JSC, Magistral Finance OJSC - won the tender.
The cost of leasing financing, offered by the winners, made 12%-12.5% interest rate, the prepayment - 0-9%. The average value of financing, prepayment, and leasing term made 12.4%, 4.6%, and 6.5 years respectively.
The total cost of the leasing subject, put on tender (about 7 thousand units of rolling stock, including gondola cars, passenger cars, locomotives, and local rolling stock) was RUR20.4 bln..
The lessors purchased 32 sets of tender documentation. 19 leasing companies participated in the tender. On April 18, 2005, in the presence of competitors" representatives, the envelopes with tender offers were opened.
National Container Company: Results of First Quarter
In the first quarter of 2005 all the terminals of National Container Company handled 190.2 thousand TEU, (+ 55% year-on-year), including 70.6 thousand TEU in March. It made 49% increase year-on-year.(without taking into account NUTEP terminal, which started to handle containers in April, 2004).
First Container Terminal continued to handle containers exceeding the output plan. In the first quarter of 2005, the throughput made 151.9 thousand TEU (+ 49% year-on-year). A new record was held in March, 2005: the terminal handled 56.8 thousand TEU (+ 46% year-on-year). The previous record had been held in December, 2004, and it made 56,684 TEU.
Vladivostok Container Terminal increased its throughput by 16% year-on-year. In the 1st quarter of 2005 it handled 24.6 thousand TEU, including 9.1 thousand TEU in March(+ 7% comparing with February).
The Nodal Transporting and Forwarding Company of Novorossiysk (NUTEP) has also started the year with the throughput growth. In the first quarter of 2005 13.7 thousand TEU was handled at the terminal, including 4.7 thousand TEU in March 2005, which is by 37% more than in February 2005.
The increase of throughput is connected with successful implementation of the terminals" modernization program for 2005, which is intended to the development of capacity of FCT, VCT and NUTEP up to 650,000 TEU, 150,000 TEU and 70,000 TEU respectively. The program also provides the improvement of terminal management automation system, superstructure development, purchase of new equipment for container handling.
[~DETAIL_TEXT] => Mrs. Anna Belova, the corporation's Vice President, announced that OAO RZD was going to found up to 30 new subsidiaries with various functions, on April 20 in her report at the session of the corporation's Administration, which was devoted to the structural reform of railway transport.
The reform is now in its second stage that is being carried out in 2003-2005.
Mrs. Anna Belova reminded that according to the Programme for the structural reform of railway transport, "the second stage of the reform is aimed at strengthening the competition in freight transport, reducing cross-financing of passenger traffic, better organizing the functions of the Federal executive bodies that regulate transport, and creating subsidiaries of Russian Railways that will provide services in suburban traffic and other fields'.
The Vice President informed that 22 out of 32 actions planned for 2003-2005 have been completed, and 7 actions that are to be completed in 2005 are in the process.
"Due to some objective reasons 3 actions that had been planned to be completed in 2004 are still in the process, namely: business accounting of the corporation, the foundation of the Federal passenger company, and the organisation of operation of Petropavlovsk branch of the Southern-Ural railroad', said Mrs. Anna Belova.
In the course of the reform, the corporation has prepared over 35 basic administrative documents and drafts of 15 standard documents, which have to be approved by the Government. Unfortunately, only 4 out of those standard documents have been approved by the Government, the rest are still under consideration, 8 of them being not yet approved by the Federal authorities.
It was pointed out at the corporation's Administration session that without those standard documents it would be very hard to establish real carriers and develop competition in passenger and freight traffic.
OAO RZD has provided all necessary arrangements for equal access of independent carriers to the services offered to the owners of the infrastructure of generals use railway transport, and is actively creating subsidiaries on the basis of the property of its structural branches open to competition.
"We plan to found 15 subsidiaries already in the first half of 2005', said Mrs. Anna Belova.
At the same time, OAO RZD public corporation is realizing programmes aimed at developing the corporation's market potential, improving its corporate management system, and making it more attractive for investors. This will reduce the risk associated with the reform due to creating stronger competition, losing highly profitable market segments, and inevitable growth of expenses because of appearance of many independent juridical persons.
