RUSSIAN PORTS TODAY AND TOMORROW

Baltic bridge: growth of reliability and attractiveness

Gennady Batalin
head of maritime administration
St. Petersburg seaport

        The 9th Baltic Bridge transport corridor caused a greater number of problems than the other 10 transport corridors determined within the framework of pan-European intermodal transport system. This took place in Crete (1994) and then in Brussels (1997) and Helsinki (June 1997). The main problem does not consist in the fact that this transit road refers to Russia and connects Baltic transport systems with the transport systems of the country's central territories and the Black Sea Region. As soon as the system was founded, our neighbouring countries, i.e. Latvia, Estonia, Lithuania, Finland and Sweden got the opportunity of maintaining the million-strong Russian export-import shipments in their ports. That's the main problem. This situation began to form when the USSR mostly developed the ports in Tallinn, Ventspils, Klaipeda and other Baltic cities. The switchover of the greater part of intermodal exchange to the Baltic seemed to help deliver Leningrad from the excessive development of its own seaport. This switchover also seemed to be able to perfect the allocation of labour throughout the Baltic.
        Unfortunately, those expectations turned out to be wrong. As soon as Baltic republics became independent, they reserved all port facilities and the most modern crafts of the Soviet marine fleet - refrigerated ships, oil ships, and other types of ships. As far as Russia was going through the crucial period of its history, the ebbing of influence on the Baltic Sea was not determined as a threat in due time. When Russia saw this threat, it turned out that it has to pay up to two billion of dollars annually for the maintenance of its transit cargo in foreign ports. At the same time, the country has no resources to develop its own ports and maintain them in good condition. The port of St. Petersburg, that is, the largest Baltic seaport, was put in a difficult situation, the more so that the West began a broad information campaign to discredit everything done in the port for the ships coming to the Neva banks.
        I am speaking about this to explain that the market is competitive but not ownerless. Our neighbouring countries to a great extent depend on the maintenance of Russian cargo. They do not want to lose one third or fourth of their budgets consisting of the money received from transit cargo maintenance. And Russia does not want to spend its money for this any more, the more so that despite the sequence of crises the country step by step straightens things out in the field of transportation. We get more and more used to count our funds and we want each rouble or dollar we have got to do good to the country's economy and working people.
        The last years showed that the seaport of St. Petersburg recovers its importance among the Baltic ports. No libel can convince ship and cargo owners that they can gain greater profits somewhere else. They see that transportation through St. Petersburg is much more comfortable and cheap than through other ports engaged in competition. It has been already estimated that timber is delivered through St. Petersburg to its place of destination by 1.5 days faster than through the ports of Finland, ferrous metals reach their destination by 2.6 days faster than through Baltic ports, and aluminium - by 2.2 days faster. This list can be continued. Any unbiased economist will easily calculate that his benefit from carriage and handling of cargo in St. Petersburg will make 15 - 50 dollars for one ton and 120 - 300 dollars - for one container. These results explain why St. Petersburg's cargo traffic gradually recovers. This is, of course, a result of great work done by the maritime administration, JSC "St. Petersburg seaport", stevedoring companies of the port, and many maritime customer services. The citizens of St. Petersburg and all Russian citizens understand the importance of events that take place in Russia's sea and coastal territories. As before, one job site in the port creates almost sixty well-paid job sites in the cities. So this struggle, I mean the development of domestic ports, makes sense.
        We can not get a victory over our proficient business rivals by means of persuasion only. Cargo traffic recovers when ship and cargo owners are convinced that better and more advantageous conditions are created for them in the port. What has been done in St. Petersburg to obtain this? I shall begin with the figures, for they are very meaning. Annual cargo turnover of the port in 1999 made 28.2 mln tons, that is, it exceeded the results of 1998 more than by one third. This was a record figure. International experts thought that our port would not exceed the mark of 20 mln tons during this century. Fortunately, they made a mistake. The port reached good results by all kinds of cargo, number of ships that visited it, ship turnover, time of ship maintenance, and volume of operations in winter shipping season. In 2000 the port will certainly exceed the volume of cargo turnover of 30 mln tons. It will also exceed the figure of 19.000 in ship turnover.
        What makes our port so attractive for customers? They can see that all year round we do a lot to continue the development of the port. This costs a lot, and during the last five years these means have been increased five times. Thanks to this, the length of moorages increased by 1963 metres and reached 10.5 km. Reconstruction of the main sea canal (56km length) is undertaken at present. The canal will be widened up to 160 metres (its original width is 100 metres) and deepened up to 13.5 metres (original depth 12 metres). By 2001 the declared depth will make 11.5 metres. This will open the water area for the ships of greater tonnage. Our customers expressed their great satisfaction by the appearance of an up-to-date container terminal, a terminal for the reshipment of fertilizers, new facilities for the oil-loading terminal, and special moorages for the reshipment of general cargo. The further plans on port development include the construction of facilities for the processing of 3.5mln tons of fertilizers on pier 107 by 2001, as well as processing of 2mln tons of fertilizers on pier 106 by 2002. We also plan to add 350.000 tons of general cargo transfer on pier 28, significantly increase the processing of oil cargo, and raise general output to 10mln tons. We successfully move towards the creation of a Great Port of St. Petersburg with annual total output of 60mln tons of cargo. This port area will include the existing port with all its zones, the north coast of the Gulf of Finland including the settlement of Gorskaya and the Kotlin Island, constructions protecting the city from floods, and the south coast of the Gulf including Lomonosov - Bronka section. The main thing is that our specialists turned from their recent words to real deeds. The specialists are supported by the Government and the local authorities. Many terminals are already in operation, and some other ones have found investors and begin working as well. At the same time, we work on the improvement of highway and railroad accesses to the future terminals. This is very important when your work is connected with high-class transport facilities.
        I can not but say some words about our port's role for passengers, because this is important for the whole city. At present, more and more passenger liners come to visit St. Petersburg - one of the finest cities of the world. We want as many ships as possible to come to our piers. This year we shall receive 213 tourist liners. The number of our guests will be more than 135 thousand people. And this is not a ceiling, though the figure mentioned will increase by 18 percent during the year. For some years already we can not receive the largest tourist liner "QUEEN ELISABETH": this 300-meter-long ship can not pass through the maritime canal. But we hope that next year we shall not have any reason for rejection. We shall be able to receive this largest liner and provide high-class service for it! This year we have already received "MILLENIUM" liner which is just a bit smaller.
        Before finishing my article I would like to mention just one more figure: during the first half of the year 2000 the port has increased its goods turnover by 23 percent. Does not this prove that we have taken the right tack?