III КВАРТАЛ 2022Г. - 55 баллов
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[NAME] => Forum "Russian Economy Days" in Finland
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The Forum "Russian Economy Days" reflects traditions of Russian-Finnish trade and economic relations. At the same time the main focus of the Forum is the development of bilateral cooperation in the domain of high technologies and innovations. Thus, an accent is given to the aspiration of Russia and Finland to transition from already reached high level barter transactions and raw material collaboration technologies to cooperation in the domain of hi-tech, strategic investment partnership, establishment of joint ventures and manufactures.
Opening remarks will be given by Chairman of the Government of the Russian Federation Mikhail Fradkov and the Prime Minister of Finland Matty Vanhanen.
German Gref, Minister of economic development and trade of the Russian Federation will speak about national innovative system of Russia and legislative initiatives. Mauri Pekkarinen, Minister of trade and industry of Finland will participle on the Forum too. It is planed that Mr. Pekkarinen will spoke about national innovative system of Finland. Leonid Rejman, Minister of innovative technologies and communications of the Russian Federation will make a speech about prospects and future trends of the Russian-Finnish cooperation in communications. Representatives of Northwest Federal district will report about innovative potential of Northwest Federal district and prospects of co-operation with Finland.
During the Forum round-tables meetings on cooperation in the domain of forestry complex, food-processing industry, transport and transport logistics, fair and exhibition business, chemical industry and energy will be held. There is a special time given within the Forum for presentations of Russian regions and bilateral meetings of Russian and Finnish business representatives.
The round-table discussion of energy industry will be called "Prospects in cooperation between Russia and Finland energy industry ". Representative of ROS "UES of Russia", general director ROS Nordic OY, representatives of the Finnish companies will take part in that discussion. During the round-table meeting, presentation of the joint Russian-Finnish project of a lining a underwater high-voltage cable through gulf of Finland for transportation of the energetic from Russian Federation to Finland will be held.
The round-table discussion of wood sector will be called "The national priorities and the international cooperation ". The basic focus of development of the wood industry and a forestry of Russia till 2015 and a related Federal target program "Woods of Russia" will be deal there. During the round-table meeting presentation of the project of the international Forum on cellulose and paper "IPPTF" will be held
Business program of the Forum will be accompanied by exhibition of Russian regions with demonstration of regional investment projects from the point of view of special economic zones creation, establishment of joint ventures and manufactures, developments of transport systems and logistics complexes.
St. Petersburg, Leningrad and Nizhniy Novgorod Regions, Tatarstan, Kemerovo Region, Komi Republic, Karelia Region, Republic of Bashkortostan, Samara, Kaluga, Rostov, Smolensk, Perm, Sverdlovsk Regions have already confirmed their participation in the Forum.
Among Russian enterprises which would like to participate in the event, there are such leading companies as:
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The Forum "Russian Economy Days" reflects traditions of Russian-Finnish trade and economic relations. At the same time the main focus of the Forum is the development of bilateral cooperation in the domain of high technologies and innovations. Thus, an accent is given to the aspiration of Russia and Finland to transition from already reached high level barter transactions and raw material collaboration technologies to cooperation in the domain of hi-tech, strategic investment partnership, establishment of joint ventures and manufactures.
Opening remarks will be given by Chairman of the Government of the Russian Federation Mikhail Fradkov and the Prime Minister of Finland Matty Vanhanen.
German Gref, Minister of economic development and trade of the Russian Federation will speak about national innovative system of Russia and legislative initiatives. Mauri Pekkarinen, Minister of trade and industry of Finland will participle on the Forum too. It is planed that Mr. Pekkarinen will spoke about national innovative system of Finland. Leonid Rejman, Minister of innovative technologies and communications of the Russian Federation will make a speech about prospects and future trends of the Russian-Finnish cooperation in communications. Representatives of Northwest Federal district will report about innovative potential of Northwest Federal district and prospects of co-operation with Finland.
During the Forum round-tables meetings on cooperation in the domain of forestry complex, food-processing industry, transport and transport logistics, fair and exhibition business, chemical industry and energy will be held. There is a special time given within the Forum for presentations of Russian regions and bilateral meetings of Russian and Finnish business representatives.
The round-table discussion of energy industry will be called "Prospects in cooperation between Russia and Finland energy industry ". Representative of ROS "UES of Russia", general director ROS Nordic OY, representatives of the Finnish companies will take part in that discussion. During the round-table meeting, presentation of the joint Russian-Finnish project of a lining a underwater high-voltage cable through gulf of Finland for transportation of the energetic from Russian Federation to Finland will be held.
The round-table discussion of wood sector will be called "The national priorities and the international cooperation ". The basic focus of development of the wood industry and a forestry of Russia till 2015 and a related Federal target program "Woods of Russia" will be deal there. During the round-table meeting presentation of the project of the international Forum on cellulose and paper "IPPTF" will be held
Business program of the Forum will be accompanied by exhibition of Russian regions with demonstration of regional investment projects from the point of view of special economic zones creation, establishment of joint ventures and manufactures, developments of transport systems and logistics complexes.
St. Petersburg, Leningrad and Nizhniy Novgorod Regions, Tatarstan, Kemerovo Region, Komi Republic, Karelia Region, Republic of Bashkortostan, Samara, Kaluga, Rostov, Smolensk, Perm, Sverdlovsk Regions have already confirmed their participation in the Forum.
Among Russian enterprises which would like to participate in the event, there are such leading companies as:
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[~NAME] => To save Russian shipbuilding
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In the USSR the production capacities of shipbuilding yards were largely loaded by the state order, primarily the military one; however, in the early 1990-s the sector fell into decay, together with the whole Russian industry. Since 1998, because of the economic rise, the shipbuilding yards have been increasing their output and raising their total sales volume by 12-16% annually, at least such are the official data. Mainly, the production growth is due to the constantly increasing export and the state defense order. Nowadays, 195,000 people work at 120 enterprises (shipbuilding, vessels repair and utilization of nuclear energy plants; ship machine building, sea instrument-making, scientific and research institutes and design offices) of the sector. The share of export at the most part of the successful enterprises in the Russian shipbuilding industry now exceeds 60-70%. However, now only 15-45% of the existing production capacities are loaded.
At the same time, the volume of civil vessels construction in Russia does not compensate for the natural ageing of the Russian fleet. Our merchant fleet loses out in the amount of vessels and their tonnage: the most part of the Russian foreign trade cargo is transported by other countries' fleet. The amount of the fishery fleet has sharply reduced during the last years, and the annual volumes of fishery have decreased by several times.
Another important problem of the sector is that shipbuilding is a metal consuming industry. And in Russia the prices for metal are by 10% higher than those in Western countries. According to the Chairperson of the Shipping Companies Association Nikolai Smirnov, Russia can lose the national shipbuilding, if the share of metal cost in the price of produce stays at the same level. He believes that all the shipping companies will become the clients of Turkish, Southern Korean and European shipyards, and the Russian shipbuilders will have no work. "Five more years - and we will have no designers, welders, or any other specialists able to construct vessels".
Another important factor preventing Russian ship owners from vessels construction at the Russian shipbuilding yards is the excessive tax pressure, because of which the cost of the vessels built at the Russian shipbuilding yards is 15-20% higher than the cost of similar vessels built abroad. Due to outdated production capacities and technologies, the terms of construction are much longer than those offered by the present-day leaders - Korea, Japan and China. These two factors make the Russian shipbuilding not competitive. Moreover, foreign banks give loans to shipbuilding yards only if they order vessels equipment abroad, thus, supplying foreign industry with work. Besides, they give vessels to ship owners only if they purchase vessels from the producers of that particular state.
A very serious problem in the Russian shipbuilding is the undermined process of revival and renewal of the production basis: about 70% of the technologically outdated and 65-85% of physically worn active part of production funds is used. Outdated technological equipment, old docks and technologies slow down the term of vessel construction twofold and increase the laboriousness by 2-2.5 times, in comparison with the leaders of the global shipbuilding.
To overcome the present-day negative tendencies, it is necessary to provide a speeded up renewal of merchant fleet by creating conditions for an economically beneficial construction of modern vessels at the Russian shipbuilding yards, i.e. it is obligatory to get the Russian ship owners interested in ordering vessels in Russia.
Russia, three quarters of whose border is sea, over 60% of whose export and import throughput is transported by sea, and who develops oil and gas extraction on its own sea shelf, is to support its national shipbuilding just like other states do.
Worth Looking at Neighbours
Nowadays, the existence and development of sea transportation does not only work for transport and economic safety of the state, but also gives opportunity to reach geopolitical targets and creates additional jobs in the adjacent sectors - metallurgy, machine building, electronics etc., stimulating their development. That is why the leading countries pay special attention to the development of the national shipbuilding sectors, which are the main suppliers of technical equipment for sea activities.
The target of the state support for the shipbuilding industry in the countries with a developed market economy implies that the national shipbuilding yards can develop efficiently, satisfying the country's requirements in the shipbuilding produce and competing with foreign shipbuilding yards for orders.
Naturally, the forms and methods of support and protectionism in shipbuilding development have their own peculiarities in different countries.
For example, the Japanese Government gives subsidies to national shipbuilding yards to compensate for the 7-30% difference between the yards' expenses and market prices for vessels construction, as well as long-term credits under very profitable conditions. South Korea actively supports restructuring and modernization of the sector, offering export credits for 13 years. China protects its shipbuilding yards by regulating prices for steel and other material for vessels construction. Besides, the government helps to finance export orders and frees the imported vessel equipment from customs duties.
During the last decade, Germany actively modernized its shipbuilding yards situated on the territory of the Eastern Germany, and invested about USD 500 million into them. Now it continues to support the sector, giving subsidies to the national shipbuilding yards, and offering them an opportunity to get domestic and export credits with an 8% annual interest for 8-10 years.
The system of protectionist laws is widely used in the USA. In accordance with the laws, a certain share of shipbuilding yards and jobs in the national shipbuilding is loaded. In particular, there is a law on coastal trade and domestic shipping (Jones' Law), according to which coastal trade and domestic shipping can be provided only by vessels built in the USA and sailing under the American flag. Approved in 1993 and prolonged in 1998, the Programme of National Shipbuilding Revival envisages investments of USD 80 million into scientific research and experimental development in shipbuilding.
The Governments of Great Britain, Italy and Spain also support their shipbuilders actively by giving subsidies and privileged credits. The experience of Poland can be of great interest for Russia. In Poland most shipbuilding yards are stock companies, whose major shareholdings are owned by the state. This is why the Polish State Treasury acts as the guarantor when crediting the sector, thus, shipbuilding yards get significant customs and tax privileges. And half of expenses for scientific research and experimental development activities in shipbuilding is paid by the state.
Thus, based on the experience of foreign countries, one could outline the major steps the state should take to support the development of its shipbuilding sector:
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In the USSR the production capacities of shipbuilding yards were largely loaded by the state order, primarily the military one; however, in the early 1990-s the sector fell into decay, together with the whole Russian industry. Since 1998, because of the economic rise, the shipbuilding yards have been increasing their output and raising their total sales volume by 12-16% annually, at least such are the official data. Mainly, the production growth is due to the constantly increasing export and the state defense order. Nowadays, 195,000 people work at 120 enterprises (shipbuilding, vessels repair and utilization of nuclear energy plants; ship machine building, sea instrument-making, scientific and research institutes and design offices) of the sector. The share of export at the most part of the successful enterprises in the Russian shipbuilding industry now exceeds 60-70%. However, now only 15-45% of the existing production capacities are loaded.
At the same time, the volume of civil vessels construction in Russia does not compensate for the natural ageing of the Russian fleet. Our merchant fleet loses out in the amount of vessels and their tonnage: the most part of the Russian foreign trade cargo is transported by other countries' fleet. The amount of the fishery fleet has sharply reduced during the last years, and the annual volumes of fishery have decreased by several times.
Another important problem of the sector is that shipbuilding is a metal consuming industry. And in Russia the prices for metal are by 10% higher than those in Western countries. According to the Chairperson of the Shipping Companies Association Nikolai Smirnov, Russia can lose the national shipbuilding, if the share of metal cost in the price of produce stays at the same level. He believes that all the shipping companies will become the clients of Turkish, Southern Korean and European shipyards, and the Russian shipbuilders will have no work. "Five more years - and we will have no designers, welders, or any other specialists able to construct vessels".
Another important factor preventing Russian ship owners from vessels construction at the Russian shipbuilding yards is the excessive tax pressure, because of which the cost of the vessels built at the Russian shipbuilding yards is 15-20% higher than the cost of similar vessels built abroad. Due to outdated production capacities and technologies, the terms of construction are much longer than those offered by the present-day leaders - Korea, Japan and China. These two factors make the Russian shipbuilding not competitive. Moreover, foreign banks give loans to shipbuilding yards only if they order vessels equipment abroad, thus, supplying foreign industry with work. Besides, they give vessels to ship owners only if they purchase vessels from the producers of that particular state.
A very serious problem in the Russian shipbuilding is the undermined process of revival and renewal of the production basis: about 70% of the technologically outdated and 65-85% of physically worn active part of production funds is used. Outdated technological equipment, old docks and technologies slow down the term of vessel construction twofold and increase the laboriousness by 2-2.5 times, in comparison with the leaders of the global shipbuilding.
To overcome the present-day negative tendencies, it is necessary to provide a speeded up renewal of merchant fleet by creating conditions for an economically beneficial construction of modern vessels at the Russian shipbuilding yards, i.e. it is obligatory to get the Russian ship owners interested in ordering vessels in Russia.
Russia, three quarters of whose border is sea, over 60% of whose export and import throughput is transported by sea, and who develops oil and gas extraction on its own sea shelf, is to support its national shipbuilding just like other states do.
Worth Looking at Neighbours
Nowadays, the existence and development of sea transportation does not only work for transport and economic safety of the state, but also gives opportunity to reach geopolitical targets and creates additional jobs in the adjacent sectors - metallurgy, machine building, electronics etc., stimulating their development. That is why the leading countries pay special attention to the development of the national shipbuilding sectors, which are the main suppliers of technical equipment for sea activities.
The target of the state support for the shipbuilding industry in the countries with a developed market economy implies that the national shipbuilding yards can develop efficiently, satisfying the country's requirements in the shipbuilding produce and competing with foreign shipbuilding yards for orders.
Naturally, the forms and methods of support and protectionism in shipbuilding development have their own peculiarities in different countries.
For example, the Japanese Government gives subsidies to national shipbuilding yards to compensate for the 7-30% difference between the yards' expenses and market prices for vessels construction, as well as long-term credits under very profitable conditions. South Korea actively supports restructuring and modernization of the sector, offering export credits for 13 years. China protects its shipbuilding yards by regulating prices for steel and other material for vessels construction. Besides, the government helps to finance export orders and frees the imported vessel equipment from customs duties.
During the last decade, Germany actively modernized its shipbuilding yards situated on the territory of the Eastern Germany, and invested about USD 500 million into them. Now it continues to support the sector, giving subsidies to the national shipbuilding yards, and offering them an opportunity to get domestic and export credits with an 8% annual interest for 8-10 years.
The system of protectionist laws is widely used in the USA. In accordance with the laws, a certain share of shipbuilding yards and jobs in the national shipbuilding is loaded. In particular, there is a law on coastal trade and domestic shipping (Jones' Law), according to which coastal trade and domestic shipping can be provided only by vessels built in the USA and sailing under the American flag. Approved in 1993 and prolonged in 1998, the Programme of National Shipbuilding Revival envisages investments of USD 80 million into scientific research and experimental development in shipbuilding.
The Governments of Great Britain, Italy and Spain also support their shipbuilders actively by giving subsidies and privileged credits. The experience of Poland can be of great interest for Russia. In Poland most shipbuilding yards are stock companies, whose major shareholdings are owned by the state. This is why the Polish State Treasury acts as the guarantor when crediting the sector, thus, shipbuilding yards get significant customs and tax privileges. And half of expenses for scientific research and experimental development activities in shipbuilding is paid by the state.
Thus, based on the experience of foreign countries, one could outline the major steps the state should take to support the development of its shipbuilding sector:
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Ministry of Transport has chosen 15 cities
The concept of the federal-integrated geo-informational monitoring system of the transport infrastructure (GIS), developed under the aegis of the Ministry of Transport and presented at the end of last year envisages the launch of 15 key logistic centers on the basis of the most dynamically developing cities of Russia. They are Kaliningrad, Murmansk, Saint-Petersburg, Moscow, Arkhangelsk, Novorossyisk, Nizhny Novgorod, Volgograd, Astrakhan, Makhachkala, Yekaterinburg, Novosibirsk, Irkutsk, Vladivostok and Nakhodka.
Due to the fact that the programme is of large-scale sort, the Ministry of Transport decided to focus on the four pilot projects connected with the development of Novorossyisk, Murmansk, Vladivostok and Moscow. These are the very cities that have reached limits in respect of handling their turnover volumes, and this situation needs to be improved as soon as possible.
