Russia to export up to 40 mln tonnes of agricultural products by sea until the end of the year – sea terminal Taman

Source

APK-Inform

1962

Low developed railway infrastructure and unsuitable truck approaches to terminals are the key factor limiting growth of transshipment capacities and export volumes. Sergey Bukreev, CEO of Sea terminal Taman told us about current situation in this segment.

 

- Russia significantly increased agricultural production over the last years that promoted export growth.

Transshipment volumes directly depend on production. In 2014, Russia produced high crops volumes that promoted transshipment increase by 49% to 35.5 mln tonnes. In 2015, this index reached 35.9 mln tonnes with bulk products formed the base of total volumes (95%). On the one hand, the increase was just 1.2%, on the other hand, it looks good taking to account general GDP decline by 3.7%. Flexibility of traders and stevedoring companies as well as rather high USD rate helped to maintained high transshipment volumes.

 

- What are the current transshipment volumes of agricultural products in Russia?

Port transshipment capacities for agricultural products (bulk and liquid) totaled almost 45 mln tonnes in 2015. Over the last two years capacities doubled and the upward trend is maintained.

Currently surplus of grains and oilseeds capacities exceeds 9 mln tonnes. Capacities are underloaded resulting in losses for market operators. In particular, it is referred to ports with low developed infrastructure that do not correspond to international requirements. Loading of the largest players with year around navigation is much higher. At the same time, all market participants understand that further industry development and new capacities construction should be based on system approach and open dialogue between government, unions, representatives of transport industry and agribusiness.

 

- Which factors are forming freight rates?

There are a wide range of factors such as port location, navigation conditions, presence of own storage capacities, towing rates.

Modern equipment, suitable approach and parking provide premium price.

 

- What products are preferable for transshipment? Are you going to widen product range?

Vegetable oil, meal, beet molasses and beet pulp are our key products. Moreover, we are actively studding opportunity to transship alternative agricultural products with export potential.

 

- Tell us about export geography.

Mainly we transship sunflower oil to more than 20 countries and keep on develop export destinations among others on account of our partners in South-East Asia. Despite economic environment, we have large potential for development.

 

- Which measures does the government implement to lower transshipment rate to increase margin for producers?

There are no such state programs. As to exports, high logistics rates often depend on low turnover capacity of Russian transport infrastructure and absence of approach roads. These questions are strategic and could not be solved without state interference, particularly when we are talking about railway approaches and port railway station. Solution of these problems can lower all logistic expenses can and increase producer margin.

 

- In conclusion tell us about your forecast for near-term.

We expect further growth of agricultural export and transshipment volumes can reach 40 mln tonnes this year.

 

Reference

Sea terminal Taman is a leading terminal for edible liquid cargoes transshipment in Russia. Special port complex is located in seaport Taman on Black Sea. It has three berths allowing handling of several vessels simultaneously, modern port infrastructure allows to accept heavy-tonnage vessel up to 46 thsd tonnes of deadweight.

Interviewed by Anna Skotar, APK-Inform Agency

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