Jul
31
Active energy resources export policy of Russia gives a serious boost for development of transport infrastructure. Over half of country’s extracted oil is exported abroad and to CIS. The primary share of oil transportation is held by Transneft, whilst export of oil products is made through ports mostly. Share of Krasondar Krai’s ports in export of oil and oil products forms 25%. Over last 3 years coal export also grows at a fast pace. Back in 2007 the share of export coal formed 30% out of total extracted coal. Though about 80% of Russia’s coal is exported by sea. Over half of domestic transport hubs (about 46%) are located at Far East of Russia. Second place (42%) is held by ports of Baltic. Though coal export growth rates are faster than the actual extraction’s, within country. We tend to think that soon such trend will not only continue, but will also expand.
Coal prices doubles over last year, oil is currently traded above 120 USD per barrel. By the end of the year the average price of “black gold” could increase versus similar value of past year, upping +50%. The positive price environment supports accumulation of additional incomes by extracting companies, allowing the ports to raise prices of their services.
The development of RF’s transport infrastructure found support of the government. At the end of last year, some corrections to law of “Special economical zones in RF” were made. Resulting decisions are set to establish special economic harbor zones (SEHZ). Establishment of SEHZ should speed up the process of integrating Russia’s transport system into global transport system. According to ideas of officials – a more developed port infrastructure should relocate world cargo flows on Russia’s behalf, attracting foreign consumers of transport services into the country. The preferences in this issue are given to Murmansk, Ust-Luga, Vostochny, Novorossiysk, Kaliningrad and Olya port: these ports hold a strategic importance within country’s scale and are competitive, which is confirmed by the increasing flow of cargo.
In our report we review activities of Novorossiysk, Murmansk and Vostochy trade sea-ports. The focus was set at Murmansk port. For now it is seen as the most underestimated and promising, from financial values and business effectiveness standpoint. We recommend “BUY” stocks of Murmansk trade sea-port.
Ports: Remaining possibilities - July 31, 2008 (PDF)