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Issue 2001/ 5

Northern countries will seek their share of freight

Zita Tallat-Kelpsaite

TransBaltika for the sixth time

The Sixth International Conference TransBaltika - 2001 held in Riga was opened and the first plenary session was directed by the Minister of Transport of Latvia Anatoliy Gorbunovs. He presented the first report about the place and role of Latvian transit routes in the international transport infrastructure.
Reports were presented by First Adviser of Vice-Governor of St. Petersburg Boris Usanov, Vice-President of Eurasian Transport Union, professor Yuriy Shcherbanin, President of Latvian Transit Business Association, Chairman of Duma of Ventspils Town Aivars Lembergs, Deputy Head of Transport System Co-ordination Department of the Ministry of Transport of Russia Valeriy Shaikin, Head of transport programmes for the Baltic Region of the World Bank Cezar Keiros, representative of the International Co-ordination Board on Trans-Siberia Transportation Boris Lukov, etc. The first reports inspired the participants for hot debates and further polemics.

Russia as a Eurasian transit bridge

Speaking about new transport corridors B.Usanov emphasised that at the conference in St. Petersburg, where representatives of 37 European and 11 Asian states as well as of international organisations took part, important agreements were signed concerning the necessity of bridging transport corridors of Europe, Asia and Pacific region. For the realisation of this project a constantly operating secretariat was established. Besides a common declaration Russia, India and Iran signed an agreement to establish a new corridor North - South stretching to the coast of the Persian Gulf, within the IX transport corridor. Germany, Poland, Belorus and Russia signed a protocol on the extension of the II transport corridor up to Yekaterinburg, its connection with Transsib and the ports of Japan and South Korea.
In the speaker’s opinion, if such international processes start, Russian significance as a bridge for Eurasian transit will revive again. According to B.Usanov, the annual freight capacity of North - South transport corridor is estimated as 15-16 million tonnes and of East - West corridor - 500 thousand containers. Last year only 41.3 thousand containers were carried through the latter corridor.
If the plans concerning these corridors were realised, the budget of Russia would be annually replenished with 15 milliard US dollars. Expecting large freight flows Russia is determined to construct a large port of St. Petersburg and new terminals.
The speaker did not conceal the intentions of Russia to stick to the policy of handling the freight carried across its territory in the ports of Russia. To substantiate the aim many figures were given alleging the railway and port tariffs of the Baltic States to be exorbitant. President of Latvian Transit Business Association A.Lembergs responded impulsively, saying that politics was made with such public statements, though in fact the tariffs were much lower. B.Usanov parried that his statements were based on the results of the scientific analysis.

Campaign against the Suez Canal

The participants of the Conference TransBaltika - 2001, however, were really unanimous about one issue. The Suez Canal was resolutely ‘sentenced to death’.
“Such projects (North - South, East - West) make us think that freight flows will go round the Suez Canal which is sufficiently overloaded at present”, said B.Usanov.
“According to the Ministry of Transport of Russia after the railway TransKorea has been modernised and connected to TransSiberia main line there will appear a possibility to transport containers from door to door within 13-14 days. At present the container transportation from the port of Pussan to Europe via the Suez Canal takes 35-45 days. Carrying containers from Pussan to Nakhdoka by sea, with their transhipment into railway transport and further transportation along TransSiberia main line would cost 200-400 US dollars less than carrying by sea via the Suez Canal”- such conclusions were presented by Vice-President of Eurasian Transport Union, professor Y.Shcherbanin. (His article on the subject was published in the previous issue of the Sea - Editor).
President of Latvian Transit Business Association A.Lembergs spoke on this subject with bigger heat. He said that 95-98 per cent of all containerised freight is carried via the Suez Canal and only a very small part of it falls on Northern countries. “We have to work together to attract a part of freight from the southern direction to the northern one. The Middle East region is politically very unstable, thus the EU will probably create alternative transport corridors. Certainly, I do not raise the question whether the Suez Canal should be closed, though people of my generation perfectly remember the time when it did not exist…”
A.Lembergs representing Latvian transit business asked rhetorically why the Great Silk Route does not go via Latvia, Lithuania, Estonia, Belorus, Poland. Why does the oil flow turn away and go south of our states, except a small branch to Ventspils? Who stands to gain?
Trying to answer these questions A.Lembergs blamed the competition among the Baltic States, unpredictable and discriminative tariff policy of Russia, prospering subjectivity and protectionism. In his opinion it creates such conditions due to which cargo goes round Russia, Latvia, Lithuania, Estonia, Poland and Finland.
The speaker reproached Lithuania softly that it had rejoiced the fact when Russia had increased its railway tariffs for Latvia and left preferential ones for Lithuania. “When Russia equalised the tariffs we are able to rejoice, too, being equal in competition. The ports of Latvia are winning this competition so far. Meanwhile Lithuania tries to agree with Russia again by realising the project 2K, but hardly will it help”, said A.Lembergs. He recommended to think not of how to harm another country but what to do to make everybody better. The leader of Latvian transit business asserted it was necessary to follow a common policy in the global competition with the transport corridors of the southern direction, to find the ways, how to attract freight from these directions and turn them to our own roads, via our own ports. If we do not do that, we will make the Suez Canal and the transport corridors of the southern direction even stronger.

