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Containers have risen in price extremely

February 14 2022

The sharp rise in the value of assets in multimodal logistics over the past year – containers, flatcars, ships and port equipment – is forcing a number of industry participants to reduce investments. Other players note that borrowings have doubled in price, which increases the cost of maintaining equipment purchased on lease or on credit. Analysts state that the market is close to overheating.

The market expert told to “Kommersant” that in linear logistics, containers have risen in price 1.8 times, up to $6.7 thousand for a forty-foot container, rail platforms – by 27%, up to 3.7 million rubles for an 80-foot platform, container ships – more than four times. At the same time, he noted, only platforms are actually available in Russia, all other assets are bought abroad. “In terminal and port logistics, asset prices have grown by about 20-30% of their actual value,” he sayd. “All this hinders development, leads to higher rates for logistics services. For our part, we are not ready to buy ports and terminals at such high prices.”

All the market participants interviewed by “Kommersant” observe the increase in price, however, some argue with the thesis about the protective effect of increased prices. “Indeed, the value of assets – ships, railway platforms, containers – is increasing at a double-digit pace, which hinders the development of the logistics market in Russia and ultimately leads to an increase in rates for logistics services,” sayd Maxim Shishkov, “FESCO” Strategy and Development Director.

“The situation with assets last year was tense, and it remains so,” noted Vyacheslav Saraev, General Director of “RZhD Business Active”. In general, we have a large program to increase our assets to ensure obligations to customers, we plan to purchase up to 10,000 containers and about 1,000 platforms this year. We count on already concluded long-term contracts of three or more years with a fixed rate. Of course, we have to start a dialogue with contractors, given the price dynamics in the market.” The increase in the Central Bank’s rate also has a negative impact, added Mr. Saraev.

“Delo Group” noted that it is necessary to separate the global and local equipment markets. Thus, the container market is global, about 40% of the increase in the price of equipment is due to the price of metal, and everything else is a speculative factor associated with the high demand for containers amid the disruption of global supply chains due to the pandemic.

Port equipment, as a rule, is ordered under long-term contracts, and the speculative factor does not play a significant role, since the implementation period for infrastructure projects is years, not months. According to a representative of “Delo Group”, market participants are facing interruptions in the supply of certain types of equipment, for example, reachstackers (mobile loaders for containers), but they were associated with a global shortage of chips common to the entire mechanical engineering industry.

At the same time, the platform market is local, and all 20% of the growth accounts for the growth in the cost of the metal. One of “Kommersant”’s interlocutors on the market says that a twofold increase in the refinancing rate is a more important factor for the market than a speculative markup, which sharply increases the cost of leasing for operators that do not have their own rolling stock.

There is a feeling that in 2022, after large-scale purchases of the previous year, the market may overheat, said Mikhail Burmistrov, head of “Infoline-Analytics”. There are no prerequisites for logistics equipment to become cheaper, prices, on the contrary, tend to increase, while return on assets has slowed down. According to him, the actual rise in prices is not so fundamental, since it is offset by a steady increase in demand due to an increase in container traffic, especially transit.

A more important problem, Mr. Burmistrov agreed, is the rising cost of borrowing, which makes buying equipment on lease or on credit less attractive. In March 2021, the key rate of the Central Bank of Russia was 4.25%, now it is 9.5%, he recalls, and the growing level of interest rates on leasing and loans is putting pressure on companies’ expenses. On February 11, the head of the Central Bank, Elvira Nabiullina, did not rule out the possibility of raising the key rate to a two-digit level this year.

Source: https://portnews.ru/digest/23004/ 

Icebreaker ‘Viktor Chernomyrdin’ Will Become a Passenger Icebreaker

February 5 2022  

The world’s largest and most powerful conventional icebreaker ‘Viktor Chernomyrdin’ will be used as a passenger ship for Arctic cruises after retrofitting. Up to 93 passengers will be able to simultaneously travel on the icebreaker during the period free from its primary activities, TASS was told on Saturday by the press service of the Federal State Unitary Enterprise “Rosmorport”.

“After the additional equipment has been installed, the Registry class symbol of the ‘Viktor Chernomyrdin’ icebreaker will indicate the characteristic “Passenger ship” and the vessel will be able to accommodate up to 93 passengers onboard. The plans are to use the icebreaker to conduct Arctic cruises and transport passengers during a period free from statutory activities”, explained the “Rosmorport” press service.

Work on installing the additional equipment onboard the ‘Viktor Chernomyrdin’, as follows from the data of the public procurement portal, should be completed no later than April 1, 2022. The value of the contract, concluded following the results of the auction, amounted to 4.2 million rubles.

The contractor will have to install additional lighting on the icebreaker, re-equip the ship’s security systems, and perform a number of other improvements. Upon their completion, “Viktor Chernomyrdin” will be able to officially receive the class of a passenger ship.