New vessels for Ukrrechflot
Ukrainian Ukrrechflot will build 4 dry cargo carriers, a tug and several barges with the payload of 10 000 tons before 2009.
The construction will involve several national plants in different regions. The program costs $30m. Apart from that the shipping company will spend UAH300m on ship repair. There is another newbuilding program: before 2006 Ukrrechflot wants to build 3 Bug type ships and six more Bugs before 2008. Bug has dwt of 6300 tons, draught - 4.67m. The universal ship is one of the biggest among river projects.
KAMAZ Inc. Reinforces its Dealer Network in Ukraine
Every forth truck marketed in CIS countries is purchased in the Ukraine. In 2004 KAMAZ Inc. sold 1 461 trucks in that country and that is by two times more vs. 2003.
The Company increased its spare parts sales volume by 1.6 times valued 466 million roubles. These numbers were given on the meeting of Ukrainian dealers of KAMAZ Inc., which was held in Naberezhnye Chelny.
According to 2004 results the best Ukrainian companies are Evroskladservis Ltd., a group of enterprises AVTEK, the Trade House KAMAZ and Agro-Soyuz Ltd.
The Director general of KAMAZ Inc. announced on the meeting that since 2005 the Company proceeds (pass) to another cooperating scheme with its Ukrainian dealers. Firstly, each of the dealer is introduced a plan following which it is guaranteed to remain the Company's official dealer for a year more. Secondly, every KAMAZ dealer should have its own service center. Type design of service centers was represented on the meeting.
KAMAZ Inc. also plans to build up depots for spare parts on the territory of the Ukraine to facilitate the process of spare parts acquiring. In total, this all provides for a high service quality for KAMAZ customers.
As to KAMAZ Inc. current year targets it was announced on the meeting that the Ukrainian market may contain 1500 trucks valued 1 milliard 320 million rubles and spare parts valued 550 million rubles. KAMAZ trucks sales share on the Ukrainian domestic market is planned to increase up to 35%.
Northern Line Is Open
More than 40 ths. tones of coal was shipped by First Handling Terminal of Vostochny Port JSC on Vessels providing Northern ports.
This year, the first vessels rising for loading in Vostochny Port within the Northern line were `Zolotay Kolyma` - 27,7 thousand tones of coal on Magadan and `Kapitan Shevchenko` which will deliver to Petropavlovsk - Kamchatsky 13 thousand tones of coal.
As a whole, for period of northern navigation, which will be prolonged till September, Vostochny Port JSC plans to handle about 300 thousand tones of coal to northern territories. It is necessary to mark, that with the cargoes of Northern (direction) Vostochny Port JSC works already more than ten years.
EvrazHolding Reports High Figures
EvrazHolding, Russia's largest steel company, posted its annual report for 2004 on May 12. The group's revenue climbed 2.8 times, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The company says the impressive performance is due to improved operational effectiveness and continuing efforts to cut production costs. Industry analysts point to high price for rolled products and consolidation of mining assets as key growth factors. Yet, EvrazHolding's returns remain significantly lower compared with its rival, Novolipetsk metal works.
EvrazHolding is the largest metal group in Russia. Last year, its three main companies - Nizhny Tagil, Novokuznetsk and West-Siberian works - produced a total of 13.7 million tons of steel, 0.07 percent less than the year before, and 12.2 million tons of rolled products, 0.02 percent less than in 2003. The group also includes ore mining companies: Kachkanarsky, Vysokogorsky, and Evrazruda, and well as coal mining assets - Yuzkuzbassugol, in which EvrazHolding has 50 percent, Raspadskaya mine (40 percent), and Neryungriugol. EvrazHolding's revenue was $2.8 million in the first half of last year, and net profit was $508.9 million.
