Vostochny port paves the way for increased loadings

Vostochny Port — the largest coal stevedoring firm in Russia's far east — is ready to complete the third development phase of its specialised coal terminal, boosting the terminal's capacity to 50mn-55mn t/yr, having handled 24.2mn t last year. This will allow Russian producers to raise coal exports to Asia-Pacific, which is a more attractive destination for Russian mining firms than Europe.

The port almost doubled its storage capacity and has built two new berths. The new coal-handling complex will be able to accommodate Capesize vessels of up to 180,000 deadweight tonnes.

Vostochny has extended the existing Nakhodka-Vostochnaya rail station near the port to increase throughput capacity. The firm built two rail yards — for receiving and dispatching — at the station.

Coal shipments from Vostochny are expected to stay flat or slightly increase this year from 2018, port management said. The port handled 13mn t of coal in the first half of the year, a 6pc year-on-year increase.

The port's clients remain unchanged. Vostochny is indirectly affiliated with Russia's second-largest coal producer and exporter, Kuzbassrazrezugol, which is the terminal's main supplier, but the port has agreements with many other coal exporters, including Kuzbasskaya Toplivnaya Kompaniya, SDS-Ugol, Suek and Kolmar, rail data show.

The main volumes of coal were exported through the port in the first half of 2019 to South Korea, Taiwan, China and Japan. Export destinations for coal through the port are expected to be unchanged at the end of the year.

Exports through Vostochny in 2018 accounted for a fifth of all coal exports through Russian ports and for 30pc of exports through Russian far east ports.

Find more news, price information and market analysis on Russian coal exports in Argus Russian Coal report.