Monthly Archives: December 2022

Investments in new container terminals in Primorye will amount to more than 170 billion rubles

December 16 2022

Primorsky region experienced a full-scale “turn to the East” in 2022

Governor of Primorsky region Oleg Kozhemyako announced the priorities of the investment policy of the region for 2023. In his investment message, delivered on December 16, 2022, the governor stressed that the region experienced a full-scale “pivot to the East” in 2022 and the seaports became a point of attraction for cargo from the Asia-Pacific countries. Investments in the creation of new container terminals will amount to more than 170 billion rubles, according to the press service of the government of Primorsky region.

“Investors are developing projects for new container terminals in Vladivostok, Bolshoy Kamen, Posyet, Slavyanka with an investment of over 170 billion rubles. In addition, agreements were signed on the creation of six transport and logistics centers by 2028, which operate in a single technological process with seaports, with a total capacity of up to 6 million containers per year,” the governor said.

The Vladivostok Commercial Sea Port is creating the Eastern transport and logistics hub, which provides for the construction of two deep-water berths with depths of up to 17 meters and a container terminal for up to 1.2 million containers.

The head of the region began his investment message by summing up the economic results of the region for 2022. The Governor noted that the region remains resilient and continues to develop in the face of sanctions, adapting to changing circumstances. Gross regional product this year will be about 1.5 trillion rubles.

At the end of 2022, the economy of Primorye showed significant growth: turnover in the transport industry increased by 36%, the volume of housing commissioned increased by 24%, investments increased by 67%, and foreign trade turnover showed an increase of 18%.

Next year Primorye plans to continue working within the framework of the approved export strategy and expand the geography of deliveries, increase the number of exporting enterprises and create representative offices of the region in the strategic markets of China and Vietnam.

Container traffic in the ports of the Far East intensified after the departure of international shipping operators from the ports of the Russian Baltic after February 2022. According to Infranews, the container throughput of the ports of the Far Eastern Basin in November 2022 increased by 5.7% compared to the same period last year to 199.85 thousand TEU. Growth in container handling has been noted for the past four months, analysts emphasize. Growth rates in November somewhat slowed down compared to the record high (since March this year) in October (+22.5%). There is a wavy trend in turnover: further acceleration of growth rates is possible in December.

The port of Vladivostok handled 122.38 thousand TEU over the month, which is 7% more than last year. Port Vostochny increased its transshipment by 7%, up to 49.77 thousand TEU, Petropavlovsk-Kamchatsky – by 13%.


Crab industry redirected exports to Asian markets

December 15 2022

China, South Korea and Japan increased crab imports from Russia by 28% to 7.6 thousand tons

A significant part of Russian crab exports has been redistributed to Asian markets after the US market closed, an analysis of the Association of Fishing Fleet Owners (AFFO) showed. According to national government statistics, over the three quarters of 2022, China, South Korea and Japan increased crab imports from Russia by 7.6 thousand tons (+28%), which compensated for the drop in volumes by 2/3.

In addition to the traditional export destinations, other promising directions are developing – to the countries of Southeast Asia (Indonesia, Vietnam, Singapore) and the Middle East. According to the Federal Agency for Fishery, the volume of crab production has been maintained at the level of 2021, which indicates the stability of the fishery even under the export restrictions.

“The prompt response of key market participants made it possible to maintain the stability of the crab industry. Stable sales of Russian crab products are ensured by steady demand, as well as world reserves of the resource limited by natural factors,” commented Alexei Osintsev, President of the AFFO.

The Association of Fishing Fleet Owners was established in 2016.

The key tasks of the Association are to promote the creation of stable conditions for the implementation of sectoral investment projects, to reduce the impact of administrative barriers on the marine industrial and coastal fishing and fish processing, and to create conditions for the training of crew for the new fishing fleet.


Center for Maritime Transport and Spatial Logistics will convene an international conference

Center for Maritime Transport and Spatial Logistics will convene an international conference “Outcomes of 2022. The influence of non-economic factors on the implementation of transport and logistics projects in NEA / APR” on December 14, 2022. The participants will discuss the impact of such factors as the consequences of the coronavirus pandemic, the rivalry between the United States and China, the confrontation between Russia and the collective West on regional economic cooperation and the implementation of bilateral and multilateral projects in the field of transport, logistics, energy, education and humanitarian cooperation.

Global Ports expects the complete elimination of the queue of ships to the terminal in the Far East by the end of 2022

December 8 2022

The practice of supplying an increased number of container trains can be extended to the beginning of 2023

The increased flow of platforms to the terminal of the Eastern Stevedoring Company (VSC, part of Global Ports) has allowed a significant increase in the export of imported containers. The average daily loading of platforms at VSK was 273 platforms in September. From December 1 to December 7 it reached 328 platforms. As a result, the waiting time for ships to moor has been significantly reduced. If the pace of the the platforms is maintained, the complete “liquidation of the raid” is expected at the end of December, Global Ports told PortNews.

At the same time, the launch of additional trains did not solve the problem of high warehouse occupancy, which is typical for all major container terminals in the Far East. Due to the increased entry of platforms, the volume of exports increased, and imports in the warehouse were replaced by export cargoes, the company explained. According to Global Ports calculations, if the pace of delivery of platforms, including empty ones, is maintained, and export by road is increased, a gradual decrease in the level of warehouse occupancy will begin in the end of December.

The company believes that the extension of the practice with an increased number of container trains to the Far East to the beginning of 2023 will additionally help the terminals of the Far East in the short term to balance cargo flows and ensure a return to a comfortable waiting time for containers to be sent by rail at a level of up to 2-3 days.

To improve the efficiency of cargo handling and increase capacity, VSK Global Ports implements short-term and long-term projects: it purchases additional equipment, redirects equipment from the North-West terminals. In addition, a long-term expansion project for the VSK has been launched.

As previously reported, due to the reorientation of cargo flows in 2022, Russian ports in the Far East faced an overload of their capacities. In particular, according to the head of the Far Eastern Customs Administration (DVTU) Yuri Ladygin, overloading the capacities of the Far Eastern ports, primarily Vladivostok and Vostochny, led to queues of up to 10 ships, waiting for unloading from 2 to 10 days and dispatch from the port – up to 10-13 days.

To resolve the problem, the Ministry of Transport of Russia, together with Russian Railways, set up a headquarters in September to organize the export of containers from the port terminals of the Far East. Minister of Transport Vitaly Savelyev in order to stabilize the situation with the overloading of the capacities of the ports of the Far East proposed measures such as increasing the tariffs for container transportation in the east direction in 2023 with a simultaneous decrease in tariffs in the ports of the North-West; increasing the number of container trains from the terminals of the ports of the Far Eastern Federal District to 5 units per day; extending until the end of 2023 a discount on the railway tariff for the transportation of containers in open wagons; increasing the number of container trains in the east direction by 3 pairs per day until the end of 2022. 

On December 7, RZD reported that the problem had been solved.