Bulk Distributor Mar/Apr 19 | Page 3

March/April 2019 B ULK D ISTRIBUTOR Russia 3 A now discontinued waste facility near St Petersburg. Russia joined EFTCO some years ago, but Havila laments the lack of progress in bringing local cleaning infrastructure up to standards found elsewhere ůĞĂŶŝŶŐƐƟůůĂďŝŐŽďƐƚĂĐůĞ ƚŽZƵƐƐŝĂŶƚĂŶŬƵƉƚĂŬĞ T he use of ISO tank containers in Russia continues to grow. Nikolay Grigorev, president of logistics group Havila, says this is largely due to two factors: a lack of suitable rail tank cars (RTCs) for chemical transport and railway tariffs that give an advantage to tank containers over RTCs. Nevertheless, a number of challenges remain. A shortage of rolling stock, notably flatbeds for carrying ISO containers, is jacking up prices both among equipment leasing providers and operators. Currently, the Russian domestic market for tank containers is probably in the region of 15-17,000 units. Currently, only two big global leasing companies offer this type of equipment, but Grigorev says the interest is there and this year some new players should start appearing. But another big stumbling block is the lack of robust and reliable cleaning infrastructure. Havila itself has invested in depots – in Tambov and Togliatti – but these remain the only two certified depots in all of Russia. Russia joined the European Federation of Tank Cleaning Organisations (EFTCO) some years ago, but Grigorev laments the lack of progress in bringing local cleaning infrastructure up to standards found elsewhere in Europe. The majority of cleaning depots are not even meeting Russia’s minimum requirements for safe waste treatment, he says. Such examples exist even in the biggest cities - like Moscow and St Petersburg - and there have been a number of fatal accidents resulting from poor safety management. Interior of a cleaning depot in Moscow. High time to bring Russian cleaning facilities up to standards found in Western Europe Russia’s chemical sector has not changed significantly over recent years. The country still produces commodity chemicals and imports specialities. The main import flows are products such as plasticisers, solvents, hydrogen peroxide and aniline, while export flows are dominated by those produced in phenol-acetone plants (alpha-methylstyrene, phenol, acetone), monomers, xylenes, and caustic soda. A majority of these products are transported in tank containers using different transport modes. For non-hazardous chemicals and food products, flexitanks also provide a cheaper alternative. Although, some restrictions, and Havila’s Tambov depot. Along with the group’s Togliatti site these are the only certified depots in Russia Havila’s President Nikolay Grigorev. We encourage all tank container operators doing business in Russia to follow European practices and culture in terms of cleaning arrangements indeed recommendations of flexitank producers as to their use on Russian railways, can make this type of transport less attractive to shippers. Road transport in tank trucks is still a source of competition for spot flows to or from neighbouring countries where intermodal is not an option. Such transports work well over distances of under 1,500km between shipper and consignee, where the core advantages are higher payloads and much shorter transit times compared to containers on rail. In the past year a lot of new block trains have been launched to and from Russia to different parts of Asia (mainly China), but the concept does not work well for ISO tanks carrying chemicals, and these trains are used mainly for general cargoes. In summary, the Russian market for tank containers is developing actively with average annual growth of 10-13 percent, but Grigorev points out that time is still needed to change the mindset of shippers and operators, and only combining those ambitions with expertise from the global market will allow the Russian market to develop properly. “Havila’s group of companies is encouraging all tank container operators doing business in Russia to follow European practices and culture in terms of cleaning arrangements and choose the right cleaning partners,” he says. www.havila.ee