Construction of gas carriers for the Arctic LNG 2 project shifted to 2024

April 26 2023

The terms for the construction of gas carriers commissioned by Sovcomflot for the Arctic LNG 2 project have been shifted by 1 year, deliveries will begin in 2024. This was announced by the company’s CEO Igor Tonkovidov, RIA Novosti reports.

Initially, the construction of the lead tanker was expected to be completed in the first quarter of 2023, but in September 2022, the head of NOVATEK, Leonid Mikhelson, announced that this would happen at the end of 2023, when the first line of the Arctic LNG 2 plant would be launched. It was assumed that 6-7 tankers would be received by the end of 2024.

Currently, the Zvezda shipbuilding complex in Primorsky Krai is building 15 new generation gas carriers for the Arctic LNG 2 project. The lead vessel will be delivered to Sovcomflot and SMART LNG LLC, a joint venture between Sovcomflot and NOVATEK will receive the remaining 14 vessels.

Contracts for the construction of 15 Arctic LNG carriers of the Arc7 ice class, designed to transport cargo from the Arctic LNG 2 plant, were signed in December 2019-July 2020. The shipyard started cutting metal for the lead vessel of the series in November 2020.

The vessels of the new series are designed for year-round transportation of liquefied natural gas (LNG) in the waters of the Northern Sea Route (NSR), including its eastern sector. The tankers will have higher ice-breaking capacity and maneuverability compared to the first generation of Arctic LNG carriers. The length of the gas carriers of the new series will be 300 m, width – 48.8 m, cargo capacity – 172.6 thousand cubic meters. m. The propulsion system includes three rudder propellers with a total capacity of 45 MW.

Arctic LNG 2 (Yamal) is NOVATEK’s flagship project, consisting of three production lines. It provides for the construction of three technological lines for the production of LNG with a total capacity of 19.8 million tons per year and stable gas condensate up to 1.6 million tons per year. The project is being implemented in an innovative construction concept using gravity foundations (GBS). Previously, the implementation of the project faced significant delays. According to the company, the first production line will open no earlier than the end of 2023, that is, a year behind schedule.

Sovcomflot Group is the largest shipping company in Russia, a leader in the maritime transportation of oil, petroleum products and liquefied gas, as well as servicing offshore hydrocarbon production. The company specializes in operations in difficult climatic and ice conditions. The share of Sovcomflot in energy exports from Russian ports in 2022 was 14%.


TransContainer and Chinese logistics company agreed on joint delivery of goods to Russia and Belarus

April 17 2023

PJSC TransContainer (part of Delo Group) and Heilongjiang International Logistics Company Dragon-Link LLC (a subsidiary of Heilongjiang Transportation Investment Group, China) will jointly develop container transportation from China to Russia and Belarus. The document provides for cooperation in the field of organizing the delivery of goods through land border and the ports of the Far East and St. Petersburg using the TransContainer fleet, the press service of the Russian company reports.

Alexander Podylov, Vice President for Commercial Affairs of TransContainer, and Han Bing, General Director of Heilongjiang International Logistics Company Dragon-Link LLC, signed the corresponding agreement at the international exhibition TransRussia 2023.

PJSC TransContainer is the leader in container railway logistics in Eurasia. It operates more than 130 thousand containers with a capacity of about 200 thousand TEU and 40 thousand container platforms. The company owns 40 railway terminals in Russia and a 58.67% share in Sakhalin Shipping Company (SASCO) having a fleet of 13 vessels. The Delo group is the sole shareholder.


FESCO has put the third vessel into operation between Russia and Vietnam and increased the line capacity by 44%

April 12 2023

The FESCO Transportation Group has put the third vessel into operation on the regular FESCO Vietnam Direct Line (FVDL) between Russia and Vietnam, thereby increasing its capacity by 44% to 2.3 thousand TEU. Since April 11, FESCO Askold, a container ship with a capacity of 700 TEU, has joined the container ships A Houou with a capacity of 850 TEU and Bal Boan with a capacity of 750 TEU, the press service of the Group reports.

