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Russia restructures its Black Sea ports
Russia
Friday 23 July 2010
FJ
Russia leads a vast operation of restructuring of its Black Sea ports.
As Russia restructures its Black Sea ports, closing some and opening others, the Kavkaz Port is set to be key for Turkey with both countries likely to manage a logistics base jointly there.
Preparing for the 2014 Winter Olympics, Russia has announced that Sochi, a popular tourist destination, will close its port to cargo vessels as of September. Moreover, Russia plans to change Novorissiysk Port, which functions as a key port for Turkish exports such as fresh fruit and vegetables, into a tourist port.
Russian authorities have offered Turkish vessels the use of Port Kavkaz, located on the Kerch Strait in Krasnodor Krai. The port is currently undergoing renovations with an extension to its base, yet it remains operational. According to sources, the Russian Transport Ministry has allocated a budget of $100 million for the harbor’s restructuring.
According to Russian federal projections, the works will be completed by 2012. Russian authorities are already engaged in extensive preparations for the port and negotiations with Turkish counterparts are ongoing, business daily Referans has learned.
Russian made a proposal to allocate suitable land for constructing a possible “Turkish-Russian joint logistics center.” Russian authorities have also asked Turkish officials to administer the center cooperatively, but also said the financing should come from Turkey.
Turkey is Russia’s fifth largest trade partner. In the first half of 2010, Turkish exports to Russia totaled $2.04 billion.
Source : hurriyet daily news.
