On November 17 the 7th Conference “HEAVY RUSSIA” organized by International Business Forum (IBF) took place in Moscow.

This conference is the annual platform and this challenging year the forum gathered more than 220 delegates from 16 world countries: Russia, Belarus, Ukraine, Germany, Italy, Turkey, Estonia, Latvia, Lithuania, Finland, Romania, USA, Denmark, Belgium, Uzbekistan and Kazakhstan.

The event was sponsored by Volga-Dnepr Airlines, Instar Logistics, COMETTO, InSpetsTekhnika, Romek and STENA LINE.

This time we could not leave aside the issue of economic downturn in Russia. The first session of the conference was fully devoted to this problem.In his speech, Igor Pomochilin, Head of Logistics Service of Volga-Dnepr, talked about some disappointing figures. In the current year there was a reduction of import freight traffic (by 34%), machines, equipment and vehicles (by 50%), foodstuffs (by 7-10%). International motor transportation cutback in the European direction came up to at least 65-70%. According to the speaker, serious alterations of routes and supply chain complication are already ongoing which has pushed up demand for complex logistic services.

AleksandrShelkov, General Director of Instar Projects, suggested his own formula of dealing with recession. The Company is actively entering the CIS/non-CIS markets and seriously differentiating business operations. As an example, he shared good practices of transporting equipment in Mozambique, where the Company had to face poorly developed infrastructure and win over loyalty of native tribes.

Traditionally, the busiest discussion was related to the government regulation of the branch. First of all, this involves timescalesand procedure of OOG transport permitting, issue of corruption in regulatory authorities, as well as new legislative initiatives. Unfortunately, officials did not presume to meet business representatives face-to-face, and the latter had to discuss it in their own circle.

Natalya Timofeeva, Chairperson of Oversize, Heavy and Hazardous Cargo Haulers’ Union, summarized the accumulated problems. In her view, federal and regional highways are in a poor condition only because the “road authorities” themselves do not do anything. It is no good throwing the book at the haulers. There are people who are reluctant to make decisions due to their own interests and pursue hard resistance to officials. Natalya believes that the Ministry of Transport shall solve the issues and problems instead of washing hands and adopting the laws of prohibitive and restrictive nature only. For the last 5 years there hasn’t been any easing or simplification of legislative procedures. All the passed laws only made the life harder for the forwarders, including payment collection. The law makers took a stern position full of restrictions and prohibitions for the transport field. They have found who to blame: oversize carriers are accused of all problems in general, including poor road conditions. These carriers fill just 3% of the freight traffic sector of Russia and in her opinion they cannot damage all the roads in our country.

We have established a good tradition to devote one session to implementation of large-scale projects of the outgoing year. So, Anatoly Koveza, Head of Project Transport Department of CMA CGM Logistics Russia, shared Company’s competence in delivering abnormal components of VITYAZ-M gantry crane to the Russian North.Transportation task was much complicated by extreme water level drop in Russia’s inland waterways at the end of summer 2015. For instance, it has been the first dramatic water level drop in Tsimlyansk Reservoir (used for determining navigable depths downstream) since 1975. At some stages they managed to pass the shallow areas with draft on an even keel 2.04m, maximum allowed draft being 2.05m.

The “low water” subject was followed up by Oleg Tolochyok, Director of Volga-Don-Transservice. His company successfully delivered 2 hydrotreatment reactors R-501 (weighing 227 tons) and R-502 (weighing 255 tons) from Volgodonskacross Ukraine to Mozyr Oil Refinery (Belarus). There were no problems from Ukrainian side in the course of this shipment, but it was unexpectedly impacted by natural forces. On July 18, 2015 upon crossing Kyiv Reservoir in the vicinity of Chernobyl, the tug/barge towing arrangement ran aground in the mouth of Pripyat River for the first time. Meanwhile, abnormal and steep water level drop in Pripyat River was initially reported. Additional tugboats and a dredge ship were engaged in rescue operation of bringing the TBTA afloat and were involved for the entire travel route to destination. From this moment the convoy undertook heroic passing of 108-kilometer long waterways and 84 rapids in Pripyat River. On some rapids the water level was just 40 centimeters. It took 98 days to cope with force majeure in the area close to Chernobyl NPP.

