DELO Invests to Boost Shipping Business

Posted By Gabby DelGatto
Monday, June 30, 2014
A recent arrival at Novorossiysk. Part of the China Shipping Line new deep-sea service from the Far East to Russia (Credit GCS)

Over the past three years, DELO Group, a Russian private transport company, has implemented an investment program, including rail and other adjacent port infrastructure, construction of stevedoring and inland storage terminals for oil products, construction of the KSK grain terminal, acquisition of 50% of the NUTEP container terminal from its JV partner and an expansion program turning the terminal into a chief container terminal throughout Russian coasts.

“We are planning to double capacity at NUTEP from 350,000 to 600 - 700,000 TEU,” said Andrei Bubnov, CFO of DELO Group. “This is a breakthrough project for us. It will allow us to handle mother ocean container vessels, which could reshape the entire Black Sea market by allowing direct calls to Novorossiysk bypassing the traditional transshipment hubs.”

One of the advantages for ships calling at Novorossiysk is the low bunker prices–currently almost $200 per metric ton cheaper than at nearby Istanbul.

“We also expect more consolidation in the market and DELO will continue to invest in strategic assets and launch more innovative services to support continued growth,” Bubnov said.

Speaking about the impact of the recently denounced P3 alliance or the outlook for any prospective alliance, its proposal alone has already changed the liner shipping market—in Russia at least, according to Bubnov.

“It prompted the smaller shipping lines serving Russia to consider new niche strategies in order to compete,” he told TOC Conference delegates. The P3 Network shipping alliance would have positioned the three partners (Maersk, MSC and CMA-CGM) to control as much as 50% of all Russia-bound container traffic. 

A new strategy that has already lead to opportunities for DELO Group, is the expansion of carriers into in-land operations. Thiese additions add value services along the logistics chain.

“Through our intermodal logistics operator, Global Container Services (GCS), we have an extensive network of road, rail, customs, logistics and warehousing facilities and services, so the carriers are happy to work together with diversified service providers such as GCS,” said Bubnov. “Having a strong local partner continues to be a competitive advantage for international players.”

The carriers aim to increase the number of vessels and the range of alternative port calls that they can offer to customers, so facilities are being upgraded and extended in many areas of Russia.

Bubnov emphasized that changing conditions in Russia requires companies to be flexible in order to meet customer needs and take advantage of business opportunities.
 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

CAGTC Members Win Big in TIGER VI

The U.S. Department of Transportation (USDOT) announced Friday that 72 projects will receive a total of $600 million from the sixth round of the Transportation

Ingalls Delivers NSC Hamilton to USCG

Huntington Ingalls Industries' (HII) Ingalls Shipbuilding division delivered the National Security Cutter Hamilton (WMSL 753) to the U.S. Coast Guard today. The

Commissioner Doyle Addresses NCBFAA

Federal Maritime Commissioner William P. Doyle spoke today at the National Customs Brokers & Forwarders Association of America (NCBFAA) Government Affairs Conference in Washington, DC.

Ports

Commissioner Doyle Addresses NCBFAA

Federal Maritime Commissioner William P. Doyle spoke today at the National Customs Brokers & Forwarders Association of America (NCBFAA) Government Affairs Conference in Washington, DC.

Port Manatee Begins Scrap Metal Vessel Calls

With the September call of the bulk carrier Sen Treasure, Port Manatee Scrap Metal Inc. is embarking upon exportation of scrap metal to Mexico from Port Manatee.

Portsmouth Marine Terminal Reopens Today

The Port of Virginia marks an important milestone Monday 14th September as Portsmouth Marine Terminal (PMT), closed for nearly three years, reopens to cargo operations.

News

CAGTC Members Win Big in TIGER VI

The U.S. Department of Transportation (USDOT) announced Friday that 72 projects will receive a total of $600 million from the sixth round of the Transportation

Seasat Wins Contract from Maersk Supply Services

Seasat A/S, the Danish communications services provider, specialized in delivering reliable broadband, television and voice services for the maritime market announces

Leaky Equipment, Not Fracking, Behind Tainted US Water -Study

The contamination of water supplies near U.S. shale gas fields appears to be the result of leaky cement wells and casings and not the controversial production technique of hydraulic fracturing,

Intermodal

USDOT Award Tiger Vl Maritime Grants

American Association of Port Authorities
 (AAPA) say that after evaluating 797 applications totaling requests for $9 billion for FY 2014 Transportation Investment

FMC Public Forum on US Port Congestion

Federal Maritime Commission (FMC) Chairman Mario Cordero will hold a forum titled, "U.S. Port Congestion: Examining Causes, Impact on Stakeholders, and Exploring Possible Solutions" on Monday,

Crowley Gets Small-Scale NFTA LNG Supply License

Crowley Maritime Corp. informs that its subsidiary Carib Energy LLC has been granted a 20-year, small-scale U.S. Department of Energy (DOE) export license for the supply,

Logistics

Mideast Crude Tanker Rates Near 3-month Low

Crude oil tanker earnings on the major Middle East route fell to their lowest in nearly three months as a slowdown in business in recent days battered rate sentiment.

Port of LA Container Volumes Strongest Since 2010

The Port of Los Angeles has released its August 2014 containerized cargo volumes. In August 2014, overall volumes increased 6.7 percent compared to August 2013.

Sharp Slowdown in China Industrial Activity

The slowdown in Chinese industrial production growth ads to the existing concerns that China is going through challenging times, as Beijing aims for a soft landing and a transition of the economy,

 
 
Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3359 sec (3 req/sec)