Russian shippers looking abroad
LACK OF port capacity and corruption in Russia is forcing the country's shippers to do business elsewhere, British consul general for Russia William Elliott told Fairplay today at a London Ports and Terminals Groups meeting.
Some Russian businessmen are opting to pay higher prices to use foreign ports such as Tallinn in Estonia, which offers greater efficiency and is usually ice-free.
But Elliot added that it should not be assumed that foreign ports are taking business away from Russia, as insufficient capacity – particularly for containerised cargo – is a major problem for the country. Only 16% of Russia’s throughput is containerised, putting it “out of kilter with the rest of the world”.
According to Elliott, the Russian government has earmarked £14Bn to raise standards at the country’s ports over the next five years. But whether ports will actually receive these funds in light of Russia’s growing economic problems is uncertain. “The government is nervous that it may need that money,” said Elliot.