Now the vessels within this sea container service depart every eight days, while previously the –  two times per month.

The FVDL line operates along the route: Commercial Port of Vladivostok (part of FESCO) – Ho Chi Minh – Haiphong – Commercial Port of Vladivostok. Transit time en route from from the ports of Vietnam to Vladivostok is 9-12 days. The FVDL service started operating in May 2022. During this time, the group has transported more than 11.5 thousand TEU in both directions.

FESCO Transportation Group is one of the largest private transport and logistics companies in Russia with assets in the field of port, railway and integrated logistics business. The Group owns the Commercial Port of Vladivostok, railway operators Transgarant, Dalreftrans, and container platform operator Russkaya Troika. FESCO operates dry terminal complexes in Novosibirsk, Khabarovsk and Tomsk. The group operates more than 130 thousand TEU and more than 10 thousand container platforms. Its fleet includes 26 transport vessels, which mainly carry out transportation on their own sea lines.


Japan banned exports of steel, ship engines and radio equipment for navigation to Russia

March 31 2023

Japan has expanded the list of products banned for exports to Russia. The corresponding order of the Cabinet of Ministers was approved on March 31, 2023, according to the website of the Ministry of Economy, Trade and Industry of Japan.

The export ban covers steel, aluminum, and the products made of them; steam boilers, machines and their components, including ship engines; electric equipment including radio equipment for navigation and generators. The list also includes unmanned aerial vehicles (UAVs), optical, measuring and control equipment, their parts and components.

The ban comes into effect on 7 April 2023.

As PortNews reported earlier, in late February, Japan introduced individual restrictions, including assets freeze, in relation to 48 individuals, 73 organizations and separately Rosbank as part of the next sanctions package. 21 Russian organizations faced export restrictions. The list of organizations covered by an asset freeze included Vympel Shipyard, Baltiysky Zavod, Admiralteiskie Verfi, Rubin Central Design Bureau, Zvezdochka Ship Repair Center (the latter already covered by export restrictions).


Belousov Instructed to Design the Redirection of Exports to Asia along the Northern Sea Route

March 3 2023

The agencies were instructed to submit a report to the government by March 10 on the redirection of transportation of goods exported to the countries of the Asia-Pacific region (APR) to the Northern Sea Route in 2023-2024. This instruction is contained in the Minutes of the State Commission for the Arctic of February 10, presided by Deputy Prime Minister Yuri Trutnev. It was reported to Interfax by a source familiar with the text of the protocol prepared following the meeting of the State Commission.

The Ministry for the Development of the Far East and Arctic (MDFEA), together with “Rosatom”, MoT, MoF and the authorities of the Arkhangelsk and Murmansk regions, were instructed to design the plan, taking into account the transportation of goods from the seaports of Murmansk and Arkhangelsk and the necessary state support measures to ensure the flow of goods, the source said.

In addition, MDFEA and “Rosatom” together with principal shippers, were instructed to submit proposals by March 31 on additional measures to ensure the achievement of the established KPIs for NSR cargo traffic in 2024, including in terms of domestic, export-import and transit traffic.

MoF together with MDFEA, “Rosatom” and VEB.RF, by March 1, must develop and submit for approval to the government a financial and economic model for the development of the NSR, providing for the plans of the principal shippers and the construction of icebreakers necessary to achieve target indicators of cargo turnover along the NSR.

Earlier, Mr. Trutnev who oversees the Arctic, noted: “The implementation of the NSR development plan is a very big job and very capacious in terms of money. Periodically, financing and timing issues arise at different nodes. We agreed that MoF, MDFEA, “Rosatom” and VEB.DV will create a unified NSR financial and economic model. I do not rule out that we will have to find new solutions in terms of financing these activities so that there is no shortage of financial resources anywhere. Maybe these are loans – we need to assess,” he said. According to him, the NSR financial model will apply to all projects: both those implemented by the state and private ones.

