Магомедов идет в Европу

A “global strategic partnership” was yesterday signed between Summa Group and the Port of Rotterdam. Summa Group Chairman, Ziyavudin Magomedov said that the agreement is intended to increase cargo traffic between Rotterdam and the port in Primorsk. (Primorsk is part of the NCSP Group which is 50.1% owned by Summa and Transneft). The businessman said that the partners will also explore the possibility of doing business together in China, India, and other developing countries.

Summa’s First Vice President, Aleksandr Vinokurov, explained to Vedomosti that the partners are examining joint port and logistics projects using their assets in Rotterdam and Primorsk. He said that they plan to increase cargo traffic by expanding transshipments of ferrous metals, mineral fertilizers and containers but he did not provide details. A representative from the Port of Rotterdam confirmed the agreement but he gave no further details.

Aleksei Bezborodov, General Director of the Infranews news agency, believes that Summa is considering building terminals in Rotterdam, but he thinks it’s very unlikely that the Port of Rotterdam would invest in Primorsk. However, a representative from the Port of Rotterdam pointed out that his company is helping to build the Port of Sohar in Oman. Three terminals will be built there for both petroleum products and container cargo. The representative believes that in a few years the Port of Rotterdam would like to develop other ports but the company has not yet found any new projects. “We hope that Summa will help us,” he said.

The Port of Rotterdam has plans to develop its own facilities, for both containers and the transshipment of steel. The Primorsk port will have similar terminals in the next few years. One source in a state-owned company that designs hydraulic equipment told Vedomosti that NCSP Group plans to build three new terminals at the Primorsk Trade Port (PTP). These would be to reload containers (with a capacity of approximately one million TEUs), for iron ore (about three million tons) and for mineral fertilizer (about five million tons). Representatives from Summa and the NCSP Group did not comment.

According to Primorsk Trade Port, the port currently handles 75 million tons of cargo and has a capacity of 120 million tons. Bezborodov doubts that PTP would be able to compete with the Port of St. Petersburg in terms of container transshipment (two million TEUs of cargo traffic). A container terminal would require consistently increasing demand within Russia, a container logistics infrastructure along with good road and rail networks - none of which is currently available in Primorsk.

Not their first project:

On Oct. 20, the Port of Rotterdam and Shtandart TT B.V. (which is 75% owned by Summa and 25% by Vitol) signed an agreement to build a terminal for oil and oil products. A total of $1 billion could be invested in this project. Construction of the terminal will begin in 2013 and it is scheduled to be operating by 2015.