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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Offshore Casualty: Harkand Group Collapses

As the prolonged slump in energy prices continues to drag on a number of oil and gas and maritime players, word has it that Harkand Group has succumbed, according to staff reports and a report on www.

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

Shell Presents Crewmember Safety Awards

Shell Shipping and Maritime, Americas recently held its third annual Goal Zero Hero Awards dinner in Houston, recognizing the crewmembers of 21 contracted/chartered vessels,

Ports

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

GPA Will Continue Weighing Containers at No Cost to Shippers

The U.S. Coast Guard announced last week that state-calibrated scales already in use at the Port of Savannah meet a new requirement of the international Safety of Life at Sea (SOLAS) Convention.

Maersk Returns to Liverpool

Maersk has been welcomed to the Port of Liverpool with a formal reception for its feeder vessel Antwerp. The event on April 27 was attended by Seago and Maersk representatives along with customers,

News

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

GPA Will Continue Weighing Containers at No Cost to Shippers

The U.S. Coast Guard announced last week that state-calibrated scales already in use at the Port of Savannah meet a new requirement of the international Safety of Life at Sea (SOLAS) Convention.

ITIC Reports on Ship Agents' Costly Transhipment Errors

International Transport Intermediaries Club (ITIC) says it continues to deal on a regular basis with claims resulting from errors by agents involving transhipment cargoes.

Logistics

GPA Will Continue Weighing Containers at No Cost to Shippers

The U.S. Coast Guard announced last week that state-calibrated scales already in use at the Port of Savannah meet a new requirement of the international Safety of Life at Sea (SOLAS) Convention.

Slower Demand for Larger Vessels Drags Baltic Index Lower

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday due to diminishing demand for larger vessels.

Maersk Returns to Liverpool

Maersk has been welcomed to the Port of Liverpool with a formal reception for its feeder vessel Antwerp. The event on April 27 was attended by Seago and Maersk representatives along with customers,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1682 sec (6 req/sec)