The source specified that the Ministry of Industry and Trade (MIT) and “Rosatom”, with the participation of the United Shipbuilding Corporation (USC) and “Transmashholding” (TMH), must submit proposals by March 14 to create domestic high-power engines for Arctic-class ships. At the same time, MIT, MDFEA, the Ministry of Economic Development and MoF were instructed to define the creation of a specialized fund for the purpose of buying out Arctic-class ships for operation in the NSR waterways.

According to the source, the State Commission also discussed the readiness of the infrastructure of the Ob-Irtysh and Yenisei river basins to ensure the export transportation of coal, lumber, grain products. The relevant departments, “Russian Railways”, “Rosatom” and the governor of the Omsk region Alexander Burkov were instructed to submit proposals to the government on the volume of transportation of these goods via the NSR before July 1.

Also, “Rosatom”, MoT, MDFEA and “Russian Railways” should elaborate the issue of creating a cargo port in the village of Ust-Kara (Nenets Autonomous District) to serve the NSR with the construction of the Vorkuta – Ust-Kara railway line. A report on this issue must be submitted to the government by March 10.


Fesco Transport Group opens a subsidiary in Turkey

March 3 2023

The Fesco transport group has opened a subsidiary in Turkey to develop transport and logistics services in the region, the company’s press service reported.

“The Fesco Transport Group has opened a subsidiary in the Republic of Turkey to develop transport and logistics services in the region. The headquarters is located in Mersin. Fesco Turkey will provide a full range of transport and logistics services to customers in Turkey,” the report says.

The company’s activities will be aimed at organizing the delivery of project cargoes for enterprises under construction in Turkey and the countries of Central Asia in the energy, petrochemistry and gas chemistry sectors.

“The increased role of Turkey in trade with Russia allowed Fesco to significantly expand the range of its logistics services in the Black Sea and the Eastern Mediterranean last year. Seeing strong demand from both Turkish and Russian companies, we decided to open a subsidiary in the republic. This will strengthen the expansion of Fesco in the region,” said Andrey Severilov, Chairman of the Board of Directors of Fesco, whose words are quoted by the press service.


From Cyprus to Russia: Global Ports shareholders approved the change of the country of registration

March 2 2023

Global Ports Investments PLC announced the results of an extraordinary general meeting of its shareholders, which took place under the chairmanship of Artemis Tomaides.

The shareholders decided to approve the redomiciliation of the company from the Republic of Cyprus to the Russian Federation – Russky island of Primorsky Territory, as well as to appoint Albert Likholet to the post of general director in accordance with the legislation of the Russian Federation after changing the legal regime of the country of registration.

Global Ports Investments PLC is a leading operator of container terminals in the Russian market in terms of capacity and container cargo turnover.

Global Ports terminals are located in the Baltic and Far East, which are key regions of foreign trade cargo flows. Global Ports operates a network of five marine container terminals in Russia (Petrolesport, First Container Terminal, Ust-Luga Container Terminal and Moby Dik in the Baltic, and Vostochnaya Stevedoring Company in the Far East) and two in Finland (Multi-Link terminals in Helsinki and Kotka). Global Ports also owns the internal Yanino Logistic Park container terminal near St. Petersburg.


Australia and Japan to monitor illicit activities at sea

February 12 2023

From February to March, Australia will engage in monitoring and surveillance activities by aircraft against illicit maritime activities, including ship-to-ship transfers with the DPRK-flagged vessels.  For these purposes, the Kadena Air Base (US) in Japan will be used. 

According to the Foreign Ministry of Japan, it will be the eleventh time for such activities. The first monitoring of ships engaged in illicit operations, including bunkering, was conducted in 2018.

The Japan Coast Guard also conducts intelligence-gathering activities on ships suspected of violating UNSCRs, so Japan is working closely with other countries conducting such surveillance.


