Project description:
Creation of a container terminal in Pechenga Bay, Murmansk region, with a transhipment capacity of 2 million TEU per year using smart port technologies, accompanying port, transport and social infrastructure.
For reference:
The seaport of Pechenga will become a large cargo multimodal transport and logistics center, will increase the port capacity of the North-Western Basin, and will contribute to an increase in container cargo flow along the Northern Sea Route, including transit.
The Pechenga Sea Port project fully complies with the national goals and strategic objectives of the development of the Russian Federation, formulated in the Decrees of the President of the Russian Federation V.V. Putin. dated 05/07/2018 No. 204 and dated 05/07/2024 No. 309.
When implementing the Project, “smart port” technology will be used (the maximum degree of automation with an intelligent management system for all operations from unloading cargo to storing it in a warehouse using 5G technology. “Smart port” technology is used in the container terminal of the Chinese port of Xiamen).
The creation of a Project using “smart port” technology in the Arctic latitudes will provide Russia, despite sanctions, with access to new technologies for the construction and operation of highly automated ports.
Ensuring the sovereignty of the Russian Arctic, the development of the Arctic region and the development of the Northern Sea Route are considered among Russia’s national interests in the World Ocean, the relevance of which is increasing in the face of serious challenges to Russia’s national security in almost all areas of maritime activity. They are associated with bans by unfriendly states on the entry of Russian ships into foreign ports, the severance of previously established logistics ties, the detention and arrest of our ships, cargo and crews under far-fetched pretexts. All this indicates the increasing predominance of bloc and national interests over international maritime law.
The accession of Finland and Sweden to NATO turned the Baltic Sea into a “NATO internal sea.” There is a risk of restrictions on the passage of ships flying the flag or carrying Russian cargo through the Danish Straits, up to and including a complete ban. This will lead to stagnation of the work of the most modern ports of the Baltic basin (ports of Ust-Luga, Primorsk, Kaliningrad, Vyborg, Vysotsk, Big Port of St. Petersburg, Bronka), focused mainly on export-import cargo flows.
A similar development of the situation is possible in the Azov-Black Sea basin, whose ports are not capable of receiving large-tonnage vessels and are largely dependent on the seasonal operation of inland waterways and their limited capacity. Already, these ports are loaded at less than 20% of their capacity. An additional threat to international shipping in this basin is posed by restrictions associated with the ongoing NWO, as well as the not always consistent policy of Turkey, a NATO member, which can, under certain conditions, complicate the passage of Russian ships through the Bosporus and Dardanelles straits.
In the current situation, only the seaports of the Far East and the Arctic basin can provide direct access to the ocean. At the same time, if the sea ports of the Far East have a sufficient reserve of reserve capacity (according to 2021, out of a total capacity of 293 million tons, 224 million tons are used), then in the Arctic basin there is practically no reserve of port capacity (capacity of 94 million tons is used out of a total capacity of 101 million tons).
Container turnover of all Russian seaports in March 2024 increased by 9% compared to March last year. According to available official data, imports increased by 7.7%, exports by 9.4%. Transit decreased by 61.5%.
It is the development of transit that can turn the Northern Sea Route into an international transport corridor; therefore, increasing transit is the most important task in the development of the Northern Sea Route).
Transshipment of empty containers increased by 10.7%. In March 2024, the share of the Far Eastern basin in the total container turnover of all seaports of the Russian Federation was 44.2%, the Baltic basin processed 30.9%, the Azov-Black Sea, Arctic and Caspian basins accounted for 21.1%, 3.6% and 0. 1% respectively.
Increasing cargo flows along the Northern Sea Route and transferring the main cargo flows from the Baltic and Azov-Black Sea basins to the Arctic basin will require the creation of new port facilities for year-round operation.
Previous decisions on the development of the seaport of Murmansk and the construction of the port of Lavna can only partially solve this problem, since they provide for the creation of purely specialized port facilities.
For reference:
The project for the construction of the Northern Sea Port in Pechenga Bay, which was actively supported and financed by the Administration of the Murmansk Region from 1994 to 1996, provided for the construction of a container terminal with a capacity of 3.5 million TEU per year.
Container shipping in China is expected to grow over the next 10 years due to stricter environmental regulations in China.
At the moment, Russia does not have a port infrastructure in the Arctic zone capable of providing transit of at least 1 million TEU per year.
The development of the Murmansk transport hub (Lavna port), specializing in the shipment of coal and petroleum products, is proceeding according to plan within the framework of a public-private partnership. The volume of investments is 89 billion rubles, the volume of transportation is planned at 18 million tons per year. 37.7 billion rubles were allocated from the federal budget for the construction of a 50 km long railway. The concession agreement for financing and creating infrastructure for the complex is valid until 2043.
Taking into account the long-term prospect of growing demand for the transportation of containers along the Northern Sea Route, it is necessary to create new port capacities for transshipment of container cargo without delay.
The implementation of the Pechenga Sea Port project organically fits into the development concept of the Murmansk transport hub, is not its competitor or alternative, and creates additional capacity for container transshipment.
