The Maritime Economist Magazine Spring 2015 | Page 37

THEMARITIME Economist voice of young generation According to the experts and business representatives from Ukrainian ports, the grain terminals on the continental part of Ukraine have enough capacity in place to welcome the rerouted grain flows previously handled in Crimean ports. The main terminals are located in the Great Odessa region (ports of Odessa, Yuzhnyi and Illichevsk). The total terminal capacity amounts to 50 mln tons per year with a draft of 18-20 meters. There are several Crimean ports handling sand and cement: Sevastopol Fishery port, Yevpatoriya, Yalta and Kerch. There might occur complications with the export of construction materials (mainly sand) with a Crimean origin at the local company Suesta which operates via its private port in Kamyshovaya bay in Sevastopol Fishery port (export per year 800,000 tons). In the surroundings of Kerch port there is a private cement factory owned by Altkom said to be owned by Aleksandr Tyslenko. Moreover, this factory has a dedicated deepsea terminal for handling 4 million tons of cement per year. Cement is not officially recorded in the statistics of Kerch port. So, when it comes to the export of cement and sand the ports may still remain at the same level because of the locational proximity and transport costs, though the enterprises owned by Ukrainian businessmen are expected to be affected. Note that people having businesses in Crimea cannot be citizens of Ukraine, except if they are Crimeans. Recently the Ukrainian parliament accepted a law on “the rights and freedoms of citizens in the temporarily occupied territory of Ukraine”. The only port that received considerable import cargoes was Yevpatoriya. It mainly concerns roro cargoes (about 33,800 cars were handled in 2013). Apparently these cars will not enter via Crimea anymore, because of the isolated and limited consumer market and because of the recent intention of the local government to stop all cargo operations in Yevpatoriya port. Russian cargo transiting at Ukrainian ports? Russia remains an important country for the Ukrainian port system. Russian cargo (export) through Ukrainian ports amounted to 27 mln tons in 2013 or about 18% of total Ukrainian port traffic. This figure includes 11 million tons of Russian coal and ore (about 25% of total coal and ore traffic in Ukrainian ports). The port of llichevsk handles almost all ferro-volumes with a Russian origin (1.8 mln tons). Most other Russian cargo passes via the Great Odessa ports. The container flows transiting to/from Russia and handled by Ukrainian ports are very small mainly because of the Customs bureaucracy in Ukraine. Since many years, Russia has developed plans to build a new Greenfield port, i.e. Taman, in the eastern part of the Black Sea. The port should be operational in 2020. Given the recent Ukrainian crisis, it now remains unclear whether Russia will go ahead with the plan to build Taman Port or, alternatively, might opt for a further development of the port of Sevastopol in Crimea. Recently the economic advisor of the President of Russian Federation informed that they are currently reassessing the infrastructure investments for this year (USD$ 3 bln or RUB100 bln). These investments were initially planned for the Taman port construction and the bridge construction over the Lena River. A decision on the infrastructure investments will be taken soon. In our view, the large Taman project seems to be more important for the Russian Federation. The port is planned to have a draft allowing vessels of up to 150,000 DWT, a total capacity of 50 mln tons in Phase 1 (ultimate capacity is about 100 mln tons), facilities for dry bulk, general cargo and containers, no weather delays (unlike Novorosiysk) and rail and road connections (unlike Novorosiysk). ME Mag shipping activities are affected by the political agreements between Ukraine and Russia. 37