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Main ways and perspectives of development of JSC "Murmansk Commercial Sea Port" - main stevedore company of the Murmansk port

V. V. Morozov, Director General of JSC «MCSP»

Joint Stock Company «Murmansk Commercial Sea Port» was founded in 1994 on the basis of state enterprise and is nowadays the biggest company in Murmansk; according to the volume of processed dry cargos in 2008 it took the first place in the North-West of Russia.

Nowadays the company maintains about 13 maritime terminals with the length of more than 2500 meters. Territorial it is divided into 3 cargo districts, two of which are universal both for reception of bulked cargos and general cargoes, and the third one is specialized for shipment of apatite concentrate (it comes from the biggest mining factories JSC "Apatit" and JSC "Kovdorsky GOK"), equipped with ship loader "Rokson", with the production capacity of about 1200 tons per hour, with discharging gallery to offload the carriages with apatite concentrate, and with the inside storage hall, containing 25 thousand tons and systems of conveyor.

The overloading technique let us solve any tasks on overloading of general (including bulky and heavy long cargoes) and loose cargoes.

The company possesses modern highly-productive overloading technique: 55 portable cranes, with cargo capacity up to 40 tons (4 cranes were bought for 2005-2008), about 180 units of autoloader with cargo capacity from 1,5 up to 32 tons, and also traction units, roll-trailers, bulldozers, tractors and other technique to fulfill secondary operations.

The major part of cargo turnover is export (95%), the share of import cargos is insignificant, and the cargo carriage along the line Murmansk Dudinka is about 550-600 thousand tons.

The main export cargo still remains steaming coal from Kuzbass, meant for Europe. Its share in the cargo turnover is about 82%, and among export - 85%. The ports of destination: Netherlands (Amsterdam - Rotterdam), Great Britain, Germany, Spain. Responding to wishes of cargo owners - coal exporters and taking into consideration the mature market, the port deals with coal purification, using special facilities.

Export - apatite concentrate (places of destination Lithuania, Finland, Norway, Japan, Israel, Netherlands, etc.), colored metals to the ports of Agricultural Publishers Association, scrap metal, flow rolls and metal ore concentrate, having been sent from JSC "Kovdorsky GOK" to China since 2008. 
Import - foundry paste, equipment, since 2008 there has been conducted the shipment of manganese ore from Republic of South Africa for metallurgic industry in Russia.

The cargos of the Arctic line Murmansk - Dudinka are transferred for JSC "GMK "Norilsky Nickel" and other consignors (metals, equipment, containers to Dudinka and nickel matte, non ferrous metals, containers from Dudinka).

In the recent years the port experiences the second birth. As a result of systematically implemented since 2004 program of modernization and development, took place the significant leap of cargo turnover from the maximum achieved 9 million tons up to 12 million tons first, and then to 14,55 million tons. During the last four years the cargo turnover has not come down lower than 14 million tons.

Expanding capacities became possible due to the development of the technical basis. Since 2004 the port fulfilled modernizations of 22 portable cranes and procured 4 new cranes, within the frameworks of annual program.

The Board of JSC "MCSP" in 2009 adopted the program of portable cranes renewal until 2015. And within its frameworks was signed the contract for procurement of 4 more portable cranes with supply in 2010.

In accordance with the acting Rent Agreement the capital repair works and modernization of maritime terminals are being done at the moment. In 2008 was launched the program on repairing front cutoff wall, the final aim of which is significantly to prolong the terms of exploitation of the port maritime terminals. For 30-40 years of operation the metal gage of sheeting planks has significantly reduced due to corrosion and physical deprecation. In 2008-2009, using sealed chambers - caissons for the first time were done the repair works at the following districts of maritime terminals №№ 4, 5, 7, 8, 15, 18, where we had perforation corrosion of cleat. Also was conducted unique, according to its technology repair at the deep part of maritime terminal № 9.

Implemented works on dredging and modernization of maritime terminals let us work with the vessels of "Panamaks" type at four terminals of the port, and at the terminal № 14 it is possible to work with "Cape Size" types vessels, with the cargo carrying capacity up to 150 000 tons.

To achieve more efficient use of the existing production capacities were reconstructed and constructed railway and crane runaways; were repaired covered storehouses and open storage areas, as well as engineering networks of port.

Targeted work on modernization, procurement of overloading equipment, increase of railway front, repair of terminal facilities, broadening of open storage areas, optimization of technological schemes of cargos processing have brought expected fruits.