EvrazHolding posted its 2004 report on Wednesday. Revenue of Luxembourg-based group Evraz Group S.A., now controlling all assets of EvrazHolding, climbed 2.8 times last year, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The group was more successful in the second half of the year. In July-December, EvrazHolding's revenue climbed 12 percent, at $3.1 billion, and net profit surged by nearly 45 percent, at $740 million compared with the previous six months. Net returns almost doubled from 12 percent to 21 percent, through remaining far behind Russia's best performing metal company - Novolipetsk metal works.
Alexander Frolov, senior executive vice president of EvrazHolding, says the five-fold increase in the company's profit was achieved through measures to improve operational effectiveness and reduce production costs. For their part, industry watchers point to rising steel prices, the company's vertical integration and modernization of production as the main factors behind the group's impressive performance.
"Last year, the group scaled down production of steel and rolled products; so, the good financial results were achieved not through greater production volumes but through higher prices for steel products, as well as concentration on high-profit manufacturing of rolled products," said Sergei Suverov, head of Gazprombank's information and analytical department. Vertical integration also played a part. "There is significant synergy due to control over ore and coal prices, which boosted the group's total effectiveness," he noted.
Timothy McCachen at Aton Capital called EvrazHolding's figures a positive result, which will help the group in its upcoming IPO in London. Though, he expressed disappointment that last year's high profits were not reflected in the company's balance sheet, with EvrazHolding reporting only $304 million cash as last year closed, $100 million more than 12 months before. McCachen thinks the group had used its cash to pay high dividends.
But Kirill Chuiko at Uralsib believes that EvrazHolding invested heavily in production modernization. "The value of its fixed assets increased from $1.2 billion to $2.1 billion, which implies significant investment," he said. Denis Nushtayev at Metropol investment consultants agrees that the company apparently spent much of its earnings on capital investment, but notes that EvrazHolding was also buying mining assets last year. In his estimation, the company will have about $450 to $500 million in cash by the end of this year, and its net profit will be $1.2 billion.
OAO RZD: LeSsors Found
OAO RZD summed up the results of the open tender on leasing technic supply for the sum of RUR20.4 bln.
Four companies - TramsFin-M JSC, Investment Partner JSC, Joint Investors JSC, Magistral Finance OJSC - won the tender.
The cost of leasing financing, offered by the winners, made 12%-12.5% interest rate, the prepayment - 0-9%. The average value of financing, prepayment, and leasing term made 12.4%, 4.6%, and 6.5 years respectively.
The total cost of the leasing subject, put on tender (about 7 thousand units of rolling stock, including gondola cars, passenger cars, locomotives, and local rolling stock) was RUR20.4 bln..
The lessors purchased 32 sets of tender documentation. 19 leasing companies participated in the tender. On April 18, 2005, in the presence of competitors" representatives, the envelopes with tender offers were opened.
National Container Company: Results of First Quarter
In the first quarter of 2005 all the terminals of National Container Company handled 190.2 thousand TEU, (+ 55% year-on-year), including 70.6 thousand TEU in March. It made 49% increase year-on-year.(without taking into account NUTEP terminal, which started to handle containers in April, 2004).
First Container Terminal continued to handle containers exceeding the output plan. In the first quarter of 2005, the throughput made 151.9 thousand TEU (+ 49% year-on-year). A new record was held in March, 2005: the terminal handled 56.8 thousand TEU (+ 46% year-on-year). The previous record had been held in December, 2004, and it made 56,684 TEU.
Vladivostok Container Terminal increased its throughput by 16% year-on-year. In the 1st quarter of 2005 it handled 24.6 thousand TEU, including 9.1 thousand TEU in March(+ 7% comparing with February).
The Nodal Transporting and Forwarding Company of Novorossiysk (NUTEP) has also started the year with the throughput growth. In the first quarter of 2005 13.7 thousand TEU was handled at the terminal, including 4.7 thousand TEU in March 2005, which is by 37% more than in February 2005.
The increase of throughput is connected with successful implementation of the terminals" modernization program for 2005, which is intended to the development of capacity of FCT, VCT and NUTEP up to 650,000 TEU, 150,000 TEU and 70,000 TEU respectively. The program also provides the improvement of terminal management automation system, superstructure development, purchase of new equipment for container handling.
