Global Ports Investments (Global Ports) has said it will shift the core focus of its business to containerised trade, particularly in the Far East, after the Russian market grew by 13.3% year-on-year (YoY).
In a statement, the terminal operator said market factors such as increasing freight rates and a lack of empty containers means market players are looking for faster container import and export supply chains.
As a result, Q2 market growth was concentrated in the Far Eastern basin – Q2 2021: +18.1% YoY and the Southern basin – Q2 2021: +11.2% YoY.
On the back strong growth of the market in the Far East, the decision has been made to gradually cease coal handling at VSC and concentrate on the Group’s core strategic operations of driving container volumes.
This decision will enable the Group to decrease its environmental impact from the third quarter of 2021 and capture the growth opportunity presented by the increased sustained demand for container import and export flows as well as steadily growing transit volumes seen at VSC.
Combined throughput of terminals located at the Port of Saint Petersburg and the surrounding area demonstrated signs of recovery with Q2 2021 volumes up 4.3% YoY after an 11.9% YoY decline in Q1 2021.
Albert Likholet, CEO of Global Ports Management, commented, “Over the period, the Russian container market was strong in all segments and across all basins as rapid import recovery, continuing growth of full export, and booming transit volumes has enabled an acceleration of its growth in Q2.
“Our agile asset base has always meant that Global Ports has been well-placed to navigate any challenges and benefit from any market uplift, and we have remained adaptable, taking an opportunistic approach to additional revenue streams.
“Furthermore, the impact that our business has on the environment has always been an important consideration for us.
“VSC container handling growth in the second quarter of 2021 was 23.4% y-o-y with the terminal posting the highest monthly container volumes in its history so far this year, and we see further growth potential to come.
“Therefore, in the current environment, it makes strategic sense to prioritise container volumes in the Far East, delivering a lower environmental impact, which has always been at the core of our Group strategy.”