The project 22600 icebreaker has been under construction by order of “Rosmorport” since December 2012 at the “Admiralty Shipyard” (St. Petersburg). This is the innovative new generation diesel-electric icebreaker with impressive 25 MW power plant (on propellers), high ice class ‘Icebreaker – 8’ and a maximum degree of automation. The icebreaker is capable of reaching speeds of up to 17.8 knots in clear water, passing through ice up to 2 meters thick at a continuous speed of 2 knots. The vessel can operate in various regions of the Arctic and Antarctic, she can penetrate ice up to 3 m thick.

The ceremony of raising the state flag of the Russian Federation on the icebreaker took place in November 2020. In January 2021, the vessel commenced her first voyage – icebreaking escort of ships in the Gulf of Finland (Baltic Sea). ‘Viktor Chernomyrdin’ operated on the approaches to the seaports of Vyborg, Vysotsk and Primorsk escorting ships, including large-capacity tankers, on their way to the ports.

Source: https://portnews.ru/digest/22982/

Uzbekistan and Russia created a joint venture to increase cargo transportation

Uzbekistan and Russia created a joint venture to increase cargo transportation

January 27 2022

“RZD Logistics” JSC and Uzbek logistics company “UTI Transit” LLC have created a joint venture “RZDL TRANSSERVICE GROUP” LLC.

The enterprise will be located in Uzbekistan. This will attract customers to routes to Russia, Kazakhstan, Tajikistan and transit from China. Moreover, the company will take part in the development of new transport corridors from China to Afghanistan and Pakistan.

“RZD Logistics” will ensure acceptance of cargo at the terminals of the Moscow region, provision of fitting platforms and autonomous refrigerated containers, payment of the tariff and service maintenance on the way through the territories of Russia and Kazakhstan. The authority of “UTI Transit” will include the provision of similar services in Uzbekistan.

It is planned to expand routes and services in the future.

Uzbekistan and Russia already have a positive experience in organizing export routes in the eastern and Central Asian directions. This is the Agroexpress project.

The first test shipment of food products along the route Russia – Uzbekistan – Russia took place at the end of last year.

The project is being implemented with the support of the Ministry of Economic Development of Russia, the Ministry of Investments and Foreign Trade of Uzbekistan, Uzbekistan “Temir Yollari” JSC, Uzagrologostics centers, “RZD Logistics” JSC in partnership with the “Russian Export Center” JSC.

Source: https://portnews.ru/digest/22959/

National Flag of Russia Hoisted on “Sibir” Nuclear-Powered Icebreaker 

January 25 2022

On January 25, 2022, the state flag of the Russian Federation was raised on the ‘Sibir’ (‘Siberia’) multi-purpose nuclear icebreaker of project 22220., the press service of FSUE “Atomflot” reports.

The flag raising ceremony in Murmansk was attended by Mr. Vyacheslav Ruksha, Deputy General Director of “Rosatom” State Corporation – Head of the NSR Directorate, Mr. Andrey Chibis, Governor of the Murmansk Region, Mr. Mustafa Kashka, General Director of FSUE “Atomflot”, Mr. Alexei Kadilov, General Director of “Baltiysky Zavod” shipyard and others.

“Only new icebreakers and ships can make the NSR a real road for our megaprojects in the Arctic zone. I am sure that in the coming decades the NSR will become the Russian route to India,” said Vyacheslav Ruksha.

Mustafa Kashka noted that the lead nuclear icebreaker of this class, ‘Arktika’ was already operating in the NSR Eastern sector, stressing that navigation in this sector usually stopped in November. “But the commissioning of Project 22220 icebreakers opens up new prospects for the development of the NSR. These nuclear-powered ships are the future of “Rosatomflot”, he said.

The keel-laying of “Sibir” project 22220 nuclear icebreaker took place on May 26, 2015 in St.Petersburg. The vessel was launched on September 22, 2017. On December 24, 2021, an act on the transfer of the icebreaker to “Atomflot” was signed on board the ship in St.Petersburg. On January 13, 2022, the new icebreaker left the outfitting embankment of JSC “Baltiysky Zavod” shipyard for her home port of Murmansk. On January 22, the vessel arrived at the berths of FSUE “Atomflot”.

Project 22220 multi-purpose nuclear icebreakers are the largest and most powerful in the world. Their main task is to provide year-round navigation in the Western sector of the Arctic. The main characteristics of the vessel: power – 60 MW (on shafts); speed – 22 knots (in clear water); length – 173.3 m (160 m on DWL); width – 34 m (33 m on DWL); height – 52 m; draft – 10.5 m / 8.65 m; maximum ice penetration – 2.8 m; total displacement – 33,540 tons; the designated service life is 40 years. The icebreaker is equipped with a two-reactor power plant with the main source of steam from a new-generation RITM-200 reactor plant with a capacity of 175 MW, specially designed for this vessel.

