The Maritime Economist Magazine Spring 2015 | Page 36

THEMARITIME Economist FreshMINDS A recent acute problem that Ukrainian ports are facing is the lack of available port handling capacities to handle the imported coal from overseas. In about half year time, Ukraine turned from a coal exporting country into importing coal country, because of the rebels’ actions in the industrial hart of Ukraine. There are five ports in Crimea: Yevpatorya, Sevsatopol, Yalta, Feodosiya and Kerch. There are several factors affecting cargo traffic rerouting in these ports: ME Mag • There is a clear reluctance of foreign cargo owners to send cargo via these ports. They will most likely prefer more stable Ukrainian ports such as Odessa, Yuzhnyi or Illyihevsk. The main cargoes handled in Crimean ports were grains (mainly in Avlita port for the global traders such as Kernel, Luis Dreyfus etc) and metals by SCM holding (in Avlita). • Crimea is facing challenges with hinterland connections. The only way to avoid a transit via Ukraine is by ferry via Kerch port to Taman and Caucasus port of Russia. • The Plans for the Kerch bridge have been revived (estimated cost about RUB 50bn or US$3bn) and the construction is expected to take 3-4 years. However, no real investment plans were officially published. • The capacity of Kerch port is very low because of several reasons: (i) the current daily loading/ unloading capacity is about 50 wagons; (ii) there are about 200 km of one direction non-electrified railway. Assuming that in over four years there will be a bridge connecting the Crimean territory with the continental part of Russia, the maximum capacity of the whole transportation corridor (Taman-Kerch-Feodosia) will reach 12-15 trains per day (CFTS). • The depute Prime-Minister of Russia Rustam Temirgaliev recently communicated that the ports of Feodosiya and Yevpatoriya are going to be closed, and a new road will be constructed between Yalta, Alushta and Feodosia. These 36 developments among others are expected to be project can “ Taman Portcargo shift from generate a Baltic gateway ports to Black Sea gateways in view of reaching the Russian hinterland, particularly since sailing from the East toTaman port would require 12 sailing days less than to Baltic ports. included in the “Project of Territorial planning of Crimea” that was presented to the Government of the Russian Federation for final approval on June 1, 2014. The reasoning behind the closure of these two ports, as explained by the Minister of Transport of Crimea Yuriy Shevshuk, is that the cargo handled in Crimean ports was mainly to/ from the continental part of Ukraine. As Crimea has become literally isolated from the continental part of Ukraine, the future port volume prospects are low, unless the political relations between Ukraine, Russia and Crimea improve. The prevailing cargo type for Crimean ports was oil fuel and oil products (4.2 mln tons in 2013). The ports involved in the liquid bulk handling were Kerch (1.9 mln tons), Feodosiya (2.1 mln tons) and the remaining share was shipped via Sevastopol. Most of the oil and oil products were transit cargoes, originating from Russia and Kazakhstan. About 15 mln tons of liquid bulk (exports of Russian oil and oil products) are handled offshore in the Kerch strait. As it concerns cargoes with a Russian and Kazakh origin, it is likely that these cargoes will continue to be handled via Crimean ports. However, port operations at Feodosiya have a big probability of being suspended due to new governmental policy. Experts believe that the 7% of the metal products of SCM holding that were handled in Avlita (private terminal in Sevastopol port) will be redirected to Odessa/Yuzhnyi ports (see also www.cfts.org). The redirecting of these metal cargoes to ports in the Azov Sea (Berdyansk, Mariupol) is less viable, because of their limited draft and ice conditions in winter time. Moreover the passage via Kerch strait is operated by the Russian pilotage agency, and all