The concept implementation will start on prepared ground, since some projects that would join the system have already been realized. Thus, most topographical plans of the transport infrastructure objects have been created; the unified database on the key parameters of informational model of railway transport has been created, current statistics of transportation are being recorded (separately for cargo and passenger transportation), the unified telecommunication network is functioning at RZD and Rosaviation.
According to developers, the federal net of transport infrastructure monitoring will allow to solve some crucial problems, including the following tasks: to provide safety of the transportation process, to work out the structure of cargo flows volumes and passenger flows speed for different modes of transport, to provided an opportunity to make strategic and geopolitical decisions with the help of the information received on-time.
South Gates of Russia are Overloaded
The necessity to create a logistic center on the base of Novorossyisk transport junction is obvious, since cargo flows here increase every year and by now the ports and terminals have practically reached the peak of their potential.
According to transport companies representatives interviewed by RZD-Patrner International, the basic reason for such situation is inefficient control of cargo flows and absence of activities coordination for port men, motor transport and railway men. The launch of a logistic center can become a way out of this problem. This center project envisages the construction of port loading-unloading objects, laying down new railways and motor ways and the development of port of Novorossyisk-2 in the area of Kabardinka settlement. In particular, a railway complex "Grushevaya- Grushevaya marshalling yard - Kabardinka - Novorossyisk" is planned, as well as the second railway access to Tsemessk bay via Abinskaya station aimed at Kabardinka (port Novorossyisk-2). Simultaneously, the transport net development will be accompanied by terminals complex improvement.
The general cost of the project amounts to RUR 20-25 billion, and it will be implemented within the mode of state-and-private partnership. Budget financing will make 45% and the rest will be provided by private investors. Also, there is a chance to get funds from the Investment Fund established to support infrastructure projects in the first turn. Such opinion was expressed by Yevgeny Primakov, President of Trade-Industrial Chamber, at the last session held in Novorossyisk.
According to the Ministry of Transport, in early 2006 the tender will be put out to the projects of investment foundation for Novorossyisk logistic center launch.
Moscow overloads roads, Saint-Petersburg - warehouses
At present, radical roads capacities of Moscow region are exhausted. The basic reason for extreme overload lies in the fact that 80% of transit cargo is transported along Moscow Ring Road. At the same time, the cargo share transported along Big and Small Moscow rings is insignificant, as they have certain specific features, such as one-runway traffic, speed limitation, a great number of crossings at one level, long zones located in inhabited areas etc.
According to GIS, cargo terminals will be removed out of the city boundaries, which is why the construction of the Central Ring Road will assist in it. This Road is planned to be of 400 km length, located 50-80 km far from Moscow Ring Road and supported by 18 radical motor ways, as well as Big and Small Moscow Rings. The technical-economic foundation of the new road project has already been contested. Investment into the project will amount USD 1 billion till 2010; the term of outlay covering is approximately 20 years.
The basic purpose of the road construction is to unload Moscow Ring Road at the expense of limitation of transit motor trucks traffic. Respectively, the new ring road is aimed precisely at these motor trucks. Moreover, according to the project developers, this motor way will assist in the formation of new transport corridors the first one is going to link London, Berlin, Warsaw, Minsk, Moscow, Nizhny Novgorod and Yekaterinburg and the second one is to connect Helsinki, Saint-Petersburg, Moscow and the South of Russia.
According to Oleg Shakhov, "Roads of Russia" JSC Director, the toll for passage on the Central Ring Road will be differentiated and, moreover, it is planned to introduce the system of license fee.
About 11 regional logistic centers are to be launched on the new Ring in the points of crossing of the Central Ring Road with already functioning transport ways. These logistic centers will comprise cargo and terminal complexes, hi-tech enterprises, hypermarkets, complexes of motor services.
Saint-Petersburg transport junction, besides limited capacities, suffers from the problem of lack of warehouses. The greatest deficit is recorded for high-tech warehouses of "А" and "В" class, which is the reason for a constant growth of prices for warehouse real estate, rent, and warehousing services. According to the Committee on transport-transit policy of Saint-Petersburg Government, the prices growth for purchase-sale segment amounts to 25% per annum, but about 60% of customers prefer rent.
In recent years many companies started to launch logistic complexes for servicing their own business, although the undeveloped transport infrastructure and the absence of specially designed sectors restrict this process. Moreover, according to experts, in Saint-Petersburg junction there is no logistic center that would correspond to the European multifunctional logistic center of "А" class with an area of 200 thousand cubic meters, which is planned to be built in Vsevolozhsk of Leningrad region. "International logistic partnership - Ring Road (Moscow)" JSC is to invest USD 15 million into the project and, thus, cover the most part of infrastructure outlay.
The new complex will provide transport-infrastructure and logistic services on receiving, storage and handling cargo of widest range of clients, from suppliers of domestic appliance to food retailers.
Hopes for the Western Shore
The project of logistic center development in Murmansk envisages development of present-day port's capacities (in particular, coal, general cargo, oil bulk terminals, construction of container terminal of 300 - 500 thousand TEU per annum capacity) and new port infrastructure construction on the Western shore.
Murmansk infrastructure development can't satisfy the port with the required capacities for cargo handling, which is why the problem should be solved by constructing an additional complex - Lavna base on the Western shore.
According to the chief-engineer of the project ("Lenmorniiproject" JSC) Mikhail Mukhin, on the left shore there must be constructed three complexes for oil and products handling of aggregate capacity worth 31.5 million tons, coal handling complex (15 million tons), general cargo and container handling complex (3 million. tons).
Preliminary forecasts say this infrastructure construction will allow to boost the cargo turnover of Murmansk transport junction up to 35 million tons by 2008 and to 50 million tons by 2012.
The apt location of Lavna base close to deep-waters channel makes it possible to minimize hydrotechnical work. Moreover, Lavna base has one more advantage, which is its location out of densely populated areas. Railway absence within the territory of construction is the only difficulty of the project. At present there is only a motor way headed for Lavna base, with a capacity suitable to launch the first stage of the container terminal and the oil handling complex. The railway component of the project developed by "Lengiprotrans" JSC envisages the construction of two port stations - Lavna and Kulonga; in order to join them with the functioning railway net, a new line is planned.
Moreover, such stations as Vyhodnaya, Murmansk, Kola are to be constructed and some more arrangements are to be made.
In case the project is a success, the following cargo turnover results are planned to be achieved by 2010: as a minimum for the Eastern coast - 21.58 million tons, for the Western- 27.5 million tons; as a maximum - 28.92 and 32.5 respectively. As the figures show, great expectations are laid upon the project. According to the project, the transport net development is to be accompanied with the improvement of the terminal complex for temporary cargo storage during trader servicing.
The fewer terminals, the more expensive handling
The problem of warehouses deficit is equally important for the whole Far East and especially for its Southern part, where there are no warehouses of "А" class or storage-distribution centers with developed infrastructure.
To solve the problem, Sea Commercial Port of Vladivostok JSC, with the help of the Far East Scientific-Research Naval Institute, initiated a project of port cargo station "South sea terminal", with a joint-stock company of the same name launched, whose founders became Sea Commercial Port of Vladivostok, OAO RZD and other companies of the transport junction.
This terminal for container cargo handling is to be located on the territories close to inhabited areas, though having enough free space to expand terminal capacities.
The approximate cost of the terminal makes USD 18,4 million. According to the Ministry of Transport, such banks as "UralSib" and "Investsberbank" have already shown their interest in the project.
Besides South sea terminal, on the territory of Primorye the construction of a whole series of terminal complexes is planned to be joined into the unified net and destined for loading the ports of Vladivostok, Nakhodka and Vostochny, the aggregate cargo turnover of which exceeds 35 million tons, according to 2004 data. The major point from where transit via the TransSib will be implemented is to become the Ussuryisk terminal center.
Additional terminal centers launch can cause a tariff decrease and give an opportunity to make prices for cargo handling competitive. According to experts, the high price of terminal handling is the basic reason for the Russian ports being non-competitive. Thus, in the Minister of Transport Councillor Rashad Guseinov's words, container handling in the port of Vostochny is 2.2 times more expensive than in Busan, and 3.4 times more expensive than in Shanghai, which causes Russia to be pushed aside the world markets.
Moreover, terminal infrastructure development should assist in investment attraction to the TransSib modernization, many sectors of which do not correspond to the modern demands and can't allow to expand the line's capacity.
Also an possibility of developing a transport junction Sovgavan-Vanino located in Khabarovsk area is considered to be done via attracting the finances allocated by Investment Fund. The project comprises three independent directions: a coal terminal construction in Muchka bay, further development of the Elga coal field in Yakutia and the shore line of the Soviet Harbour development, the latter being controlled by "Pokrovsky rudnik" Group of companies.
The general cost of the project is approximately USD 4 million, the presumable term of implementation is three years (2006-2008).
It must be added that Khabarovsk area Government plans to join the project of transport junction launch on the shore of the Tatar Strait where it is to invest in railways renovation.
Ivan Denisenko
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Ministry of Transport has chosen 15 cities
The concept of the federal-integrated geo-informational monitoring system of the transport infrastructure (GIS), developed under the aegis of the Ministry of Transport and presented at the end of last year envisages the launch of 15 key logistic centers on the basis of the most dynamically developing cities of Russia. They are Kaliningrad, Murmansk, Saint-Petersburg, Moscow, Arkhangelsk, Novorossyisk, Nizhny Novgorod, Volgograd, Astrakhan, Makhachkala, Yekaterinburg, Novosibirsk, Irkutsk, Vladivostok and Nakhodka.
Due to the fact that the programme is of large-scale sort, the Ministry of Transport decided to focus on the four pilot projects connected with the development of Novorossyisk, Murmansk, Vladivostok and Moscow. These are the very cities that have reached limits in respect of handling their turnover volumes, and this situation needs to be improved as soon as possible.
The concept implementation will start on prepared ground, since some projects that would join the system have already been realized. Thus, most topographical plans of the transport infrastructure objects have been created; the unified database on the key parameters of informational model of railway transport has been created, current statistics of transportation are being recorded (separately for cargo and passenger transportation), the unified telecommunication network is functioning at RZD and Rosaviation.
According to developers, the federal net of transport infrastructure monitoring will allow to solve some crucial problems, including the following tasks: to provide safety of the transportation process, to work out the structure of cargo flows volumes and passenger flows speed for different modes of transport, to provided an opportunity to make strategic and geopolitical decisions with the help of the information received on-time.
South Gates of Russia are Overloaded
The necessity to create a logistic center on the base of Novorossyisk transport junction is obvious, since cargo flows here increase every year and by now the ports and terminals have practically reached the peak of their potential.
According to transport companies representatives interviewed by RZD-Patrner International, the basic reason for such situation is inefficient control of cargo flows and absence of activities coordination for port men, motor transport and railway men. The launch of a logistic center can become a way out of this problem. This center project envisages the construction of port loading-unloading objects, laying down new railways and motor ways and the development of port of Novorossyisk-2 in the area of Kabardinka settlement. In particular, a railway complex "Grushevaya- Grushevaya marshalling yard - Kabardinka - Novorossyisk" is planned, as well as the second railway access to Tsemessk bay via Abinskaya station aimed at Kabardinka (port Novorossyisk-2). Simultaneously, the transport net development will be accompanied by terminals complex improvement.
The general cost of the project amounts to RUR 20-25 billion, and it will be implemented within the mode of state-and-private partnership. Budget financing will make 45% and the rest will be provided by private investors. Also, there is a chance to get funds from the Investment Fund established to support infrastructure projects in the first turn. Such opinion was expressed by Yevgeny Primakov, President of Trade-Industrial Chamber, at the last session held in Novorossyisk.
According to the Ministry of Transport, in early 2006 the tender will be put out to the projects of investment foundation for Novorossyisk logistic center launch.
Moscow overloads roads, Saint-Petersburg - warehouses
At present, radical roads capacities of Moscow region are exhausted. The basic reason for extreme overload lies in the fact that 80% of transit cargo is transported along Moscow Ring Road. At the same time, the cargo share transported along Big and Small Moscow rings is insignificant, as they have certain specific features, such as one-runway traffic, speed limitation, a great number of crossings at one level, long zones located in inhabited areas etc.
According to GIS, cargo terminals will be removed out of the city boundaries, which is why the construction of the Central Ring Road will assist in it. This Road is planned to be of 400 km length, located 50-80 km far from Moscow Ring Road and supported by 18 radical motor ways, as well as Big and Small Moscow Rings. The technical-economic foundation of the new road project has already been contested. Investment into the project will amount USD 1 billion till 2010; the term of outlay covering is approximately 20 years.
The basic purpose of the road construction is to unload Moscow Ring Road at the expense of limitation of transit motor trucks traffic. Respectively, the new ring road is aimed precisely at these motor trucks. Moreover, according to the project developers, this motor way will assist in the formation of new transport corridors the first one is going to link London, Berlin, Warsaw, Minsk, Moscow, Nizhny Novgorod and Yekaterinburg and the second one is to connect Helsinki, Saint-Petersburg, Moscow and the South of Russia.
According to Oleg Shakhov, "Roads of Russia" JSC Director, the toll for passage on the Central Ring Road will be differentiated and, moreover, it is planned to introduce the system of license fee.
About 11 regional logistic centers are to be launched on the new Ring in the points of crossing of the Central Ring Road with already functioning transport ways. These logistic centers will comprise cargo and terminal complexes, hi-tech enterprises, hypermarkets, complexes of motor services.
Saint-Petersburg transport junction, besides limited capacities, suffers from the problem of lack of warehouses. The greatest deficit is recorded for high-tech warehouses of "А" and "В" class, which is the reason for a constant growth of prices for warehouse real estate, rent, and warehousing services. According to the Committee on transport-transit policy of Saint-Petersburg Government, the prices growth for purchase-sale segment amounts to 25% per annum, but about 60% of customers prefer rent.
In recent years many companies started to launch logistic complexes for servicing their own business, although the undeveloped transport infrastructure and the absence of specially designed sectors restrict this process. Moreover, according to experts, in Saint-Petersburg junction there is no logistic center that would correspond to the European multifunctional logistic center of "А" class with an area of 200 thousand cubic meters, which is planned to be built in Vsevolozhsk of Leningrad region. "International logistic partnership - Ring Road (Moscow)" JSC is to invest USD 15 million into the project and, thus, cover the most part of infrastructure outlay.
The new complex will provide transport-infrastructure and logistic services on receiving, storage and handling cargo of widest range of clients, from suppliers of domestic appliance to food retailers.
Hopes for the Western Shore
The project of logistic center development in Murmansk envisages development of present-day port's capacities (in particular, coal, general cargo, oil bulk terminals, construction of container terminal of 300 - 500 thousand TEU per annum capacity) and new port infrastructure construction on the Western shore.
Murmansk infrastructure development can't satisfy the port with the required capacities for cargo handling, which is why the problem should be solved by constructing an additional complex - Lavna base on the Western shore.
According to the chief-engineer of the project ("Lenmorniiproject" JSC) Mikhail Mukhin, on the left shore there must be constructed three complexes for oil and products handling of aggregate capacity worth 31.5 million tons, coal handling complex (15 million tons), general cargo and container handling complex (3 million. tons).
Preliminary forecasts say this infrastructure construction will allow to boost the cargo turnover of Murmansk transport junction up to 35 million tons by 2008 and to 50 million tons by 2012.
The apt location of Lavna base close to deep-waters channel makes it possible to minimize hydrotechnical work. Moreover, Lavna base has one more advantage, which is its location out of densely populated areas. Railway absence within the territory of construction is the only difficulty of the project. At present there is only a motor way headed for Lavna base, with a capacity suitable to launch the first stage of the container terminal and the oil handling complex. The railway component of the project developed by "Lengiprotrans" JSC envisages the construction of two port stations - Lavna and Kulonga; in order to join them with the functioning railway net, a new line is planned.
Moreover, such stations as Vyhodnaya, Murmansk, Kola are to be constructed and some more arrangements are to be made.
In case the project is a success, the following cargo turnover results are planned to be achieved by 2010: as a minimum for the Eastern coast - 21.58 million tons, for the Western- 27.5 million tons; as a maximum - 28.92 and 32.5 respectively. As the figures show, great expectations are laid upon the project. According to the project, the transport net development is to be accompanied with the improvement of the terminal complex for temporary cargo storage during trader servicing.
The fewer terminals, the more expensive handling
The problem of warehouses deficit is equally important for the whole Far East and especially for its Southern part, where there are no warehouses of "А" class or storage-distribution centers with developed infrastructure.
To solve the problem, Sea Commercial Port of Vladivostok JSC, with the help of the Far East Scientific-Research Naval Institute, initiated a project of port cargo station "South sea terminal", with a joint-stock company of the same name launched, whose founders became Sea Commercial Port of Vladivostok, OAO RZD and other companies of the transport junction.
This terminal for container cargo handling is to be located on the territories close to inhabited areas, though having enough free space to expand terminal capacities.
The approximate cost of the terminal makes USD 18,4 million. According to the Ministry of Transport, such banks as "UralSib" and "Investsberbank" have already shown their interest in the project.
