(MENAFN- Trend News Agency) BAKU, Azerbaijan, March 29. The process ofprivatization of Makhachkala Sea Trade Port JSC (MSTP, Dagestan)has started based on the Decree of the President of the RussianFederation on the development of the North-South project signed onMarch 19, the Russian Media says, Trend reports.
The President of the Russian Federation has issued an ordercreating a joint stock company (JSC) named "North-South" with astarting capital of 5.6 billion rubles ($60.8 million). The firststep in the company's operation is the transfer of the same orderon the remaining 100 percent of JSC "North-South"'s shares of theMakhachkala port, which are valued at 1.25 billion rubles ($13million) on the market.
"The Russian government will choose the MSTP investor in fourmonths. Additionally, the investor's allowed capital share in theNorth-South joint-stock firm will increase to 51 percent withinfive years after his contribution to the Makhachkala port, whilethe Russian government's share will remain at 49 percent," thedecree reads.
The Russian media outlets today named Senator Suleiman Kerimovamong the main contenders for the MSTP.
Meanwhile, the operator of the North-South internationaltransportation corridor since October 2023 has been Russia'slargest bank, VTB, but in 2023, its head, Andrei Kostin, statedthat the bank is unlikely to engage in new investments and onlysupervises current expenditures.
To note, MSTP is Russia's only ice-free and deep-water port onthe Caspian Sea, and it accepts vessels up to 150 meters long witha draft of up to 4.5 meters.
The port includes complexes for transshipment of dry cargo (3million tons per year), light and dark oil products (7.9 milliontons), berths for general bulk cargo and containers (1.2 milliontons), railway and car ferry terminals (1.3 million tons), and agrain terminal (0.5 million tons).
MSTP increased cargo transshipment by 5.9 percent to 2.939million tons in 2023 compared to 2022.
The port's deputy general director, Hadji-Murad Abashilov, informedRussian media in March that it planned to increase cargotransshipment at the port by 5–10 percent in 2024 through thetransshipment of grain and construction materials.
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