VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Visits within Russia

14 may, 2008 16:30

Ust-Luga Port

The Ust-Luga port is situated almost at the border of Russia and the European Union. It is well connected to the transport system of the North-West region, which plays a significant part in freight shipments under the European transport infrastructure.

The port's depth (16 metres) and the short approach canal (3.7 km) allow the Ust-Luga port, which is currently under construction, to accept dry cargo ships of up to 75,000 tons and tankers of up to 120,000 tons. This makes it the only Russian port of its kind. The second approach canal allowing round navigation will be built by 2010.

Year-round running with a very short ice steering period (only 40 days) is certainly a good competitive advantage of the Ust-Luga port. Beside, an icebreaker's help will be needed only during the most severe frosts. During an ordinary winter an ice-class tugboat is quite enough to provide navigation in the canal. The fact that the cargo traffic goes to the port bypassing the overloaded St Petersburg transport system is also a very important advantage. The reconstruction of the external approaches to the port, motor highways and railroads, connecting the Ust-Luga port with the main transport routes, is underway.

Ust-Luga is a universal port. The terminals and the core zones of different designation will serve for reloading and additional handling of over 20 categories of cargo. Using modern technologies and equipment, the terminals are able to offer competitive terms of service.

The construction of the Ust-Luga port started in 1996.

According to the Lay-out Scheme of the General Plan of the Ust-Luga Commercial Sea Port the expected cargo turnover of the port is 120.6 million tons per year, including:

general - 13.1 million tons per year
wood - 2.6 million tons per year
bulk - 32.5 million tons per year
containers - 33.5 million tons per year
oil - 36.0 million tons per year
steam - 2.9 million tons per year

Dredging Works
In order to maintain functioning of the reloading complexes, which are now under construction, the Lay-out Scheme of the General Plan provides for step-by-step dredging works.

In 2008-2009 dredging works up to 13.5 metres deep are planned for creating the south port water area (container reloading complex, berths No. 55-58, liquefied gas complex, bunker complex), and also the first stage complexes in the northern part (coal reloading complex, universal reloading complex, technical sulphur reloading complex, bulk products complex), the creation of the northern fairway (from bulk products complex to mineral fertilizers reloading complex with a turn-round) with a northern approach canal up to 16.0 metres deep.

In 2010-2012 the water area of the subsidiary complex in the port's northern part is planned (mineral fertilizers reloading complex, alumina reloading complexes, general cargo reloading complexes No.1 and 2, scrap metal reloading complex, pellet reloading complex, bulk products complex), as well as in the southern part (container reloading complex [berths No. 55 and 56], bunker complex, south approaching canal with a turn-round) up to 16.0 metres deep.

The General Plan's Lay-out Scheme is also being corrected. The first part of this correction is already finished, and the Lay-out Scheme is now being finalised to include the cargo part of the reloading complexes, planned to be built near the village Vistino. In 2010 the corrected Lay-out Scheme of the General Plan of the Ust-Luga port will increase the port's capacity up to 63.8 million tons per year, and by 2015 - up to 112 million tons per year, including the northern part - 69.6 million tons (12 reloading complexes) and the southern one - 43.0 million tons (4 reloading complexes).

This corrected Lay-out Scheme provides the following step-by-step dredging works:

First stage. In 2007-2008 dredging works up to 14 metres deep are performed in the water approaches to the reloading complexes (multi-sectoral complex, container reloading complex [berths No. 52-54], technical sulphur reloading complex, tanker reloading complex, the port fleet and the navy special complex bases, coal reloading complex, universal reloading complex).

The volume of the dredging works is 13.63 million cubic metres, the cost in the 2006 prices is 3,456 million roubles.