Besides South sea terminal, on the territory of Primorye the construction of a whole series of terminal complexes is planned to be joined into the unified net and destined for loading the ports of Vladivostok, Nakhodka and Vostochny, the aggregate cargo turnover of which exceeds 35 million tons, according to 2004 data. The major point from where transit via the TransSib will be implemented is to become the Ussuryisk terminal center.
Additional terminal centers launch can cause a tariff decrease and give an opportunity to make prices for cargo handling competitive. According to experts, the high price of terminal handling is the basic reason for the Russian ports being non-competitive. Thus, in the Minister of Transport Councillor Rashad Guseinov's words, container handling in the port of Vostochny is 2.2 times more expensive than in Busan, and 3.4 times more expensive than in Shanghai, which causes Russia to be pushed aside the world markets.
Moreover, terminal infrastructure development should assist in investment attraction to the TransSib modernization, many sectors of which do not correspond to the modern demands and can't allow to expand the line's capacity.
Also an possibility of developing a transport junction Sovgavan-Vanino located in Khabarovsk area is considered to be done via attracting the finances allocated by Investment Fund. The project comprises three independent directions: a coal terminal construction in Muchka bay, further development of the Elga coal field in Yakutia and the shore line of the Soviet Harbour development, the latter being controlled by "Pokrovsky rudnik" Group of companies.
The general cost of the project is approximately USD 4 million, the presumable term of implementation is three years (2006-2008).
It must be added that Khabarovsk area Government plans to join the project of transport junction launch on the shore of the Tatar Strait where it is to invest in railways renovation.
Ivan Denisenko
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Ministry of Transport has chosen 15 cities
The concept of the federal-integrated geo-informational monitoring system of the transport infrastructure (GIS), developed under the aegis of the Ministry of Transport and presented at the end of last year envisages the launch of 15 key logistic centers on the basis of the most dynamically developing cities of Russia. They are Kaliningrad, Murmansk, Saint-Petersburg, Moscow, Arkhangelsk, Novorossyisk, Nizhny Novgorod, Volgograd, Astrakhan, Makhachkala, Yekaterinburg, Novosibirsk, Irkutsk, Vladivostok and Nakhodka.
Due to the fact that the programme is of large-scale sort, the Ministry of Transport decided to focus on the four pilot projects connected with the development of Novorossyisk, Murmansk, Vladivostok and Moscow. These are the very cities that have reached limits in respect of handling their turnover volumes, and this situation needs to be improved as soon as possible.
The concept implementation will start on prepared ground, since some projects that would join the system have already been realized. Thus, most topographical plans of the transport infrastructure objects have been created; the unified database on the key parameters of informational model of railway transport has been created, current statistics of transportation are being recorded (separately for cargo and passenger transportation), the unified telecommunication network is functioning at RZD and Rosaviation.
According to developers, the federal net of transport infrastructure monitoring will allow to solve some crucial problems, including the following tasks: to provide safety of the transportation process, to work out the structure of cargo flows volumes and passenger flows speed for different modes of transport, to provided an opportunity to make strategic and geopolitical decisions with the help of the information received on-time.
South Gates of Russia are Overloaded
The necessity to create a logistic center on the base of Novorossyisk transport junction is obvious, since cargo flows here increase every year and by now the ports and terminals have practically reached the peak of their potential.
According to transport companies representatives interviewed by RZD-Patrner International, the basic reason for such situation is inefficient control of cargo flows and absence of activities coordination for port men, motor transport and railway men. The launch of a logistic center can become a way out of this problem. This center project envisages the construction of port loading-unloading objects, laying down new railways and motor ways and the development of port of Novorossyisk-2 in the area of Kabardinka settlement. In particular, a railway complex "Grushevaya- Grushevaya marshalling yard - Kabardinka - Novorossyisk" is planned, as well as the second railway access to Tsemessk bay via Abinskaya station aimed at Kabardinka (port Novorossyisk-2). Simultaneously, the transport net development will be accompanied by terminals complex improvement.
The general cost of the project amounts to RUR 20-25 billion, and it will be implemented within the mode of state-and-private partnership. Budget financing will make 45% and the rest will be provided by private investors. Also, there is a chance to get funds from the Investment Fund established to support infrastructure projects in the first turn. Such opinion was expressed by Yevgeny Primakov, President of Trade-Industrial Chamber, at the last session held in Novorossyisk.
According to the Ministry of Transport, in early 2006 the tender will be put out to the projects of investment foundation for Novorossyisk logistic center launch.
Moscow overloads roads, Saint-Petersburg - warehouses
At present, radical roads capacities of Moscow region are exhausted. The basic reason for extreme overload lies in the fact that 80% of transit cargo is transported along Moscow Ring Road. At the same time, the cargo share transported along Big and Small Moscow rings is insignificant, as they have certain specific features, such as one-runway traffic, speed limitation, a great number of crossings at one level, long zones located in inhabited areas etc.
According to GIS, cargo terminals will be removed out of the city boundaries, which is why the construction of the Central Ring Road will assist in it. This Road is planned to be of 400 km length, located 50-80 km far from Moscow Ring Road and supported by 18 radical motor ways, as well as Big and Small Moscow Rings. The technical-economic foundation of the new road project has already been contested. Investment into the project will amount USD 1 billion till 2010; the term of outlay covering is approximately 20 years.
The basic purpose of the road construction is to unload Moscow Ring Road at the expense of limitation of transit motor trucks traffic. Respectively, the new ring road is aimed precisely at these motor trucks. Moreover, according to the project developers, this motor way will assist in the formation of new transport corridors the first one is going to link London, Berlin, Warsaw, Minsk, Moscow, Nizhny Novgorod and Yekaterinburg and the second one is to connect Helsinki, Saint-Petersburg, Moscow and the South of Russia.
According to Oleg Shakhov, "Roads of Russia" JSC Director, the toll for passage on the Central Ring Road will be differentiated and, moreover, it is planned to introduce the system of license fee.
About 11 regional logistic centers are to be launched on the new Ring in the points of crossing of the Central Ring Road with already functioning transport ways. These logistic centers will comprise cargo and terminal complexes, hi-tech enterprises, hypermarkets, complexes of motor services.
Saint-Petersburg transport junction, besides limited capacities, suffers from the problem of lack of warehouses. The greatest deficit is recorded for high-tech warehouses of "А" and "В" class, which is the reason for a constant growth of prices for warehouse real estate, rent, and warehousing services. According to the Committee on transport-transit policy of Saint-Petersburg Government, the prices growth for purchase-sale segment amounts to 25% per annum, but about 60% of customers prefer rent.
In recent years many companies started to launch logistic complexes for servicing their own business, although the undeveloped transport infrastructure and the absence of specially designed sectors restrict this process. Moreover, according to experts, in Saint-Petersburg junction there is no logistic center that would correspond to the European multifunctional logistic center of "А" class with an area of 200 thousand cubic meters, which is planned to be built in Vsevolozhsk of Leningrad region. "International logistic partnership - Ring Road (Moscow)" JSC is to invest USD 15 million into the project and, thus, cover the most part of infrastructure outlay.
The new complex will provide transport-infrastructure and logistic services on receiving, storage and handling cargo of widest range of clients, from suppliers of domestic appliance to food retailers.
Hopes for the Western Shore
The project of logistic center development in Murmansk envisages development of present-day port's capacities (in particular, coal, general cargo, oil bulk terminals, construction of container terminal of 300 - 500 thousand TEU per annum capacity) and new port infrastructure construction on the Western shore.
Murmansk infrastructure development can't satisfy the port with the required capacities for cargo handling, which is why the problem should be solved by constructing an additional complex - Lavna base on the Western shore.
According to the chief-engineer of the project ("Lenmorniiproject" JSC) Mikhail Mukhin, on the left shore there must be constructed three complexes for oil and products handling of aggregate capacity worth 31.5 million tons, coal handling complex (15 million tons), general cargo and container handling complex (3 million. tons).
Preliminary forecasts say this infrastructure construction will allow to boost the cargo turnover of Murmansk transport junction up to 35 million tons by 2008 and to 50 million tons by 2012.
The apt location of Lavna base close to deep-waters channel makes it possible to minimize hydrotechnical work. Moreover, Lavna base has one more advantage, which is its location out of densely populated areas. Railway absence within the territory of construction is the only difficulty of the project. At present there is only a motor way headed for Lavna base, with a capacity suitable to launch the first stage of the container terminal and the oil handling complex. The railway component of the project developed by "Lengiprotrans" JSC envisages the construction of two port stations - Lavna and Kulonga; in order to join them with the functioning railway net, a new line is planned.
Moreover, such stations as Vyhodnaya, Murmansk, Kola are to be constructed and some more arrangements are to be made.
In case the project is a success, the following cargo turnover results are planned to be achieved by 2010: as a minimum for the Eastern coast - 21.58 million tons, for the Western- 27.5 million tons; as a maximum - 28.92 and 32.5 respectively. As the figures show, great expectations are laid upon the project. According to the project, the transport net development is to be accompanied with the improvement of the terminal complex for temporary cargo storage during trader servicing.
The fewer terminals, the more expensive handling
The problem of warehouses deficit is equally important for the whole Far East and especially for its Southern part, where there are no warehouses of "А" class or storage-distribution centers with developed infrastructure.
To solve the problem, Sea Commercial Port of Vladivostok JSC, with the help of the Far East Scientific-Research Naval Institute, initiated a project of port cargo station "South sea terminal", with a joint-stock company of the same name launched, whose founders became Sea Commercial Port of Vladivostok, OAO RZD and other companies of the transport junction.
This terminal for container cargo handling is to be located on the territories close to inhabited areas, though having enough free space to expand terminal capacities.
The approximate cost of the terminal makes USD 18,4 million. According to the Ministry of Transport, such banks as "UralSib" and "Investsberbank" have already shown their interest in the project.
Besides South sea terminal, on the territory of Primorye the construction of a whole series of terminal complexes is planned to be joined into the unified net and destined for loading the ports of Vladivostok, Nakhodka and Vostochny, the aggregate cargo turnover of which exceeds 35 million tons, according to 2004 data. The major point from where transit via the TransSib will be implemented is to become the Ussuryisk terminal center.
Additional terminal centers launch can cause a tariff decrease and give an opportunity to make prices for cargo handling competitive. According to experts, the high price of terminal handling is the basic reason for the Russian ports being non-competitive. Thus, in the Minister of Transport Councillor Rashad Guseinov's words, container handling in the port of Vostochny is 2.2 times more expensive than in Busan, and 3.4 times more expensive than in Shanghai, which causes Russia to be pushed aside the world markets.
Moreover, terminal infrastructure development should assist in investment attraction to the TransSib modernization, many sectors of which do not correspond to the modern demands and can't allow to expand the line's capacity.
Also an possibility of developing a transport junction Sovgavan-Vanino located in Khabarovsk area is considered to be done via attracting the finances allocated by Investment Fund. The project comprises three independent directions: a coal terminal construction in Muchka bay, further development of the Elga coal field in Yakutia and the shore line of the Soviet Harbour development, the latter being controlled by "Pokrovsky rudnik" Group of companies.
The general cost of the project is approximately USD 4 million, the presumable term of implementation is three years (2006-2008).
It must be added that Khabarovsk area Government plans to join the project of transport junction launch on the shore of the Tatar Strait where it is to invest in railways renovation.
Ivan Denisenko
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Ministry of Transport has chosen 15 cities
The concept of the federal-integrated geo-informational monitoring system of the transport infrastructure (GIS), developed under the aegis of the Ministry of Transport and presented at the end of last year envisages the launch of 15 key logistic centers on the basis of the most dynamically developing cities of Russia. They are Kaliningrad, Murmansk, Saint-Petersburg, Moscow, Arkhangelsk, Novorossyisk, Nizhny Novgorod, Volgograd, Astrakhan, Makhachkala, Yekaterinburg, Novosibirsk, Irkutsk, Vladivostok and Nakhodka.
Due to the fact that the programme is of large-scale sort, the Ministry of Transport decided to focus on the four pilot projects connected with the development of Novorossyisk, Murmansk, Vladivostok and Moscow. These are the very cities that have reached limits in respect of handling their turnover volumes, and this situation needs to be improved as soon as possible.
The concept implementation will start on prepared ground, since some projects that would join the system have already been realized. Thus, most topographical plans of the transport infrastructure objects have been created; the unified database on the key parameters of informational model of railway transport has been created, current statistics of transportation are being recorded (separately for cargo and passenger transportation), the unified telecommunication network is functioning at RZD and Rosaviation.
According to developers, the federal net of transport infrastructure monitoring will allow to solve some crucial problems, including the following tasks: to provide safety of the transportation process, to work out the structure of cargo flows volumes and passenger flows speed for different modes of transport, to provided an opportunity to make strategic and geopolitical decisions with the help of the information received on-time.
South Gates of Russia are Overloaded
The necessity to create a logistic center on the base of Novorossyisk transport junction is obvious, since cargo flows here increase every year and by now the ports and terminals have practically reached the peak of their potential.
According to transport companies representatives interviewed by RZD-Patrner International, the basic reason for such situation is inefficient control of cargo flows and absence of activities coordination for port men, motor transport and railway men. The launch of a logistic center can become a way out of this problem. This center project envisages the construction of port loading-unloading objects, laying down new railways and motor ways and the development of port of Novorossyisk-2 in the area of Kabardinka settlement. In particular, a railway complex "Grushevaya- Grushevaya marshalling yard - Kabardinka - Novorossyisk" is planned, as well as the second railway access to Tsemessk bay via Abinskaya station aimed at Kabardinka (port Novorossyisk-2). Simultaneously, the transport net development will be accompanied by terminals complex improvement.
The general cost of the project amounts to RUR 20-25 billion, and it will be implemented within the mode of state-and-private partnership. Budget financing will make 45% and the rest will be provided by private investors. Also, there is a chance to get funds from the Investment Fund established to support infrastructure projects in the first turn. Such opinion was expressed by Yevgeny Primakov, President of Trade-Industrial Chamber, at the last session held in Novorossyisk.
According to the Ministry of Transport, in early 2006 the tender will be put out to the projects of investment foundation for Novorossyisk logistic center launch.
Moscow overloads roads, Saint-Petersburg - warehouses
At present, radical roads capacities of Moscow region are exhausted. The basic reason for extreme overload lies in the fact that 80% of transit cargo is transported along Moscow Ring Road. At the same time, the cargo share transported along Big and Small Moscow rings is insignificant, as they have certain specific features, such as one-runway traffic, speed limitation, a great number of crossings at one level, long zones located in inhabited areas etc.
According to GIS, cargo terminals will be removed out of the city boundaries, which is why the construction of the Central Ring Road will assist in it. This Road is planned to be of 400 km length, located 50-80 km far from Moscow Ring Road and supported by 18 radical motor ways, as well as Big and Small Moscow Rings. The technical-economic foundation of the new road project has already been contested. Investment into the project will amount USD 1 billion till 2010; the term of outlay covering is approximately 20 years.
The basic purpose of the road construction is to unload Moscow Ring Road at the expense of limitation of transit motor trucks traffic. Respectively, the new ring road is aimed precisely at these motor trucks. Moreover, according to the project developers, this motor way will assist in the formation of new transport corridors the first one is going to link London, Berlin, Warsaw, Minsk, Moscow, Nizhny Novgorod and Yekaterinburg and the second one is to connect Helsinki, Saint-Petersburg, Moscow and the South of Russia.
According to Oleg Shakhov, "Roads of Russia" JSC Director, the toll for passage on the Central Ring Road will be differentiated and, moreover, it is planned to introduce the system of license fee.
About 11 regional logistic centers are to be launched on the new Ring in the points of crossing of the Central Ring Road with already functioning transport ways. These logistic centers will comprise cargo and terminal complexes, hi-tech enterprises, hypermarkets, complexes of motor services.
Saint-Petersburg transport junction, besides limited capacities, suffers from the problem of lack of warehouses. The greatest deficit is recorded for high-tech warehouses of "А" and "В" class, which is the reason for a constant growth of prices for warehouse real estate, rent, and warehousing services. According to the Committee on transport-transit policy of Saint-Petersburg Government, the prices growth for purchase-sale segment amounts to 25% per annum, but about 60% of customers prefer rent.
In recent years many companies started to launch logistic complexes for servicing their own business, although the undeveloped transport infrastructure and the absence of specially designed sectors restrict this process. Moreover, according to experts, in Saint-Petersburg junction there is no logistic center that would correspond to the European multifunctional logistic center of "А" class with an area of 200 thousand cubic meters, which is planned to be built in Vsevolozhsk of Leningrad region. "International logistic partnership - Ring Road (Moscow)" JSC is to invest USD 15 million into the project and, thus, cover the most part of infrastructure outlay.
The new complex will provide transport-infrastructure and logistic services on receiving, storage and handling cargo of widest range of clients, from suppliers of domestic appliance to food retailers.
Hopes for the Western Shore
The project of logistic center development in Murmansk envisages development of present-day port's capacities (in particular, coal, general cargo, oil bulk terminals, construction of container terminal of 300 - 500 thousand TEU per annum capacity) and new port infrastructure construction on the Western shore.
