URALCHEM and Ultramar sign agreement on construction of port facilities in Ust-Luga
URALCHEM Holding P.L.C. and Ultramar LLC announce their strategic partnership and signing of a Memorandum on Cooperation. The document was signed by URALCHEM General Director Sergey Momtsemlidze and Ultramar General Director Andrey Bonch-Bruyevich at the KHIMIA-2018 international exhibition.
According to URALCHEM, the documents specifies the terms of cooperation and partnership in respect of Ultramar’s project on construction of port infrastructure facilities intended for transshipment of dry mineral fertilizers at the new terminal of Ust-Luga port with further creation of a multifunctional terminal of up to 12 million tonnes in capacity.
Sergey Momtsemlidze comments: “The Memorandum on Cooperation with Ultramar was signed as part of a comprehensive approach to improvement of our company’s efficiency. Designing and construction of a new port terminal by Ultramar, particularly for the needs of URALCKEM, is to ensure a guaranteed access of our company’s growing volumes to port infrastructure. That will provide for shifting our cargo flows from the ports of the Baltic states and let reduce general transport costs. Upon completion of the construction and obtaining of all the permits, additional transshipment of URALCHEM cargo via domestic ports can exceed 2 million tonnes per year”.
Andrey Bonch-Bruyevich emphasized in his turn: “There are two key factors providing for implementation of an ambitious investment project: deficit of port facilities and further development of Ust-Luga port’s railway infrastructure. As of today, the deficit of facilities for transshipment of mineral fertilizers at the ports of the North-Western Region of the Russian Federation is estimated at 10 million tonnes per year. According to the manufacturers’ estimates, export potential is to start growing from 2020. However, implementation of this project would not be possible without Russian Railways … which continues intense development of Ust-Luga port’s infrastructure creating a background for further growth of the port’s throughput. I would also separately note the support of the Leningrad Region and the Kingisepp District authorities as well as the Ministry of Transport of the Russian Federation”.
URALCHEM Holding P.L.C. is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS. The company has facilities available for production of over 3 million tonnes of ammonia, 3 million tonnes of ammonium nitrate, 1.2 million tonnes of urea and 1 million tonnes of phosphate and compound fertilizers per year. URALCHEM Group is the largest ammonium nitrate producer in Russia and the second largest ammonia and nitrogen fertilizer producer in Russia.
Ultramar is engaged in the provision of a full range of services in the field of stuffing, transportation
and logistics of mineral fertilizers in containers or breakbulk from the terminals of Saint Petersburg
port and of port of Ust-Luga worldwide. So far, Ultramar is one of the largest Russian freight forwarders of mineral fertilizers in containers.
Commercial sea port of Ust-Luga is located in the Luga Bay in the Gulf of Finland (near the Ust-Luga settlement in the Leningrad Region, North-West of Russia). The port commenced its operations in December 2001. Ust-Luga is Russia’s largest and deepest port in the Baltic Sea. As of today, it has 12 terminals and a state-of-the-art railway yard. In 2017, the port handled more than 103 million tonnes of cargo (+11%, year-on-year).