Second stage. In 2009-2010 dredging works up to 13.5 metres deep for creation of the water area in the port's southern part are planned (container reloading complex [berths No.55 and 56], liquefied gas complex, bunker complex), as well as creation of the main complexes in the northern part (coal reloading complexes, universal reloading complexes, technical sulphur reloading complex, tanker reloading complexes), the creation of the northern fairway (from the tanker complex to the mineral fertilizers reloading complex with a turn-round) with a northern approach canal up to 16.0 metres deep.

The volume of the dredging works is 19.22 million cubic metres, the cost in the 2006 prices is 4,368 million roubles.

Third stage. In 2010-2012 creation of the water area of the subsidiary reloading complexes in the port's northern part is planned (containing the mineral fertilizers reloading complex, alumina reloading complex, general cargo reloading complexes Nos.1 and 2, scrap metal reloading complex, pellet reloading complex, tanker reloading complex), as well as in the southern one (container reloading complexes [berths No.55 and 56], bunker complex, south approaching canal with a turn-round) up to 16.0 metres deep.

The volume of the dredging works is 20.06 million cubic metres, the cost in the 2006 prices is 4,814.5 million roubles.

The total volume of the dredging works from 2007 till 2012 will come to 52.91 million cubic metres, the cost in the 2006 prices is 12, 648 million roubles.

The reloading complexes of Ust-Luga port :

1. The Coal Reloading Complex (coal terminal) was to be included into the terminals of the Ust-Luga port by the project feasibility study of the berth-reloading base in Ust-Luga in 1995 and by the Lay-out Scheme of the General Plan in Ust-Luga, approved by Executive Order No.259 of the Leningrad Region Government dated December 25, 2003 and Resolution No.BP-40-r of the Ministry of Transport of the Russian Federation dated March 17,2004. The complex has been built since 1997. The client is Rosterminalugol, and the main investor is Kuzbassrazrezugol.

The expected cargo turnover is 8 million tons per year. In accordance with the project documentation the full acting capacity of the terminal will increase to 12 million tons per year. At present the first part of the Coal Terminal has been brought into service and is working successfully. Its expected capacity is 6.0 million tons per year. The launch of additional capacities and access to a future cargo turnover is planned for 2008-2009.

2. The Universal Reloading Complex was to be included in the terminals of the Ust-Luga port under the Lay-out Scheme. Its expected capacity is 1.8 million tons per year. The client is the Multipurpose Reloading Complex company, the main investors are the Ust-Luga Company and the Tintrade Limited Group. At the present time the building of the universal reloading complex is almost completed.

The full project terminal capacity of bulk and general cargo will be up to 3.0 million tons per year.

3. The Technical Sulphur Reloading Complex is a partially changed mineral fertilizers reloading complex, which was to be included into the terminals of the Ust-Luga port by the General Plan's Lay-out Scheme, approved by Resolution No.BP-40-r of the Ministry of Transport of the Russian Federation dated March 17, 2004. The expected cargo turnover of this complex is 5.5 million tons per year. The complex has been built since 2003. The client is Agroinveststroy, the main investor is Interfinance SA Group.

In accordance with the project documentation the full acting capacity of the terminal is up to 10.0 million tons per year and the expected cargo turnover is 9.5 million tons per year. The first part of the complex is planned to be brought into service in the fourth quarter of 2008.

4. The Oil Cargo Complex was to be included into the terminals of the Ust-Luga port. Its expected cargo turnover is 5.0 million tons per year. The complex has been built since 2005. The client is Rosneftbunker, the main investor is Zarubezhneft. The terminal's projected capacity is 10.5 million tons per year. The full acting capacity of the terminal is 13.0 million tons per year, taking into account deliveries of oil and oil products by rail.

In case of cargo diversity the terminal's capacity can be significantly increased by the project berth front. The first part of the complex is to be brought into service in 2008, and the access to its full capacity will be opening in 2009.

5. The Bunker Complex wasn't supposed to be part of terminals of the Ust-Luga port. The client, Ust-Luzhsky Bunker Complex Ltd, prepared a declaration of intent, stating their intention to build a complex with an expected cargo turnover 5.0 million tons per year. The materials of this declaration were used while amending the Lay-out Scheme of the General Plan.

