TOAZ Resumes Urea Shipment By River-Sea Vessels

PJSC TOAZ (Togliattiazot), the largest urea supplier to the Russian agricultural market and one of the main ammonia producers in Russia, resumed urea shipment by river-sea vessels to consumers in southern regions that was suspended in 2015. A decision to resume such shipment was made to increase commercial efficiency in line with the corporate development strategy until 2025 (adopted last year).

In June, two urea loaded vessels departed from the Togliatti river harbour for Varna (Bulgaria) and merely ten days later delivered 7,000 tonnes of goods to the customer. The next shipment to the same destination is scheduled in August.

The fertilizer shipment from the Togliatti harbour is planned to be regular during the shipping season (from April through November) and will allow the company to enter into long-term agreements providing for shipment through this logistics channel.

TOAZ is also the main ammonia supplier to the Black Sea countries. The region hosts prospective customers that also use bulk mineral fertilizers for production and distribution. Thus, the new logistics channel will enable the company to enter the urea sales market occupied by its competitors.

Furthermore, Togliatti harbour is not the only option available for urea transportation by TOAZ. It may also use harbours in the South of Russia if it increases its pool of customers and ensures demand for river/sea transportation to such destination.

Danil Podoplekin, Sales Director of PJSC TOAZ, pointed out the significance of the channel for the corporate strategical goals: “River-sea shipment is an example of efficient usage of the existing geographic and infrastructure-related opportunities in the region as part of the TOAZ strategy. By using the opportunities offered by the Togliatti harbour, we both develop our logistics and reduce our dependency from shipment via the Kotka harbour (Finland). The new logistics channel is also of utmost importance for the future since Togliattiazot is currently building its third urea plant. The corporate production volume will double after its launch, hence, now it is necessary to develop the pool of customers and transportation options. This requires close cooperation of all our employees representing various functions, and we are ready for it.”