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[DETAIL_TEXT] => Mrs. Anna Belova, the corporation's Vice President, announced that OAO RZD was going to found up to 30 new subsidiaries with various functions, on April 20 in her report at the session of the corporation's Administration, which was devoted to the structural reform of railway transport.
The reform is now in its second stage that is being carried out in 2003-2005.
Mrs. Anna Belova reminded that according to the Programme for the structural reform of railway transport, "the second stage of the reform is aimed at strengthening the competition in freight transport, reducing cross-financing of passenger traffic, better organizing the functions of the Federal executive bodies that regulate transport, and creating subsidiaries of Russian Railways that will provide services in suburban traffic and other fields'.
The Vice President informed that 22 out of 32 actions planned for 2003-2005 have been completed, and 7 actions that are to be completed in 2005 are in the process.
"Due to some objective reasons 3 actions that had been planned to be completed in 2004 are still in the process, namely: business accounting of the corporation, the foundation of the Federal passenger company, and the organisation of operation of Petropavlovsk branch of the Southern-Ural railroad', said Mrs. Anna Belova.
In the course of the reform, the corporation has prepared over 35 basic administrative documents and drafts of 15 standard documents, which have to be approved by the Government. Unfortunately, only 4 out of those standard documents have been approved by the Government, the rest are still under consideration, 8 of them being not yet approved by the Federal authorities.
It was pointed out at the corporation's Administration session that without those standard documents it would be very hard to establish real carriers and develop competition in passenger and freight traffic.
OAO RZD has provided all necessary arrangements for equal access of independent carriers to the services offered to the owners of the infrastructure of generals use railway transport, and is actively creating subsidiaries on the basis of the property of its structural branches open to competition.
"We plan to found 15 subsidiaries already in the first half of 2005', said Mrs. Anna Belova.
At the same time, OAO RZD public corporation is realizing programmes aimed at developing the corporation's market potential, improving its corporate management system, and making it more attractive for investors. This will reduce the risk associated with the reform due to creating stronger competition, losing highly profitable market segments, and inevitable growth of expenses because of appearance of many independent juridical persons.
New vessels for Ukrrechflot
Ukrainian Ukrrechflot will build 4 dry cargo carriers, a tug and several barges with the payload of 10 000 tons before 2009.
The construction will involve several national plants in different regions. The program costs $30m. Apart from that the shipping company will spend UAH300m on ship repair. There is another newbuilding program: before 2006 Ukrrechflot wants to build 3 Bug type ships and six more Bugs before 2008. Bug has dwt of 6300 tons, draught - 4.67m. The universal ship is one of the biggest among river projects.
KAMAZ Inc. Reinforces its Dealer Network in Ukraine
Every forth truck marketed in CIS countries is purchased in the Ukraine. In 2004 KAMAZ Inc. sold 1 461 trucks in that country and that is by two times more vs. 2003.
The Company increased its spare parts sales volume by 1.6 times valued 466 million roubles. These numbers were given on the meeting of Ukrainian dealers of KAMAZ Inc., which was held in Naberezhnye Chelny.
According to 2004 results the best Ukrainian companies are Evroskladservis Ltd., a group of enterprises AVTEK, the Trade House KAMAZ and Agro-Soyuz Ltd.
The Director general of KAMAZ Inc. announced on the meeting that since 2005 the Company proceeds (pass) to another cooperating scheme with its Ukrainian dealers. Firstly, each of the dealer is introduced a plan following which it is guaranteed to remain the Company's official dealer for a year more. Secondly, every KAMAZ dealer should have its own service center. Type design of service centers was represented on the meeting.
KAMAZ Inc. also plans to build up depots for spare parts on the territory of the Ukraine to facilitate the process of spare parts acquiring. In total, this all provides for a high service quality for KAMAZ customers.
As to KAMAZ Inc. current year targets it was announced on the meeting that the Ukrainian market may contain 1500 trucks valued 1 milliard 320 million rubles and spare parts valued 550 million rubles. KAMAZ trucks sales share on the Ukrainian domestic market is planned to increase up to 35%.
