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The Novorossiysk Commercial Sea Port (NCSP), PJSC has announced the acquisition of additional land plots for construction of a fuel oil terminal, which will have a capacity of 4 million tonnes per year.

North-Caucasus Rail Road - a branch of OAO Russian Railways - and Novorossiysk Fuel Oil Terminal LLC - a project operator 50 percent owned by NCSP - signed the agreement of transfer of rights to sub-tenancy for land plots with a total area of 10.62 hectares located within the cargo yard of the Novorossiysk train station.

Through this agreement, Novorossiysk Fuel Oil Terminal LLC acquired the rights of usage and ownership of the land plots for deploying and operating the fuel oil terminal for a term period of over 40 years.

Commenting on the agreement, NCSP Chairman Alexander Ponomarenko said: "Construction of the fuel oil terminal with 4 million tons capacity is one of the top priority projects for NCSP Group. We have signed the general contract and started land development works to prepare for construction.

"As of today Novorossiysk Fuel Oil Terminal LLC is in possession of sufficient land to deploy all elements of the new terminal’s infrastructure," Ponomarenko added.

The total investment in the project is estimated at 5 billion rubles (US$160 million), which is to be financed by Novorossiysk Fuel Oil Terminal LLC and the other founding partner.

To facilitate the loading of oil products from the terminal to tanker ships NCSP said it will be reconstructing and modernizing the liquid cargo berths at Pier #4.

As part of the project, NCSP plans to build a tank fam with an 82,000 cubic metre capacity, two railway discharge galleries for 60 and 48 tank cars, as well as technological pipelines and other units of infrastructure.