In 2005-2007 the land was designated and the site for construction was prepared. At the present time the first part of the complex is planned to be brought into service at the end of 2009 and access to its full capacity in 2010.

The owners are also considering the possibility of uniting the Bunker Complex and the Oil Cargo Complex for their joint work. In this case the total expected cargo turnover of both complexes will come up to 18 million tons per year (taking no account of the Baltic Pipeline System-2).

6. The Stable Gas Condensate and Recycling Products Reloading Complex. This investment project provides for a complex for recycling cargo turnover, which belongs to the group of NOVATEK companies. The client is NOVATEK-Ust-Luga, the investor is NOVATEK-Severo-Zapad. In 2007 the pre-project research on the possibility of placing the complex in the Ust-Luga Sea Port was held. The materials of this research were used while correcting the Lay-out Scheme of the General Plan of the Ust-Luga port. The implementation of this project started in autumn 2007. The expected complex's cargo turnover is 6.0 million tons per year, the terminal's launching is planned for the end of 2010.

7. The Petrochemical Production Reloading Complex. In 2007 the pre-project research on the possibility of placing the complex in the Ust-Luga port was held. The materials of this research were used while correcting the Lay-out Scheme of the General Plan of the Ust-Luga port. The expected cargo turnover of this complex is 2.0 million tons per year with railroad delivery. The expected launch date is 2011. Further expansion is expected to bring capacity up to 11.0 million tons per year, taking into account the deliveries through the product lines from the enterprises planned to be placed in the port industrial area.

8. The total expected cargo turnover of the general cargo area to the north of tanker cargo area in the Ust-Luga port was planned by the Lay-out Scheme of the General Plan to be 3.5 million tons per year. Now the creation of a specialised terminal for ferrous metals, which belongs to the OMK Group (capacity: 2.1 million tons per year) is planned in this region. Besides the building of specialised aluminum and alumina reloading terminals, belonging to RUSAL (4.6 million tons per year), the universal terminals for export, import and transit of a wide range of general cargo are in the Kazakh and Russian investors interests (4.3 million tons per year).

Pre-project research was carried out to assess the possibility of placing these complexes in the Ust-Luga port. The material gathered by this research was used while correcting the Lay-out Scheme of the General Plan of the Ust-Luga port. The total expected cargo turnover of the general cargo complexes runs to some 11 million tons per year, 2.5-4.0 million tons of this accounted for by imports. The rolled-metal and aluminum reloading complexes are expected to be launched in 2011, and the others in 2012-2014.

9. Bulk cargo reloading complexes. In 2006-2007 pre-project research was carried out to assess the possibility of placing a reloading complex for mineral fertilizer exports with a capacity of 20.0 to 6.0 million tons per year, as well as an imported mineral products transfer complex with a capacity up to 3.5 million tons per year, in the Ust-Luga port. As a result of this research the total turnover of the second bulk cargo area in the Ust-Luga port was set at 8.0 million tons per year, including export of mineral fertilisers (6.0 million tons per year) and import of cement (2.0 million tons per year). The potential investors stated the first complexes of the bulk cargo terminals were to be launched at the end of 2010 and beginning of 2011. Access to their full capacity is planned for 2013.

10. The Multisectoral Complex, intended for imported new cars, rolling cargo, general and perishable goods in containers and roll-trailers, is being built on the territory which was originally intended for the perishable goods complex. The expected capacity of the multisectoral complex is 4.6 million tons per year. The client and investor is Ust-Luga Company. The first complex of the Ust-Luga port is currently being prepared to open.

