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PhosAgro and Infotech Baltika Sign Memorandum on Cooperation Concerning Fertilizer Transhipment at a Terminal Being Built in the Port of Murmansk

7 June 2019
St. Petersburg – At the St Petersburg International Economic Forum, PhosAgro signed a memorandum of cooperation with Infotech Baltika concerning the construction of a specialised marine terminal for the transhipment of mineral fertilizers and apatite concentrate at the seaport of Murmansk. The document was signed by PhosAgro’s CEO, Andrey Guryev, and Infotech Baltika’s CEO, Alexander Muller.

The purpose of the memorandum is to conclude a future long-term contract for the transhipment of goods at a terminal being built by Infotech Baltika on the ice-free west coast of Kola Bay in the area of the Lavna River. The start of operations is planned for March 2023.

PhosAgro’s Guryev said: “In accordance with our development strategy to 2025, PhosAgro will increase the production of high-quality, environmentally friendly fertilizers and feed phosphates to 11.5 million tonnes from 9 million tonnes in 2018. In addition to our priority Russian market, they will be supplied to markets in 100 countries throughout the world.

“In this regard, PhosAgro is closely monitoring projects involving the construction of specialised terminals for the transhipment of mineral fertilizers. The project being carried out by Infotech Baltika at the mouth of the Lavna River is, in our opinion, one of the most promising. We expect it to help provide PhosAgro with needed transhipment capacity and to reduce transport costs.

“The ability of the terminal, which is currently under construction, to receive large Panamax-class vessels will improve the economic efficiency of the transport of cargo through northern territories by sea, and the proximity of the terminal to the Company’s production assets will help make the most of railway logistics related to transhipment.”

Infotech Baltika’s Muller said: “Infotech Baltika’s design and construction of a specialised, state-of-the-art terminal for the transhipment of mineral fertilizers in the port of Murmansk is intended for the possible provision of transhipment services for PhosAgro’s products for export. New port capacities will make it possible to tranship a volume of about 3.5 million tonnes of fertilizer a year. The construction of the terminal will enable the diversification of transport logistics and will make export deliveries of mineral fertilizers more efficient. 

“The implementation of measures for the development of railway infrastructure on approaches to the port of Murmansk, including on the west coast of Kola Bay, had an impact on our ability to complete the project. In order to assist in the implementation of the project, an agreement was concluded with the Government of the Murmansk region.”

The memorandum was signed in the presence of Andrey Chibis, the interim Governor of the Murmansk region.

“This is a serious infrastructure project that unites manufacturers around a logistical challenge. We welcome the arrival of investors in the region, their operations and new construction”, said Chibis.