Murmansk infrastructure development can't satisfy the port with the required capacities for cargo handling, which is why the problem should be solved by constructing an additional complex - Lavna base on the Western shore.
According to the chief-engineer of the project ("Lenmorniiproject" JSC) Mikhail Mukhin, on the left shore there must be constructed three complexes for oil and products handling of aggregate capacity worth 31.5 million tons, coal handling complex (15 million tons), general cargo and container handling complex (3 million. tons).
Preliminary forecasts say this infrastructure construction will allow to boost the cargo turnover of Murmansk transport junction up to 35 million tons by 2008 and to 50 million tons by 2012.
The apt location of Lavna base close to deep-waters channel makes it possible to minimize hydrotechnical work. Moreover, Lavna base has one more advantage, which is its location out of densely populated areas. Railway absence within the territory of construction is the only difficulty of the project. At present there is only a motor way headed for Lavna base, with a capacity suitable to launch the first stage of the container terminal and the oil handling complex. The railway component of the project developed by "Lengiprotrans" JSC envisages the construction of two port stations - Lavna and Kulonga; in order to join them with the functioning railway net, a new line is planned.
Moreover, such stations as Vyhodnaya, Murmansk, Kola are to be constructed and some more arrangements are to be made.
In case the project is a success, the following cargo turnover results are planned to be achieved by 2010: as a minimum for the Eastern coast - 21.58 million tons, for the Western- 27.5 million tons; as a maximum - 28.92 and 32.5 respectively. As the figures show, great expectations are laid upon the project. According to the project, the transport net development is to be accompanied with the improvement of the terminal complex for temporary cargo storage during trader servicing.
The fewer terminals, the more expensive handling
The problem of warehouses deficit is equally important for the whole Far East and especially for its Southern part, where there are no warehouses of "А" class or storage-distribution centers with developed infrastructure.
To solve the problem, Sea Commercial Port of Vladivostok JSC, with the help of the Far East Scientific-Research Naval Institute, initiated a project of port cargo station "South sea terminal", with a joint-stock company of the same name launched, whose founders became Sea Commercial Port of Vladivostok, OAO RZD and other companies of the transport junction.
This terminal for container cargo handling is to be located on the territories close to inhabited areas, though having enough free space to expand terminal capacities.
The approximate cost of the terminal makes USD 18,4 million. According to the Ministry of Transport, such banks as "UralSib" and "Investsberbank" have already shown their interest in the project.
Besides South sea terminal, on the territory of Primorye the construction of a whole series of terminal complexes is planned to be joined into the unified net and destined for loading the ports of Vladivostok, Nakhodka and Vostochny, the aggregate cargo turnover of which exceeds 35 million tons, according to 2004 data. The major point from where transit via the TransSib will be implemented is to become the Ussuryisk terminal center.
Additional terminal centers launch can cause a tariff decrease and give an opportunity to make prices for cargo handling competitive. According to experts, the high price of terminal handling is the basic reason for the Russian ports being non-competitive. Thus, in the Minister of Transport Councillor Rashad Guseinov's words, container handling in the port of Vostochny is 2.2 times more expensive than in Busan, and 3.4 times more expensive than in Shanghai, which causes Russia to be pushed aside the world markets.
Moreover, terminal infrastructure development should assist in investment attraction to the TransSib modernization, many sectors of which do not correspond to the modern demands and can't allow to expand the line's capacity.
Also an possibility of developing a transport junction Sovgavan-Vanino located in Khabarovsk area is considered to be done via attracting the finances allocated by Investment Fund. The project comprises three independent directions: a coal terminal construction in Muchka bay, further development of the Elga coal field in Yakutia and the shore line of the Soviet Harbour development, the latter being controlled by "Pokrovsky rudnik" Group of companies.
The general cost of the project is approximately USD 4 million, the presumable term of implementation is three years (2006-2008).
It must be added that Khabarovsk area Government plans to join the project of transport junction launch on the shore of the Tatar Strait where it is to invest in railways renovation.
Ivan Denisenko
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- Why did your company decide to enter the Russian market and what is the history of Kalmar Industries in Russia?
- Kalmar made its first deliveries to Russia as early as about 40 years ago. Russia has always been an important neighbour and a natural partner for Finland. Our history in the former Soviet Union starts in the early sixties when we delivered our first forklift trucks and straddle carriers for steel. In the early eighties the first container handlers (Straddle Carriers) were delivered. Kalmar representative office was opened in 1993. LLC Kalmar Fork Trucks and Cranes was established in 2002. Now we have three offices, several dealers and agents covering practically all the populated area of the RF. More than 700 Kalmar units are in operation in various parts of Russia and we want to be available for our clients when and wherever required.
- What are the main specificsof the Russian market that you have noticed?
- Having spent over seven years in Russia I can't see anything special. Of course, the low level of container flow is something that will grow fast. If we compare the figures of my home country Finland, with its 5 million population and Russia, with its 145 million inhabitants, it is hard to believe that the "cross border" container flow in Russia is only about twice as big as that in Finland.
The Russian society and the Russian market are developing very quickly. The growth of the past seven years is expected to continue. New technologies are applied. The infrastructure, including transport, is facing big challengies to serve this vast territory. Russia has access to sea in every four main compass directions. At the moment we are experiencing very favourable conditions for business. Also, historically, Russia and Finland, and people of these two countries, have always had very close ties. I dare say that we understand each other very well. Companies like OAO Russian Railways are giants, but business is made between individuals. The market is open and only suppliers with long term (life time) commitment can be successful. Cargo handling and transportation companies understand that success requires relations of partnership type. After sales plays more and more important role. Personally, I am very pleased to work in Russia and be part of the development.
The key advantage is the growing market. Transportation, forest, metallurgy, car manufacturing, almost all industry sectors are growing and finding their way of development. As Russia is very big in every sense, inland transportation and distribution systems will face big changes and improvements as well, due to the increasing demands of the market.
- What's your opinion on the monopoly which the Russian rail market is so much blamed for?
- It is difficult to make any statement regarding the policy of OAO Russian Railways. It has a big task. Things are changing gradually. Russia's potential membership in the WTO can press, not only Railways, but all monopoly type organizations to make changes.
- What difficulties has your company faced?
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- What is your forecast of the Russian transport market development?
- In the next 5-10 years the total volume and value of transportation business will grow continuously and substantially. The growth rate depends, first of all, on raw material prices, especially on the oil price. The more money flows into Russian economy, the more varied goods will be imported. More and more different kinds of goods will also be exported in the standard form, i.e. in containers.
- What are your company's plans in the Russian market?
- We will have strong presence in places where our clients are. Globally, Kalmar Industries is present either via dealers or via its own offices in more than 140 countries. In Russia we have the same task. This year we will update our sparepart logistics by updating our storage in St. Petersburg and by opening a storage in Novorossiisk. We will react to the market demand and remarkably increase our level in After Sales.
Interviewed by Maria Ghermanova
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- Why did your company decide to enter the Russian market and what is the history of Kalmar Industries in Russia?
- Kalmar made its first deliveries to Russia as early as about 40 years ago. Russia has always been an important neighbour and a natural partner for Finland. Our history in the former Soviet Union starts in the early sixties when we delivered our first forklift trucks and straddle carriers for steel. In the early eighties the first container handlers (Straddle Carriers) were delivered. Kalmar representative office was opened in 1993. LLC Kalmar Fork Trucks and Cranes was established in 2002. Now we have three offices, several dealers and agents covering practically all the populated area of the RF. More than 700 Kalmar units are in operation in various parts of Russia and we want to be available for our clients when and wherever required.
- What are the main specificsof the Russian market that you have noticed?
- Having spent over seven years in Russia I can't see anything special. Of course, the low level of container flow is something that will grow fast. If we compare the figures of my home country Finland, with its 5 million population and Russia, with its 145 million inhabitants, it is hard to believe that the "cross border" container flow in Russia is only about twice as big as that in Finland.
The Russian society and the Russian market are developing very quickly. The growth of the past seven years is expected to continue. New technologies are applied. The infrastructure, including transport, is facing big challengies to serve this vast territory. Russia has access to sea in every four main compass directions. At the moment we are experiencing very favourable conditions for business. Also, historically, Russia and Finland, and people of these two countries, have always had very close ties. I dare say that we understand each other very well. Companies like OAO Russian Railways are giants, but business is made between individuals. The market is open and only suppliers with long term (life time) commitment can be successful. Cargo handling and transportation companies understand that success requires relations of partnership type. After sales plays more and more important role. Personally, I am very pleased to work in Russia and be part of the development.
The key advantage is the growing market. Transportation, forest, metallurgy, car manufacturing, almost all industry sectors are growing and finding their way of development. As Russia is very big in every sense, inland transportation and distribution systems will face big changes and improvements as well, due to the increasing demands of the market.
- What's your opinion on the monopoly which the Russian rail market is so much blamed for?
- It is difficult to make any statement regarding the policy of OAO Russian Railways. It has a big task. Things are changing gradually. Russia's potential membership in the WTO can press, not only Railways, but all monopoly type organizations to make changes.
- What difficulties has your company faced?
- The size of the country is a challenge. Sparepart logistics is maybe the biggest: how can you serve your client with first class after sales in every corner of the country? Kalmar equipment is used from Kaliningrad to Kamchatka and from Norilsk to Novorossiysk. A direct flight from Moscow to Vladivostok takes close to ten hours. But we are determined to serve our partners well. Both parties understand the difficulty and we try to solve these problems together. Naturally, I see more possibilities than difficulties in Russia.
- What is your forecast of the Russian transport market development?
- In the next 5-10 years the total volume and value of transportation business will grow continuously and substantially. The growth rate depends, first of all, on raw material prices, especially on the oil price. The more money flows into Russian economy, the more varied goods will be imported. More and more different kinds of goods will also be exported in the standard form, i.e. in containers.
- What are your company's plans in the Russian market?
- We will have strong presence in places where our clients are. Globally, Kalmar Industries is present either via dealers or via its own offices in more than 140 countries. In Russia we have the same task. This year we will update our sparepart logistics by updating our storage in St. Petersburg and by opening a storage in Novorossiisk. We will react to the market demand and remarkably increase our level in After Sales.
Interviewed by Maria Ghermanova
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- Why did your company decide to enter the Russian market and what is the history of Kalmar Industries in Russia?
- Kalmar made its first deliveries to Russia as early as about 40 years ago. Russia has always been an important neighbour and a natural partner for Finland. Our history in the former Soviet Union starts in the early sixties when we delivered our first forklift trucks and straddle carriers for steel. In the early eighties the first container handlers (Straddle Carriers) were delivered. Kalmar representative office was opened in 1993. LLC Kalmar Fork Trucks and Cranes was established in 2002. Now we have three offices, several dealers and agents covering practically all the populated area of the RF. More than 700 Kalmar units are in operation in various parts of Russia and we want to be available for our clients when and wherever required.
- What are the main specificsof the Russian market that you have noticed?
- Having spent over seven years in Russia I can't see anything special. Of course, the low level of container flow is something that will grow fast. If we compare the figures of my home country Finland, with its 5 million population and Russia, with its 145 million inhabitants, it is hard to believe that the "cross border" container flow in Russia is only about twice as big as that in Finland.
The Russian society and the Russian market are developing very quickly. The growth of the past seven years is expected to continue. New technologies are applied. The infrastructure, including transport, is facing big challengies to serve this vast territory. Russia has access to sea in every four main compass directions. At the moment we are experiencing very favourable conditions for business. Also, historically, Russia and Finland, and people of these two countries, have always had very close ties. I dare say that we understand each other very well. Companies like OAO Russian Railways are giants, but business is made between individuals. The market is open and only suppliers with long term (life time) commitment can be successful. Cargo handling and transportation companies understand that success requires relations of partnership type. After sales plays more and more important role. Personally, I am very pleased to work in Russia and be part of the development.
The key advantage is the growing market. Transportation, forest, metallurgy, car manufacturing, almost all industry sectors are growing and finding their way of development. As Russia is very big in every sense, inland transportation and distribution systems will face big changes and improvements as well, due to the increasing demands of the market.
- What's your opinion on the monopoly which the Russian rail market is so much blamed for?
- It is difficult to make any statement regarding the policy of OAO Russian Railways. It has a big task. Things are changing gradually. Russia's potential membership in the WTO can press, not only Railways, but all monopoly type organizations to make changes.
- What difficulties has your company faced?
- The size of the country is a challenge. Sparepart logistics is maybe the biggest: how can you serve your client with first class after sales in every corner of the country? Kalmar equipment is used from Kaliningrad to Kamchatka and from Norilsk to Novorossiysk. A direct flight from Moscow to Vladivostok takes close to ten hours. But we are determined to serve our partners well. Both parties understand the difficulty and we try to solve these problems together. Naturally, I see more possibilities than difficulties in Russia.
- What is your forecast of the Russian transport market development?
- In the next 5-10 years the total volume and value of transportation business will grow continuously and substantially. The growth rate depends, first of all, on raw material prices, especially on the oil price. The more money flows into Russian economy, the more varied goods will be imported. More and more different kinds of goods will also be exported in the standard form, i.e. in containers.
- What are your company's plans in the Russian market?
- We will have strong presence in places where our clients are. Globally, Kalmar Industries is present either via dealers or via its own offices in more than 140 countries. In Russia we have the same task. This year we will update our sparepart logistics by updating our storage in St. Petersburg and by opening a storage in Novorossiisk. We will react to the market demand and remarkably increase our level in After Sales.
Interviewed by Maria Ghermanova
[~DETAIL_TEXT] =>
- Why did your company decide to enter the Russian market and what is the history of Kalmar Industries in Russia?
- Kalmar made its first deliveries to Russia as early as about 40 years ago. Russia has always been an important neighbour and a natural partner for Finland. Our history in the former Soviet Union starts in the early sixties when we delivered our first forklift trucks and straddle carriers for steel. In the early eighties the first container handlers (Straddle Carriers) were delivered. Kalmar representative office was opened in 1993. LLC Kalmar Fork Trucks and Cranes was established in 2002. Now we have three offices, several dealers and agents covering practically all the populated area of the RF. More than 700 Kalmar units are in operation in various parts of Russia and we want to be available for our clients when and wherever required.
- What are the main specificsof the Russian market that you have noticed?
- Having spent over seven years in Russia I can't see anything special. Of course, the low level of container flow is something that will grow fast. If we compare the figures of my home country Finland, with its 5 million population and Russia, with its 145 million inhabitants, it is hard to believe that the "cross border" container flow in Russia is only about twice as big as that in Finland.
The Russian society and the Russian market are developing very quickly. The growth of the past seven years is expected to continue. New technologies are applied. The infrastructure, including transport, is facing big challengies to serve this vast territory. Russia has access to sea in every four main compass directions. At the moment we are experiencing very favourable conditions for business. Also, historically, Russia and Finland, and people of these two countries, have always had very close ties. I dare say that we understand each other very well. Companies like OAO Russian Railways are giants, but business is made between individuals. The market is open and only suppliers with long term (life time) commitment can be successful. Cargo handling and transportation companies understand that success requires relations of partnership type. After sales plays more and more important role. Personally, I am very pleased to work in Russia and be part of the development.
The key advantage is the growing market. Transportation, forest, metallurgy, car manufacturing, almost all industry sectors are growing and finding their way of development. As Russia is very big in every sense, inland transportation and distribution systems will face big changes and improvements as well, due to the increasing demands of the market.
- What's your opinion on the monopoly which the Russian rail market is so much blamed for?
- It is difficult to make any statement regarding the policy of OAO Russian Railways. It has a big task. Things are changing gradually. Russia's potential membership in the WTO can press, not only Railways, but all monopoly type organizations to make changes.
- What difficulties has your company faced?
- The size of the country is a challenge. Sparepart logistics is maybe the biggest: how can you serve your client with first class after sales in every corner of the country? Kalmar equipment is used from Kaliningrad to Kamchatka and from Norilsk to Novorossiysk. A direct flight from Moscow to Vladivostok takes close to ten hours. But we are determined to serve our partners well. Both parties understand the difficulty and we try to solve these problems together. Naturally, I see more possibilities than difficulties in Russia.
- What is your forecast of the Russian transport market development?
- In the next 5-10 years the total volume and value of transportation business will grow continuously and substantially. The growth rate depends, first of all, on raw material prices, especially on the oil price. The more money flows into Russian economy, the more varied goods will be imported. More and more different kinds of goods will also be exported in the standard form, i.e. in containers.
- What are your company's plans in the Russian market?
- We will have strong presence in places where our clients are. Globally, Kalmar Industries is present either via dealers or via its own offices in more than 140 countries. In Russia we have the same task. This year we will update our sparepart logistics by updating our storage in St. Petersburg and by opening a storage in Novorossiisk. We will react to the market demand and remarkably increase our level in After Sales.