The technical design of this project was developed by the “Iceberg” Central Design Bureau in 2009.

The construction of three more project 22220 nuclear icebreakers, ‘Ural’, ‘Yakutia’ and ‘Chukotka’ continues in St.Petersburg.

Source:https://portnews.ru/news/324345/ 

FESCO ‘Viking’ Delivered Equipment for Akkuyu NPP in Turkey

January 19 2022

The FESCO transport group organized the delivery of heavy equipment for the construction of the Akkuyu nuclear power plant (NPP) in the Republic of Turkey. Cargo ship “Viking” with eight sets of hydraulic tanks of the passive core flooding system (one of the most important elements of the NPP safety system) weighing 83 tons each and the upper unit with a reactor cover weighing 104 tons arrived from the port of Rostov-on-Don to the cargo terminal Vostochny at the beginning of January 2022. The total weight of the delivered cargo was 948 tons. 

FESCO specialists, with direct participation and control by specialists of the department of transport and warehouse logistics and customs clearance of “AKKUYU NUCLEAR JSC” (a subsidiary of the “Rosatom” State Corporation, is responsible for the construction and subsequent operation of the Akkuyu NPP), ensured the transshipment of cargo items from the ship to vehicles using two mobile cranes Liebherr LG-1750 with a lifting capacity of 750 tons and Liebherr LTM-1120 with a lifting capacity of 120 tons, as well as transportation and placement of equipment in temporary storage facility at the NPP construction site.

In September 2021, within the framework of the Eastern Economic Forum, FESCO and “AKKUYU NUCLEAR JSC” entered into an agreement for the provision of a range of logistics services at the Vostochny terminal for handling cargo delivered by sea as part of the NPP construction project. According to the agreement, FESCO acts as a logistics operator for the Vostochny cargo terminal.

Akkuyu NPP is the world’s first project in the nuclear industry implemented by “Rosatom” according to the BOO (build-own-operate) model. The Akkuyu NPP project includes four power units with Russian VVER generation III+ reactors with increased safety and improved technical and economic characteristics. The capacity of each NPP power unit will be 1,200 MW.

FESCO Transport Group is one of the largest private transport and logistics companies in Russia with assets in the field of port, rail and integrated logistics business. FESCO’s diversified portfolio of assets allows for door-to-door delivery of goods and control of all stages of the intermodal transport chain. The Group owns the Commercial Sea Port of Vladivostok, the railway operators “Transgarant” and “Dalreftrans”, dry terminal complexes in Novosibirsk, Khabarovsk and Tomsk. The Group manages more than 8,000 fitting platforms, and container assets of more than 100,000 TEU. The FESCO fleet includes 21 transport vessels, which mainly carry out transportation on the company’s sea lines.

Source: https://portnews.ru/news/324038/

Construction of small-sized vessels made of aluminum will begin in Primorsky Territory by summer

January 18 2022

The company “Electrotechnical Corporation” (LLC “ElKor”) is implementing an investment project to organize the production of small-sized vessels made of aluminum and modular block hulls for boiler houses, substations and generators. This was reported by the press service of the Ministry for the Development of the Russian Far East.

The project worth 32 million rubles is being implemented in the Nadezhdinskaya ASEZ under an agreement with the Corporation for the Development of the Far East and the Arctic. The new enterprise will create 65 jobs.

The construction of boats is planned to begin by the summer of this year.

It is planned to produce more than a hundred aluminum ships per year. taking into account the types of electrical equipment, the ASEZ resident will produce about 500 items of products that are in demand in the Far East.

Source: https://portnews.ru/news/324059/

“Russian Railways” Plans to Invest 23.5 Billion Rubles in Infrastructure Development in Primorsky Territory in 2022-2025

January 17 2022 

The section “Amursky Bay – Nakhodka” alone, after the completion of work, will increase capacity from 62 to 72 pairs of trains a day. 

Russian Railways will continue to modernize the railway infrastructure in the Primorsky Territory. For 2022-2024, they plan to invest 23.5 billion rubles in the implementation of projects to increase the throughput and carrying capacity, said the head of the “Far Eastern Railway” (FER) Evgenii Veide at a working meeting with the Governor of the Primorsky Territory Oleg Kozhemyako.

Amursky Bay – Nakhodka, after the completion of work on lengthening the tracks at the stations Novonezhino, Krasnoarmeisky, Smolyaninovo, Nakhodka-Vostochnaya, will increase the throughput capacity from 62 to 72 pairs of trains.

“For railway personnel, the priority is the balanced development of transport infrastructure, the development of the market for transport and logistics services, increasing comfort and ensuring the safety of passengers. I am sure that our further cooperation will make a significant contribution to the development of the economy and the well-being of the inhabitants of the Primorsky Territory,” Evgeny Veide noted during the meeting.

