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Novorossiysk Commercial Sea Port, PJSC (NCSP/NMTP Group), has completed a fuel oil terminal with a capacity of 4 million metric tonnes per year and plans to open it soon, according to an executive at one of the port’s shareholders.

The comments are reported to have been said by Alexander Vinokurov, first vice president of Summa Group in an interview last week in Moscow. He is also quoted as saying: “We will push to increase the volume of oil products there.”

Summa Group and OAO Transneft, Russia’s oil pipeline operator, have joint control over a 50.1 percent stake in Novorossiysk Commercial Sea Port, PJSC (NCSP/NMTP Group), Russia’s largest port by volume. The new Novorossiysk Fuel Oil Terminal is operated by Novorossiysk Fuel Oil Terminal LLC, which is 50 percent owned by NCSP.

NCSP annnounced the acquisition of additional land plots for construction of the fuel oil terminal in May 2010 after North-Caucasus Rail Road - a branch of OAO Russian Railways - and 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 the 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.

The terminal will have an initial storage capacity of 82,000 cubic metres, two railway discharge galleries for 60 and 48 tank cars as well as pipelines and other units of infrastructure. Estimates on the total investment in the project have ranged between US$160 million and US$235 million.

In August 2011, NCSP announced plans to borrow US$110 million from Raiffeisenbank on security of its 50 percent stake in the Novorossiysk Fuel Oil Terminal, for further development of the facility.

NCSP is owner of Novorossiysk bunker supplier JSC Flot NMTP, also known as PJSC Fleet of NCSP. Flot NMTP is the largest private towing and tugboat company in Russia, offering a full range of fleet services at the port, including tug and towing services, bunkering, water and environmental protection services. The company has 46 ships, including tugboats, bunkering vessels, specialized vessels and inshore boats.

The fleet includes 26 tugboats, seven bunkering vessels with a cargo capacity ranging from 250 to 3,000 tonnes, 10 auxiliary vessels (environmental protection, waste collection and passenger ships) and two water carriers.