«Ust-Luga Company» JSC (the construction manager of Ust-Luga Merchant Sea Port) and Gulftainer Global Logistics Limited (an international terminal operator) recently announce the signing of an agreement on joining the companies’ production and financial potentials for further development of the objects of the transport-and-logistic complex at Ust-Luga Merchant Sea Port. The agreement also reveals the commitment to acquire the stock of 25% + 1 share of «Transport Logistic Complex» JSC.
The agreement was signed by Valery Izraylit, Chairman of «Ust-Luga Company» Board, and Badr H. Jafar, Director of Gulftainer Global Logistics Limited. The signing ceremony took place within the X International Investment Forum Sochi 2011 and was attended by Vladimir Putin, Chairman of the Russian Government. The final agreement will be concluded in 2012.
Gulftainer, with its 35-year experience of logistic operations at sea ports, will promote efficient development of the Multipurpose Terminal «Yug-2» and the Warehousing Logistic Center (WLC) designed for handling and storing rolling, general, container and other cargoes. In its turn, «Ust-Luga Company» JSC, relying on its expertise as a construction manager in implementation of investment projects, will support the construction of the 3rd and the 4th Start-Up Facilities of «Yug-2», as well as the designing and construction of the Warehousing Logistic Center. In dealing with the project, Gulftainer is going to invest at least EUR 192 mln. within several years.
Speaking at the signing ceremony, Peter Richards, Managing Director of Gulftainer Global Logistics Limited, noted: «This is a serious step for the Gulftainer Corporation as we realize that we are expanding to the most dynamic Russian region, the Baltic. Its role in the transit potential of Russia is critical, since it handles about 60% of the Russian container transportation, with the cargo volumes constantly growing. Still, the growth potential is far from being exhausted.»
«We are glad that such major and experienced logistic-market player as Gulftainer has come to the Port. This fact demonstrates that Russia is becoming a prominent player on the global market of transport-transit services. I believe that Gulftainer’s joining will increase the car transshipment volumes of the Multipurpose Terminal «Yug-2»; new services will be introduced both in the Port»s territory and on the platform of the Warehousing Logistic Center; and handling new cargo types will be mastered»,— said Maksim Shirokov, Director General of «Ust-Luga Company» JSC.
Ust-Luga Merchant Sea Port
Ust-Luga Port is the largest and most up-to-date multifunctional sea port in Russia. The considerable depth of the Port’s water area (17.5 m) and the Port’s short access duct (3.7 km) enable it to accept vessels with the deadweight of 160 thsd. tons. Another access duct will ensure circulation of ships.
Ust-Luga Port is being developed within the framework of the Federal Target Program «Development of the Transport System of Russia»; therewith, the parties’ interaction pattern for the construction is one of the earliest examples of the state-private partnership in Russia.
The Port is currently operating seven terminals; another nine terminals will be launched in the nearest future. By 2018, the total number of the transshipment complexes will reach nineteen.
In 2010, the stevedoring companies of Ust-Luga Port transshipped 11,810,963 tons of cargoes that were 13.6% more than in the previous year. The car transshipment grew up to 65,521 vehicles.
When counted for 8 months of 2011, the cargo turnover of Ust-Luga Port amounted to 13,605,337.889 tons, thus exceeding the volume for the same period a year before by 81.6%. In the given period, the car transshipment volume increased almost threefold and reached 78,717 vehicles.
In 2011, Ust-Luga Port is expected to transship over 20,000,000 tons of cargoes. It is planned that, by 2018, the Port’s annual cargo turnover will amount to 180,000,000 tons.
Source: Ust- Luga Port, September 21, 2011.