Sibur, partners to develop polymer processing cluster in Kaluga Region

Russian gas processing and petrochemicals company Sibur has partnered with transportation services company Karl Schmidt Spedition GmbH & Co. KG (KSS) and Freight Village Kaluga (Freight Village RU) for the development of a polymer processing and distribution cluster in the Kaluga Region in Russia.

Signed by Kaluga Region Anatoly Artamonov, Sibur Managing Director Alexey Kozlov, KSS CEO Horst Schmidt, and Freight Village RUCEO Nikolay Kruchinin, the agreement is an extension of the logistics hub memorandum executed earlier by the parties. As part of it, KSS is to set up a logistics hub at the Freight Village Vorsino to distribute Sibur’s polymer products, including those to be delivered from ZapSib Neftekhim, Russia’s largest petrochemical facility under construction in Tobolsk.

The arrangements in place will provide for receiving, packaging, storing, and shipping Sibur’s polymer products to its customers in Russia and abroad for 20 years after the hub housed by Russia’s first freight village becomes operational. The hub will be using one the warehousing facilities adjacent to the terminal’s container yard.

“The choice of Vorsino Freight Village as a hub for polymer distribution across Russia and Europe emphasizes the logistics potential of our project. This potential is underpinned by the site’s proximity to the target market and the unique concept enabling the parties to leverage the advantages offered by our container terminal over the next 20 years and set up their new hub on the basis of the existing warehousing capacities,”Kruchinin said.

“The new hub and polymer processing cluster will contribute to the development of the Kaluga Region’s modern facilities processing polymers and manufacturing end products for the automotive industry, healthcare, utilities and other sectors. Here, we are betting on small and medium business. The project will attract Russian and international investments and expertise, and have a multiplier effect on the regional economy,” noted Artamonov.

Sibur’s products will be delivered from its production sites in dry bulk containers, a transportation method unique in Russia and more efficient compared to the conventional transportation in pallets, as it allows transportation of more cargo and packaging cost cuts. This will help optimize logistics by moving part of packaging operations from Tobolsk to the region of destination.

Sibur will use the hub to ship its products to the Central Federal District, while also considering the development of the rail transit corridor to East Europe. Container trains will arrive at the Freight Village Vorsino’s rail terminal. Comprehensive hub-related services will be provided to Sibur by KSS.

The amount of Sibur’s polymer products processed at the hub will be 500 kilo-tons per annum (ktpa). The hub has a design capacity of 670 ktpa that may be further expanded. The yard for 1,300 40-feet containers and the upgraded storage area will be able to accommodate over 40,000 tons of polymers, and ensure timely deliveries to buyers.

The agreement will set forth a number of initiatives to develop the polymer processing cluster in the Kaluga Region, apply new polymer-based solutions in a variety of areas, and boost the investment appeal of regional industrial parks.

“KSS is bringing to Russia innovative logistic solutions that will optimise both polymer production and processing. With Sibur, our long-standing partner, we set up logistics platforms for RusVynil and Zap Sib Neftekhim, and we are happy to take part in this new project in the Kaluga Region. We are confident that the hub’s services will also see strong demand from our European clients,” Schmidt said. KSS’s investments in the project will exceed RUB2 billion, net of VAT.

Kozlov said, “Our intent is to improve the availability of polymers to our existing and prospective clients by setting up dedicated transshipment hubs in high-demand regions, including the ones based in industrial parks. The Kaluga Region is the best location for Sibur’s new hub as it lies in the Central European part of Russia and houses a number of rapidly growing facilities forming the automotive cluster and the biotechnology, pharmaceutics and healthcare cluster. Those are key polymer consumers.”