Gennady Davydov
Head of the Investments Department
Maritime Administration
Astrakhan port

        The main strategic task in developing the Astrakhan transportation junction is to become the center of the shortest and most profitable European-Asian line. Our purpose is to give the North-South transportation corridor its southern gates. This is why we are striving to restore our transportation and economic relations with Iran. We started with the processing of 186 thousand tons of cargo in 1994 and reached 1100 thousand tons within five years. Only in the first quarter of this year, 560 thousand tons of general cargo have already been processed.
        Research into potential cargo traffic shows that 20 to 40 million tons of cargo will move in the direction of the Caspian Sea countries, the Persian Gulf, and South-East Asia. It is no coincidence that the third All-European Transportation Conference in June 1997 suggested the development of the 9th intermodal passage with an extension to Astrakhan. Logically, this included a link to India through the Caspian branch and the Iranian ports. Traditionally, Indian cargo has been delivered to Russia either through the Suez Canal to Hamburg and Kotka, or to Novorossisk through Turkey. The main point is the change of this scheme.
        Two years ago the Astrakhan and Moscow forwarding companies "Volga-vaster", "Lakor" and "Vagna" were directly involved in solving this problem with the support of the Astrakhan regional administration and the Ministry of Transportation of the Russian Federation. They reached real results: containers with Indian cargo have been reloaded in the ports of Astrakhan.
         The creation of this new transportation line from India through Iran and Astrakhan is important for Russia. First, besides saving 30-40 % in expenses and delivery time, Russia could successfully compete with other shipping companies that presently monopolize the import-export cargo between Russia and India. Second, it is more profitable for the Southern regions of Russia, the Povolzhie and the Ural to import Indian products directly through the country's Southern gates and not through Finland and Moscow. Third, this new passage could absorb part of TRASEKA's cargo. Cargo owners could save 10-12 days by crossing TRASEKA.
         The representatives from India and Iran who visited Astrakhan confirmed their serious interest in the project. The main tasks are the processing of financial plans, the creation of a ship container line on the Caspian Sea oriented towards Indian cargo, a return traffic movement with Russian cargo, and the easing of customs paperwork for Indian cargo registration. It is also extremely important to set cargo delivery payments with domestic and not international tariffs.
         A trial consignment of 300-400 containers a month is a manageable volume for the 9 Astrakhan port complexes. However, if cargo traffic increases the existing port facilities will not be able to cope technically with the overload. The Olia seaport, which is presently under construction, must be incorporated to the project. The most up-to-date technology in port cargo loading as well as effective mechanization could be used in the docking and warehouse areas.
         399 million dollars are being invested in the construction of the Olia seaport, 100 km south of Astrakhan. This port will enable Russia to process 8 million tons of cargo annually. It will allow the country to protect not only its foreign trade interests, but also its political ones. This is especially relevant now that oil has been found in the Khvalynskoye deposit on the Caspian shelf. The new concept in port development, approved by the regional administration and Ministry of Transportation includes the construction of local structures: specialized trade complexes that will combine into a future common sea trading port. The successful ferryboat operation on the Olia-Enzeli (Iran) line encouraged Astrakhan's maritime administration to begin the construction of a second section for the Pionerny dock in the Olia port (130 linear meters in length). This dock will enable the processing of two ferryboats and relieve the first dock section for processing general cargo. The construction of a third dock segment dealing with containers is expected to begin soon.
         Of course, the Olia port has many problems. The main one is the absence of a railway. There are two conflicting tenets in this regard:
        - Prove there will be at least 3 million tons of cargo and we will find money for the construction of a 46 km railway.
        - Prove you have a railway and we will send 3-5-10 million tons of cheaper cargo to the Olia port with a shorter layover.
         It is now time to solve this problem, like many others that are related to the infrastructure and technical equipment. The port has good prospects, no doubt. It is close to the sea and the required investments are lower than for other projects. The personnel at the Astrakhan port is experienced and workers are qualified. Astrakhan has shipbuilding and industrial potential. Also the Pionerny dock at the Olia port is successful in processing cargo and the number of customers will grow. It is unreasonable to scatter our means when we have Astrakhan, such a powerful transportation junction on the Caspian Sea!