Interviewed by Maria Ghermanova
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[DETAIL_TEXT] => Among many foreign companies discovering for themselves the rather complicated Russian market, there are some that specialize in groupage cargo delivery.Ms. Anna Ozeretskaya, Marketing Director of REVIVAL Express, one of the oldest companies working in Russia in this segment, answers our questions.
- How interesting and attractive is the current Russian market for foreign, in particular European, companies?
- Considering that markets in the most part of Western Europe are stagnating, the Russian market is dynamically developing. Thus, it attracts more and more foreign logistic companies who can see new perspectives for their growth and new customers, whose number is also constantly increasing.
When our company came to Russia at the end of the 1980-ies, there were few big Western players here, and our German clients couldn`t help being surprised when they heard we were offering regular groupage deliveries to Moscow and Leningrad. Russian clients then were not familiar with the term "groupage cargo" and we had to give detailed explanations and prove the advantages of this delivery scheme. Today we face a totally different situation. For the past 17 years, many foreign transport-forwarding companies discovered the Russian market and in Russia itself a great number of national companies appeared. However, considering the numerous difficulties associated with the launch of regular groupage services (both for surface transportation and shipping), the number of companies able to provide this type of service on a high quality level is still small.
- What is the specific nature of forwarding groupage cargo to Russia? Are there any fundamental differences from European experience?
- To start with, the classical (Western-European) scheme of international supply of groupage cargo (i.e. HUB-HUB, with their further local delivery to the ultimate customer's warehouse) practically doesn't work on the Russian market due to a specific approach of our clients to customs clearance. Most customers insist on deliveries of their consignments, even small ones, to a certain customs terminal chosen by them. The complexity of registration and the high cost of cargo delivery under customs control between the freight forwarder, a temporary warehouse and a client destroy all economic advantages of this sort of service and increase transit terms. If for most part of European countries customs clearance is just a formal procedure, for the Russian customers it is a key problem and, I would say, even a certain starting point for development of the international deliveries logistic chain. Thus, we have to work out non-standard approaches to solve the problem. But this is possible only for those forwarding companies who are experienced enough in the business, who know the Russian customs legislation and can offer regular cargo volumes to optimize the load of groupage trucks and containers and decrease terms and cost of certain consignments deliveries.
- What do you think can change after Russia joins the WTO?
- Russia's joining the WTO is certainly a step of major importance, since practically every state aspiring to be an equal partner in the world trade tries to join it. It is no secret that one of the goals Russia pursues in taking this step is obtaining non-discriminative conditions for supplying Russian produce to the foreign markets, as well as improving the quality and competitive advantages of the national produce and services that also could be fully ascribed to logistic and transportation sector. Naturally, the WTO boundaries expansion means competition strengthening, but this is a very natural process and there is nothing to be afraid of, especially for those Russian companies who work at the level of European standards and a priori have a competitive advantage due to their experience as compared to novices who are just entering this complicated market. In general, competition strengthening will positively influence the correlation of price and quality of the given services and, thus, clients will ultimately win.
Interviewed by Gennady Bugrov
[~DETAIL_TEXT] => Among many foreign companies discovering for themselves the rather complicated Russian market, there are some that specialize in groupage cargo delivery.Ms. Anna Ozeretskaya, Marketing Director of REVIVAL Express, one of the oldest companies working in Russia in this segment, answers our questions.
- How interesting and attractive is the current Russian market for foreign, in particular European, companies?
- Considering that markets in the most part of Western Europe are stagnating, the Russian market is dynamically developing. Thus, it attracts more and more foreign logistic companies who can see new perspectives for their growth and new customers, whose number is also constantly increasing.
When our company came to Russia at the end of the 1980-ies, there were few big Western players here, and our German clients couldn`t help being surprised when they heard we were offering regular groupage deliveries to Moscow and Leningrad. Russian clients then were not familiar with the term "groupage cargo" and we had to give detailed explanations and prove the advantages of this delivery scheme. Today we face a totally different situation. For the past 17 years, many foreign transport-forwarding companies discovered the Russian market and in Russia itself a great number of national companies appeared. However, considering the numerous difficulties associated with the launch of regular groupage services (both for surface transportation and shipping), the number of companies able to provide this type of service on a high quality level is still small.
- What is the specific nature of forwarding groupage cargo to Russia? Are there any fundamental differences from European experience?
- To start with, the classical (Western-European) scheme of international supply of groupage cargo (i.e. HUB-HUB, with their further local delivery to the ultimate customer's warehouse) practically doesn't work on the Russian market due to a specific approach of our clients to customs clearance. Most customers insist on deliveries of their consignments, even small ones, to a certain customs terminal chosen by them. The complexity of registration and the high cost of cargo delivery under customs control between the freight forwarder, a temporary warehouse and a client destroy all economic advantages of this sort of service and increase transit terms. If for most part of European countries customs clearance is just a formal procedure, for the Russian customers it is a key problem and, I would say, even a certain starting point for development of the international deliveries logistic chain. Thus, we have to work out non-standard approaches to solve the problem. But this is possible only for those forwarding companies who are experienced enough in the business, who know the Russian customs legislation and can offer regular cargo volumes to optimize the load of groupage trucks and containers and decrease terms and cost of certain consignments deliveries.
- What do you think can change after Russia joins the WTO?
- Russia's joining the WTO is certainly a step of major importance, since practically every state aspiring to be an equal partner in the world trade tries to join it. It is no secret that one of the goals Russia pursues in taking this step is obtaining non-discriminative conditions for supplying Russian produce to the foreign markets, as well as improving the quality and competitive advantages of the national produce and services that also could be fully ascribed to logistic and transportation sector. Naturally, the WTO boundaries expansion means competition strengthening, but this is a very natural process and there is nothing to be afraid of, especially for those Russian companies who work at the level of European standards and a priori have a competitive advantage due to their experience as compared to novices who are just entering this complicated market. In general, competition strengthening will positively influence the correlation of price and quality of the given services and, thus, clients will ultimately win.
Interviewed by Gennady Bugrov
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[DETAIL_TEXT] => Among many foreign companies discovering for themselves the rather complicated Russian market, there are some that specialize in groupage cargo delivery.Ms. Anna Ozeretskaya, Marketing Director of REVIVAL Express, one of the oldest companies working in Russia in this segment, answers our questions.
- How interesting and attractive is the current Russian market for foreign, in particular European, companies?
- Considering that markets in the most part of Western Europe are stagnating, the Russian market is dynamically developing. Thus, it attracts more and more foreign logistic companies who can see new perspectives for their growth and new customers, whose number is also constantly increasing.
When our company came to Russia at the end of the 1980-ies, there were few big Western players here, and our German clients couldn`t help being surprised when they heard we were offering regular groupage deliveries to Moscow and Leningrad. Russian clients then were not familiar with the term "groupage cargo" and we had to give detailed explanations and prove the advantages of this delivery scheme. Today we face a totally different situation. For the past 17 years, many foreign transport-forwarding companies discovered the Russian market and in Russia itself a great number of national companies appeared. However, considering the numerous difficulties associated with the launch of regular groupage services (both for surface transportation and shipping), the number of companies able to provide this type of service on a high quality level is still small.
- What is the specific nature of forwarding groupage cargo to Russia? Are there any fundamental differences from European experience?
- To start with, the classical (Western-European) scheme of international supply of groupage cargo (i.e. HUB-HUB, with their further local delivery to the ultimate customer's warehouse) practically doesn't work on the Russian market due to a specific approach of our clients to customs clearance. Most customers insist on deliveries of their consignments, even small ones, to a certain customs terminal chosen by them. The complexity of registration and the high cost of cargo delivery under customs control between the freight forwarder, a temporary warehouse and a client destroy all economic advantages of this sort of service and increase transit terms. If for most part of European countries customs clearance is just a formal procedure, for the Russian customers it is a key problem and, I would say, even a certain starting point for development of the international deliveries logistic chain. Thus, we have to work out non-standard approaches to solve the problem. But this is possible only for those forwarding companies who are experienced enough in the business, who know the Russian customs legislation and can offer regular cargo volumes to optimize the load of groupage trucks and containers and decrease terms and cost of certain consignments deliveries.
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- Russia's joining the WTO is certainly a step of major importance, since practically every state aspiring to be an equal partner in the world trade tries to join it. It is no secret that one of the goals Russia pursues in taking this step is obtaining non-discriminative conditions for supplying Russian produce to the foreign markets, as well as improving the quality and competitive advantages of the national produce and services that also could be fully ascribed to logistic and transportation sector. Naturally, the WTO boundaries expansion means competition strengthening, but this is a very natural process and there is nothing to be afraid of, especially for those Russian companies who work at the level of European standards and a priori have a competitive advantage due to their experience as compared to novices who are just entering this complicated market. In general, competition strengthening will positively influence the correlation of price and quality of the given services and, thus, clients will ultimately win.
Interviewed by Gennady Bugrov
[~DETAIL_TEXT] => Among many foreign companies discovering for themselves the rather complicated Russian market, there are some that specialize in groupage cargo delivery.Ms. Anna Ozeretskaya, Marketing Director of REVIVAL Express, one of the oldest companies working in Russia in this segment, answers our questions.
- How interesting and attractive is the current Russian market for foreign, in particular European, companies?
- Considering that markets in the most part of Western Europe are stagnating, the Russian market is dynamically developing. Thus, it attracts more and more foreign logistic companies who can see new perspectives for their growth and new customers, whose number is also constantly increasing.
When our company came to Russia at the end of the 1980-ies, there were few big Western players here, and our German clients couldn`t help being surprised when they heard we were offering regular groupage deliveries to Moscow and Leningrad. Russian clients then were not familiar with the term "groupage cargo" and we had to give detailed explanations and prove the advantages of this delivery scheme. Today we face a totally different situation. For the past 17 years, many foreign transport-forwarding companies discovered the Russian market and in Russia itself a great number of national companies appeared. However, considering the numerous difficulties associated with the launch of regular groupage services (both for surface transportation and shipping), the number of companies able to provide this type of service on a high quality level is still small.
- What is the specific nature of forwarding groupage cargo to Russia? Are there any fundamental differences from European experience?
- To start with, the classical (Western-European) scheme of international supply of groupage cargo (i.e. HUB-HUB, with their further local delivery to the ultimate customer's warehouse) practically doesn't work on the Russian market due to a specific approach of our clients to customs clearance. Most customers insist on deliveries of their consignments, even small ones, to a certain customs terminal chosen by them. The complexity of registration and the high cost of cargo delivery under customs control between the freight forwarder, a temporary warehouse and a client destroy all economic advantages of this sort of service and increase transit terms. If for most part of European countries customs clearance is just a formal procedure, for the Russian customers it is a key problem and, I would say, even a certain starting point for development of the international deliveries logistic chain. Thus, we have to work out non-standard approaches to solve the problem. But this is possible only for those forwarding companies who are experienced enough in the business, who know the Russian customs legislation and can offer regular cargo volumes to optimize the load of groupage trucks and containers and decrease terms and cost of certain consignments deliveries.
- What do you think can change after Russia joins the WTO?
- Russia's joining the WTO is certainly a step of major importance, since practically every state aspiring to be an equal partner in the world trade tries to join it. It is no secret that one of the goals Russia pursues in taking this step is obtaining non-discriminative conditions for supplying Russian produce to the foreign markets, as well as improving the quality and competitive advantages of the national produce and services that also could be fully ascribed to logistic and transportation sector. Naturally, the WTO boundaries expansion means competition strengthening, but this is a very natural process and there is nothing to be afraid of, especially for those Russian companies who work at the level of European standards and a priori have a competitive advantage due to their experience as compared to novices who are just entering this complicated market. In general, competition strengthening will positively influence the correlation of price and quality of the given services and, thus, clients will ultimately win.
Interviewed by Gennady Bugrov
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[DETAIL_TEXT] => Uralkali JSC is the biggest manufacture of potash fertilizer both in Russia and in the world. The company exports about 90% of its production, thus covering about 13% of the world's volume of chloride of potassium. In 2005 the company produced over 5.4 million tons of fertilizers and boost production volumes up to 10 million tons by 2016. On logistic solutions developed by the company to provide regular production departure Sergey Momtsemlidze, the company's Transport Director, speaks.
- Mr. Momtsemlidze, what are average annual transportation volumes made by the company and what are directions you work with?
- Besides transportation of our production we also transport raw material - sylvine ore. As a result in 2005 the aggregate volume amounted to 10.5 million tons, and our production will make 5.4 million tons. Most part of export (71%) is transported via the Baltic Bulk terminal in the port of Saint-Petersburg. At Berezniki-Saint-Petersburg sector (Avtovo station) we organize our work using technology of through dispatches (69 rail cars with total weight of 4.5 thousand tons net). Car run takes 10 days. The second key direction is transportation of mineral fertilizers to China via Zabaikalsk-Manchuria border check point. By the way, this route works faster and speed of cargo delivery to the consumer is higher. Despite the fact that this route doesn't envisages through discount we are going to start through dispatches for this route also. Some part of volumes makes transit via Kazakhstan to China. In each case logistics is defined by consumer's geography. Consequently, it is more comfortable to transport goods to the Northern provinces of China via border check-points and to the South and South-Eastern ones - by sea.
- How worthwhile is it, in your opinion, discuss payback of investment made into transport infrastructure?
- Investment into the Baltic Bulk terminal helped our company become competitive compared to other Russian companies engaged into the same sort of business. Firstly, it is located closer to us then other ports of Russia (earlier the ports of Kotka and Iliychevsk handled our cargo), as a result we save on a tariff seriously. When Uralkali has become the only owner of the terminal we actually possess our own gates to Europe. The warehouse of 250 thousand tons of capacity allows us work regularly with no difficulties that could arise when working in a "direct" mode - rail car-vessel. Thus, if even a vessel is delayed due some reasons our rail cars don't idle. At the same time if we see the situation in the port or its accesses is getting more and more intense and a warehouse is full, we can always "re-turn" our cargo flow and to renew loading afterwards. As to investment into rolling stock, then opportunity to run our own rolling stock gives us a chance not only to satisfy our own needs but to keep high production quality. Moreover, OAO RZD inventory park just doesn't have enough quantity of specialized rolling stock. In general, I have to say that within the framework of the enterprise's strategic task implementation which is to become a leader on the world market of potash fertilizers, our company carries on with into enhancement and modernization of our industrial capacities and transport infrastructure. For the near ten year our investment will amount to USD 2.5 billion.
- What is about OAO RZD and your company's interaction? What problems and positive changes can we speak about?
- Nowadays there is no need to discuss any problems, moreover insoluble. Railways have become more flexible, loyal and attentive to a cargo consignor. New people with modern market thought come to power. It is rather pleasant to mention but it often happens that already railway men seeing present day tendency react modern changes faster and offer new forms of cooperation and logistic solutions. One of the problems frequently mentioned by rail cars owners is rolling stock repair. But it is not true to us as we have our own car repair depot that services 70% of the company's rolling stock and the rest part is serviced by the depot of the Sverdlovskaya railway. Speaking of tariffs, I have to confess that transport component is rather high and amounts to 40-50%. But once again efficient logistic and favourable world conjuncture lets us cope with the next tariff rise and carry on with perspective investment projects.
Interviewed by Tatyana Tokareva
[~DETAIL_TEXT] => Uralkali JSC is the biggest manufacture of potash fertilizer both in Russia and in the world. The company exports about 90% of its production, thus covering about 13% of the world's volume of chloride of potassium. In 2005 the company produced over 5.4 million tons of fertilizers and boost production volumes up to 10 million tons by 2016. On logistic solutions developed by the company to provide regular production departure Sergey Momtsemlidze, the company's Transport Director, speaks.
- Mr. Momtsemlidze, what are average annual transportation volumes made by the company and what are directions you work with?
- Besides transportation of our production we also transport raw material - sylvine ore. As a result in 2005 the aggregate volume amounted to 10.5 million tons, and our production will make 5.4 million tons. Most part of export (71%) is transported via the Baltic Bulk terminal in the port of Saint-Petersburg. At Berezniki-Saint-Petersburg sector (Avtovo station) we organize our work using technology of through dispatches (69 rail cars with total weight of 4.5 thousand tons net). Car run takes 10 days. The second key direction is transportation of mineral fertilizers to China via Zabaikalsk-Manchuria border check point. By the way, this route works faster and speed of cargo delivery to the consumer is higher. Despite the fact that this route doesn't envisages through discount we are going to start through dispatches for this route also. Some part of volumes makes transit via Kazakhstan to China. In each case logistics is defined by consumer's geography. Consequently, it is more comfortable to transport goods to the Northern provinces of China via border check-points and to the South and South-Eastern ones - by sea.
- How worthwhile is it, in your opinion, discuss payback of investment made into transport infrastructure?
