The Russian government is preparing to build a new deep-sea port between Lithuania and Poland on the Baltic Sea, which will be situated in Kalingrad. Work is expected to begin by the end of 2015, according to the Journal of Commerce.
The decision for the project came after the Russian government drew up projections of a 15% increase in volumes for the Baltic region per year until 2018.
The port is intended to be a regional feeder hub and may reach a depth of 19.2 metres. A draft this deep will enable it to surpass its rivals in Gdansk, Klaipeda, Poland and Lithuania.
The total cost of the project is expected to be around US$950 million, of which around $750-800 million is anticipated to come from private investors.
Read a Technical Paper by Dmitry Mikhalchenko, CEO of Russian ambitious new Port Bronka
It was previously reported that Russia’s seaports, including port operators, were feeling the hit of Russia’s slowing economy, with countries such as Lithuania and Latvia also witnessing slowdowns.
However, volumes are anticipated to increase in the coming years and the Russian government is making necessary plans to facilitate this projected boom in trade.