Export of goods through Estonian Sillamea port profitable for Kazakhstan

Narva, Estonia, Nov.13

By Kulpash Konyrova - Trend:

It is profitable for Kazakhstan, represented by the KazMunaiGas national company to send its exports through the Estonian Silport than through all other ports on the Baltic Sea, chief marketing manager of the port Andrei Birov told Trend.

He said that Silport is the closest port of the EU to Russia - there are only 25 kilometers from the Russian border to the port. And it is more profitable for Kazakhstan to transport its goods through Russia, as the duty-free transport system is applied within the framework of the Customs Union.

"That is, KazMunaiGas, which delivers us fuel oil and heavy oil products (gasoline and gas oil), has to pay European fare by rail for just 25 kilometers," said Birov. "The distance is much longer from the Russian border to the other ports in the Baltic Sea."

He said that logistics, i.e. transport costs, is very important for any goods that must be delivered to ports for access to world markets.

"Therefore, it is important for KazMunaiGas to have access to the open seaports such as ours for the delivery of the fuel oil in the US in order to send their goods across the ocean," said Andrei Birov.

He said that the Kazakh fuel oil supplied for transshipment is of very high quality and it is sent to the US and the EU from here.

"We are ready to offer KazMunaiGas an area on the territory of our port for the construction of its own terminal," said Birov.

Sillamae port (Silport) is located on the territory of Estonia, 25 kilometers away from the border of the EU and Russia, which creates all the necessary conditions for its effective use as a distribution center for transshipment of cargo and a wide variety of products to Europe, USA, Russia and other CIS and Southeast Asia countries.

It is the easternmost deep-sea port of the EU, capable to receive any large ships entering the Baltic Sea through the Danish straits.

Free customs zone (FCZ) of Sillamae combined with the liberal tax policy of Estonia create favorable business environment not only for the international distribution of cargo, but also for the production of goods on the territory of the FCZ.

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