- Investment into the Baltic Bulk terminal helped our company become competitive compared to other Russian companies engaged into the same sort of business. Firstly, it is located closer to us then other ports of Russia (earlier the ports of Kotka and Iliychevsk handled our cargo), as a result we save on a tariff seriously. When Uralkali has become the only owner of the terminal we actually possess our own gates to Europe. The warehouse of 250 thousand tons of capacity allows us work regularly with no difficulties that could arise when working in a "direct" mode - rail car-vessel. Thus, if even a vessel is delayed due some reasons our rail cars don't idle. At the same time if we see the situation in the port or its accesses is getting more and more intense and a warehouse is full, we can always "re-turn" our cargo flow and to renew loading afterwards. As to investment into rolling stock, then opportunity to run our own rolling stock gives us a chance not only to satisfy our own needs but to keep high production quality. Moreover, OAO RZD inventory park just doesn't have enough quantity of specialized rolling stock. In general, I have to say that within the framework of the enterprise's strategic task implementation which is to become a leader on the world market of potash fertilizers, our company carries on with into enhancement and modernization of our industrial capacities and transport infrastructure. For the near ten year our investment will amount to USD 2.5 billion.
- What is about OAO RZD and your company's interaction? What problems and positive changes can we speak about?
- Nowadays there is no need to discuss any problems, moreover insoluble. Railways have become more flexible, loyal and attentive to a cargo consignor. New people with modern market thought come to power. It is rather pleasant to mention but it often happens that already railway men seeing present day tendency react modern changes faster and offer new forms of cooperation and logistic solutions. One of the problems frequently mentioned by rail cars owners is rolling stock repair. But it is not true to us as we have our own car repair depot that services 70% of the company's rolling stock and the rest part is serviced by the depot of the Sverdlovskaya railway. Speaking of tariffs, I have to confess that transport component is rather high and amounts to 40-50%. But once again efficient logistic and favourable world conjuncture lets us cope with the next tariff rise and carry on with perspective investment projects.
Interviewed by Tatyana Tokareva
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[DETAIL_TEXT] => Uralkali JSC is the biggest manufacture of potash fertilizer both in Russia and in the world. The company exports about 90% of its production, thus covering about 13% of the world's volume of chloride of potassium. In 2005 the company produced over 5.4 million tons of fertilizers and boost production volumes up to 10 million tons by 2016. On logistic solutions developed by the company to provide regular production departure Sergey Momtsemlidze, the company's Transport Director, speaks.
- Mr. Momtsemlidze, what are average annual transportation volumes made by the company and what are directions you work with?
- Besides transportation of our production we also transport raw material - sylvine ore. As a result in 2005 the aggregate volume amounted to 10.5 million tons, and our production will make 5.4 million tons. Most part of export (71%) is transported via the Baltic Bulk terminal in the port of Saint-Petersburg. At Berezniki-Saint-Petersburg sector (Avtovo station) we organize our work using technology of through dispatches (69 rail cars with total weight of 4.5 thousand tons net). Car run takes 10 days. The second key direction is transportation of mineral fertilizers to China via Zabaikalsk-Manchuria border check point. By the way, this route works faster and speed of cargo delivery to the consumer is higher. Despite the fact that this route doesn't envisages through discount we are going to start through dispatches for this route also. Some part of volumes makes transit via Kazakhstan to China. In each case logistics is defined by consumer's geography. Consequently, it is more comfortable to transport goods to the Northern provinces of China via border check-points and to the South and South-Eastern ones - by sea.
- How worthwhile is it, in your opinion, discuss payback of investment made into transport infrastructure?
- Investment into the Baltic Bulk terminal helped our company become competitive compared to other Russian companies engaged into the same sort of business. Firstly, it is located closer to us then other ports of Russia (earlier the ports of Kotka and Iliychevsk handled our cargo), as a result we save on a tariff seriously. When Uralkali has become the only owner of the terminal we actually possess our own gates to Europe. The warehouse of 250 thousand tons of capacity allows us work regularly with no difficulties that could arise when working in a "direct" mode - rail car-vessel. Thus, if even a vessel is delayed due some reasons our rail cars don't idle. At the same time if we see the situation in the port or its accesses is getting more and more intense and a warehouse is full, we can always "re-turn" our cargo flow and to renew loading afterwards. As to investment into rolling stock, then opportunity to run our own rolling stock gives us a chance not only to satisfy our own needs but to keep high production quality. Moreover, OAO RZD inventory park just doesn't have enough quantity of specialized rolling stock. In general, I have to say that within the framework of the enterprise's strategic task implementation which is to become a leader on the world market of potash fertilizers, our company carries on with into enhancement and modernization of our industrial capacities and transport infrastructure. For the near ten year our investment will amount to USD 2.5 billion.
- What is about OAO RZD and your company's interaction? What problems and positive changes can we speak about?
- Nowadays there is no need to discuss any problems, moreover insoluble. Railways have become more flexible, loyal and attentive to a cargo consignor. New people with modern market thought come to power. It is rather pleasant to mention but it often happens that already railway men seeing present day tendency react modern changes faster and offer new forms of cooperation and logistic solutions. One of the problems frequently mentioned by rail cars owners is rolling stock repair. But it is not true to us as we have our own car repair depot that services 70% of the company's rolling stock and the rest part is serviced by the depot of the Sverdlovskaya railway. Speaking of tariffs, I have to confess that transport component is rather high and amounts to 40-50%. But once again efficient logistic and favourable world conjuncture lets us cope with the next tariff rise and carry on with perspective investment projects.
Interviewed by Tatyana Tokareva
[~DETAIL_TEXT] => Uralkali JSC is the biggest manufacture of potash fertilizer both in Russia and in the world. The company exports about 90% of its production, thus covering about 13% of the world's volume of chloride of potassium. In 2005 the company produced over 5.4 million tons of fertilizers and boost production volumes up to 10 million tons by 2016. On logistic solutions developed by the company to provide regular production departure Sergey Momtsemlidze, the company's Transport Director, speaks.
- Mr. Momtsemlidze, what are average annual transportation volumes made by the company and what are directions you work with?
- Besides transportation of our production we also transport raw material - sylvine ore. As a result in 2005 the aggregate volume amounted to 10.5 million tons, and our production will make 5.4 million tons. Most part of export (71%) is transported via the Baltic Bulk terminal in the port of Saint-Petersburg. At Berezniki-Saint-Petersburg sector (Avtovo station) we organize our work using technology of through dispatches (69 rail cars with total weight of 4.5 thousand tons net). Car run takes 10 days. The second key direction is transportation of mineral fertilizers to China via Zabaikalsk-Manchuria border check point. By the way, this route works faster and speed of cargo delivery to the consumer is higher. Despite the fact that this route doesn't envisages through discount we are going to start through dispatches for this route also. Some part of volumes makes transit via Kazakhstan to China. In each case logistics is defined by consumer's geography. Consequently, it is more comfortable to transport goods to the Northern provinces of China via border check-points and to the South and South-Eastern ones - by sea.
- How worthwhile is it, in your opinion, discuss payback of investment made into transport infrastructure?
- Investment into the Baltic Bulk terminal helped our company become competitive compared to other Russian companies engaged into the same sort of business. Firstly, it is located closer to us then other ports of Russia (earlier the ports of Kotka and Iliychevsk handled our cargo), as a result we save on a tariff seriously. When Uralkali has become the only owner of the terminal we actually possess our own gates to Europe. The warehouse of 250 thousand tons of capacity allows us work regularly with no difficulties that could arise when working in a "direct" mode - rail car-vessel. Thus, if even a vessel is delayed due some reasons our rail cars don't idle. At the same time if we see the situation in the port or its accesses is getting more and more intense and a warehouse is full, we can always "re-turn" our cargo flow and to renew loading afterwards. As to investment into rolling stock, then opportunity to run our own rolling stock gives us a chance not only to satisfy our own needs but to keep high production quality. Moreover, OAO RZD inventory park just doesn't have enough quantity of specialized rolling stock. In general, I have to say that within the framework of the enterprise's strategic task implementation which is to become a leader on the world market of potash fertilizers, our company carries on with into enhancement and modernization of our industrial capacities and transport infrastructure. For the near ten year our investment will amount to USD 2.5 billion.
- What is about OAO RZD and your company's interaction? What problems and positive changes can we speak about?
- Nowadays there is no need to discuss any problems, moreover insoluble. Railways have become more flexible, loyal and attentive to a cargo consignor. New people with modern market thought come to power. It is rather pleasant to mention but it often happens that already railway men seeing present day tendency react modern changes faster and offer new forms of cooperation and logistic solutions. One of the problems frequently mentioned by rail cars owners is rolling stock repair. But it is not true to us as we have our own car repair depot that services 70% of the company's rolling stock and the rest part is serviced by the depot of the Sverdlovskaya railway. Speaking of tariffs, I have to confess that transport component is rather high and amounts to 40-50%. But once again efficient logistic and favourable world conjuncture lets us cope with the next tariff rise and carry on with perspective investment projects.
Interviewed by Tatyana Tokareva
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[DETAIL_TEXT] => When you consider the operation of companies incorporated into YUKOS, it is abundantly clear that the main assets of any company on today's marketin Russia are not rich oil fields and produce funds,but technology and employees who develop and implement them. Director General of YUKOS-Transservice Alexey Grom answered the questionsof "The RZD-Partner International".
- Mr. Grom, could you, please, comment on the results of YUKOS-Transservice operation in 2005?
- I would like to highlight that our key achievment was that we have preserved the integrity of the company, continue its development and even managed to extend fruitful cooperation with partners. Taking into consideration the political background of YUKOS operation and the pressure we suffered, I strongly believe that the fact that we did not lose our position in the market and transportation volumes is a great achievement. We did lose considerable volumes transported for refineries in the Samara region and, consequently, decreased slightly our total throughput in comparison with the results of 2004. However, this affected only crude oil transportation, whereas oil products carriage grew substantially. Particularly, in December 2005 and in January 2006, we hit the record of products loading for the whole history of YUKOS-Transservice. In total, in 2005 we carried over 28.7 million tons, against 32.5 million tons in 2004. We believe that the results could be even better, if mazut produce had not been reduced by one of the refineries in the Samara region.
- Who are the key clients of your company today? What are further prospects of your company's operation on the market of oil bulk transportation?
- The key clients as in 2005 are Rosneft and Yukos oil companies. In January 2006 we have signed contracts with new clients. We are very much pleased to this event and we hope to reach 30 million tons in 2006 with all of them.
- Could you evaluate the current situation on the market of oil and products transportation?
- Due to objective reasons the majority of consignors focus on the domestic market, as prices there are higher (in some periods, prices on the domestic market were twice as high as on foreign ones). Thus, export transportation volume fell down. I suppose that this trend continues.
- Tariffwise a rail transport company can not compete with river transportation. How does YUKOS-Transservice manage to keep its clients during the period of river navigation?
- The strategy of YUKOS-Transservice envisages flexibility, among other issues in tariff policy, in order to meet the market demand. One of our basic principles is the creation of long-term partnership with our clients and we agree on transportation terms for the period of the whole year. We follow these rules whatever happens. Sometimes oil and products prices rise and we have to act in the framework of contracts and, consequently, lose potential profit. However, there are periods when clients suffer due to market situation worsening. In this case, we are always willing to meet our clients' needs, as we understand that we are interested in long-term cooperation and can not afford to lose our client's confidence trying to make money on market fluctuations. I would like to highlight that we operate in the market sector that has been stable for many years. We could not speak of super profits; however, there are some companies on the market that prefer to lobby interests rather than develop new services and logistic solutions. We do position ourselves as a competitive company and always do our best to meet our clients' needs.
- Since transport services provided to companies not incorporated into YUKOS take a bigger share in the aggregate volume of your company, don't you plan to extend the list of cargoes carried?
- I firmly believe that there is still room for extension in the oil and products transportation sector. We wish to improve our technological solutions. No doubt, we are extending the range of our services, when our market researches show a rise in demand for new ones. For instance, we have recently acquired tank-cars for sulphuric acid transportation. For a carrier, it is a low-profitable sector, but oil produce is technology in which sulphuric acid produce is included and it is unwise to pay no attention to it. Today we offer sulphuric acid transportation service together with traditional oil and products carrying.
I would also like to mention that in 2005 we started transporting goods in tank-containers. Together with our partner, YUKOS-Transservice carried 100 tank-containers from Angarsk to Ukraine. It was just a trial, but I suppose that by summer we could offer such a service to our clients. I'm sure that taking into consideration the global trend for containerization, transportation in tank-containers is very promising.
- Does this mean that in the near future YUKOS-Transservice will acquire or rent tank-containers?
- As for now we do not plan to acquire tank-containers. We pay more attention to technology and we'd better consider participation in infrastructure projects, such as container terminals construction. However, we are promoting transportation in tank-containers and, if we see our clients interested in it, we are ready to meet the demand.
It is necessary to notice that we are developing innovations continuously in order to provide better services. Particularly, we develop new logistic solutions and enhance interaction with clients. I hope our approach will contribute a lot to our company's further success.
Interviewed by Tatyana Tokareva
[~DETAIL_TEXT] => When you consider the operation of companies incorporated into YUKOS, it is abundantly clear that the main assets of any company on today's marketin Russia are not rich oil fields and produce funds,but technology and employees who develop and implement them. Director General of YUKOS-Transservice Alexey Grom answered the questionsof "The RZD-Partner International".
- Mr. Grom, could you, please, comment on the results of YUKOS-Transservice operation in 2005?
- I would like to highlight that our key achievment was that we have preserved the integrity of the company, continue its development and even managed to extend fruitful cooperation with partners. Taking into consideration the political background of YUKOS operation and the pressure we suffered, I strongly believe that the fact that we did not lose our position in the market and transportation volumes is a great achievement. We did lose considerable volumes transported for refineries in the Samara region and, consequently, decreased slightly our total throughput in comparison with the results of 2004. However, this affected only crude oil transportation, whereas oil products carriage grew substantially. Particularly, in December 2005 and in January 2006, we hit the record of products loading for the whole history of YUKOS-Transservice. In total, in 2005 we carried over 28.7 million tons, against 32.5 million tons in 2004. We believe that the results could be even better, if mazut produce had not been reduced by one of the refineries in the Samara region.
- Who are the key clients of your company today? What are further prospects of your company's operation on the market of oil bulk transportation?
- The key clients as in 2005 are Rosneft and Yukos oil companies. In January 2006 we have signed contracts with new clients. We are very much pleased to this event and we hope to reach 30 million tons in 2006 with all of them.
- Could you evaluate the current situation on the market of oil and products transportation?
- Due to objective reasons the majority of consignors focus on the domestic market, as prices there are higher (in some periods, prices on the domestic market were twice as high as on foreign ones). Thus, export transportation volume fell down. I suppose that this trend continues.
- Tariffwise a rail transport company can not compete with river transportation. How does YUKOS-Transservice manage to keep its clients during the period of river navigation?
- The strategy of YUKOS-Transservice envisages flexibility, among other issues in tariff policy, in order to meet the market demand. One of our basic principles is the creation of long-term partnership with our clients and we agree on transportation terms for the period of the whole year. We follow these rules whatever happens. Sometimes oil and products prices rise and we have to act in the framework of contracts and, consequently, lose potential profit. However, there are periods when clients suffer due to market situation worsening. In this case, we are always willing to meet our clients' needs, as we understand that we are interested in long-term cooperation and can not afford to lose our client's confidence trying to make money on market fluctuations. I would like to highlight that we operate in the market sector that has been stable for many years. We could not speak of super profits; however, there are some companies on the market that prefer to lobby interests rather than develop new services and logistic solutions. We do position ourselves as a competitive company and always do our best to meet our clients' needs.
- Since transport services provided to companies not incorporated into YUKOS take a bigger share in the aggregate volume of your company, don't you plan to extend the list of cargoes carried?
- I firmly believe that there is still room for extension in the oil and products transportation sector. We wish to improve our technological solutions. No doubt, we are extending the range of our services, when our market researches show a rise in demand for new ones. For instance, we have recently acquired tank-cars for sulphuric acid transportation. For a carrier, it is a low-profitable sector, but oil produce is technology in which sulphuric acid produce is included and it is unwise to pay no attention to it. Today we offer sulphuric acid transportation service together with traditional oil and products carrying.
I would also like to mention that in 2005 we started transporting goods in tank-containers. Together with our partner, YUKOS-Transservice carried 100 tank-containers from Angarsk to Ukraine. It was just a trial, but I suppose that by summer we could offer such a service to our clients. I'm sure that taking into consideration the global trend for containerization, transportation in tank-containers is very promising.
- Does this mean that in the near future YUKOS-Transservice will acquire or rent tank-containers?
- As for now we do not plan to acquire tank-containers. We pay more attention to technology and we'd better consider participation in infrastructure projects, such as container terminals construction. However, we are promoting transportation in tank-containers and, if we see our clients interested in it, we are ready to meet the demand.
It is necessary to notice that we are developing innovations continuously in order to provide better services. Particularly, we develop new logistic solutions and enhance interaction with clients. I hope our approach will contribute a lot to our company's further success.
Interviewed by Tatyana Tokareva
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[DETAIL_TEXT] => When you consider the operation of companies incorporated into YUKOS, it is abundantly clear that the main assets of any company on today's marketin Russia are not rich oil fields and produce funds,but technology and employees who develop and implement them. Director General of YUKOS-Transservice Alexey Grom answered the questionsof "The RZD-Partner International".
