ILYA BASKIN Chairman of the Board of Directors, Ust-Luga Joint-Stock Company

My colleagues and I conceived of building a port in Ust-Luga as far back as 1980. But time passed and construction was at a virtual standstill. Funds were insufficient and no one helped us. This situation changed suddenly when Vadim Gustov became Governor of Leningrad Region. We finally began full-scale port- and technical construction. The first terminal will be a coal terminal. Rosugol is funding it.

The terminal will receive heavy-tonnage ships as early as 1999 and will ship Russian coal abroad. It has an annual capacity of 8 million tons of coal and will cost 160 million dollars. The Baltic states charge our exporters 48 million dollars for the transit of 8 million tons of coal from Russia. Clearer evidence could not be adduced for the need for the construction of a seaport! We have already signed coal-delivery contracts that cover the period up to 2005. The port’s total annual cargo capacity is over 35 million tons.

Once the coal terminal is completed, we will begin construction of a mineral fertiliser terminal. This is still just a project but the Ust-Luga company has already signed contracts with Russian producers and exporters for the annual transhipment of 5 million tons of mineral fertilisers via our port for the entire investment return period. Further plans include the construction of other terminals, including terminals for timber, ore, cement, bauxite, grain, containers and sugar. Train ferry and ferry crossings are also projected.

Interest in the future Luga seaport and the surrounding industrial area, is on the rise. Recently I signed an agreement with A. Pan, President of the Stavan-Transmet company, for the construction of a rolled-steel and metallurgical enterprise with the Grand concern. Also participating is the Nizhnetagil metallurgical complex.

The value of the new terminal has been appraised at 30 million dollars. Its projected annual capacity will be 2 million tons of rolled metal and scrap-metal. Ust-Luga’s initial annual capacity will be as high as 500,000 tons. When the second stage begins, the volume will be doubled. The plan is to complete the project in two-and-a-half to three years. It will cost 300 million dollars.

I believe that Russia’s economic revival depends on the realisation of such large projects as the one underway in Luga Bay. These projects directly affect the development of the country’s productive forces.

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