World Bunkering > News > Spring 2011 > News and views

Growth prospects poor in Primorsk

Olga Bogacheva

Oil and oil product transhipment in Primorsk port in the first 11 months of 2010 fell by 2.1% against the same period in the previous year to 70,711,500 tons. The port handled some 65.4 million tons of oil, down 4.3% against the previous year and 5,287,500 tons of diesel fuel, according to Marine Port Administration records.

Industry sources do not see any growth potential in Primorsk and expect further reduction of sales due to redistribution of cargo traffic between the new Kozmino port (Far East) and the Rosneftbunker oil terminal (Gunvor oil trader subsidiary) in Ust- Luga, which is expected to come into operation in February 2011.

A potential merger between Primorsky Merchant Seaport (PMS), which operates all four oil berths in the port, with Novorossiisky Merchant Seaport (NMS) is unlikely to bring any change to Primorsk. NMS has enquired about a 100% acquisition of PMS. This would give PMS’ owners, Transneft AK, and Summa Capital investment group a controlling stake in the merged company, as they would own 50.1% of NMS on a 50-50 basis. However, no binding documents were signed.

Primorsk is one of the largest oil exporting ports in the Russian Federation. Primorsky Merchant Seaport exports oil which arrives through the Baltic pipeline, while Balttransservice tranships oil products from the product pipeline Kstovo-Yaroslavl-Kirishi- Primorsk. In 2009 transhipment reached 79,138,000 tons. Figures for 2010 are expected to be similar.

UST-Luga port turns into an ocean hub

In October, 2010 the first ocean-going car-carrier to make a port call in Russia arrived at Ust-Luga port. Previously, vessels of this class were unable to call at Russian ports because their draft was too great. Opening up Ust-Luga to ocean-going vessels will allow shippers to cut transport costs by 7% by calling at the port directly, avoiding calling at transit Baltic ports. From next spring, ocean services to Ust-Luga will become regular, and will not be limited to automobile deliveries. Analysts believe the changes will provide both economic and political benefits.

The Grand Mercury called at Yu-2, Ust-Luga’s multi-purpose transshipping complex (MTC), on 18 October. The vessel arrived from Korea and delivered 3,000 Hyundai automobiles. A second ocean-going car carrier called at the same terminal on 25 November, 2010. Morning Cello arrived from Ulsan, South Korea, and delivered 1,884 Hyundai automobiles.

Although the terminal has been operating since summer 2008, the Grand Mercury was the first vessel of this class to call there. Negotiations with the shipper lasted for two years before the port call was possible. No other Russian ports can accept ships of this size. Previously, such large vessels were unloaded in the nearest foreign Baltic ports and the cargoes were then transported to Russia either by feeder vessels or by road and railway.

The Grand Mercury is 200 metres long, and has a cargo capacity of 5,560 cars. The depth at Yu-2 terminal is currently 12 metres, and may be further increased to 16 metres in the southern port area and to 17.5 metres in the northern area. The time necessary for unloading depends on turnover in terminals. Ocean services are expected to become regular in spring of 2011 when the new logistic scheme is fully developed. At present, the first permanent ocean shipper, who works with a number of well-known car manufacturers, has been confirmed. The terminal is in ongoing negotiations with other potential clients to arrange ocean transportations to Ust-Luga. Ust-Luga Company aims to turn the port into an ocean hub in future.

Maxim Shirokov, Ust-Luga CEO, said: “Ocean carriers calling at Ust-Luga port have demonstrated to shippers around the world that there is an opportunity to improve logistics and cut transportation costs by excluding auxiliary operations in Europe.” He also said that Russia may now escape having to depend on transhipment from neighbouring countries, as there may be a change to existing logistic schemes in which cargoes are delivered to Russia through Baltic countries, and Finland may also change.

Other experts also predict that the development of Ust-Luga port will have a positive effect on the Russian economy. In their opinion, a direct call to Ust-Luga port will reduce transportation expenses by 5-7%. There will also be benefits to the end consumer. Delivery time will be reduced; for example, delivery from Riga port will be cut by a day. This is a first step to export and import independence from neighbouring ports and improved safety of deliveries.

Nina Oding, department head of the Leontjev Centre, recognised for social and economical research, forecasts that the cost and time savings offered by Ust-Luga will lead to turnover at least doubling in the near future. “Ust-Luga port will certainly attract cargo flows from Finnish and St Petersburg ports with its modern technologies and multiple development opportunities. It seems reasonable that ocean carriers will soon deliver containers to Ust-Luga; almost any goods may be transported in containers,” Mrs Oding stated. In her opinion, direct ocean vessel calls to Ust-Luga will solve the problem of hours-long traffic jams at the Russian-Finnish border.

