Magazines — RZD-Partner International — 4 (8) December-February 2006/2007
4 (8) December-February 2006/2007
RUSSIAN SHIPPING COMPANIES: FROM AMBITIONS TO CONSOLIDATION: The year is to become not the most favourable in part of scaled projects realization and fleet replenishment for Russian vessel owners, especially comparing to the previous two years. However, the companies continued to carry out programmes of development, which shows that there is a certain stability in the sector.MOST STABLE CARGO FLOW: During the five last years transportation of crude oil grew threefold, and of oil products – almost by 25%. The domestic freight transportation increased by 16%, and the export doubled. However, nowadays, the dynamics of oil bulk loading growth reduced. This year, the volume of the cargo transportation is expected to increase by 4% year-on-year.
RUSSIA IS READY TO SPEED UP: National rolling stock for high-speed transportation has worn out or has not been developed yet. Nevertheless, experts believe in the near future Russia will be able to develop such rolling stock with the use of foreign technologies on the national industrial basis.
Contents
Editorial
EDITORIAL
Oil prices fluctuations always have a serious impact on Russian economy in general and consequently on transportation market. A recent sharp decrease did not cause panic but experts predict serious difficulties as prices on the market are lower than those on which the government estimated when made the budget. However, the situation could influence positively the oil industry of Russia. Despite oil prices fall export dues for crude oil were increased. Thus, oil producers preferred to focus efforts on the domestic market. The country’s economy will only win if products but not raw materials make the basis of export flow, this situation occurs in many sectors of industry: oil, metals and timber. To increase export volume Russia needs transport infrastructure development as existing facilities can not cope with a boost in deliveries. Special project «Oil and gas transportation» covers issues the rail and pipeline oil delivery market prospects and infrastructure development (see pp.34-44).Russian Shipping Companies: from Ambitions to Consolidation
CHALLENGES OF THE RF SHIPPING
Disbalance between the rates of growth of fleet tonnage and demand for tankers (7.5% and 3.2% respectively) that takes place on the world oil bulk transportation market has led to a significant reduction of charter rates in 2006. As a result, the year is to become not the most favourable in part of scaled projects realization and fleet replenishment for Russian vessel owners, especially comparing to the previous two years. However, the companies continued to carry out programmes of development, which shows that there is a certain stability in the sector.Russian Rivers to Be Opened: Welcome and Watch Out
CHALLENGES OF THE RF SHIPPING
In the near future, because of joining the World Trade Organization (the WTO), Russia is to open its inner waterways for vessels flying the flags of other states. According to some evaluations, about RUR 34 bln is required to prepare the river system for that. What is the current state of Russian rivers and channels? What measures are taken to improve the situation?Baltic Ports Win Battlefor Cargo Flows
CHALLENGES OF THE RF SHIPPING
It is no secret that the basis of transit cargo flow handled in ports of the Baltic countries is made up of cargoes from Russia. Despite Russian Railways tariff policy and other objectively market-driven reasons, which can be considered factors restricting export growth for certain cargo nomenclatures, Baltic ports managed to keep their positions and even achieve some growth of cargo handling volumes.
Model of Transport Services Market.
REFORM
The issue of further reform in the Russian railway sector is one of the most crucial nowadays. It is discussed not only by the Ministries and Departments in charge, but also by the RF Government, and the discussions have become public. Recently, the Board of Directors of OAO RZD approved the idea of separation off and launch of the company’s subsidiary – OAO Cargo Company. However, now its future is unclear. The Federal Agency of Railways (Roszheldor) has developed another concept, excluding the principle of providing transportation services by OAO RZD. According to the concept, the company must become just an infrastructure one.Investment as Economic Basis for Sector Development
FINANCES
In recent years Russia’s economic situation has stabilized and certain growth can be registered. In order to improve the economic conjuncture further on and boost production volumes, the transport sector has to solve serious development problems, including both core activities and closely connected transport machine engineering. What financial instruments can Russian banks offer to transport enterprises, and first of all, to the railway ones?Eesti Raudtee Returns to the State
CIS AND BALTIC STATES
Estonia and BRS signed a document on – Eesti Raudtee de-privatization (Estonian Railway, ER), having reached an agreement on de-privatization of the company’s control stock. The state will purchase 66% of ER shares worth USD 180.7 mln from BRS. The deal will come in force after approval by the Government and its ratification by the Parliament. Thus, Estonia again will become the owner of ER 100% of shares. The decision on breaking the agreement on railway privatization and restitution of shares sold to private companies was made by Estonian Government in September 2006.
