Blomerin Marine Ltd participated in the 4th Coaltrans Russia conference that was held in Moscow on 30-31 March. The conference brought together over 200 delegates (over 70 companies from 26 countries). Despite the global financial crisis and price fall, the imports-exports of coal remained relatively high in the first quarter 2009 compared to the same time period a year ago, the South Asian region remaining the major importer of coal products.
Due to the geographical location of the principal Russian coal mining and refining operations, the Far East ports enjoy the most favourable position for handling coals.
Moreover, the decline in production of Russian metallurgical enterprises has resulted in additional free coke and coking coal volumes in the domestic market, which has stimulated producers to search for alternative markets, mainly export markets.
However, the continuing construction of coal terminals in Vanino port and reconstruction of coal terminals in Vostochny port has lead to the Far East ports capacity deficit.
Conversely, the price parameters of coal export contracts and land transportation costs are not favourable for shipping coal production via the Black and Baltic sea ports. Blomerin has been providing freight services to JSC KOKS (member company of Industrial Metallurgical Holding) and is interested in further development of this business segment of the freight market.