Northern Line Is Open
More than 40 ths. tones of coal was shipped by First Handling Terminal of Vostochny Port JSC on Vessels providing Northern ports.
This year, the first vessels rising for loading in Vostochny Port within the Northern line were `Zolotay Kolyma` - 27,7 thousand tones of coal on Magadan and `Kapitan Shevchenko` which will deliver to Petropavlovsk - Kamchatsky 13 thousand tones of coal.
As a whole, for period of northern navigation, which will be prolonged till September, Vostochny Port JSC plans to handle about 300 thousand tones of coal to northern territories. It is necessary to mark, that with the cargoes of Northern (direction) Vostochny Port JSC works already more than ten years.
EvrazHolding Reports High Figures
EvrazHolding, Russia's largest steel company, posted its annual report for 2004 on May 12. The group's revenue climbed 2.8 times, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The company says the impressive performance is due to improved operational effectiveness and continuing efforts to cut production costs. Industry analysts point to high price for rolled products and consolidation of mining assets as key growth factors. Yet, EvrazHolding's returns remain significantly lower compared with its rival, Novolipetsk metal works.
EvrazHolding is the largest metal group in Russia. Last year, its three main companies - Nizhny Tagil, Novokuznetsk and West-Siberian works - produced a total of 13.7 million tons of steel, 0.07 percent less than the year before, and 12.2 million tons of rolled products, 0.02 percent less than in 2003. The group also includes ore mining companies: Kachkanarsky, Vysokogorsky, and Evrazruda, and well as coal mining assets - Yuzkuzbassugol, in which EvrazHolding has 50 percent, Raspadskaya mine (40 percent), and Neryungriugol. EvrazHolding's revenue was $2.8 million in the first half of last year, and net profit was $508.9 million.
EvrazHolding posted its 2004 report on Wednesday. Revenue of Luxembourg-based group Evraz Group S.A., now controlling all assets of EvrazHolding, climbed 2.8 times last year, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The group was more successful in the second half of the year. In July-December, EvrazHolding's revenue climbed 12 percent, at $3.1 billion, and net profit surged by nearly 45 percent, at $740 million compared with the previous six months. Net returns almost doubled from 12 percent to 21 percent, through remaining far behind Russia's best performing metal company - Novolipetsk metal works.
Alexander Frolov, senior executive vice president of EvrazHolding, says the five-fold increase in the company's profit was achieved through measures to improve operational effectiveness and reduce production costs. For their part, industry watchers point to rising steel prices, the company's vertical integration and modernization of production as the main factors behind the group's impressive performance.
"Last year, the group scaled down production of steel and rolled products; so, the good financial results were achieved not through greater production volumes but through higher prices for steel products, as well as concentration on high-profit manufacturing of rolled products," said Sergei Suverov, head of Gazprombank's information and analytical department. Vertical integration also played a part. "There is significant synergy due to control over ore and coal prices, which boosted the group's total effectiveness," he noted.
Timothy McCachen at Aton Capital called EvrazHolding's figures a positive result, which will help the group in its upcoming IPO in London. Though, he expressed disappointment that last year's high profits were not reflected in the company's balance sheet, with EvrazHolding reporting only $304 million cash as last year closed, $100 million more than 12 months before. McCachen thinks the group had used its cash to pay high dividends.
But Kirill Chuiko at Uralsib believes that EvrazHolding invested heavily in production modernization. "The value of its fixed assets increased from $1.2 billion to $2.1 billion, which implies significant investment," he said. Denis Nushtayev at Metropol investment consultants agrees that the company apparently spent much of its earnings on capital investment, but notes that EvrazHolding was also buying mining assets last year. In his estimation, the company will have about $450 to $500 million in cash by the end of this year, and its net profit will be $1.2 billion.
OAO RZD: LeSsors Found
OAO RZD summed up the results of the open tender on leasing technic supply for the sum of RUR20.4 bln.
Four companies - TramsFin-M JSC, Investment Partner JSC, Joint Investors JSC, Magistral Finance OJSC - won the tender.