11. The Timber Reloading Complex (timber terminal) was to be included into the terminals of the Ust-Luga port according to the Lay-out Scheme of the General Plan, approved by Executive Order No.BP-40-r of the Ministry of Transport of the Russian Federation on March 17, 2004. The expected cargo turnover of this complex is 1.1 million tons per year. The client is BALTLESPORT and the main investor is Baltiisky Lesopromyshlenny Holding. The terminal has been under construction since the end of 2005.

12. The Motor and Railroad Steam Complex was to be included in the terminals of the Ust-Luga Sea Port by the Lay-out Scheme of the General Plan, approved by Executive Order No.BP-40-r of the of the Ministry of Transport of the Russian Federation in March 17, 2004. The expected cargo turnover of the complex is 2.3 million tons per year. The client and investor is the Ust-Luga sub-division of the Federal State Unitary Enterprise Rosmorport, and the construction work is financed by the Russian federal budget. The first part of this terminal has already been brought into service and is working successfully. The full capacity of the steam complex is up to 2.9 million tons per year.

13. The Container Reloading Complex (Container terminal) was to be included into the terminals of the Ust-Luga Sea Port by the Lay-out Scheme of the General Plan, admitted by Executive Order No.BP-40-r of the of the Ministry of Transport of the Russian Federation in March 17, 2004. The expected cargo turnover of this complex is 5.0 million tons (500,000 TEUs) per year with the possibility of further development. The client is Baltiisky Conteinerny Terminal, which finances the completion of federal unfinished construction projects. The total cost of works is 106, 775, 106 roubles.

The rear part of the territory and two 440-metre long berths have been completed. They are planned to have a depth of 13.5 metres (the cost is about 1 billion roubles).

A new project for the full development of the container terminal, with a capacity of up to 3 million TEUs per year, was developed. In 2007 a 22 million euro contract for the delivery of berth container reloaders was signed (delivery term: December 2008 - March 2009). Twenty one million euro contracts for purchasing stock reloading equipment are being signed as well.

14. The Liquefied Hydrocarbon Gas Complex. The client is SIBUR-Portenergo, the investor is SIBUR Holding. The client prepared a declaration, stating his intention to build a complex with an expected cargo turnover of one million tons per year. The declaration was approved by the Inter-Governmental Commission responsible for placing productive forces on the territory of the Leningrad Region. Now the project of this complex is being worked out, the proper materials of this declaration were used while correcting the Lay-out Scheme of the General Plan. The two complexes of this terminal are planned to be launched in 2010 and 2012, respectively.

15. Since 1998 the wood terminal, belonging to Lesnoy Terminal Faktor, has been working in the Rechnoi district.

In 2008 Peregruzochny Punkt produced the requirement specifications for the projected regional distributive and accumulation cargo complex at the mouth of the Ust-Luga River. The construction of terminals for container, rolling, bulk and refrigerator cargo, with a total capacity of 4.0 million tons per year, is stipulated by this complex.

16. The cargo district Vistino
The company Severo-Zapadny Alians intends to build an oil cargo complex with a capacity of 10 million tons per year.

The building of container and rolling cargo transfer complexes is stipulated in the area of the Novaya Gavan Bay. Their capacities will be 1.7 million and 0.25 million tons per year, respectively.

The building and reconstruction of the Novgorod - Ust-Luga highway and the approach to the commercial sea port of Ust-Luga is stipulated by the Federal Target Programme on The Development of the Russian Transport System (2010-2015). This work will be financed by the federal budget to the tune of 21.63 billion roubles, including:

- 12.98 billion roubles for the building and reconstruction of the Novgorod - Ust-Luga highway;

- 8.6 billion roubles for reconstruction of the M-11 Narva motor highway from St Petersburg to the border with Estonia (to Tallinn), and the approach to the commercial sea port of Ust-Luga through Kerstovo, Kotly, Koskolovo.

The financing is planned to begin from 2010.

In 2008-2009 the project research works and the reconstruction and maintenance of motor highways reconstruction are planned. The aim of such works is to provide the sea port of Ust-Luga with motor transport approaches.