The multi-purpose transhipment complex Yu-2 is intended for rolling cargoes such as automobiles, containers and general cargo, including large and non-standard products. At present, Toyota, Hyundai, Kia and Subaru automobiles are delivered directly to the port.

Drone aircraft monitor environment in Ust-Luga port

The Federal Service for Supervision of Natural Resource Usage of North-West Russia has announced that drone aircraft will be used to monitor the port environment in Ust-Luga. According to spokesman Vasiliy Fedorov, “The territory of the developing port is enormous. There are coal terminals, sulphur terminals and other transhipment complexes. Considerable labour and time resources would be needed to monitor their influence on the environment. The drones used by our service provide the necessary information quickly and at comparatively low cost”. Photos received from the drones document the current situation and its dynamics, thus helping to prevent emergencies and preserve the environment.

More storage at Kozmino

Spetsmornefteport Kozmino has commissioned three new storage reservoirs, expanding its oil storage capacity to 500,000 cu m. The acceptance document was signed on 26 October, according to a media spokesman for the port. The new facilities are intended to store additional oil resources from the expansion of the Eastern Siberia – Pacific Ocean pipeline, which has a projected capacity of 30 million tonnes.

All three of the 50,000 tonne capacity storage tanks are equipped with floating covers. The tanks will allow the port to store cargoes for two vessels simultaneously, which will be necessary when the terminal expansion project gets underway.

A number of other projects are under development at other sites in addition to the construction of the new 50,000 tonne reservoirs. Earthworks and foundation construction for additional metering stations were performed at coastal and mooring facilities. Tanks for holding accidentally discharged oil and for fire-extinguishing water are under construction at the oil intake station; foundations for a safety bypass and other main and auxiliary facilities have been laid, and the construction of household and office buildings, an analytical laboratory building, and a parking lot for special vehicles is in progress.

By the end of 2011 the second tanker berth should be completed, metering stations at coastal facilities installed, and oil acceptance stations completed; the main pipeline will be connected to these facilities.

Spetsmornefteport Kozmino is a subsidiary of Transneft Oil Transportation Company. It is at the end point of the Eastern Siberia – Pacific Ocean pipeline, which is intended for transhipping oil to modern sea vessels with maximum speed and minimal risk of accidents. The port is projected to serve tankers of between 80,000 – 150,000 dwt from its own oil-loading terminal. The marine terminal at Kozmino started operations in 2009. Its annual capacity is 15 million tonnes of oil, which may be extended to 30 million tonnes. 11,142,000 tonnes of oil were exported during January – September 2010.

Cargo port to move from the centre of St Petersburg

Rosmorport, the federal state owned enterprise, has begun to develop the strategy for Russian port development up till 2030. The plan is expected to include the complete withdrawal of port operations from the centre of Saint Petersburg. The strategy could be approved by Vladimir Putin, Russian Prime Minister, as early as the end of 2011.

The idea of removing port operations from the centre of St Petersburg has been discussed for decades. But until recently it was assumed that only the handling of the so called ‘dirty cargoes’ would be moved out. Container operations, which are considered environmentally friendly, were expected to stay in place. However, Igor Rusu, general director of Rosmorport, considers this approach to be nonsense: “High-tech oil transhipment is less hazardous than container terminals. The latter are served by thousands of trucks with their emissions poisoning the air.

Authorities will encourage port operators to move their facilities to the city suburbs or to the new ports in Ust-Luga or Bronka- Lomonosov. Currently, almost all port territory in St Petersburg (300 hectares) belongs to the city and is leased to port operators for 49 years.

Petersburg Oil Terminal expands storage capacity

St Petersburg Oil Terminal is to install a new 40,000 cu m oil reservoir by summer 2012, bringing the total storage capacity of the terminal to almost 400,000 cu m. The new facility is intended for the storage of either fuel oil or expensive vacuum gas oil. Depending on the market situation in 2012, the facility may be used for either of these products.

