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Sovfracht wins second round of selection for subsidized cargo transportation to Kaliningrad

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Winners of the first round held by Rosmorrechflot were Sovfracht and Rosmorport

The Federal Marine and River Transport Agency (Rosmorrechflot) has announced the results of the second round in the procedure of selecting a company to be provided with a subsidy for organizing cargo transportation to/from the Kaliningrad Region. Rosmorrechflot announced Sovfracht as the winner which will be contracted accordingly.

According to the statement, the subsidies from the federal budget will cover the expenses of Russian companies amid the pressure of sanctions.

In September 2022, RF Government approved allocation of RUB 1.37 billion for subsidizing cargo shipping to Kaliningrad Region. By the end of the year, the scope of subsidized cargo shipping to/from Kaliningrad is expected to reach about 900 thousand tonnes. In October, the Federal Marine and River Transport Agency (Rosmorrechflot)approved the first two applicationsfor budget subsidies, those of Sovfracht andRosmorport which announced the demand for RUB 466 million to carry 220 thousand tonnes of cargo.

In October Sovfracht JSC said it would launch its marine cargo line Express between Saint-Petersburg and Kaliningrad in November 2022. It will number three ice-class ships with cargo capacity of about 2.4 thousand tonnes each: Mekhanik Kotsov, Mekhanik Kraskovsky and Mekhanik Yartsev.

Sovfracht JSC is a transport and logistics company established in 1929. The company offers services on marine and river transportation of cargo with its unique experience in transportation of oversize and overweight cargo, stevedoring, broker’s and freight forwarding services, ship agency and insurance of cargo, container transportation and railway transport, operation of storage facilities. In 2021, the company carried 25.9 thousand TEU, 37% more, year-on-year.

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