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Russia Launches Massive Program To Develop Black Sea Ports

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  • Russia Launches Massive Program To Develop Black Sea Ports

    RUSSIA LAUNCHES MASSIVE PROGRAM TO DEVELOP BLACK SEA PORTS

    By _Vladimir Socor_ (http://jamestown.org/search.php?author=3DVladimir +Socor)
    Friday, July 13, 2007

    On July 11 Russia's First Deputy Prime Minister Sergei Ivanov and
    Transport Minister Igor Levitin unveiled a comprehensive modernization
    program for Russian Black Sea ports during an inspection visit
    there. The program is ambitious in both scale and pace, with most of
    its goals scheduled to be attained by 2010. It is a counterpart to the
    program for accelerated expansion of Russia' s Baltic ports, which the
    Russian government also launched this year, with President Vladimir
    Putin taking a personal interest in both programs.

    The government drew up its Black Sea program before the decision of
    the International Olympic Committee to hold the 2014 Winter Olympic
    Games in Sochi, on Russia's Black Sea coast. That decision, announced
    on July 4, will necessitate massive investments to develop
    infrastructure in the Sochi area, above and beyond the scope of the
    overall program for Black Sea ports and mostly beyond this program's
    time frame. Ivanov and Levitin discussed boththe overall maritime
    transport program and ideas about Sochi development during their
    visit.

    According to these officials, Russian Black Sea ports currently handle
    more than one third of Russia's sea-borne exports in terms of tonnage.
    Total export cargos were reported at 160 million tons in 2006 and are
    `conservatively' expected to grow to 250 million tons annually by
    2010. The port development program ambitiously envisages doubling the
    existing export capacities, which are currently strained to the limit
    and distributed very unevenly along the Russian coast.

    At present, Novorossiysk alone handles more than one half of that
    overall export tonnage. The over-congested port's various terminals
    loadeda reported 88 million tons of export cargos in 2006.

    That figure includes an estimated 60 million tons of oil, one half of
    this originating in Kazakhstan. Oil loading will increase if the
    Caspian Pipeline Consortium's line boosts the volume of oil pumped
    from Kazakhstan to Novorossiysk. Expecting this to be the case, the
    Russian government is ordering three tanker ships to carry that
    additional volume of oil from Novorossiysk to Bulgaria's Black Sea
    port of Burgas, for feeding into the planned trans-Balkan pipeline to
    Alexandropolis on the Greek Aegean coast.

    The Russian government's program envisages relieving some of the
    congestion at Novorossiysk through specialization. It would transfer
    some shipping flows from there to other Russian Black Sea ports while
    dedicating Novorossiysk to oil, grain, and container cargos. In
    addition, a modern grain export terminal is due for completion this
    year.

    Ivanov and Levitin explicitly called for competing with Romania's port
    of Constanta in terms of attracting international container shipping
    to Novorossiysk. The Russian government envisages building the
    appropriate terminals as a priority until 2010, in place of existing
    old terminals.

    The commercial port of Novorossiysk can no longer expand physically in
    the narrow bay, a section of which is taken up by the naval port.
    Russia=80=99s Black Sea Fleet is expanding its installations there to
    a full-fledged base as an alternative to Ukraine's Sevastopol, where
    the Russian fleet=80=99s lease is due to expire in 2017.

    Other port development plans include using Taman as the main coal
    export terminal (instead of Tuapse) while expanding the use of Tuapse
    as an export outlet for oil and, potentially, liquefied gas. The port
    of Kavkaz (also in Krasnodar Krai) is slated to specialize for
    handling commodity ferryboats.A catamaran line for passenger boats is
    scheduled to run between the ports of
    Anapa-Novorossiysk-Gelenjik-Tuapse-Sochi.

    The program also envisages developing overland and air links to the
    ports.A second railroad line to Novorossiysk and convergent highways
    to that port are to be built until 2010. Also by that date, the old
    airports of Anapa and Gelenjik are to become modern international
    airports, alongside the existing Adler airport. The three are to be
    merged into a single, state-controlled company. Ivanov and Levitin
    underscored Krasnodar Krai's potentialas a destination for
    international and Russian tourism (`We don=80=99t have anything
    comparable in Russia').

    In Sochi, the transport modernization program runs through 2015, but
    will almost certainly have to be adjusted to meet the 2014 Olympic
    deadline. The port will be reserved exclusively for passenger
    traffic. All other cargo flows are to be transferred from Sochi to
    other ports. This measure takes immediate effect, so as to enable the
    port of Sochi to receive construction materials for the planned
    Olympic installations and start construction of large-scale passenger
    terminals. These are planned to accommodate passenger and cruise ships
    with capacities of up to 3,000 passengers each, for a total of 600,000
    passengers per year by 2010 and 715,000 by 2015. Access highways to
    Sochi and a ring highway around the city are included in the program,
    as well as expansion of the Adler airport, which is servicing Sochi.

    The Russian government is creating an inter-departmental structure to
    supervise this Black Sea program. While the government's existing
    Maritime Affairs Board only meets three or four times per year with a
    very broad agenda, the new structure will be a standing one to
    coordinate port development. Ivanov has nominated Levitin to head the
    new inter-departmental structure in his capacity as transport
    minister. With President Putin evidencing a personal interest in the
    port development program, Ivanov a front-running presidential
    contender, Levitin also mentioned as aspiring to a top post in 2008,
    and the scheduled Olympic games as an added stimulus, this Russian
    Black Sea program will command political attention and funding in
    Moscow.

    (Interfax, Itar-Tass, July 11, 12)
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