Emerging Maritime Nations II: RUSSIA October 2008 Dynamar B.V. Noorderkade 1G 1823 CJ Alkmaar Neitherlands Tel: +31 72 514 74 00 Fax: +31 72 515 13 97 E-mail: marketing@dynamar.com Website: www.dynamar.com
Emerging Maritime Nations II: RUSSIA Dynamar B.V. Noorderkade 2c 1823 CJ ALKMAAR Phone: +31 72 514 74 00 Fax: +31 72 515 13 97 info@dynamar.com www.dynamar.com Lead Analyst: Hasan Ozturk Analyst: Darron Wadey, MILT Managing Editor: Dirk Visser October 2008 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without explicit permission of the publisher While the information contained in this report is presented in good faith, it frequently involves estimates where no current published data is available. This information, believed to be accurate, can therefore not be guaranteed. The publishers cannot accept liability of any errors or omission.
Table of Contents THE DYNAMAR EMERGING MARITIME NATIONS PUBLICATIONS SERIES... 8 A. RUSSIA COUNTRY PROFILE... 9 A.1 Executive Summary... 9 A.2 Geography...10 Main ports covered in this publication...10 A.3 Recent History...12 A.4 Economy...13 Natural Resources...14 A.5 Trade...15 WTO Membership...15 B. CONTAINER TRANSPORTATION...17 Russian Baltic...17 Non Russian-Baltic: Finland...17 Non-Russian Baltic: (Eastern) Baltic States...18 North European Hubs...18 B.1 Baltic Russia...19 Container carriers serving St Petersburg...19 Terminals in St Petersburg...20 First Container Terminal...21 PetrolesPort...22 Moby Dick...23 OMG Onega RoRo Terminal...25 JSC Sea Port of St Petersburg (SPS)...25 Russmarine...26 Terminal Developments...26 Baltic Container Terminal in Ust-Luga...26 Lomonosov...27 Vyborg...27 Kaliningrad...28 Container carriers serving Kaliningrad...29 Terminals in Kaliningrad...29 B.2 Black Sea Russia...31 Novorossiysk...32 NUTEP...32 Novorossiysk Commercial Sea Port (NCSP)...34 Novoroslesexport (NLE)...34 Non-Russian Black Sea Ports...36 Constanta...36 Odessa...38 Ilyichevsk...39 B.3 Far East Russia...40 Vostochny...40 Container carriers serving Vostochny...41 Developments...42 Vladivostok...42 Full Container Shipping Services to Vladivostok...43 Vladivostok Container Terminal (VCT)...43 Vladivostok Sea Fishing Port (VSFP)...44 Nakhodka...44 Developments...45 Other Far East Russia Ports...46 Korsakov and Kholmsk...46 Vanino...46 Petropavlovsk (Khamchatskiy)...47 Magadan...47 Anadyr...47 B.4 Container Shipping Services connecting Russia...48 Introduction...48
North Europe - Baltic services (those calling at Russian ports only)...49 St Petersburg services...49 Kaliningrad Services...52 Intra-Baltic...53 Mediterranean - Black Sea services (those calling at Russian ports only)...53 Intra-Black Sea services (those calling at Russian ports only)...54 Far East - Black Sea services (those calling at Russian ports only)...54 Intra-Far East services (those calling at Russian ports only)...55 Far East Russia domestic services...56 Other than full container services connecting Russia...57 Arctic Ocean...57 Baltic...57 Black Sea...58 Far East...58 Deepsea...59 C. FULL CONTAINER SERVICES - CAPACITY ANALYSES...61 Baltic-related container services...61 Capacity split for St Petersburg and Kaliningrad...61 Black Sea- related container services...61 Far East-related container services...62 Top 10 carriers all three trade routes...62 FESCo capacity split for international trades and domestic routes...62 Total capacity of container operations serving Russia split by area...63 Notes to capacity rankings...63 D. INLAND BOX TRAFFIC IN RUSSIA...64 D.1 Customs...64 D.2 Trucking...65 D.3 Rail...65 JSC Russian Railways...65 Coordinating Council on Transsiberian Transportation (CCTT)...66 TSR notes...67 TSR statistics of transit containers...68 TSR overall statistics...68 New TSR initiatives...69 TSR projects...69 D.4 Operators on the TSR...70 DVTG/Far Eastern Transport Group...70 Eurosib Group...71 Ruscon...71 Russian Troika...71 TransContainer...72 Trans Siberian Express Service (TSES)...74 CRUDE OIL AND NATURAL GAS...76 D.5 Recent History Control of the means of production...76 The Yeltsin Revolution...76 The Putin Counter-revolution...76 Yukos and Gazprom...76 Foreign affairs...77 E. CRUDE OIL...79 E.1 Production...79 E.2 Russian Exports...82 Domestic Demand and Export Markets...82 Transportation of Crude Oil exports...83 F. NATURAL GAS...84 F.1 Power Geopolitics...84 F.2 Natural Gas Production...84 F.3 Natural Gas Export Markets...86 F.4 Petroleum Products...88 F.5 Western Siberia...89