At the meeting, it was noted that in the past year the FER achieved the maximum performance in the field of container transportation. This became possible, among other things, due to new principles of collaborating with seaport infrastructure. In particular, the railroad and seaports created a joint dispatch center “FORPOST”, which made it possible to significantly increase the efficiency of interaction with the Vladivostok Commercial Sea Port.

Source: https://portnews.ru/news/323967/

“Uralmashzavod” will supply “Zvezda” shipyard with protective tanks for the “Leader” icebreaker

January 12 2022

PJSC “Uralmashzavod”, part of the ”UZTM-Karteks” group is starting to manufacture metal-water protective tanks for the Project 10510 “Leader” nuclear icebreaker. 

According to the company information release of January 11, a contract for the manufacture of protective metal structures worth 5.76 billion rubles was signed at the end of December by Sergey Tseluiko, general director of ”Zvezda” shipyard, and Yan Center, “UZTM-Karteks” director – general. “Uralmashzavod” will deliver two protective tanks (starboard and port) with a total weight of about 1,400 tons to the shipyard in Bolshoi Kamen in October 2023.

The metal-water protective tank consists of layers of metal, highly purified water and special concrete. The device is used to attenuate the ionizing radiation of the core of a nuclear reactor, which ensures the safe operation of the ship’s crew. Metal structures will be made of corrosion-resistant and high-strength steel of various thicknesses.

“We are grateful to the leadership of “Rosneft” and “Zvezda” shipyard for entrusting us with the manufacture of one of the most important components for the world’s largest nuclear-powered icebreaker,” Jan Center commented on the event.

Metal cutting for this new nuclear-powered icebreaker, named “Rossiya” (Russia), began in July 2020. The ship has the following characteristics: length – 209 m, width – 47.7 m, ice penetration (maximum) – 4 m, displacement approx. 69 700 t, power plant capacity – 120 MW (on shafts), cruise speed – 22 knots (in clear water)

Source: https://sudostroenie.info/novosti/35266.html

The volume of cargo transportation via the Northern Sea Route in 2021 amounted to about 35 million tons

January 12 2022

“The final results on the volume of cargo transportation in the waters of the Northern Sea Route in 2021 have been summed up. It amounted to 34.85 million tons,” said Maxim Kulinko, Deputy Director of the Directorate of the Northern Sea Route of Rosatom State Corporation. This is almost 2 million tons more than in 2020, when 32.97 million tons were transported.

In 2016, the volume of cargo transportation via the NSR amounted to 7.47 million tons. For the first time it exceeded the figures achieved by the USSR, when 6.57 million tons were transported along the NSR in 1987. Since 2018, when the State Corporation Rosatom was appointed as the infrastructure operator of the NSR and the curator of the federal project “Development of the Northern Sea Route”, cargo traffic along the NSR has almost doubled.

The goal of the federal project “Development of the Northern Sea Route” is to create infrastructure that will increase cargo traffic to 80 million tons in 2024 and 110 million tons by 2030, as well as increase the total capacity of seaports to 110 and 115 million tons, respectively. It is included in the Comprehensive plan for the modernization and expansion of the main infrastructure for the period up to 2024, developed in accordance with Decree of the President of Russia dated May 7, 2018 No. 204 “On the national goals and strategic objectives of the development of the Russian Federation for the period up to 2024”.

Source: http://www.morvesti.ru/news/1679/93443/

JSC «Marine terminal “Coalstar» invests 60 billion rubles in the construction of the seaport “Aurora” in Primorye Region

The project ought to be implemented by 2030

January, 10, 2022

JSC “Marine Terminal Coalstar» developed a declaration of intentions to invest nearly 60 billion rubles in the construction of the seaport “Aurora” with the power 35 million tons. According to the press-office of Primorye Region government, the object is planned to be located in the vicinity of “Bezimyannaya” (Russian word for “Nameless”) cove near Dunai village.

“The marine terminal approximate production is 35 million tons per year. Planned period of project implementation is 2025 – 2030. Production process will require almost 450 new jobs” – there was told in the Ministry of Transport and Road Management of Primorye Region.

The project ought to be implemented by 2030. The construction of the seaport will create almost 450 new jobs. 

In addition to the construction of the port, the transport infrastructure will be reconstructed to service the new capacities. In particular, “Russian Railways” has already issued technical specifications for designing of port’s railway track junction to Smolyaninovo-Dunai section of the Far Eastern Railway.

Experts note that this will be a modern production which meets all necessary requirements of environmental and industrial safety.

The new port will give the positive impact to development of territories not only of Fokino town and Shkotovsky district, but also of the entire south of Primorye,” it was noted in Primorye Region government. 

Source: Port News