In the result, the daily carriage turnover achieved 1,5-1,6 thousand units, coal unloading - more than 600 carriages, and the front of unloading - 250 units. Daily we work with about 550 vessels and 220 thousand carriages. Track miles is 15,3 km, having lengthened since 2002 for 4,8 km. The capacity of open storage area for loose cargoes is 700 thousand tons. 

In the periods of formation and the world financial crises our joint stock company preserved production and social stability.

Development strategy until 2020

The idea of further development of Murmansk port and its transformation to a modern powerful deep water harbor port appeared long time ago. Numerous meetings with the foreign specialists, expressing open interest to solve this issue, have become additional validation of the selected course.

So, in 2004 at the meeting of the delegation of the USA Ministry of Commerce with the Minister of transport, the American side expressed interest towards using the route on the territory of Russia and the Northern Sea Route to transport containers from China and Korea to the Eastern Coast of the USA. In March 2006 Murmansk port was visited by a big delegation, headed by the Consul of PRC, during this visit the Chinese not only seemed to be interested in the project, but they even raised the question about the opportunity to evolve the site to construct new port.

In November 2008 in Paris took place the working meeting where participated the Deputy CEO of the International Union of Railways (UIC) Mr. Vipin K. Sharma, the Project Head of international corridors UIC Mr. Stig Nerdal, representatives of JSC "Russian Railways", JSC "Murmansk Commercial Sea Port", railways of Finland, Germany, China, India, during this meeting were discussed perspectives of including Murmansk port to the scheme of international transport corridors. In March this year the port was visited by the delegation from Korea.

Foreign colleagues conduct researches on the use of Northern Sea Route in the scheme of cargo delivery.

Policy of further development of the Arctic and Northern Sea Route, formed on governmental level and aimed at protecting geopolitical interests of Russia, gives new prospects for development of Murmansk, as a basic port along the Northern Sea Route. Exploration of the Arctic shelf also needs new schemes of cargo delivery to the final consumers.

The Ministry of Transport also considers the issue of development of inner waterways, as their use while transporting cargoes seem to be more economizing and ecologically secure, comparing with car transport or railway transport.

Development of inner waterways will provide cargoes delivery from difficult grounds to big sea ports, to consolidate shipments and vice versa. Further development of Belomorsky and Baltic system as well as other northern routes will allow including Murmansk Transport Hub to the scheme of cargo delivery.

The Ministry of Transport of Russia evaluates the Murmansk Transport Hub as one of prior projects in the development strategy of transport of the Russian Federation, as the object of concentration of common efforts of the state and business. To witness it, by the Government Executive Order from 08.12.2008 N 1821-p was decided to implement complex investment project "Development of Murmansk Transport Hub" (MTH) and were devoted considerable budget funds. The project of MTH development is the part of the Federal Target program "Development of transport system of Russia (2010-2015)".

Works on the development strategy of Murmansk Transport Hub was done together with the port specialist, that's why the objects of reconstruction and construction on the territory of Murmansk port are included into the approved program.

Development of Arctic oil and gas projects (Shtokman, Varandey, other fields), realization of projects, developing transport corridors will initiate the growth of transportations via Murmansk, mostly economic cargos (equipment, pipes, containers, etc.)

According to the experts' evaluation in the coming 5 years the use of mineral fertilizers in the world will increase for almost 14%.

Along with Shtokman development and gasification of the Kola Peninsula it will become possible to implement projects on construction of the Fertilizer Manufacturing Plant, taking into consideration the available local raw material base. Then we shall need the relevant capacities for export not only apatite concentrate, but also production mineral fertilizers.

According to the assessment of the specialists, annual volume of transport containers in the direction Far East - Northern America achieves 10 million tons TEU. Until 2008 there was annual sustainable growth for about 6%, both in the direct and backward direction. Taking into consideration the fact, that the route along the territory of Russia is shorter than the traditional one, and the pass-through function of the Panama Canal is limited, the new route of container transportation via Murmansk has certain advantages. Moreover, the interest in this container route expressed both American and Chinese sides. At the same time, according to the assessments of the western specialists, the growth of oil and gas projects will inevitably result in the increase of container import via Murmansk port.

In the next decades Russia will remain the biggest coal exporter to the European markets. The additional confirmation to that is that "MCSP" possesses long-term agreements for coal shipment with the biggest coal traders (SIBENKO, «Mechel», «Coeclerici Coal and Fuels SpA»).

In accordance with the results of the conducted analytical researches and the necessity to continue further development together with the coming development of Murmansk Transport Hub was elaborated the program of prospect development of JSC "MCSP".