- Mr. Grom, could you, please, comment on the results of YUKOS-Transservice operation in 2005?
- I would like to highlight that our key achievment was that we have preserved the integrity of the company, continue its development and even managed to extend fruitful cooperation with partners. Taking into consideration the political background of YUKOS operation and the pressure we suffered, I strongly believe that the fact that we did not lose our position in the market and transportation volumes is a great achievement. We did lose considerable volumes transported for refineries in the Samara region and, consequently, decreased slightly our total throughput in comparison with the results of 2004. However, this affected only crude oil transportation, whereas oil products carriage grew substantially. Particularly, in December 2005 and in January 2006, we hit the record of products loading for the whole history of YUKOS-Transservice. In total, in 2005 we carried over 28.7 million tons, against 32.5 million tons in 2004. We believe that the results could be even better, if mazut produce had not been reduced by one of the refineries in the Samara region.
- Who are the key clients of your company today? What are further prospects of your company's operation on the market of oil bulk transportation?
- The key clients as in 2005 are Rosneft and Yukos oil companies. In January 2006 we have signed contracts with new clients. We are very much pleased to this event and we hope to reach 30 million tons in 2006 with all of them.
- Could you evaluate the current situation on the market of oil and products transportation?
- Due to objective reasons the majority of consignors focus on the domestic market, as prices there are higher (in some periods, prices on the domestic market were twice as high as on foreign ones). Thus, export transportation volume fell down. I suppose that this trend continues.
- Tariffwise a rail transport company can not compete with river transportation. How does YUKOS-Transservice manage to keep its clients during the period of river navigation?
- The strategy of YUKOS-Transservice envisages flexibility, among other issues in tariff policy, in order to meet the market demand. One of our basic principles is the creation of long-term partnership with our clients and we agree on transportation terms for the period of the whole year. We follow these rules whatever happens. Sometimes oil and products prices rise and we have to act in the framework of contracts and, consequently, lose potential profit. However, there are periods when clients suffer due to market situation worsening. In this case, we are always willing to meet our clients' needs, as we understand that we are interested in long-term cooperation and can not afford to lose our client's confidence trying to make money on market fluctuations. I would like to highlight that we operate in the market sector that has been stable for many years. We could not speak of super profits; however, there are some companies on the market that prefer to lobby interests rather than develop new services and logistic solutions. We do position ourselves as a competitive company and always do our best to meet our clients' needs.
- Since transport services provided to companies not incorporated into YUKOS take a bigger share in the aggregate volume of your company, don't you plan to extend the list of cargoes carried?
- I firmly believe that there is still room for extension in the oil and products transportation sector. We wish to improve our technological solutions. No doubt, we are extending the range of our services, when our market researches show a rise in demand for new ones. For instance, we have recently acquired tank-cars for sulphuric acid transportation. For a carrier, it is a low-profitable sector, but oil produce is technology in which sulphuric acid produce is included and it is unwise to pay no attention to it. Today we offer sulphuric acid transportation service together with traditional oil and products carrying.
I would also like to mention that in 2005 we started transporting goods in tank-containers. Together with our partner, YUKOS-Transservice carried 100 tank-containers from Angarsk to Ukraine. It was just a trial, but I suppose that by summer we could offer such a service to our clients. I'm sure that taking into consideration the global trend for containerization, transportation in tank-containers is very promising.
- Does this mean that in the near future YUKOS-Transservice will acquire or rent tank-containers?
- As for now we do not plan to acquire tank-containers. We pay more attention to technology and we'd better consider participation in infrastructure projects, such as container terminals construction. However, we are promoting transportation in tank-containers and, if we see our clients interested in it, we are ready to meet the demand.
It is necessary to notice that we are developing innovations continuously in order to provide better services. Particularly, we develop new logistic solutions and enhance interaction with clients. I hope our approach will contribute a lot to our company's further success.
Interviewed by Tatyana Tokareva
[~DETAIL_TEXT] => When you consider the operation of companies incorporated into YUKOS, it is abundantly clear that the main assets of any company on today's marketin Russia are not rich oil fields and produce funds,but technology and employees who develop and implement them. Director General of YUKOS-Transservice Alexey Grom answered the questionsof "The RZD-Partner International".
- Mr. Grom, could you, please, comment on the results of YUKOS-Transservice operation in 2005?
- I would like to highlight that our key achievment was that we have preserved the integrity of the company, continue its development and even managed to extend fruitful cooperation with partners. Taking into consideration the political background of YUKOS operation and the pressure we suffered, I strongly believe that the fact that we did not lose our position in the market and transportation volumes is a great achievement. We did lose considerable volumes transported for refineries in the Samara region and, consequently, decreased slightly our total throughput in comparison with the results of 2004. However, this affected only crude oil transportation, whereas oil products carriage grew substantially. Particularly, in December 2005 and in January 2006, we hit the record of products loading for the whole history of YUKOS-Transservice. In total, in 2005 we carried over 28.7 million tons, against 32.5 million tons in 2004. We believe that the results could be even better, if mazut produce had not been reduced by one of the refineries in the Samara region.
- Who are the key clients of your company today? What are further prospects of your company's operation on the market of oil bulk transportation?
- The key clients as in 2005 are Rosneft and Yukos oil companies. In January 2006 we have signed contracts with new clients. We are very much pleased to this event and we hope to reach 30 million tons in 2006 with all of them.
- Could you evaluate the current situation on the market of oil and products transportation?
- Due to objective reasons the majority of consignors focus on the domestic market, as prices there are higher (in some periods, prices on the domestic market were twice as high as on foreign ones). Thus, export transportation volume fell down. I suppose that this trend continues.
- Tariffwise a rail transport company can not compete with river transportation. How does YUKOS-Transservice manage to keep its clients during the period of river navigation?
- The strategy of YUKOS-Transservice envisages flexibility, among other issues in tariff policy, in order to meet the market demand. One of our basic principles is the creation of long-term partnership with our clients and we agree on transportation terms for the period of the whole year. We follow these rules whatever happens. Sometimes oil and products prices rise and we have to act in the framework of contracts and, consequently, lose potential profit. However, there are periods when clients suffer due to market situation worsening. In this case, we are always willing to meet our clients' needs, as we understand that we are interested in long-term cooperation and can not afford to lose our client's confidence trying to make money on market fluctuations. I would like to highlight that we operate in the market sector that has been stable for many years. We could not speak of super profits; however, there are some companies on the market that prefer to lobby interests rather than develop new services and logistic solutions. We do position ourselves as a competitive company and always do our best to meet our clients' needs.
- Since transport services provided to companies not incorporated into YUKOS take a bigger share in the aggregate volume of your company, don't you plan to extend the list of cargoes carried?
- I firmly believe that there is still room for extension in the oil and products transportation sector. We wish to improve our technological solutions. No doubt, we are extending the range of our services, when our market researches show a rise in demand for new ones. For instance, we have recently acquired tank-cars for sulphuric acid transportation. For a carrier, it is a low-profitable sector, but oil produce is technology in which sulphuric acid produce is included and it is unwise to pay no attention to it. Today we offer sulphuric acid transportation service together with traditional oil and products carrying.
I would also like to mention that in 2005 we started transporting goods in tank-containers. Together with our partner, YUKOS-Transservice carried 100 tank-containers from Angarsk to Ukraine. It was just a trial, but I suppose that by summer we could offer such a service to our clients. I'm sure that taking into consideration the global trend for containerization, transportation in tank-containers is very promising.
- Does this mean that in the near future YUKOS-Transservice will acquire or rent tank-containers?
- As for now we do not plan to acquire tank-containers. We pay more attention to technology and we'd better consider participation in infrastructure projects, such as container terminals construction. However, we are promoting transportation in tank-containers and, if we see our clients interested in it, we are ready to meet the demand.
It is necessary to notice that we are developing innovations continuously in order to provide better services. Particularly, we develop new logistic solutions and enhance interaction with clients. I hope our approach will contribute a lot to our company's further success.
Interviewed by Tatyana Tokareva
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[DETAIL_TEXT] =>
Russian Fleet under Liberian Flag
Russian vessels started to work under flags of convenience after dissolution of the USSR, whose merchant fleet was the fourth largest in the world and amounted to 15,000 vessels with the dead weight of 18 million tons, operated by 17 shipping companies.
Since 1992, the Russian sea transport, as well as many other industries, was left to the mercy of fate. To develop it, money was required. By the way, even now Russian banks do not give it. That is why shipping companies started to take loans from foreign banks. A loan was given on the security of a vessel. If the interest was not paid, at least the creditor could have the vessel. That is why one of the requirements under this contract was vessel registration with one of the off-shore companies.
In the off-shore sectors it is possible to employ a cheaper crew, or at least a part of it. However, it is dangerous, because unqualified crew is a threat to the safety of a vessel, as well as to the lives of the crew. For example, a lot of tragedies happened because crews failed to strap their freight correctly.
By the beginning of 1992, only 18% of Russian vessels were registered under foreign flags. Most vessels were owned by Sovcomflot. Later, many companies started to register their best vessels with off-shore companies to use the scheme for vessel renewal. The fleet under the Russian flag was hardly ever renewed.
Nowadays less the 200 vessels of large capacity with the total deadweight of 2.6 million tons sail under the Russian flag, while in 1992 there were about 800 such vessels with the total deadweight of 10.5 million tons. While the best Russian fleet under the flags of Liberia, Cyprus and Malta calls at foreign ports, only small vessels of river and river-sea types are registered in Russia. In the fleet under the Russian flag there are practically no highly productive specialized vessels (container vessels, refrigerator vessels or ferries). Neither are there tankers of large capacity, meeting the world requirements, for crude export; bulkers of large capacity for grain, coal, ore and mineral fertilizers transportation; vessels for gas and liquefied chemicals transportation.
At the same time, Russia constantly increases the volume of its foreign trade cargo transportation by sea. According to the RF Ministry of Transport, in 1998 it was 204 million tons; however, in 2004 it amounted to 450 million tons. Respectively, the cost of charter for Russian foreign trade cargo transportation also increased: in 1998 it was USD 4 billion, and last year it amounted to USD 7.5 billion. In 2004 Russian shipping companies earned USD 300 million for charter, which was less than 5% of the total charter for Russian foreign trade transportation.
Main Task Is to Get Vessels Back
Nowadays 62-63% of the global fleet is registered under foreign flags. The leading sea powers are not satisfied with the situation. Their shipping companies register their vessels under foreign flags for a different reason - high personal income tax, which amounts to 60% in some countries. Foreign states realized that they should find a way out and created second international Vessel Registrations, having set economic preferences to get the national fleets back under their flags.
One of the main reasons for the reduced amount of vessels under the Russian flag is the large share of taxes (including dues, duties and other payments) in the cost of transport services. That is why the Ministry of Transport set itself a task of providing equal competition conditions for all the Russian vessel owners by introducing special tax rates for vessels registered in the Russian International Vessel Registration.
In accordance with the new law, vessel owners are to pay state due for the initial registration and for its annual confirmation, as well as a unified social tax. At the same time the law envisages benefits on VAT, company's profit tax, transport tax and property tax. To create and to implement such a system of taxation, it is necessary to amend the acting legislation: Merchant Navigation Code, Tax Code, and the RF Law "On Customs Tariff".
Like in other states, the creation of the Vessel Registration does not aim solely to increase revenue from vessels registration, but to achieve a multiplicative effect for the country's economy on the whole, including foreign trade cargo protection against sudden changes on the charter market, providing of the economic safety for the state and enlivening of the economic sectors connected with navigation.
Second Vessels Registration to Defend National Fleet
Experts believe that the law will enable the Russian Fleet to increase its volume by 750 vessels with the total deadweight of 17 million tons and the total cost of USD 13 billion. Calculations show that the vessels can transport 183.6 million tons of Russian foreign trade cargoes, and the charter revenue obtained by the Russian vessel owners may amount to USD 2.3 billion. Besides, no significant financial expenses will be required to implement the law. Due to the zero VAT rate for vessels built in the Russian shipyards, a revival of the national ship-building and ship-repairing industries, as well as metallurgical, machine-building, chemical and woodworking industries etc. is forecasted.
According to the Ministry of Transport, the volume of construction and consumption of transport vessels on the internal market will have increased fourfold or even fivefold by 2010.
The increase in the number of vessels under the Russian flag will enable the industry to create additional 18,000 jobs on board these vessels and about 50,000 jobs at the coastal enterprises maintaining the fleet. Moreover, up to 150,000 additional jobs can be created in the allied industries. It is also important that the crew of a vessel under the Russian flag is under the jurisdiction of the Russian Federation, which protects their legal rights abroad, as well as ensures their social security, i.e. guaranteed medical and pension provision.
To implement the law, the Ministry of Transport is working on a RF Government decree containing the list of commercial sea ports, where vessels will be registered with the Russian international Vessel Registration. Also, a RF Ministry of Transport decree on amendments to the Rules of vessel registration and the right on them in the commercial sea ports is being developed.
Getting the fleet back under the Russian flag is important from the perspective of strengthening the state's defensive capacity. Vessels under the Russian flag are in the mobilization reserve and, in case of force-majeure, they can be used for military and other transportation as required by the state. Besides, the safety of Russian cargoes transportation increases. It is especially important for such dangerous cargoes as oil and products, since Russia's requirements to the technical condition of vessels and to the crews' professionalism are higher than those of African and Asian states. Thus, the second Vessel Registration is to become one of the elements in the system of national fleet support.
However, we should take into account that expectations for vessels returning under the Russian flag in the near future may differ from what will happen in reality. Naturally, adoption of such a law is an important event for the state's sea transport development, but it is not enough for a massive return of the fleet under the national flag. Problems with taxation of the "comeback" vessels are possible, and the whole mechanism of return has not been developed yet. That is why experts believe that the Vessel Registration will be largely filled in with new vessels. However, the problem of registration persists not because of the advantages or disadvantages of the adopted law - it is an alternative to the Vessel Registrations, but it gives no stimuli for new fleet construction. So, it is possible that the second Vessel Registration will be enlarged only when the rates of ship building are several times higher than the present ones.
Nadezhda Vtorushina
[~DETAIL_TEXT] =>
Russian Fleet under Liberian Flag
Russian vessels started to work under flags of convenience after dissolution of the USSR, whose merchant fleet was the fourth largest in the world and amounted to 15,000 vessels with the dead weight of 18 million tons, operated by 17 shipping companies.
Since 1992, the Russian sea transport, as well as many other industries, was left to the mercy of fate. To develop it, money was required. By the way, even now Russian banks do not give it. That is why shipping companies started to take loans from foreign banks. A loan was given on the security of a vessel. If the interest was not paid, at least the creditor could have the vessel. That is why one of the requirements under this contract was vessel registration with one of the off-shore companies.
In the off-shore sectors it is possible to employ a cheaper crew, or at least a part of it. However, it is dangerous, because unqualified crew is a threat to the safety of a vessel, as well as to the lives of the crew. For example, a lot of tragedies happened because crews failed to strap their freight correctly.
By the beginning of 1992, only 18% of Russian vessels were registered under foreign flags. Most vessels were owned by Sovcomflot. Later, many companies started to register their best vessels with off-shore companies to use the scheme for vessel renewal. The fleet under the Russian flag was hardly ever renewed.
Nowadays less the 200 vessels of large capacity with the total deadweight of 2.6 million tons sail under the Russian flag, while in 1992 there were about 800 such vessels with the total deadweight of 10.5 million tons. While the best Russian fleet under the flags of Liberia, Cyprus and Malta calls at foreign ports, only small vessels of river and river-sea types are registered in Russia. In the fleet under the Russian flag there are practically no highly productive specialized vessels (container vessels, refrigerator vessels or ferries). Neither are there tankers of large capacity, meeting the world requirements, for crude export; bulkers of large capacity for grain, coal, ore and mineral fertilizers transportation; vessels for gas and liquefied chemicals transportation.
At the same time, Russia constantly increases the volume of its foreign trade cargo transportation by sea. According to the RF Ministry of Transport, in 1998 it was 204 million tons; however, in 2004 it amounted to 450 million tons. Respectively, the cost of charter for Russian foreign trade cargo transportation also increased: in 1998 it was USD 4 billion, and last year it amounted to USD 7.5 billion. In 2004 Russian shipping companies earned USD 300 million for charter, which was less than 5% of the total charter for Russian foreign trade transportation.
Main Task Is to Get Vessels Back
Nowadays 62-63% of the global fleet is registered under foreign flags. The leading sea powers are not satisfied with the situation. Their shipping companies register their vessels under foreign flags for a different reason - high personal income tax, which amounts to 60% in some countries. Foreign states realized that they should find a way out and created second international Vessel Registrations, having set economic preferences to get the national fleets back under their flags.
One of the main reasons for the reduced amount of vessels under the Russian flag is the large share of taxes (including dues, duties and other payments) in the cost of transport services. That is why the Ministry of Transport set itself a task of providing equal competition conditions for all the Russian vessel owners by introducing special tax rates for vessels registered in the Russian International Vessel Registration.