The representative of Klaipeda port as an initiator
of a new confederation

It was not the first international event when the reports and statements of the representative of Klaipeda State Sea Port Authority in Moscow Vitalijus Marinecas had been listened to especially attentively. In Riga the representative of Klaipeda port astonished the participants of the conference by an unexpected proposal to convene a confederation which would include the representatives of Lithuanian, Latvian, Estonian, Russian and Finnish ports. The speaker presented a whole spectrum of questions that should be coordinated and solved by the confederation. He offered certain people to establish an initiative group and to set to work immediately. The participants of the conference approved enthusiastically the suggestion of V.Marinecas. (This issue is highlighted in the article of Vitalijus Marinecas. Editor)
For the sixths time the Conference was organized by Consultative Company Riga Managers School.
Since 1996, the company dealing with implementation of international projects has been able to attract sufficient number of participants and especially interesting speakers to its annual conferences. This year the daily routine of the conference was divided into two parts: scientific and practical. The sessions of the second day of the conference were held in the ports of Riga, Ventspils and Liepaja.

Ports of the Baltic States seek for close collaboration

Gabriele Vasiliauskaite

The working group of the Communication Com     mittee of the Baltic Ports Organization (BPO)  which met in August in Klaipeda intends to submit to the BPO General Assembly, being convened next June, conclusions and recommendations prepared about a possible co-operation between the ports of the Baltic States by attracting and sharing of cargo flows.
After the meeting the leader of the co-operation and competition working group, representative of the Authority of Klaipeda State Sea Port (KSSP) in Moscow Vitalijus Marinecas asserted the journalists that there is a possibility of such a collaboration, but this is, however, rather burdened by competition between the ports of separate countries, striving for profit and commercial secrets. According to V.Marinecas, close collaboration between the ports may be hampered by political as well as by psychological obstacles, an unwillingness to exchange the information.
The working group decided to continue developing the collaboration between the ports in the non-commercial sphere - environment protection, navigation safety, technical issues and seeking for collaboration in the commercial sphere – cargo transportation and cargo handling, exchange and attraction of cargo flows.
According to was V.Marinecas, members of the working group agreed that there a big possibility to attract large cargo flows from the sub-continental countries of the Far East, Asia and India rather to the quickly developing Baltic region than to individual ports.
Common market research and informative activities, new transport corridors, according to V.Marinecas, would help to attract new flows, but it will, however, be difficult for the ports to share cargo, consequently, the ports offering the cheapest services would win.
At the press conference, member of the working group, Commercial Director Deputy of St. Petersburg Sea Port Dmitriy Razumov said that the growing turnover of containers in the world would lead to the increase of containers in the ports of the Baltic Sea by 15-20 per cent.
According to D.Razumov, the ports of the Baltic States, including Lithuania, may be used for handling big transit cargo flows from Asia and Central East to Scandinavia.
Ship owners, representatives of the associations of stevedoring companies taking part in the meeting of the working group suggested expansion of spheres of the BPO activities and inclusion of branch associations into the organization, and in that way takeing into account the activity of cargo forwarding agents.
BPO wasfounded ten years ago, unites 56 administrations, associations and organizations of all ports of the countries of the Baltic Sea region.
This organization co-ordinates and forms transport flows of the ports of the Baltic States. It strives to co-ordinate the activities of the countries in attracting investors to these regions and create favorable conditions for the auspicious cargo movement and development of transport corridors.


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