The next stage of development stipulates qualitatively new level, when it is considered to be relevant to construct modern, high-technology, meeting ecological demands transshipping complexes. At the same time the company will have the universal crane equipment; it will allow doing necessary diversification and the reception of general cargos in the shortest periods.

According to the accepted program, the following directions for further development are considered to the prior:

- reconstruction of apatite complex, together with construction of new storage for simultaneous reloading of several types of mineral fertilizers;
- creation of container terminal;
- reconstruction of coal terminal.

Implementation of investment program for modernization and capital repair works of apatite complex will allow:

- increasing of pass-through complex up to 5,0 million tons; 
- receiving vessels with cargo carrying capacity up to 50 thousand tons;
- shortening terms of working with ships;
- increasing storage capacity up to 50 thousand tons;
- providing continuous production activity on receiving and shipment of cargoes, simultaneously processing apatite concentrate and mineral fertilizers.

Step-by-step implementation of program will let us receive existing cargo volumes simultaneously with continuous functioning of production activity of the complex. JSC «Murmansk Commercial Sea Port», being the management company of CJSC «Agrosphera», can use the capacities and maritime terminal of CJSC «Agrosphera» during the project implementation to provide continuous production activity.

More than that, if necessary it is possible to enhance capacities of the complex via reconstruction of transmitting galleries, having existed before, and uniting them to one common scheme with the capacities of CJSC «Agrosphera».

Ministry of Transport of the Russian Federation and foreign international organizations pay attention to the issue of creating container terminal on the basis of the port of Murmansk. The overflow of ports, different delays and problems of providing necessary transport capacity, as well as the need in container import for development of fields define the demand to construct container terminals. It will promote creation of competitive transport scheme with the use of super ships, with the capacity of 5500 - 6000 ТЕU to transport containers from Central Asia, northern regions of Europe, Russia to the Northern American eastern coast.

Together with the development of container transportations on the eastern coast it is perceived to develop logistic centre on rendering multi-modal services to the cargo owners. To achieve these goals it is necessary to construct logistics and distributional complex (storehouses to form, complete parcels of cargo and other services according to requests of cargo owners) to organize one common information centre of the Murmansk transport hub, among the functions of the MTH will be exploitation of communication network, information and communication maintenance of document flow and information exchange.

Reconstruction of coal terminal will promote enhancement of operational efficiency of reloading complex on the territory of cargo district № 2 due to the use of modern technologies of coal reloading.

Large-scale formation of Murmansk transport hub supposes harmonic development of all kinds of transport, including pipelines, creation of telecommunication infrastructure.

Construction of railway infrastructure not only in the Murmansk transport hub, but also on its approach railways within Oktjabrskaya and North Railway is especially significant for implementation of the project. Only within the frameworks of the project it is planned to have the following development of railway transport:

- construction of new railway «Vyhodnoy - Lavna» - 28 km;
- construction of new railway stations and parks 10 items;
- reconstruction of tracks at 4 stations.

Car and aviation transport will also be developed during implementation of the project. The following parameters are input

- development of street and road network in Murmansk;
- reconstruction of motorway "Kola";
- reconstruction of airport "Murmansk".

Also will be solved additional issues:

- the checkpoints will be provided with modern inspection equipment;
- external energy saving of the transport hub (construction of new electrical substations and reconstruction of the functioning substations);
- reduce of the pressure on the ecology;
- creation of new working places with high qualified personnel, and many other things.

Taking into consideration availability of transport infrastructure; availability of land lots, electric and water supplies, as well as hydro technical constructions (and their modernization needs much less demands than construction of new ones); opportunity to use not operating at the moment objects (terminals of the first district of fishing port, FSUE "Atomflot"); available staff resources; formed reality of budget deficit; difficulties in crediting and so on, it seems to be most logical to initiate primary development on the existing territory of the Murmansk Commercial Sea Port. It demands less inputs and will additionally promote development of transport support, energy and water supplies, road facilities of the city of Murmansk and the railway station Murmansk.

Besides, as it had been noted before, the planned reconstruction of coal and apatite terminals will be done without removing them from the operation, with gradual inclusion of new objects. In the same way the railway station of Murmansk will be developed. It will let us preserve existing cargo flows, including the Arctic line, to guarantee fulfillment of treaty obligations, to earn and put in financial means, necessary for reconstruction, to pay taxes to the budgets of all levels, to preserve staff potential and social stability.

In future, accumulating necessary means, it will also become possible to do construction works also on the western, not exploited coast of the Bay.

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