The cost of leasing financing, offered by the winners, made 12%-12.5% interest rate, the prepayment - 0-9%. The average value of financing, prepayment, and leasing term made 12.4%, 4.6%, and 6.5 years respectively.
The total cost of the leasing subject, put on tender (about 7 thousand units of rolling stock, including gondola cars, passenger cars, locomotives, and local rolling stock) was RUR20.4 bln..
The lessors purchased 32 sets of tender documentation. 19 leasing companies participated in the tender. On April 18, 2005, in the presence of competitors" representatives, the envelopes with tender offers were opened.
National Container Company: Results of First Quarter
In the first quarter of 2005 all the terminals of National Container Company handled 190.2 thousand TEU, (+ 55% year-on-year), including 70.6 thousand TEU in March. It made 49% increase year-on-year.(without taking into account NUTEP terminal, which started to handle containers in April, 2004).
First Container Terminal continued to handle containers exceeding the output plan. In the first quarter of 2005, the throughput made 151.9 thousand TEU (+ 49% year-on-year). A new record was held in March, 2005: the terminal handled 56.8 thousand TEU (+ 46% year-on-year). The previous record had been held in December, 2004, and it made 56,684 TEU.
Vladivostok Container Terminal increased its throughput by 16% year-on-year. In the 1st quarter of 2005 it handled 24.6 thousand TEU, including 9.1 thousand TEU in March(+ 7% comparing with February).
The Nodal Transporting and Forwarding Company of Novorossiysk (NUTEP) has also started the year with the throughput growth. In the first quarter of 2005 13.7 thousand TEU was handled at the terminal, including 4.7 thousand TEU in March 2005, which is by 37% more than in February 2005.
The increase of throughput is connected with successful implementation of the terminals" modernization program for 2005, which is intended to the development of capacity of FCT, VCT and NUTEP up to 650,000 TEU, 150,000 TEU and 70,000 TEU respectively. The program also provides the improvement of terminal management automation system, superstructure development, purchase of new equipment for container handling.
[~DETAIL_TEXT] => Mrs. Anna Belova, the corporation's Vice President, announced that OAO RZD was going to found up to 30 new subsidiaries with various functions, on April 20 in her report at the session of the corporation's Administration, which was devoted to the structural reform of railway transport.
The reform is now in its second stage that is being carried out in 2003-2005.
Mrs. Anna Belova reminded that according to the Programme for the structural reform of railway transport, "the second stage of the reform is aimed at strengthening the competition in freight transport, reducing cross-financing of passenger traffic, better organizing the functions of the Federal executive bodies that regulate transport, and creating subsidiaries of Russian Railways that will provide services in suburban traffic and other fields'.
The Vice President informed that 22 out of 32 actions planned for 2003-2005 have been completed, and 7 actions that are to be completed in 2005 are in the process.
"Due to some objective reasons 3 actions that had been planned to be completed in 2004 are still in the process, namely: business accounting of the corporation, the foundation of the Federal passenger company, and the organisation of operation of Petropavlovsk branch of the Southern-Ural railroad', said Mrs. Anna Belova.
In the course of the reform, the corporation has prepared over 35 basic administrative documents and drafts of 15 standard documents, which have to be approved by the Government. Unfortunately, only 4 out of those standard documents have been approved by the Government, the rest are still under consideration, 8 of them being not yet approved by the Federal authorities.
It was pointed out at the corporation's Administration session that without those standard documents it would be very hard to establish real carriers and develop competition in passenger and freight traffic.
OAO RZD has provided all necessary arrangements for equal access of independent carriers to the services offered to the owners of the infrastructure of generals use railway transport, and is actively creating subsidiaries on the basis of the property of its structural branches open to competition.
"We plan to found 15 subsidiaries already in the first half of 2005', said Mrs. Anna Belova.
At the same time, OAO RZD public corporation is realizing programmes aimed at developing the corporation's market potential, improving its corporate management system, and making it more attractive for investors. This will reduce the risk associated with the reform due to creating stronger competition, losing highly profitable market segments, and inevitable growth of expenses because of appearance of many independent juridical persons.