FPV resident company for the first time shipped a grain consignment exceeding 10, 000 tons via the port of Zarubino (Primorsky Territory)

February 7 2023  

“Legendagro Logistics’ company, the resident of the Free Port of Vladivostok (FPV), for the first time loaded a ship lot weighing more than 10 thousand tons of corn in the port of Zarubino. The cargo goes to China and will arrive at the port of Qingdao in Shandong province within a few days, the press service of the Ministry for the Development of the Far East and the Arctic reports.

A consignment of corn was loaded onto a ship with a deadweight of 15.2 thousand tons by ”Sea Port in Troitsa Bay LLC” stevedoring company personnel. The process went on for 5 days – 2 thousand tons of grain per day, because of extremely cold temperature.

“The departure of the first ship loaded with 10 thousand tons of grain is an important milestone in the history of the port of Zarubino. Usually we loaded grain consignments of 3 to 5 thousand tons on smaller ships in this port. An increase in shipment volume could facilitate transportation from the ports of Primorye in general and double the volume of grain trade in 2023. The geography of deliveries is wide, and the volumes of export and import cargo passing through the Primorsky Territory to various cities of Russia and other countries are increasing. We hope that our project will help to significantly improve logistics in the Far Eastern Federal District and strengthen the position of Primorsky Territory, which is the center of transport communications,” said Mr. Dmitry Savenkov, Director of “Legendagro Logistics LLC”.

This company loaded and exported 49 sea vessels, or more than 200 thousand tons of grain and oilseeds, to China and South Korea in 2022. Deliveries took place at the ports of Zarubino and Sukhodol as well as from “Vladprom” sea terminal. According to the project manager, shipments from the port of Zarubino will increase in 2023.

To start providing freight forwarding services, “Legendagro Logistics” purchased and rented tractors, semi-trailers, hopper cars and four mobile ship loaders. Warehouse facilities capable of simultaneous storage of more than 38 thousand tons of grain have been built. In Ussuriysk, A special support & maintenance facility for grain trucks was created in Ussuriysk. Within five years, “Legendagro Logistics LLC” will invest 247.5 million rubles in the region’s economy.

According to official data, residents of the free port of Vladivostok are implementing more than 2.1 thousand investment projects, 384 of them have been successfully launched. Business has invested almost 347 billion rubles in the economy of the Far East, more than 40 thousand new jobs were created.

“Legendagro Logistics LLC” is part of the “Legendagro” Russian-Chinese group of companies, which is engaged in crop production, deep processing of oilseeds, trading and logistics, construction of elevators, sea and railway terminals, and trading operations. The group of companies is implementing a number of investment projects in the status of FPV and TASED resident, which are aimed at increasing the volume of production and export of agricultural products.


Chukotka Port of Anyuisk Will Expand to Support the Largest Investment Project in the Region

January 30 2023  

Mr. Roman Kopin, Governor of the Chukotka Autonomous District discussed plans for the development of the river port in the village of Anyuisk with representatives of the “NTService” company, a resident of the Arctic zone of the Russian Federation.

The company is implementing a program to construct a port hub in the village of Anyuysk.  This hub will support the delivery of goods as part of the implementation of the largest investment project in the region – the “Baimsky GOK” (mining and processing facility) for the development of the Baimsky porphyry copper deposit in the Bilibinsky district of the Chukotka Autonomous District.

“The port has been expanded, reinforced with people and equipment,” Governor Roman Kopin said in his Telegram channel. According to the governor, “Chukotsnab” is preparing to renovate the tank farm in Anyuisk and to expand its capacity. This will make it possible to use the port of Anyuisk as a hub for the delivery of large volumes of fuel.


Remarks. The construction of the Baim Mining Facility in Chukotka began in 2020. The Baimskoye deposit is the world’s largest in terms of gold (64.3 million ounces (2 million kg) and copper (23 million tons) reserves. The mining and processing facility will be launched by 2026, and will reach its design capacity by 2028. By this time, facility should produce 250,000 tons of copper and 400,000 ounces of gold per year.