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Business news

11 Jul 2018

Belarus president wants industrial, logistics hub in Orsha District sooner

ORSHA DISTRICT, 11 July (BelTA) – It is necessary to expedite the establishment of a multimodal industrial and logistics complex in the town of Bolbasovo, Orsha District, Vitebsk Oblast. Belarus President Alexander Lukashenko gave the relevant instructions as he visited Vitebsk Oblast on 11 July, BelTA has learned.

OOO Bremino Group is in charge of implementing this investment project. The project is slated for completion in late December 2023. The industrial and logistics hub will include an automobile terminal and a railway one, an aviation sector, universal manufacturing modules, an industrial zone, showrooms, and a hotel. Bremino Group is now busy working on the first stage of the project – the automobile terminal with a warehouse and an administrative wing for accommodating customs service and other government agencies. The first stage of the project will be finished in late 2018.

Alexander Zaitsev, chairman of the council of Bremino Group participants, told Alexander Lukashenko that the industrial and logistics complex will start working before it is fully completed. It is supposed to handle the complete workload starting with the first stage of the investment project.

The head of state noted that the implementation of consequent stages of the investment project should be expedited if possible if the private sector expects profit from this project. “If you see that you can do business, it is necessary to expedite things. I am ready to help you get things done faster,” stated the Belarusian leader.

Alexander Zaitsev confirmed that there are good opportunities for developing all the components. There are good prospects in transportation by rail due to the transit of containers from China to Europe. Transportation by air also has a lot of promise. The company has already started working on these directions. Clients are being sought.

Speaking about transportation by air, Alexander Zaitsev mentioned plans to create a flower exchange in order to sell flowers on markets in the region. There are plans to transship foreign flowers, for instance, from Ecuador, in addition to shipping flowers grown in Belarusian greenhouses. Besides, the volume of mail packages transported by air has increased considerably in the last few years due to online trade. The multimodal complex intends to develop this area of business, too. “We intend to become a key location for providing logistics services in Belarus and Russia’s Central Federal District,” said Alexander Zaitsev.

Alexander Zaitsev remarked that the total cost of creating the hub is estimated at roughly $220 million. However, the money will not be invested in one go. As parts of the hub are commissioned, some of the generated profits will be reinvested in consequent development.

“We are pressed for time and the market changes fast. This is why it has to be done faster,” stressed Alexander Lukashenko. “I am ready to help. You just have to do it faster in order to give jobs to people. Then it will be necessary to help with accommodation. People are the key while we can easily build warehouses. I want this project to produce an effect not only for the state. I want this project to create jobs and homes for people.”

The development of the local airport, the construction and accomplishment of a modern runway for cargo aircraft and business aviation were discussed in detail. “It is necessary to develop business aviation and storage for aircraft here,” said Alexander Lukashenko.

Alexander Lukashenko also gave instructions to expedite the design and the relevant work involved in building the runway. “It is necessary to do the work we can do today. All the design work must be finished by 7 November. But you have to start working now,” said the Belarus president.

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