Russia’s Novorossiysk Commercial Sea Port plans to invest $205 million to expand capacity and modernize facilities at a container terminal in the Black Sea port of Novoroslesexport to keep pace with the rapid growth in the nation’s box traffic.
The company has signed an agreement with the city of Novorossiysk to boost the terminal’s annual capacity to 700,000 20-foot-equivalent units by June 2015.
NCSP will also build a third railroad track to the container terminal and convert part of the facility into a storage area.
The London-listed company is facing competition from domestic rivals that are also boosting terminal capacity as the country embraces containerization amid surging imports.
Russia will be one of the fastest growing container markets over the next decade with an average annual growth rate of 10 percent, according to Drewry, a shipping consultancy.
NCSP boosted total traffic at Novorossiysk and the Baltic ports of Primorsk and Baltiysk by 6.2 percent in the first half of the year to 81.6 million metric tons, but container volume grew only 1.6 percent to 319,000 TEUs.
Rival Global Ports, by contrast, boosted first-half box traffic by 6 percent to 709,000 TEUs to consolidate its ranking as Russia’s biggest container handler, with a 30 percent market share.
Its position was further strengthened earlier in the month when APM Terminals, the port arm of Denmark’s A.P. Moller-Maersk, acquired a 37.5 percent stake in the London-listed company for $860 million.
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