Most Stable Cargo Flow
SPECIAL PROJECT: GAS AND OIL TRANSPORTATION
During the last five years, freight transportation by railway increased by 40% in Russia. Meanwhile, transportation of crude oil grew threefold, and of oil products – almost by 25%. The domestic freight transportation increased by 16%, and the export doubled. However, nowadays, the dynamics of oil bulk loading growth reduced. This year, the volume of the cargo transportation is expected to increase by 4% year-on-year.
To provide Oil Transportation
SPECIAL PROJECT: GAS AND OIL TRANSPORTATION
In the recent years, due to the favourable situation on the international and Russian domestic markets, a stable tendency for growth of cargoes transportation by rail has been observed. In particular, transportation of crude oil increased threefold. In order to cope with increase cargo flow rail infrastructure should be reconstructed and developed.Nets of Îil Arteries
SPECIAL PROJECT: GAS AND OIL TRANSPORTATION
Nowadays the system of hydrocarbon and products transportation in Russia includes subsystems of shipping and pipe- and railway transport, as well as specialized port terminals.
From West to East, from East to West
CARGO AND ROUTES
During five years, the production of foodstuffs has shown a stable growth in the Russian Federation, which caused the increase of fruit and vegetables, meat and fish import. 80% of imported perishable freight is transported via the North-Western ports of Russia.Particularly Precious Cargo
CARGO AND ROUTES
High rates of automobile industry growth resulted in the situation when Russian logistic market is unable to cope with all the tasks posed by this sector. To solve this problem is only possible by boosting volumes of cars and components transported by railways. However, car manufacturers re-distribute their cargo flows rather reluctantly.A Real-Life Test for Transsib
INTERNATIONAL TRANSPORT CORRIDORS/TRANSSIB
In October 2006, an assembly of The International coordinating Council on Transsiberian Transportation (CCTT) took place in Vilnius, Lithuania. By then transit containers had fallen in comparison to the previous year by about 90%. The council members decided to ask OAO RZD to reduce prices for transit transportation and improve their quality of service. In its turn, RZD refuses to work on unprofitable terms and intends to find freight owners ready to pay more for a fast and punctual transportation.What Does Development Require?
OAO RZD
Nowadays Russian Railways show stable results in terms of amount of services provided to customers and sector development prospects in general. However, with completing the second stage of transport sector restructuring experts and analysts start asking more and more questions. How real are the results declared by the company?3PL Industry in Russia Needs Big Players and Loyal Customers
LOGISTICS
Russia follows the global fashion in logistics: the worldwide trend towards outsourcing more and more logistics services doesn’t get around one of the fastest growing transport markets. Behind this growth lies a traditional intention of business to concentrate on their core activities. However, a major breakthrough is hardly expected in the coming few years. Russian companies are not ready to provide a wide range of services, while foreigners with advanced technologies haven’t come yet and demand for 3PL is weak.At the Top of Investment Hit-Parade
LOGISTICS
Russia’s logistics market is experiencing a boom. A sharp growth in the number of new projects has become a common place this year. The majority of these projects relates to warehouse logistics and distribution facilities. Industry experts have apprehensions that the growth in logistics will be limited by restrictions in infrastructure and insufficient integration of different transport modes.New Player on River Transportation Market
DOING BUSINESS IN RUSSIA
There is a new player on the Russian market of river transportation. Pietro Barbaro Group, the leading Italian oil products carrier, has announced that it is ready to invest into the construction of a new tanker fleet on the territory of the Russian Federation and to act as a company-operator.Russia is Ready to Speed up
PRODUCTION AND SERVICES / Rolling Stock
National rolling stock for high-speed transportation has worn out or has not been developed yet. Nevertheless, experts believe in the near future Russia will be able to develop such rolling stock with the use of foreign technologies on the national industrial basis.Choose Safety and Quality
PRODUCTION AND SERVICES / Rolling Stock
Because of a number of factors (deterioration of railway tracks during intensive exploitation, difficult configuration, lack of maintenance works etc.), there are damages and derailments on the main, receiving and dispatching tracks and railway accesses, which cause significant financial losses.
RF Transport Sector in January–September 2006
STATISTICS AND DOCUMENTS
In January-September 2006, the transport throughput amounted to 3,549.2 billion t/km, including 1,434.7 billion t/km of the railway transport throughput, 149.1 billion t/km of the road haulers throughput, 41.7 billion of the sea transport throughput, 57.9 billion t/km of river transport throughput, 2.1 billion t/km of air transport throughput, 1,863.7 billion t/km of the pipeline network throughput.