Case Study: The Tuapse Port Authority

The Tuapse Port Authority

The present Port Authorities of Russia (PAR), including the Tuapse Port Authority (TPA), were founded by the Russian government in June 1994, two years after the country's mainstream voucher privatization programme, which itself created total administrative disorder in the sea-borne ports of entry into the Russian Federation. The Russian government subsequently equipped the TPA with hydraulic engineering facilities, roads, grid networks, vessels which together comprised an ecological and rescue fleet, and entrusted the TPA with the responsibility of ensuring the safety of navigation and order in port. The full realization of this task necessitates adherence to the laws, regulations and international treaties on trade navigation to which Russia is a party, and to further build on this adherence by the strengthening of the present port facilities and the construction of new ones. In the latter context the TPA is now beginning to play the role of customer to the Russian government.

Within the context of the construction of new port facilities, the TPA is in the process of a major port expansion project. The TPA has developed a strategic plan for the development of the Tuapse Port marine transport unit, its renovation within the boundaries/protective barriers of the existing port, and the construction of a new port, entitled 'Kadosh', which is approximately four miles away from the existing port. This complex port development project was launched on the basis of the Order of the Council of Ministers of Government of Russian Federation No. 996 of 8 October 1993, which was 'about the implementation of prime measures of revival of a merchant fleet in Russia'. The TPA's port development project has been assessed and approved by numerous experts, and is supported by the Ministry of Transport of the Russian Federation, and the state government of Krasnodar (the region in which Tuapse is located).

The TPA's port development project consists of two phases:

The First Phase: construction aiming to increase the cargo-processing/ handling volume capacity of the port of Tuapse, which itself consists of several stages:

a) Construction of the deep water oil terminal No. 1A, capable of handling vessels to a dead-weight capacity of up to 150,000 tonnes. The normative volume of handling petroleum products is nine million tonnes per year. Estimated construction time is put at three years. The potential investor is joint-stock company Rosneft.

b) Construction of dry-cargo piers Nos. 9A and 9B. The normative volume of handling general cargo is one million tonnes per year. Estimated construction time is put at two years. The potential investor is joint-stock company Tuapse Commercial Seaport.

The TPA is presently moving towards the realization of steps a) and b) of the first phase as outlined above.

The Second Phase: aims to increase the freight turnover of Tuapse Port to 29.2 million tonnes per year, by way of building a new port -Kadosh. Kadosh Port will consist of 22 piers (general length of 4950 metres) and breakwaters of 6050 metres. The construction of the following complexes is planned for the Kadosh Port project:

a) a specialized complex for the processing of liquid chemicals;

b) a specialized complex for the processing of bulk chemical freight;

c) a coal-ore complex;

d) specialized complexes for the handling of general cargo, including a container terminal, a terminal for handling general cargos for open storage, general cargo for covered storage, and other general cargo.

The time estimated for the construction of Kadosh is ten and a half years; an investment in the area of US$2050.5 million is envisaged (port complex: US$1668.9 million; external and internal railways: US$315 million; transport engineering infrastructure and housing: US$66.6 million). Kadosh will supply Russia's requirements in marine overload complexes on her southern frontiers until 2040.

Out of the deliberations of the documentation prepared for the TPA's port development project, a protocol was signed for the financing of the second phase of the project. The resulting feasibility study stipulated that the long-term construction of Kadosh Port would be financed by a group of Swiss banks. The realization of such a significant investment must be taken as a very prospective opportunity for potential foreign investors.

Among some of the most important responsibilities entrusted to the TPA by the Russian government are the following:

to increase the safety of navigation;

to reduce navigational accidents and prevent catastrophic marine pollution;

to strengthen state shipping controls and economic activities in the waterways of the Russian Federation and the national economic area.

In order to carry out these tasks, the TPA had to establish and put into operation the following:

regions Al of the global marine distress search system (GMDSS) with the reliable VHF communication;

the vessels traffic control system (VTCS) in the port and on the port approaches;

the differential global navigation safety system (DGNSS) using GPS and GLONASS global satellite systems.

At the end of 1998 the TPA built a base station: GMDSS. The base station was one of the first GMDSS systems brought into operation in the Russian Federation and, on the admission of experts, one of the best in Russia. It was created on the basis of modern communication equipment employing off-the-shelf computer know-how and, due to operations at a dominant altitude, provided constant and reliable radio communication to a region with a radius of 46 nautical miles.

The TPA is currently engaged in the creation of a management system for the shipping/navigation industry which is based on revision of Chapter V 'on Safety of Navigation' of the Convention on the Safety of Life at Sea SOLAS-74. The newly created system will itself be a physical complex, comprising traditionally used methods for navigating shipping traffic such as the radio (radar)-locating station (RLS), automatic identification system (AIS), and control-correcting differential station of global navigational satellite systems GLONASS and DGNSS. Work on the Tuapse Port's VTCS project is expected to be completed by the middle of 2001. The creation of the control centre and control of shipping traffic in the waters around the Port of Tuapse will increase the safety of navigation, decrease the likelihood of shipping accidents, help to avoid ecological catastrophes and make the Port of Tuapse more attractive for ship-owners. Simultaneously to the above, the TPA has also sought to improve the living conditions of its employees, by constructing individual cottages and apartment blocks for them.

It is true to suggest that the work of the TPA represents the first stages of the re-birth of the Russian fleet. The administration of the TPA cooperates with the maritime administrations of the ports of Russia, Russian and foreign ship-owners, scientific research institutes, stevedoring companies, agencies, and forwarding and other corporations involved in marine activity.