New vessels for Ukrrechflot
Ukrainian Ukrrechflot will build 4 dry cargo carriers, a tug and several barges with the payload of 10 000 tons before 2009.
The construction will involve several national plants in different regions. The program costs $30m. Apart from that the shipping company will spend UAH300m on ship repair. There is another newbuilding program: before 2006 Ukrrechflot wants to build 3 Bug type ships and six more Bugs before 2008. Bug has dwt of 6300 tons, draught - 4.67m. The universal ship is one of the biggest among river projects.
KAMAZ Inc. Reinforces its Dealer Network in Ukraine
Every forth truck marketed in CIS countries is purchased in the Ukraine. In 2004 KAMAZ Inc. sold 1 461 trucks in that country and that is by two times more vs. 2003.
The Company increased its spare parts sales volume by 1.6 times valued 466 million roubles. These numbers were given on the meeting of Ukrainian dealers of KAMAZ Inc., which was held in Naberezhnye Chelny.
According to 2004 results the best Ukrainian companies are Evroskladservis Ltd., a group of enterprises AVTEK, the Trade House KAMAZ and Agro-Soyuz Ltd.
The Director general of KAMAZ Inc. announced on the meeting that since 2005 the Company proceeds (pass) to another cooperating scheme with its Ukrainian dealers. Firstly, each of the dealer is introduced a plan following which it is guaranteed to remain the Company's official dealer for a year more. Secondly, every KAMAZ dealer should have its own service center. Type design of service centers was represented on the meeting.
KAMAZ Inc. also plans to build up depots for spare parts on the territory of the Ukraine to facilitate the process of spare parts acquiring. In total, this all provides for a high service quality for KAMAZ customers.
As to KAMAZ Inc. current year targets it was announced on the meeting that the Ukrainian market may contain 1500 trucks valued 1 milliard 320 million rubles and spare parts valued 550 million rubles. KAMAZ trucks sales share on the Ukrainian domestic market is planned to increase up to 35%.
Northern Line Is Open
More than 40 ths. tones of coal was shipped by First Handling Terminal of Vostochny Port JSC on Vessels providing Northern ports.
This year, the first vessels rising for loading in Vostochny Port within the Northern line were `Zolotay Kolyma` - 27,7 thousand tones of coal on Magadan and `Kapitan Shevchenko` which will deliver to Petropavlovsk - Kamchatsky 13 thousand tones of coal.
As a whole, for period of northern navigation, which will be prolonged till September, Vostochny Port JSC plans to handle about 300 thousand tones of coal to northern territories. It is necessary to mark, that with the cargoes of Northern (direction) Vostochny Port JSC works already more than ten years.
EvrazHolding Reports High Figures
EvrazHolding, Russia's largest steel company, posted its annual report for 2004 on May 12. The group's revenue climbed 2.8 times, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The company says the impressive performance is due to improved operational effectiveness and continuing efforts to cut production costs. Industry analysts point to high price for rolled products and consolidation of mining assets as key growth factors. Yet, EvrazHolding's returns remain significantly lower compared with its rival, Novolipetsk metal works.
EvrazHolding is the largest metal group in Russia. Last year, its three main companies - Nizhny Tagil, Novokuznetsk and West-Siberian works - produced a total of 13.7 million tons of steel, 0.07 percent less than the year before, and 12.2 million tons of rolled products, 0.02 percent less than in 2003. The group also includes ore mining companies: Kachkanarsky, Vysokogorsky, and Evrazruda, and well as coal mining assets - Yuzkuzbassugol, in which EvrazHolding has 50 percent, Raspadskaya mine (40 percent), and Neryungriugol. EvrazHolding's revenue was $2.8 million in the first half of last year, and net profit was $508.9 million.
EvrazHolding posted its 2004 report on Wednesday. Revenue of Luxembourg-based group Evraz Group S.A., now controlling all assets of EvrazHolding, climbed 2.8 times last year, to $5.9 billion, and its net profit increased almost five-fold, to $1.25 billion. The group was more successful in the second half of the year. In July-December, EvrazHolding's revenue climbed 12 percent, at $3.1 billion, and net profit surged by nearly 45 percent, at $740 million compared with the previous six months. Net returns almost doubled from 12 percent to 21 percent, through remaining far behind Russia's best performing metal company - Novolipetsk metal works.
