Russia plans dredging of the Volga-Don Canal

Rostov-on-Don, Russia (PortSEurope) May 3, 2022 – Russia is planning for a €1 billion dredging, locks modernisation and other improvements project to guarantee all year-round navigation in the Volga-Don Canal. Currently, the canal is used on average 240 days a year. Following dredging works in the two large rivers, it could become a transport artery for some 9 million tonnes of cargo a year. The project could be completed by 2030. The 101-km canal connects the Caspian Sea with the Sea of Azov. Russia decided to develop the canal after it took complete control over Azov Sea following the occupation of Ukrainian ports of Berdyansk and Mariupol. In 2020, 3.5 million m³ of soil was recovered as part of repair dredging works in Volga-Caspian Sea Navigation Canal (VCSNC), or Volga-Don Canal. A further 3.9 million m³ of soil was dredged in 2021. These are efforts to maintain shipping along the canal. The lowering of the Caspian Sea water level on the drift of the VCSNC also has a negative impact on shipping. At present, the Volga–Don Canal has limited capacity and is unsuitable for some larger ships. It has a depth of only 3-3.5 metres, with further summer limitations. The Lenin Volga–Don Shipping Canal connects the Volga and Don rivers (both in Russia) at their closest points. The canal, together with the lower Volga and the lower Don, provides the most direct (over 800 km long) navigable connection between the Caspian Sea and the world’s oceans via the Azov and Black Seas. It ends at Russia’s Caspian Sea port of Astrakhan. Developing Russia's Caspian Sea capacity In October 2020, Russia’s Ministry of Economic Development said that it planned to allocate RUB 2.8 billion (€31.6 million) for the creation of a port SEZ (special economic zone) in the Astrakhan Region in 2022. Funds will be also available in 2021-2022 for the modernisation of Olya port’s berths and construction of a new seaport. The two-phase project includes development of the existing terminals of Olya port and a second phase would be a new container terminal on the Caspian Sea. Olya is about 100 km south-east of Astrakhan. Russia is seeking an increased role in the North-South transport corridor as it hopes to become a traffic hub on international trade routes for containers. Currently, it sees itself losing trade business to other Caspian Sea countries and ports. Efforts have been hindered by the invasion of Ukraine due to the sanctions imposed on Moscow for its invasion in Ukraine. Sanctions mean international traders look for routes which do not pass through Russian territory. Astrakhan is a seaport in Astrakhan Oblast, Russia. The port is located in Trusovsky District on the right shore of Volga river in the north of the Caspian Sea. There are no modern Russian container terminals on the Caspian Sea or the Volga River. The opening of a feeder line last year from China and India through Azerbaijan’s Baku and Kazakhstan’s Aktau ports turned the harbours into key Caspian Sea transshipment facilities. A modern new port, Turkmenbashi, has been built in Turkmenistan in the eastern part of the Caspian Sea. It also has regular lines that serve routes to Baku and Aktau. Iran is also investing in ports to trade with other Caspian Sea littoral states. These ports will increase their traffic over time. Russia will not get a slice of this business without developing logistics modern facilities, aside from the political issues related to the Ukraine. The main problem for a new container terminal in Astrakhan is the lack of modern multimodal transport infrastructure. This includes highways and the integration of railway services at the river port. The Russian government is also planning to develop the infrastructure of Makhachkala port, Dagestan, on its Caspian Sea west coast. The target is to attract additional traffic in oil, grain and fish, improve Dagestan's crisis-hit economy and give a push to local socio-economic development. Experts expect that the dredging and other works on the Volga-Don Canal, as well as in both rivers, will first lead to a seven-month navigation, followed by free navigation of up to 11 months. The main issues for year-round use of the water way is ice in winter and lack of enough water in summer. Russia has to order also new icebreakers and new container ships having currently an outdated and inefficient fleet of both. See also: PortSEurope: Russia plans steady increase in seaport capacity Analysis – Caspiy and Martrade advance plans for modernisation of berths in Olya port on the Caspian Sea Copyright (C) PortSEurope. All Rights Reserved. 2022.

Russia plans dredging of the Volga-Don Canal

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Russia plans dredging of the Volga-Don Canal

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