Intercontinental maritime trade always was basis for successful development of leading countries economies around all the world. In the context of temporary economic sanctions applying against the Russian Federation extention of economic cooperation between Russia and the Asia-Pacific region (APR) and Latin America countries with arrangement of 2 active permanent ocean trade lines becomes particularly important.
Taking into account the above the Dobrynya Group together with the Partners from Russia has prepared a Project for a phased (up to 15-17-20 years) reconstruction of the sea port existing in the city of Sevastopol and construction on the territory aggradated at the sea in the same area of a new seaport with deep-water berths of threshold depth from 8 to 17 meters and total length of 24.3 km for annual cargo transshipment up to 280 million tons.
Project of a new Trade and Transport Company establishment (TTC)
The first step for implementation of the Project for reconstruction of the existing port and construction of a new modern seaport in Sevastopol which within 15-20 years should become one of the 20 largest ports in the world may be establishment in Russia in 2025-2027 of a new Trade and Transport Company (hereinafter referred as TTC). The Project assumpts involvement to the TTC of a number of large private companies from the Asia-Pacific region and Asia (Türkiye, China, India, Singapore, UAE, etc.), with the participation of a number of interested leading public and private companies and government bodies of Russia (Rostech Group, Rosneft Group, PJSC Lukoil, JSC Russian Railways, Stroygazmontazh Group of Companies, etc.), BRICS member countries and interested countries (public-private partnership in accordance with the Russian Federation legislation). The TTC may be established as a public joint stock company with the head office in Sevastopol and subsequent phased registration of branches (subsidiaries) in Rostov-on-Don, Hong Kong, Singapore and Montevideo.
The Project initiators propose the following main activities of the TTC:
- Stabilization of the operation of the Sevastopol Sea Port during 2025-2027 with arrangement at the initial stage of stable cargo traffic through the SSP: a) from the ports of Rostov-on-Don and Novorossiysk (food in containers for Sevastopol and the Crimea from Stavropol, Krasnodar territories and Rostov-on-Don region); b) export-import of goods and special-purpose goods in the direction from the Sevastopol Sea Port to the ports of Istanbul, Iskenderun (Türkiye), the port of Tartus (Syria) and back.
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Investments attracting and equity participation in the phased reconstruction and significant extention of the Sevastopol Sea Port with the 24.3 km deep-water berths (8-17 meters) constructing and achieving the volume of annual cargo transshipment up to 280 million tons.
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Establishment of its own new maritime shipping company and shipping company for inland river-sea transportation. Arrangement of permanent service by own fleet of two new ocean lines Sevastopol Sea Port - Asian countries ports –Asia-Pacific countries ports and Sevastopol Sea Port - Latin America ports (see the diagram). Arrangement of exported cargoes transportation by its own and chartered vessels and barge caravans from Russian ports in the Volga and Kama River basins, as well as by own cargo trucks and by railways from various regions of the Russian Federation, including the Ural region, to the Sevastopol Sea Port with following transshipment to own sea vessels of 5,000 - 75,000 tons deadweight for delivery to ports of Türkiye, Syria, Egypt, the United Arab Emirates, Iran, India, Singapore, Indonesia, Vietnam, China, South Korea and other Asian and Asia-Pacific countries, also to ports of Latin America and delivery of imported goods on back routes to the Russian Federation.
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Export trade of cereals, vegetable oils, rolled metal, timber products, machine-building products and other goods produced in the Russian Federation.
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Import trade of food and goods produced in Asia, Asia-Pacific and Latin America.
Handymax-class bulker
Handysize-class bulker
Elevator and combined fodder mill of the SKESS Corporation (Russia)
Grain elevator of the SKESS Corporation (Russia) in a seaport
Sevastopol Sea Port (Russia)
Shanghai Port (China)
Port of Montevideo (Uruguay)
Port of Santos (Brazil)
Hong Kong Port (China)
Jawaharwal Nehru Port (India)
Busan Port (South Korea)
- Arrangement of permanent work together with interested private large, medium and little companies from the Asia-Pacific countries (joint ventures for transportation of exported-imported cargoes from the ocean ports of these countries by inland waterways and arrangement of logistic schemes for delivery of exported-imported goods according to "river-ocean-river" scheme on the "door-to-door" principle. Placing orders for constructing of inexpensive tugboats and barges in Russia and South Korea to form towed caravans for usage in the navigable rivers basins of their countries.
- Assistance to large corporations from Russia and Asia-Pacific countries (India, China, South Korea) for selling of their engineering products (including shipbuilding) in Latin America and Africa.
Combine harvester of Rostselmash JSC (Russia)
Forage harvester of Rostselmash JSC (Russia)
Aircraft of Rostech Corporation (Russia)
Helicopters of Rostech Corporation (Russia)
Helicopters of Rostech Corporation (Russia)
Schemes of new ocean trade lines of Russia
The scheme of river-sea transportation along the inland waterways of Russia
Reconstruction and extention of the Sevastopol Sea Port
Scheme of new Sevastopol Sea Port berths in Kamyshovaya and Kazachaya bays
The scheme of the aggradated territory in the Chersonesos peninsula area
Scheme of new Sevastopol Sea Port berths at the mouth of the Chernaya River
It is proposed to carry out reconstruction of existing berths in the Sevastopol Sea Port and construction of new berths with the aggradation of new territories in the sea in the period until 2042-2047 on the public-private partnership basis with the involvement of investments from a number of corporations from Russia, India, China, Türkiye, the UAE and Singapore.
The project assumpts the reconstruction and extention of the Sevastopol Sea Port in 3 bays - at the mouth of the Chernaya River, at the bays of Kamyshovaya and Kazachya, as well as work on the new territory aggradation at sea in the area of the exits from the bays of Kazachya and Kamyshovaya (see schematic maps No. 1,2,3).