Alexander Frolov, senior executive vice president of EvrazHolding, says the five-fold increase in the company's profit was achieved through measures to improve operational effectiveness and reduce production costs. For their part, industry watchers point to rising steel prices, the company's vertical integration and modernization of production as the main factors behind the group's impressive performance.
"Last year, the group scaled down production of steel and rolled products; so, the good financial results were achieved not through greater production volumes but through higher prices for steel products, as well as concentration on high-profit manufacturing of rolled products," said Sergei Suverov, head of Gazprombank's information and analytical department. Vertical integration also played a part. "There is significant synergy due to control over ore and coal prices, which boosted the group's total effectiveness," he noted.
Timothy McCachen at Aton Capital called EvrazHolding's figures a positive result, which will help the group in its upcoming IPO in London. Though, he expressed disappointment that last year's high profits were not reflected in the company's balance sheet, with EvrazHolding reporting only $304 million cash as last year closed, $100 million more than 12 months before. McCachen thinks the group had used its cash to pay high dividends.
But Kirill Chuiko at Uralsib believes that EvrazHolding invested heavily in production modernization. "The value of its fixed assets increased from $1.2 billion to $2.1 billion, which implies significant investment," he said. Denis Nushtayev at Metropol investment consultants agrees that the company apparently spent much of its earnings on capital investment, but notes that EvrazHolding was also buying mining assets last year. In his estimation, the company will have about $450 to $500 million in cash by the end of this year, and its net profit will be $1.2 billion.
OAO RZD: LeSsors Found
OAO RZD summed up the results of the open tender on leasing technic supply for the sum of RUR20.4 bln.
Four companies - TramsFin-M JSC, Investment Partner JSC, Joint Investors JSC, Magistral Finance OJSC - won the tender.
The cost of leasing financing, offered by the winners, made 12%-12.5% interest rate, the prepayment - 0-9%. The average value of financing, prepayment, and leasing term made 12.4%, 4.6%, and 6.5 years respectively.
The total cost of the leasing subject, put on tender (about 7 thousand units of rolling stock, including gondola cars, passenger cars, locomotives, and local rolling stock) was RUR20.4 bln..
The lessors purchased 32 sets of tender documentation. 19 leasing companies participated in the tender. On April 18, 2005, in the presence of competitors" representatives, the envelopes with tender offers were opened.
National Container Company: Results of First Quarter
In the first quarter of 2005 all the terminals of National Container Company handled 190.2 thousand TEU, (+ 55% year-on-year), including 70.6 thousand TEU in March. It made 49% increase year-on-year.(without taking into account NUTEP terminal, which started to handle containers in April, 2004).
First Container Terminal continued to handle containers exceeding the output plan. In the first quarter of 2005, the throughput made 151.9 thousand TEU (+ 49% year-on-year). A new record was held in March, 2005: the terminal handled 56.8 thousand TEU (+ 46% year-on-year). The previous record had been held in December, 2004, and it made 56,684 TEU.
Vladivostok Container Terminal increased its throughput by 16% year-on-year. In the 1st quarter of 2005 it handled 24.6 thousand TEU, including 9.1 thousand TEU in March(+ 7% comparing with February).
The Nodal Transporting and Forwarding Company of Novorossiysk (NUTEP) has also started the year with the throughput growth. In the first quarter of 2005 13.7 thousand TEU was handled at the terminal, including 4.7 thousand TEU in March 2005, which is by 37% more than in February 2005.
The increase of throughput is connected with successful implementation of the terminals" modernization program for 2005, which is intended to the development of capacity of FCT, VCT and NUTEP up to 650,000 TEU, 150,000 TEU and 70,000 TEU respectively. The program also provides the improvement of terminal management automation system, superstructure development, purchase of new equipment for container handling.
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