Natural Gas...90 Logistics...91 Crude Oil...94 Logistics...95 F.6 Barents Sea (Pechora Sea)...97 Natural Gas...97 Crude Oil...97 Logistics...98 F.7 Timan-Pechora...98 Natural Gas...99 Crude Oil...99 Logistics...100 F.8 Volga-Ural...100 Logistics...101 F.9 Pre-Caspian and Northern Caucasus...102 Reserves in the Caspian Sea Region...102 F.10 Eastern Siberia...105 Sakhalin...106 Sakhalin I...107 Sakhalin II...108 Sakhalin III-VI...109 G. PORTS HANDLING OIL EXPORTS...111 G.1 Baltic Sea...111 Primorsk...111 Vysotsk...112 Kaliningrad...113 St Petersburg...113 Non-Russian Baltic ports...114 Tallinn...114 Miiduranna...115 Sillamae...115 Finnish and Other Baltic ports...115 G.2 Black Sea...115 Novorossiysk...115 Sheskharis Oil Terminal (SOT)...116 Importpischeprom Terminal (also known as the IPP Terminal)...116 CPC-Offshore Terminal...117 Tuapse...117 Kavkaz...117 Other ports handling Russian oil cargo...118 Odessa...118 Yuzhny...118 Batumi (Georgia)...119 G.3 Northwest Russia...119 Murmansk...119 Offshore Terminals...119 Onshore Terminal of Murmansk...120 Port Vitino...120 H. DRY BULK AND GENERAL CARGOES INTRODUCTION...122 H.1 Baltic Sea...122 St Petersburg...122 Kaliningrad...123 Ust-Luga...123 H.2 Northwest Russia...124 Murmansk...124 Archangelsk...125 H.3 Black Sea...125 Novorossiysk...125 Tuapse...126 Eisk, Taganrog and Port of Azov...126 H.4 Far East...126
Vostochny...126 Nakhodka...127 Vanino...127 Port of Posiet and Maly Port...128 Vladivostok...128 H.5 GRAIN...129 Black Sea...130 Novorossiysk...130 Rostov-on-Don...131 Port of Azov...131 Taganrog...132 Eisk...132 Kavkaz...132 Tuapse...133 H.6 COAL...133 Arctic...135 Murmansk...135 Baltic Sea...135 Ust-Luga...136 St Petersburg...136 Far East...137 Developments...137 Black Sea...138 H.7 STEEL...139 Baltic Sea...140 Far East...141 Black Sea...141 I. COMPANY PROFILES: LEADING RUSSIAN SHIPPING COMPANIES:...142 I.1 FESCO Transport Group...142 I.2 MSCO...146 Northern Shipping Company...149 I.3 Prisco...151 I.4 Sovcomflot...154 J. OTHER DATA...158 J.1 Russia - short economy profile...158 J.2 Sources...159
The Dynamar Emerging Maritime Nations Publications series Since 2004 Dynamar has been publishing reports on specific end-to-end container liner trades such as the Far East-Europe. In essence these off-the-shelf consultancy studies aimed to portray a trade from the viewpoint of a carrier that: - may consider entering the trade lane under review - or already serves the route and needs to keep track of the latest developments This explains the basis of these studies that in particular aim at providing: - An assessment of the size of the trade (volume in terms of full containers) - An in-depth competition inventory (services, ships, capacity analyses) In early 2007 Dynamar launched the first of its Emerging Maritime Nations series. Here, instead of considering a particular trade lane, Dynamar has taken concept adopted in the end-to-end trades and concentrated it upon, in the first edition, the Vietnam container liner trades. The aim with this was to highlight the various factors that affect a hitherto relatively little known trade, but one with the potential for substantial growth. With Emerging Maritime Nations II: Russia, we have gone a stage further. Instead of limiting the study to the container trade, Dynamar has made use of its in-house knowledge of other markets built up over years of credit report writing and company profiling, in this instance wet bulk/energy (oil and gas) and dry bulk (coal, grain, steel) AS WELL AS its traditional analysis of the container trades. Russia present various challenges. It is, in effect three (occasionally four) separate shipping markets. These are centred around the disparate sea access, or coastlines, that this vast nation possesses. Moving clockwise from the northeast is the Russian Far East (RFE) including the various Navigations between there and the outlying (sub-) Arctic settlements; in the south (west) of the country is the access given by Russia s Black Sea ports; moving further north and west is the Baltic Sea and then moving even further north, to give the fourth trade is the Russian northwest, essentially the Barents Sea and adjoining. In theory there could be a fifth, the domestic North Sea Route that connects the Russian Northwest with the Russian Northeast (RFE) along the (icebound) northern route. The challenge then is to keep this publication manageable. After all, multiplying the number of shipping sectors covered (three: container, wet bulk; dry bulk) by the number of geographical trades (at least three: RFE, Black Sea, Baltic) in similar if not equal depth, and then adding the necessary introductions, and on this occasion, profiles of major Russian shipping companies, could have led to a vast and sprawling undertaking. We hope you agree that we have managed to maintain pace and readability of the publication without comprising upon the quality and detail of information provided. Much like Vietnam the intention here is to provide an introduction to a fascinating country and its shipping trade(s). Be that as it may, Dynamar is generally able to customise each report to the specific terms of reference of the interested party. We trust that you find the following pages of use and interest and as always, welcome any comments or feedback you may have. Dirk Visser (Managing Editor) Dynamar B.V. September 2008