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 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

RYDLYME Marine Selects GoM Distributor

RYDLYME Marine has named R Carter & Associates, Inc. of Mobile, Ala. a new stocking distributor for the Gulf of Mexico area, targeting shipyards, larger workboats,

MN 100: Elliott Bay Design Group

The Company: Elliott Bay Design Group (EBDG) is a Seattle-based, employee-owned enterprise with offices in New Orleans and Ketchikan that provides full-service naval architecture,

MN 100: Dometic Marine

The Company: Dometic Marine is an engineering leader of innovative products for the global marine industry and offers a large worldwide sales and service network.

Ports

Libya Plans to Sell Ex-rebel Tanker

Libya plans to sell a tanker that a former rebel group used in an attempt to bypass the Libyan government and export oil on its own last year, the Tripoli-based state prosecutor said on Thursday.

CMA CGM Launches 18,000 TEU Containership

Container shipping firm CMA CGM Group has taken delivery of its newest colossal containership, the 18,000 TEU, 400-meter-long CMA CGM Bougainville.   Now the

Busan Port Names Woo Ye-jong as New CEO

The Busan Port Authority (BPA) announced Woo Ye-jong has been named as its new CEO, as appointed by the Korean Ministry of Oceans and Fisheries.   Woo took office on July 31,

News

USCG AIS Mandate Resource Center Launched

McMurdo informs it has launched an online resource center at to help impacted vessel operators comply with the requirements of the United States Coast Guard (USCG)

Libya Plans to Sell Ex-rebel Tanker

Libya plans to sell a tanker that a former rebel group used in an attempt to bypass the Libyan government and export oil on its own last year, the Tripoli-based state prosecutor said on Thursday.

RYDLYME Marine Selects GoM Distributor

RYDLYME Marine has named R Carter & Associates, Inc. of Mobile, Ala. a new stocking distributor for the Gulf of Mexico area, targeting shipyards, larger workboats,

Logistics

Hoover Container Solutions Unveils Asset Tracer

Hoover Container Solutions, a subsidiary of Hoover Group Inc., and a global provider of chemical tanks, cargo carrying units and related products and services, has unveiled its new Liquitrac Tracer,

CMA CGM Launches 18,000 TEU Containership

Container shipping firm CMA CGM Group has taken delivery of its newest colossal containership, the 18,000 TEU, 400-meter-long CMA CGM Bougainville.   Now the

Mary Anne Rooney Named APP President

Mary Anne Rooney, Harbor Commissioner at California’s Port of Hueneme, has been named President of the Association of Pacific Ports (APP), a trade and information

 
 
Maritime Contracts Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics 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: 0.9265 sec (1 req/sec)