Another challenge was faced by Instar Projects – delivery of waste-heat boiler modules for TPPs in Tashkent and Talimarjan (Uzbekistan) from South Korea, Vietnam and China. Total volume of cargo made 20,750m3, weight – 7,223 tons. In his speech, AleksandrShelkov, General Director of Instar Projects, expanded on haulage stage from the ports of Aktau and Kuryk to construction sites in Uzbekistan. Land transportation length made 1,872 kilometers. Summing up – bad roads, no certificates of bridge structures, non-paying clients – all these issues make transportation in this direction a rather risky undertaking.

The subject of serious risksrelated to heavy lift was followed up by Sergei Ovsienko, General Director of Beluga Projects Logistic. One of the landmark projects of cargo delivery to High North region consisted in transporting 2 coke drums from Spain to Tyumen. Total weight of the items was almost 1,000 tons. Transportation route was rather specific. One and the same dumb barge assisted by different tugboats covered about 9,000 kilometers from the Port of Gijon along the Northern Sea Route, Port of Sabetta (Russia) and the mouth of Ob River to the berth in Tyumen (Russia).

Following the customs clearance in the Port of Sabetta, the cargo was up to the continuous and hard passage along the inland waterways from the mouth of Ob River via rivers Ob, Irtysh, Tobol and Tura to reach Tyumen. It is worth mentioning that Tobol and Tura rivers are not included into the Russian register of navigable rivers because of the low water level. In other words, shipping on these rivers is possible provided that a carrier bears the whole risk. The risk was substantial. Clear enough that a river level can be considered as an average only – the nature of bottom is always different and a lot depends on towers’ experience. Any contact with the bed may be hazardous. Nevertheless, on the last day of high water on September 05, 2014 the barge approached the berth in Tyumen and was successfully moored. Extension of the entire water route of the laden barge upon its leaving the Port of Gijon made 57 days.

A special place at the Conference of 2015 was taken by operations in the Arctic and High North. Thanks to mineral deposits and numerous projects on their development and processing, this region remains one of the most interesting for project forwarders. At the same time this is the most “problematic” region, both because of its geographical remoteness and in terms of infrastructure and climatic aspects. Igor Krotov, Shipping Coordinator of SOUTH TAMBEY LNG expanded on all logistic aspects for the Arctic projects. STL are constructing the first LNG plant in the world above the Arctic Circle.

Another topic of 2015 was devoted to Ro-Ro line operations. For the last few years Russian companies have been using potential of ferry lines for shipping export and import cargoes more and more often. No wonder, as this is one of the most convenient and affordable ways to deliver cargoes over long distances. The lines ensure all-year-round timetable, reliable and quick Ro-Ro transportation, as well as shipment of outsized, project and general loads. High-speed trains Lastochka, boost rockets Souyz-ST for Guiana space center – this is just a little part of unique items carried by Ro-Ro lines.

One of the players working in this market is STENA LINE. Boris Danilevich, Logistics Manager, highlighted the possibilities of oversize freight through the Baltic ports offered by his company.

Another member of this market – HoeghAutoliners – has been working with domestic companies not for the first year. MaksimLukonin, Head of Sales Department of HoeghAutoliners Agency Russia, took the floor to say that unfortunately Ro-Ro segment of the Russian transport market was as much impacted by current economic downturn as other sectors. For example, import of construction gear in January-May 2015 dropped by 75% if compared with the same period of 2014. In 2012 import of construction gear in Russia amounted to almost 42,000 units, moreover, situation in 2015 implies that we can count on far fewer figures, just about 6,000 units. Drastic reduction of import freight flow influenced short-sea carriers in the first place. They offer on-the-spot service from Europe to Russia.

Not for the first time “HEAVY RUSSIA” event touched upon the latest technologies which make the life easier for the forwarders of super heavy loads. Thus, InSpetsTekhnika presented solutions for complicated and special transport tasks using professional hydraulic lifting devices ENERPAC. Of special interest to the delegates was application of up-to-date fastening systems for oversize carriers. ROMEK shared its technical solutions in this field. Conference delegates were also introduced to potential of COMETTO’s modular systems and self-propelled module transporters used for carrying extra heavy items.

If you are interested in further details on the Conference, feel free to contact our Organizing Committee at +79263772080 or e-mail: info@ibforum.ru