In accordance with the new law, vessel owners are to pay state due for the initial registration and for its annual confirmation, as well as a unified social tax. At the same time the law envisages benefits on VAT, company's profit tax, transport tax and property tax. To create and to implement such a system of taxation, it is necessary to amend the acting legislation: Merchant Navigation Code, Tax Code, and the RF Law "On Customs Tariff".
Like in other states, the creation of the Vessel Registration does not aim solely to increase revenue from vessels registration, but to achieve a multiplicative effect for the country's economy on the whole, including foreign trade cargo protection against sudden changes on the charter market, providing of the economic safety for the state and enlivening of the economic sectors connected with navigation.
Second Vessels Registration to Defend National Fleet
Experts believe that the law will enable the Russian Fleet to increase its volume by 750 vessels with the total deadweight of 17 million tons and the total cost of USD 13 billion. Calculations show that the vessels can transport 183.6 million tons of Russian foreign trade cargoes, and the charter revenue obtained by the Russian vessel owners may amount to USD 2.3 billion. Besides, no significant financial expenses will be required to implement the law. Due to the zero VAT rate for vessels built in the Russian shipyards, a revival of the national ship-building and ship-repairing industries, as well as metallurgical, machine-building, chemical and woodworking industries etc. is forecasted.
According to the Ministry of Transport, the volume of construction and consumption of transport vessels on the internal market will have increased fourfold or even fivefold by 2010.
The increase in the number of vessels under the Russian flag will enable the industry to create additional 18,000 jobs on board these vessels and about 50,000 jobs at the coastal enterprises maintaining the fleet. Moreover, up to 150,000 additional jobs can be created in the allied industries. It is also important that the crew of a vessel under the Russian flag is under the jurisdiction of the Russian Federation, which protects their legal rights abroad, as well as ensures their social security, i.e. guaranteed medical and pension provision.
To implement the law, the Ministry of Transport is working on a RF Government decree containing the list of commercial sea ports, where vessels will be registered with the Russian international Vessel Registration. Also, a RF Ministry of Transport decree on amendments to the Rules of vessel registration and the right on them in the commercial sea ports is being developed.
Getting the fleet back under the Russian flag is important from the perspective of strengthening the state's defensive capacity. Vessels under the Russian flag are in the mobilization reserve and, in case of force-majeure, they can be used for military and other transportation as required by the state. Besides, the safety of Russian cargoes transportation increases. It is especially important for such dangerous cargoes as oil and products, since Russia's requirements to the technical condition of vessels and to the crews' professionalism are higher than those of African and Asian states. Thus, the second Vessel Registration is to become one of the elements in the system of national fleet support.
However, we should take into account that expectations for vessels returning under the Russian flag in the near future may differ from what will happen in reality. Naturally, adoption of such a law is an important event for the state's sea transport development, but it is not enough for a massive return of the fleet under the national flag. Problems with taxation of the "comeback" vessels are possible, and the whole mechanism of return has not been developed yet. That is why experts believe that the Vessel Registration will be largely filled in with new vessels. However, the problem of registration persists not because of the advantages or disadvantages of the adopted law - it is an alternative to the Vessel Registrations, but it gives no stimuli for new fleet construction. So, it is possible that the second Vessel Registration will be enlarged only when the rates of ship building are several times higher than the present ones.
Nadezhda Vtorushina
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[DETAIL_TEXT] =>
Russian Fleet under Liberian Flag
Russian vessels started to work under flags of convenience after dissolution of the USSR, whose merchant fleet was the fourth largest in the world and amounted to 15,000 vessels with the dead weight of 18 million tons, operated by 17 shipping companies.
Since 1992, the Russian sea transport, as well as many other industries, was left to the mercy of fate. To develop it, money was required. By the way, even now Russian banks do not give it. That is why shipping companies started to take loans from foreign banks. A loan was given on the security of a vessel. If the interest was not paid, at least the creditor could have the vessel. That is why one of the requirements under this contract was vessel registration with one of the off-shore companies.
In the off-shore sectors it is possible to employ a cheaper crew, or at least a part of it. However, it is dangerous, because unqualified crew is a threat to the safety of a vessel, as well as to the lives of the crew. For example, a lot of tragedies happened because crews failed to strap their freight correctly.
By the beginning of 1992, only 18% of Russian vessels were registered under foreign flags. Most vessels were owned by Sovcomflot. Later, many companies started to register their best vessels with off-shore companies to use the scheme for vessel renewal. The fleet under the Russian flag was hardly ever renewed.
Nowadays less the 200 vessels of large capacity with the total deadweight of 2.6 million tons sail under the Russian flag, while in 1992 there were about 800 such vessels with the total deadweight of 10.5 million tons. While the best Russian fleet under the flags of Liberia, Cyprus and Malta calls at foreign ports, only small vessels of river and river-sea types are registered in Russia. In the fleet under the Russian flag there are practically no highly productive specialized vessels (container vessels, refrigerator vessels or ferries). Neither are there tankers of large capacity, meeting the world requirements, for crude export; bulkers of large capacity for grain, coal, ore and mineral fertilizers transportation; vessels for gas and liquefied chemicals transportation.
At the same time, Russia constantly increases the volume of its foreign trade cargo transportation by sea. According to the RF Ministry of Transport, in 1998 it was 204 million tons; however, in 2004 it amounted to 450 million tons. Respectively, the cost of charter for Russian foreign trade cargo transportation also increased: in 1998 it was USD 4 billion, and last year it amounted to USD 7.5 billion. In 2004 Russian shipping companies earned USD 300 million for charter, which was less than 5% of the total charter for Russian foreign trade transportation.
Main Task Is to Get Vessels Back
Nowadays 62-63% of the global fleet is registered under foreign flags. The leading sea powers are not satisfied with the situation. Their shipping companies register their vessels under foreign flags for a different reason - high personal income tax, which amounts to 60% in some countries. Foreign states realized that they should find a way out and created second international Vessel Registrations, having set economic preferences to get the national fleets back under their flags.
One of the main reasons for the reduced amount of vessels under the Russian flag is the large share of taxes (including dues, duties and other payments) in the cost of transport services. That is why the Ministry of Transport set itself a task of providing equal competition conditions for all the Russian vessel owners by introducing special tax rates for vessels registered in the Russian International Vessel Registration.
In accordance with the new law, vessel owners are to pay state due for the initial registration and for its annual confirmation, as well as a unified social tax. At the same time the law envisages benefits on VAT, company's profit tax, transport tax and property tax. To create and to implement such a system of taxation, it is necessary to amend the acting legislation: Merchant Navigation Code, Tax Code, and the RF Law "On Customs Tariff".
Like in other states, the creation of the Vessel Registration does not aim solely to increase revenue from vessels registration, but to achieve a multiplicative effect for the country's economy on the whole, including foreign trade cargo protection against sudden changes on the charter market, providing of the economic safety for the state and enlivening of the economic sectors connected with navigation.
Second Vessels Registration to Defend National Fleet
Experts believe that the law will enable the Russian Fleet to increase its volume by 750 vessels with the total deadweight of 17 million tons and the total cost of USD 13 billion. Calculations show that the vessels can transport 183.6 million tons of Russian foreign trade cargoes, and the charter revenue obtained by the Russian vessel owners may amount to USD 2.3 billion. Besides, no significant financial expenses will be required to implement the law. Due to the zero VAT rate for vessels built in the Russian shipyards, a revival of the national ship-building and ship-repairing industries, as well as metallurgical, machine-building, chemical and woodworking industries etc. is forecasted.
According to the Ministry of Transport, the volume of construction and consumption of transport vessels on the internal market will have increased fourfold or even fivefold by 2010.
The increase in the number of vessels under the Russian flag will enable the industry to create additional 18,000 jobs on board these vessels and about 50,000 jobs at the coastal enterprises maintaining the fleet. Moreover, up to 150,000 additional jobs can be created in the allied industries. It is also important that the crew of a vessel under the Russian flag is under the jurisdiction of the Russian Federation, which protects their legal rights abroad, as well as ensures their social security, i.e. guaranteed medical and pension provision.
To implement the law, the Ministry of Transport is working on a RF Government decree containing the list of commercial sea ports, where vessels will be registered with the Russian international Vessel Registration. Also, a RF Ministry of Transport decree on amendments to the Rules of vessel registration and the right on them in the commercial sea ports is being developed.
Getting the fleet back under the Russian flag is important from the perspective of strengthening the state's defensive capacity. Vessels under the Russian flag are in the mobilization reserve and, in case of force-majeure, they can be used for military and other transportation as required by the state. Besides, the safety of Russian cargoes transportation increases. It is especially important for such dangerous cargoes as oil and products, since Russia's requirements to the technical condition of vessels and to the crews' professionalism are higher than those of African and Asian states. Thus, the second Vessel Registration is to become one of the elements in the system of national fleet support.
However, we should take into account that expectations for vessels returning under the Russian flag in the near future may differ from what will happen in reality. Naturally, adoption of such a law is an important event for the state's sea transport development, but it is not enough for a massive return of the fleet under the national flag. Problems with taxation of the "comeback" vessels are possible, and the whole mechanism of return has not been developed yet. That is why experts believe that the Vessel Registration will be largely filled in with new vessels. However, the problem of registration persists not because of the advantages or disadvantages of the adopted law - it is an alternative to the Vessel Registrations, but it gives no stimuli for new fleet construction. So, it is possible that the second Vessel Registration will be enlarged only when the rates of ship building are several times higher than the present ones.
Nadezhda Vtorushina
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Russian Fleet under Liberian Flag
Russian vessels started to work under flags of convenience after dissolution of the USSR, whose merchant fleet was the fourth largest in the world and amounted to 15,000 vessels with the dead weight of 18 million tons, operated by 17 shipping companies.
Since 1992, the Russian sea transport, as well as many other industries, was left to the mercy of fate. To develop it, money was required. By the way, even now Russian banks do not give it. That is why shipping companies started to take loans from foreign banks. A loan was given on the security of a vessel. If the interest was not paid, at least the creditor could have the vessel. That is why one of the requirements under this contract was vessel registration with one of the off-shore companies.
In the off-shore sectors it is possible to employ a cheaper crew, or at least a part of it. However, it is dangerous, because unqualified crew is a threat to the safety of a vessel, as well as to the lives of the crew. For example, a lot of tragedies happened because crews failed to strap their freight correctly.
By the beginning of 1992, only 18% of Russian vessels were registered under foreign flags. Most vessels were owned by Sovcomflot. Later, many companies started to register their best vessels with off-shore companies to use the scheme for vessel renewal. The fleet under the Russian flag was hardly ever renewed.
Nowadays less the 200 vessels of large capacity with the total deadweight of 2.6 million tons sail under the Russian flag, while in 1992 there were about 800 such vessels with the total deadweight of 10.5 million tons. While the best Russian fleet under the flags of Liberia, Cyprus and Malta calls at foreign ports, only small vessels of river and river-sea types are registered in Russia. In the fleet under the Russian flag there are practically no highly productive specialized vessels (container vessels, refrigerator vessels or ferries). Neither are there tankers of large capacity, meeting the world requirements, for crude export; bulkers of large capacity for grain, coal, ore and mineral fertilizers transportation; vessels for gas and liquefied chemicals transportation.
At the same time, Russia constantly increases the volume of its foreign trade cargo transportation by sea. According to the RF Ministry of Transport, in 1998 it was 204 million tons; however, in 2004 it amounted to 450 million tons. Respectively, the cost of charter for Russian foreign trade cargo transportation also increased: in 1998 it was USD 4 billion, and last year it amounted to USD 7.5 billion. In 2004 Russian shipping companies earned USD 300 million for charter, which was less than 5% of the total charter for Russian foreign trade transportation.
Main Task Is to Get Vessels Back
Nowadays 62-63% of the global fleet is registered under foreign flags. The leading sea powers are not satisfied with the situation. Their shipping companies register their vessels under foreign flags for a different reason - high personal income tax, which amounts to 60% in some countries. Foreign states realized that they should find a way out and created second international Vessel Registrations, having set economic preferences to get the national fleets back under their flags.
One of the main reasons for the reduced amount of vessels under the Russian flag is the large share of taxes (including dues, duties and other payments) in the cost of transport services. That is why the Ministry of Transport set itself a task of providing equal competition conditions for all the Russian vessel owners by introducing special tax rates for vessels registered in the Russian International Vessel Registration.
In accordance with the new law, vessel owners are to pay state due for the initial registration and for its annual confirmation, as well as a unified social tax. At the same time the law envisages benefits on VAT, company's profit tax, transport tax and property tax. To create and to implement such a system of taxation, it is necessary to amend the acting legislation: Merchant Navigation Code, Tax Code, and the RF Law "On Customs Tariff".
Like in other states, the creation of the Vessel Registration does not aim solely to increase revenue from vessels registration, but to achieve a multiplicative effect for the country's economy on the whole, including foreign trade cargo protection against sudden changes on the charter market, providing of the economic safety for the state and enlivening of the economic sectors connected with navigation.
Second Vessels Registration to Defend National Fleet
Experts believe that the law will enable the Russian Fleet to increase its volume by 750 vessels with the total deadweight of 17 million tons and the total cost of USD 13 billion. Calculations show that the vessels can transport 183.6 million tons of Russian foreign trade cargoes, and the charter revenue obtained by the Russian vessel owners may amount to USD 2.3 billion. Besides, no significant financial expenses will be required to implement the law. Due to the zero VAT rate for vessels built in the Russian shipyards, a revival of the national ship-building and ship-repairing industries, as well as metallurgical, machine-building, chemical and woodworking industries etc. is forecasted.
According to the Ministry of Transport, the volume of construction and consumption of transport vessels on the internal market will have increased fourfold or even fivefold by 2010.
The increase in the number of vessels under the Russian flag will enable the industry to create additional 18,000 jobs on board these vessels and about 50,000 jobs at the coastal enterprises maintaining the fleet. Moreover, up to 150,000 additional jobs can be created in the allied industries. It is also important that the crew of a vessel under the Russian flag is under the jurisdiction of the Russian Federation, which protects their legal rights abroad, as well as ensures their social security, i.e. guaranteed medical and pension provision.
To implement the law, the Ministry of Transport is working on a RF Government decree containing the list of commercial sea ports, where vessels will be registered with the Russian international Vessel Registration. Also, a RF Ministry of Transport decree on amendments to the Rules of vessel registration and the right on them in the commercial sea ports is being developed.
Getting the fleet back under the Russian flag is important from the perspective of strengthening the state's defensive capacity. Vessels under the Russian flag are in the mobilization reserve and, in case of force-majeure, they can be used for military and other transportation as required by the state. Besides, the safety of Russian cargoes transportation increases. It is especially important for such dangerous cargoes as oil and products, since Russia's requirements to the technical condition of vessels and to the crews' professionalism are higher than those of African and Asian states. Thus, the second Vessel Registration is to become one of the elements in the system of national fleet support.
However, we should take into account that expectations for vessels returning under the Russian flag in the near future may differ from what will happen in reality. Naturally, adoption of such a law is an important event for the state's sea transport development, but it is not enough for a massive return of the fleet under the national flag. Problems with taxation of the "comeback" vessels are possible, and the whole mechanism of return has not been developed yet. That is why experts believe that the Vessel Registration will be largely filled in with new vessels. However, the problem of registration persists not because of the advantages or disadvantages of the adopted law - it is an alternative to the Vessel Registrations, but it gives no stimuli for new fleet construction. So, it is possible that the second Vessel Registration will be enlarged only when the rates of ship building are several times higher than the present ones.
Nadezhda Vtorushina
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What does a Western-European forwarder do today to deliver a container from Western Europe to Russia or to the CIS? At first, he will choose the route, basing on the place of destination. If the place of destination is in the North-Western region of the Russian Federation, he will count on sea transportation via Saint-Petersburg. If the cargo is destined for some place in the middle of the CIS or in the Central Asia, it will be mainly directly carried by railway. However now, the transport sector is dynamically developing due to the EU's spreading to the East with an influence to continental container routes.
Exploring land routes
May 1, 2004 is the date that could be used to describe two types of problems, connected with the land routes: firstly the old problems that took place earlier without any change and secondly the new problems connected with the transfer of the EU's eastern border to the border of the Republic of Belarus.
The problems of the first type are well-known and the clients have more or less got used to the following:
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What does a Western-European forwarder do today to deliver a container from Western Europe to Russia or to the CIS? At first, he will choose the route, basing on the place of destination. If the place of destination is in the North-Western region of the Russian Federation, he will count on sea transportation via Saint-Petersburg. If the cargo is destined for some place in the middle of the CIS or in the Central Asia, it will be mainly directly carried by railway. However now, the transport sector is dynamically developing due to the EU's spreading to the East with an influence to continental container routes.
Exploring land routes
May 1, 2004 is the date that could be used to describe two types of problems, connected with the land routes: firstly the old problems that took place earlier without any change and secondly the new problems connected with the transfer of the EU's eastern border to the border of the Republic of Belarus.
The problems of the first type are well-known and the clients have more or less got used to the following:
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