Sovfracht begins shipping peat from Kaliningrad to China by sea

KALININGRAD. Feb 6 (Interfax) - Sovfracht JSC delivered its first consignment of peat from the Kaliningrad region to China by sea, the company's press service reported.

"Sovfracht has completed the transport of containers containing peat from Kaliningrad to the port of Qingdao in China. Sea transport, as the most optimal delivery method, has allowed us to save time and reduce transportation costs for the customer," the press release says.

The company's specialists conducted a thorough analysis of transportation conditions using various vessels, shipping lines and by using different packaging before making the final decision on the choice of route and transport. Particular attention was paid to an analysis of risks and potential obstacles along the way, thus ensuring the fast and safe delivery of cargo to the port of Qingdao.

"This new line of activity in our list of services will allow the company to strengthen its position in the international cargo transportation market and meet the demand for high-quality Russian peat," the press service said.

As reported, since November 2022, Sovfracht has been providing regular transportation service on the St. Petersburg - Kaliningrad route on its Express sea cargo line. The company's Ust-Luga - Kaliningrad line allocated 4-6 constantly operating ships in 2023.

The company plans to complete the modernization of its motor ship, the Engineer Veshnyakov by mid-2024. When placed back in service, the vessel will be able to carry both road and rail transport.

The significance of the Kaliningrad cargo sea line increased after Lithuania introduced restrictions on rail and road transit of sanctioned cargo with certain reservations and quotas on their volumes in the summer of 2022. Meanwhile, Lithuania has prohibited transit of sanctioned cargo by road through its territory.

As of mid-January 2024, the transportation of goods by sea between Kaliningrad region and the main territory of Russia was provided by a total of 25 ships and ferries. They operate on several regular lines: Ust-Luga - Baltiysk, Bronka - Kaliningrad, St. Petersburg - Baltiysk, and St. Petersburg - Kaliningrad.