The Pechenga seaport will contribute to the development of the Murmansk transport hub in general and the ports of Murmansk and Lavna in particular.
Plans for the construction of a seaport in Pechenga Bay, Murmansk region, have always been considered by Norway as a threat to its national security.
The Russian port of Pechenga is located in close proximity to the Norwegian port of Kirkenes (less than 50 km by sea) and is its direct competitor.
The repeated Order of the President of the Russian Federation dated April 4, 2024 No. Pr-662 on the implementation of this project is aimed at resolving these issues.
The Pechenga seaport in the “smart port” concept is considered as a unique project of the first port on the Northern Sea Route with a transshipment volume of 2 million containers per year.
It is necessary to take into account the specifics of the port of Murmansk, which provides the basing and deployment of ships and vessels of the Northern Fleet. An increase in ship calls, including foreign ships, can negatively affect the safety of navigation in this water area and negatively affect the level of combat readiness of the Russian strategic fleet. It should also be taken into account that the water area of the Kola Bay is inaccessible to attack by MLRS and artillery from NATO member countries, has a reliable air defense system, which facilitates the placement and operation of Northern Fleet facilities in the interests of their military security and is redundant for civilian infrastructure facilities not classified as critical.
It is also necessary to take into account the territorial specifics of the seaport of Murmansk: the outer deep-water part of the Kola Bay does not have anchorages and is not protected from wave action, and the inner part of the bay, on the contrary, is too shallow; there are no coastal areas available for increasing port capacity. The water area of the bay is used for anchorages, including for ships and naval vessels. The main bases for ships and vessels of the Northern Fleet are also located in the waters of the Kola Bay.
We cannot discount the potential threats of using large-capacity vessels (container ships, bulk carriers, tankers) to attack military targets and strategic civilian infrastructure facilities in the port of Murmansk. Sad examples of the reality of such threats are the sabotage on the Nord Streams and the terrorist attack on the Crimean Bridge.
Freight traffic along the Northern Sea Route reached a historical record of 36 million tons in 2023.
Delivered by the President of the Russian Federation V.V. the task of increasing the volume of cargo transportation along the Northern Sea Route to 80 million tons by 2024 has not been completed.
The port of Murmansk and the port of Lavna are not able to cope with such a task, and a several-fold increase in the number of daily ship calls at the port of large-capacity vessels can create significant interference with the activities of the Northern Fleet forces, especially in conditions of geopolitical turbulence and increasing military tension in the Arctic region.
Project location:
Murmansk region, Pechenga district, Pechenga Bay. Geographic coordinates: 69°36′50″ N. w. 31°21′59″ E. d.
Nearest ports: Murmansk, Lavna (Russia) – 120 km, Kirkenes (Norway) – 80 km by land and 50 km by sea.
A land plot allocated on a long-term lease basis for the implementation of the Project with an area of 1820 hectares with cadastral 51:03:010102:0055: landmark: Lake Trifonovoyarvi - outside the site; landmark postal address: Murmansk region, Pechenga district; the site is located approximately 3800 m towards the southeast of the landmark.
Initiator of the project:
Limited Liability Company "Sea Port of Pechenga" (TIN 5190190980. hereinafter referred to as "MPP" LLC). General Director – Tarakanov Vasily Yurievich. Authorized capital (paid) – 49,680,010,000 rubles.
Participants of MPP LLC:
LLC "Rusinvestneftegaz"
JSC "Logistic"
All-Russian Union "Federation of Independent Trade Unions of Russia"
Citizen of the Russian Federation Tarakanov V.Yu.
Russian citizen Khuri Malek
Financial statements:
At the end of 2023, the indicators of Pechenga Sea Port LLC, the net assets of the Company amounted to 60,588,350,000 (Sixty billion five hundred eighty-eight million three hundred fifty thousand) rubles. Profit for 2023 amounted to 199.8 million rubles.
Financial statements for 2023 are preparatory to adjustment and compliance with Russian legislation and IFRS. MPP LLC is being built as a holding company to operate in a group of companies, including investment, logistics and port services. The balance sheet for 2024 will reflect the consolidated balance sheet for the entire group of companies. MPP LLC will be the holder of main assets, including land plots, buildings, structures and other real and movable property; it will not conduct main economic activities, only specialized subsidiaries.
General designer:
Morstroytekhnologiya LLC (St. Petersburg) is completing work on developing an investment declaration for a container terminal in the Pechenga Seaport. The deadline for completion of work is May 20, 2024. Immediately upon completion of the work, the Investment Declaration will be submitted for consideration to the Ministry of Transport of the Russian Federation.
Investment volume: 40 billion rubles.
Workplaces: 2,250 units.
Design capacity: 2 million TEU
Implementation period: 2024-2029.
Current status:
Development (updating) of the Investment Declaration for submission to the Ministry of Transport of the Russian Federation for approval (submission deadline after May 20, 2024);
Signing Agreements with cargo owners/cargo carriers for transshipment of goods through the port of Pechenga;
Signing of the Investment Agreement (period May – July 2024);
More detailed information is available upon request to qualified investors:
invest@pechengaport.com