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Azerbaijan won` t build tankers with larger than 60.000 tons capacity- Musa Panahov

Business Materials 27 April 2006 18:19 (UTC +04:00)

Discussing issues of building large capacity tankers (over 60.000 tons), it is necessary to consider not only their profitability but also current situation on Caspian Sea. It is necessary to consider capabilities of ports to reload cargoes, ecological and technical matters, the first depute of the Transport minister, Musa Panahov told Trend.

Azerbaijani side already has an exact proposal. Today we must transport cargoes using the largest available on Caspian Sea tankers- 13.000 tons tankers, he said. With our current capacities can fully maintain the transportation of the Kazakh oil to Azerbaijan. Therefore, we do not consider possibility of building larger capacity vessels. Though, it can be discussed in any case, Panahov said.

On the other hand, the Caspian Shipping Company believes that construction 60.000 tons tankers will be unprofitable. Some of the companies are planning to use this sort of tankers to transport Kazakh oil to BTC.

However, additional infrastructure needs to be built in order to construct such vessels. Besides, they will not be able to enter any of the Caspian ports. Thus, to load and unload them it is necessary to use transportable quays or apply raid load and unload. Both processes are complex and require a lot of investments. Additionally, it will be required to deepen the bottom both in Kazakhstan and Azerbaijan.

There is also a problem of short route. Several days are needed to load and unload tankers with the capacity larger than 60.000 tons. In the meantime, 13.000 tankers, available in Azerbaijan and Kazakhstan can make several trips during that time.

Proposals to use such tankers are considered to be a use of dumping and unhealthy competition. There are 73 vessels now in the possession of the Caspian Shipping company; 38 of them tankers, 35 cargo vessels, with the summary deadweight- 443, 782 tons. Shipping company has 3 tankers of President Heydar Aliyev type. Two more tankers of this type will be at Russian factories in Nijnii Novgorod.

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