Concession agreement for the construction of Lavna coal terminal in Murmansk was signed by the Deputy Minister of Transport of Russian Federation

19.11.2018

Concession agreement for the construction of Lavna coal terminal in Murmansk was signed by the Deputy Minister of Transport of Russian Federation – the head of Federal sea and river transport agency Yuri Tsvetkov.

Earlier Russian government ordered to sign a concession agreement for financing, construction and operation of the infrastructure objects of the Murmansk port, including the construction of the Lavna seaport. The following Order № 2111-р from the 1st of October was signed by the Prime Minister of Russian Federation Dmitri Medvedev.

Concession mechanism suggests that the concessioner must build the Lavna coal terminal with the capacity of 18 million tons, while the concendent has to provide transport availability and finish the first stage construction of the existing railroad infrastructure.

The construction project of the Lavna coal terminal in Murmansk seaport was included into the Government program “Development of Russian transport system”, Development strategy of the railroad transport, Transport Strategy of Russian Federation, and the “Comprehensive plan for the modernization and expansion of the arterial transport infrastructure”.

Investments into the coal terminal will reach RUB 24 bln. Currently there is preparatory work and vertical plan work under way. The contract for the machinery and equipment delivery has been already signed as well.

The first phase of the terminal with a capacity of 9 million tons is scheduled to launch in December 2020, second in December 2021. 

Return on investment will be guaranteed by signing the take-or-pay type of contract with the shippers.

The project will have a huge effect on the Russian transport infrastructure: it will facilitate the transfer of cargo traffic from the Baltic ports to Russia and will help with the development of new markets by increasing the capacity of vessels. As a result, the export of power coals will increase.

«“Signing the concession agreement with the Federal Agency of Maritime and River Transportation is one of the key stages of the project. Lavna will become the first port concession in Russia. I would like to thank everyone, who participated in the development of the project model – Ministry of Transport, the Federal Agency of Maritime and River Transportation, Ministry of Economic Development, Ministry of Finances, Federal Antimonopoly Service and Russian Railways. The project will not only have a major impact on domestic transport industry but will also provide job opportunities in remote regions of our country. More than 1000 people are already employed within the project and 1000 more jobs will be created with the opening of the coal terminal”. – says the CEO of STLC Sergey Khramagin.