UC RUSAL to participate in construction of Russian deepwater dry-cargo port

29 September 2013 (Last Updated September 29th, 2013 18:30)

Aluminium producer UC RUSAL, along with the Ministry of Transportation of the Russian Federation and the Government of the Krasnodar Territory, will participate in the construction of the dry-cargo port at Taman in Russia.

Aluminium producer UC RUSAL, along with the Ministry of Transportation of the Russian Federation and the Government of the Krasnodar Territory, will participate in the construction of the dry-cargo port at Taman in Russia.

The project agreement, which is slated to be signed at the XII International Investment Forum Sochi-2013, is part of RUSAL’s strategy to reduce operating costs and ensure transport security through logistic optimisation.

To be built in a public-private partnership, the project’s overall construction cost is estimated to be around RUB228.04bn ($7.02bn), while the private investment required to build the terminals will be RUB112.54bn ($3.46bn).

Of the total budget, RUB115.5bn ($3.55bn) will be invested in public property, including RUB76.04bn ($2.34bn) from the state budget and RUB39.46bn ($1.21bn) from the private budget.

The port will have an annual cargo turnover of around 95 million tonnes.

UC RUSAL plans to use the port as an alternative to existing ports around the Azov and Black seas, which are used for exporting products such as aluminium and alloys.

RUSAL first deputy CEO Vladislav Soloviev said RUSAL is eager to take part in the project because public funds will be attracted to create the port’s infrastructure.

"[The project] will allow the company to form one of the most effective ports in the south of Russia and, as a result, to provide shippers with a controlled quality of stevedoring," Soloviev added.

Construction of the Taman port will start in late 2013 or early 2014 and is expected to be completed by 2020.