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“Managing port company” has discussed prospects of the russian coal industry development


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“Managing Port Company, LLC”, which is an executive body of the Russian largest specialized sea coal terminals – JSC “Vostochny Port” (Vrangel, Primorsky Region) and JSC “Rosterminalugol” (Ust-Luga, Leningradskaya Oblast) – was the general sponsor of the large transport seminar “Cargo Panorama” held in Moscow on March 30.

The transport seminar “Cargo panorama” was organized by business journal RZD-Partner on the occasion of the journal’s 20th Anniversary. More than 2000 participants, regulators, JSC “Russian Railways”, public associations, top managers of industrial and transport companies amongst them, discussed the factors, which influence the performance of all the subjects of cargo transportation, the need for railroad infrastructure development, and current trends in the sphere of the coal and other cargo carriage.

During the event, Irina Olkhovskaya- First Deputy Director General and Commercial Director of “Managing Port Company”- made reports on Russian coal industry results and prospects, low-sided railcar fleet status and prospects by 2025, and coal terminals development and railroad infrastructure synchronization.

At the plenary meeting, Irina Olkhovskaya pointed out the coal industry performance results for the year 2017. The Russian coal production volume exceeded 408 million tons, while the total supply was more than 356 million tons. The coal industry is obviously far ahead the planned development rates. The Russian Ministry of Energy was expecting to achieve these target figures as late as in 2020.

Generally, the last year was very positive. Export trends are evident in the industry: in 2017, the exports share in the total Russian coal supplies reached 52%. This is the first time the exports have exceeded domestic market supply. As compared to 2010, the Russian share in the world coal market increased by 11-14%. The industry survived the 2015 crisis well: the coal generation is growing and is expected to grow sustainably for quite a long period.

“All the forecasts of 2015-2016 have been confirmed: exports by railroad are growing, towards the Far East, in the first instance. The North-West is considered to be a rather difficult direction, however, Russian coal exports and supplies increased even there, as compared to 2016. This means that coal companies managed to maintain their competitiveness and market share and to send coal to the North-West to satisfy the markets, which have never been traditional for the industry. We can see that market borders are no longer coal field borders”, noted Irina Olkhovskaya.

Export is a determining factor for planning the investment programs concerning volumes, techniques and train fleet selection for the operators, and concerning routes and tracks development for the Russian Railways.

The share of the specialized coal handling terminals in the total export coal transshipment by the Far Eastern ports was 55%, where 30% was made up by JSC “Vostochny Port”. Forty-five percent of the total volume belongs either to the general-purpose terminals, which were not the coal handling facilities initially and changed their profile for coal transshipment, or to those which used to be separate facilities and consolidated into terminals.

The Russian Railways, shippers and consignees have gone to considerable length, however, the infrastructure still can be insufficient in view of the forecasted increase in container import from the Far East and the Silk Road operations. It is necessary to provide the rapid development of the infrastructure to satisfy potential and existing demand for transportation services.

The non-public railroad infrastructure should be developed in the South and Far East of Russia, as well as the special purpose port facilities with the hi-tech equipment that would allow for the improvement of transportation process and an increased wagon turnover rate.

“Relying on the recent two years performance, it is safe to say that the system of interaction between JSC “Russian Railways” and operators have changed considerably to become truly efficient. For instance, decisions were finally made to put up money for the Baikal-Amur Mainline and Trans-Siberian Railway development stages one and two, to involve a barrier section “Smolyaninovo – Nakhodka Vostochnaya” of the Far Eastern Railways and a by-pass route “Shkotovo-Smolyaninovo”. We are now monitoring the dynamics of Kuzbass coal deposits output to ensure that Baikal-Amur Mainline and the Trans-Siberian Railway will be provided with the cargoes,” emphasized Irina Olkhovskaya.

As a reminder, the partnership with JSC “Russian Railways” is essential for the growth of the cargo turnover and export potential of JSC “Vostochny Port”. The construction of the largest private port investment project in the Far East – Phase three of the “Vostochny Port” Coal Handling Terminal – is synchronized with the Russian Railways large-scale project for the Baikal-Amur Mainline and Trans-Siberian Railway development.

The port holding invested more than 32 billion rubles into the Phase Three construction, including 4.7 billion rubles allocated for the reconstruction and enlargement of empty wagon departure facility and construction of an arrival station for handling loaded wagons at the station “Nakhodka-Vostochnaya” of the Far Eastern Railways. Upon commissioning, the newly constructed railroad infrastructure of the empty wagon departure station will be transferred to the possession of JSC “Russian Railways”.

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