The project assumpts constructing of 8 cargo areas of the Sevastopol Sea Port on the territory of the Sevastopol FEZ (free economic zone) with deep-water berths with the threshold depth from 8 to 17 meters with a total length of 24.3 km. All cargo areas to be specialized in handling of various cargo types. Constructing of various specialized terminals, factories and refrigerating warehouses is envisaged on the territory of these 8 cargo areas, in particular:
- Container terminals and container storage sites.
- Storage facilities and terminal for transshipment of petroleum products.
- Storage facilities and terminal for transshipment of vegetable oils.
- Storages facilities and terminals for storage and transshipment of grain crops.
- Terminal for storage and transshipment of rolled steel and pipes.
- Terminal for storage and transshipment of packaged forest products.
- RO-RO terminal.
- Warehouses for general cargo.
- Sunflower oil production plant.
- A plant for the producing of food products based on Antarctic krill and tuna meat.
- A complex of factories to make products based on high-tech processing of Antarctic krill to produce chitin and chitosan: 11.1. medicines and bio-active supplements; 11.2. perfumery products; 11.3. components for cleaning of waters from oil and oil residues.
- A complex of factories to produce high-tech (innovative) products based on modern achievements of Russian research and industrial companies and military-industrial complex companies in the field of nano-technologies, applied for space technologies, nuclear industry, aircraft constructing, etc.
- A plant to produce compound feeds for aquaculture, cattle, pigs and poultry with the addition of krill flour (for export and for domestic market of the Russian Federation).
- A plant to produce soybean meal for domestic market of the Russian Federation.
- Factory to produce furniture for export.
- A plant to produce boilers and solid waste disposal systems (for export and for domestic market).
- Refrigerating storehouse for vegetables and fruits.
- Refrigerating storehouse for meat and meat products.
- Refrigerating storehouse for fish and fish products.
According to the Feasibility Study developed in 2017-2018 by the Initiators of the Project, the total cost of work for construction of new berths and territories, as well as modernization of existing Sevastopol Sea Port berths, for construction of a new 2-track railway for the Kerch-Simferopol section, a single-track road on the Simferopol-Sevastopol section (including the section from Inkerman-2 station to the station of Kamyshovaya), with a total length of 295 km, and modernization of existing single-track lines, amounts to 384,951,742.67 thousand rubles.
Taking into account the additional costs of Sevastopol Sea Port territory extention for purchasing of buildings, structures and grounds existing in the area of the Sevastopol Sea Port territory belonging to a number of private companies and individuals, as well as the need to ensure navigation safety, purchase new vessels for the Sevastopol Sea Port fleet and 51% of the cost of purchasing a group of used sea vessels to service 2 permanent trade lines Sevastopol Sea Port – ports of Asia - ports of the Asia-Pacific region and Sevastopol Sea Port - ports of Latin America the total cost of financing the Project from the federal budget for 15-20 years (2027-2042-2047) may amount to 400.0 billion rubles (including VAT 18%, costs are calculated in 2018 prices).
The volume of various cargoes transshipment and the length of berths in the largest ports of the world (2016). Table 1
Main particular and economic indicators of the Azov-Black Sea basin ports based on data from annual reports for 2016. Table 2.
Main data on the exports structure from the Russian Federation in the 1st half of 2017 and prospects of exported goods structure from the Russian Federation via the Sevastopol Sea Port in 2040. Table 3.
Calculation of revenues to the Federal budget of the Russian Federation in the form of Customs dues for a number of exported goods shipped via the Sevastopol Sea Port in 2040. Table 4
Total value of exported goods (excluding 5%) transshipment at the Sevastopol Sea Port in 2040 may amount to 2476.89 billion rubles + 857.39 billion rubles. = 3,334.28 billion rubles, which will be 60% of the total transshipment at the Sevastopol Sea Port in 2040. Taking into account that under the Unificated Customs Tariffs Code for Foreign Trade Activity of the Euro-Asian Economic Union, import and export dues for the same types of goods are identical and ranged from 5% to 18%, as well as availability of VAT for all types of imported goods, the minimum amount of Customs dues for imported goods transshipped via the Sevastopol Sea Port in 2042 may amount to 3.334.28 billion rubles. x 40% x ( 5%+18%)/2 = 306.75 billion rubles.
Payments to the budget of the Russian Federation in form of taxes from the Sevastopol Sea Port for cargo transshipment and Customs dues for exported and imported goods handled at the Sevastopol Sea Port in 2040 may amount to 10.91 + 314.17 + 306.75 = 631.83 billion rubles per year (calculations are given in 2017 prices, therefore they are subject to recalculation taking into account the level of inflation and other factors while developing of the business plan by a working group under the Ministry of Economic Development).
Conclusion:
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If the designed capacity for transshipment of up to 280 million tons of cargo per year will be reached within 15-17-20 years, the Sevastopol Sea Port together with the Partners for arrangement of permanent exported-imported cargoes traffic will be able to ensure a refund (in the form of taxes) to the budget of the Russian Federation of all funds spent for implementation of the Federal Target Program for development of the Crimea within 5-7 years (!) and Sevastopol, including all expenses from the Federal budget for equity participation in reconstruction and extention of the Sevastopol Sea Port, for construction and modernization of the Kerch-Simferopol- Sevastopol Sea Port railway section, construction of Simferopol Airport, 2 power plants, the Tavrida highway and the Crimean Bridge.
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Russia will get a new modern non-frozen deep-water port in the southern area, which will be of strategic importance for the sustainable development of trading relations with the countries of Asia, the Asia-Pacific region and Latin America, and will greatly contribute to the development of the economy of the European part of the Russian Federation.