Far Eastern timber producers ask Vanino port to raise quotas for timber cargoes

Timber companies of the Russian Far East were not ready to change logistics centre after the change of ownership at Vanino port, as Far Eastern newspaper Zolotoy Rog reported.

The Chairman of Dalexportles association, General Director of Smena Trading Alexander Sidorenko said that for the first time in few years the Japanese market has seen some signs of growth of Russian larch consumption. “In order to meet the demand, before this is done by the US, the forest industry enterprises of the Far East intend to deploy some part of deliveries from the Chinese market to Japan through the only ice-free port in the Khabarovsk region, the port of Vanino. However, after change of the proprietor in December 2012, Vanino commercial sea port has ceased to receive cargoes from timber companies, who went on the verge of stoppage,” said Sidorenko.

According to Sidorenko, the timber companies were not ready to change quickly the logistics centre for their cargoes. To solve this matter, exporters requested the management of the port to increase quotas for transportation of timber. First Deputy CEO of the port Denis Vaganov promised to consider the wishes of the timber companies.

In 2013, Vanino port decreased handling of timber cargoes by 30% in annual terms, down to 620 thousand tonnes. In general, transhipment of timber cargoes in the Far Eastern basin fell by 18.3% last year, to 2.6 million tonnes.

According to the data available in the Russian Timber Journal, the average FOB price of non-planed larch timber at Vanino port in 2013 was $148.8 for deliveries to South Korea, $171.6 – for deliveries to China.