Petersburg Oil Terminal is one of the largest Russian oil terminals on the Baltic Sea, providing transhipping and storage services for export products, bunker fuel and fuel oil for St Petersburg power suppliers. The company also offers oil product quality control services, and the recycling of oily water for vessels making port calls. During 2010 10.2 million tonnes of oil products (7.4 million tonnes of heavy fuel, 2.8 million tonnes of light fuel) were transhipped at Petersburg Oil Terminal. Financial results were largely unchanged from the level of the preceding year.

Kontur Group diversifies

Kontur Group plans to develop river transportation of oil products from the Volga River to the Baltic, Caspian and Black Seas, and has taken the decision to build an appropriate fleet. In early November 2010, it signed a contract with the Baltic Ship-Building Company for the construction of four non-self-propelled bulk-oil barges. The barges, designed by Marine Engineering Bureau, are intended to transport oil products with a flash point of over 60oC. The vessels are licensed to operate on internal waterways and marine areas in broken ice up to 20 cm thick. They will primarily be push barges, although they can also operate as towed barges. The 6,300 dwt barges are classed by the Russian River Register and are 108 metres long by 16.6 metres in the beam. The barge will be equipped with double-hulls surrounding 12 tanks.

Lukoil provides gas oil in Constanta

Lukoil has expanded the range of fuels it provides in Constanta, Romania. The company carried out its first gas oil bunkering operation in the country in November 2010. CMA CGM Hollandia, AGAT and ULLA SCAN vessels were provided with gas oil delivered by the bunker barge Navi (previously Unicom Energy), which was bought and repaired by Lukoil-Bulgaria Bunker.

Sales double for Infotech Flex

In 2010, Infotech Flex saw sales up by 1.8 times against 2009. However, preliminary analysis showed that bunkering equipment sales remained at the level of 2009. Supplies of equipment to oil transhipping companies significantly increased. This growth is the result of planned modernisation and construction of new transhipping complexes.

Demand for hose lines for pumping oil products during delivery of goods to the Northern Territories grew significantly. Infotech Flex expanded its product line and offered flat-fold polyurethane hoses for transportation of oil products and chemicals.

New bunker barge for Istanbul

Gokdeniz, a new double-hulled bunkering vessel owned by Lukoil Bunker, started operations in Istanbul port and Izmitsky Harbour on 9 December, 2010, delivering fuel oil and gas oil to the Ocean Winner. The bunkering vessel can deliver 900 tonnes of fuel and 130 tonnes of gas oil simultaneously.

The new barge brings Lukoil Bunker’s Istanbul-based fleet to three mixed bunker barges, delivering fuel oil and gasoil, and four vessels supplying gasoil only. Lukoil Bunker currently supplies between 13,000 and 15,000 tonnes of fuel per month in Istanbul and Izmitsky and intends to expand its operations to other Turkish ports.

Tovra starts work in Murmansk

The double-hulled bunker barge Tovra has begun operations for the Murmansk subsidiary of Lukoil-Bunker. The barge will deliver light fuel and fuel oil in Murmansk. The tanker is equipped with two pumps with capacities of 150 cubic metres/hour and 40 cubic metres/hour, respectively.

Lukoil delivers fuel for Navy

The Kaliningrad branch of Lukoil-Bunker delivered 80 tonnes of light fuel to the Russian navy frigate Gepard in Baltiisk. The fuel was delivered by the Ramala tanker. Lukoil will continue to supply fuel to the Navy in future.

Monopoly row at Novorossiysk

Russian Port News reports that a 4,250 teu container ship operated by major international container liner operator ZIM had difficulty docking at the port of Novorossiysk. NCSP Fleet, which provides 95% of all towing services at the port refused to provide a tug to moor the ship, Yuri Karapuzov, General Director of ZIM Russia, was quoted as saying.

He explained that the ship was heading for the berths 17-18 of OJSC Novorossiysk Commercial Sea Port for unloading. The master requested NCSP Fleet’s dispatcher to provide tugs, but received a negative answer without explanation. As there was no alternative to NCSP Fleet, the vessel had to anchor off Novorossiysk port and wait until the next morning to request tugs.

Mr. Karapuzov added the boxship was going to purchase bunker fuel from the Trans Oil Service, which is not part of NCSP Fleet. NCSP Fleet is one of the largest private marine barge and tug companies in Russia and also supplies bunkers and a number of other port services. It currently operates a fleet of 68 vessels including 27 tugs, seven bunker barges, a specialised fire-fighting vessel, a fleet of small passenger boats and supply vessels and other specialised ships. NCSP Fleet provides 95% of towing and mooring services at the port of Novorossiysk.