Travel Notes

Travel Briefs

Three new Baltic ports

Russia and the EU have reached agreement to develop three new ports on the Baltic coast, to speed Russia’s integration into trade and transport routes on the continent. The ports will mainly handle gas, oil and coal shipments. The project is being financed by a $50 million grant from a European multilateral lender, and also Russian oil and gas companies which will use the sites for exports. The officials have not said which ports will be developed or how much money will be involved, nor have they given an estimated date of completion. Also, the EU has allotted 84 million ecus ($107 million) towards future transport-related projects in Russia.

New trams in Moscow

New, smoother-running streetcars, developed  by German company Siemens and two Russian partners, may soon be on Moscow’s streets. The city has expressed an interest in acquiring additional vehicles. Siemens is providing gears and other components under the terms of a March 1993 agreement. The main problem is finding buyers for the cars. Few cities in Russia, let alone Moscow, have the funds to renovate their public transportation, despite a desperate need to do so. Increased energy efficiency and lower maintenance costs of the new cars will offset any additional costs incurred by Siemens’ participation. However, neither side would reveal any financial details of the deal.

Aeroflot touches down on US shores

Aeroflot Russian International Airlines has signed a preliminary agreement with Continental Airlines to operate airliners jointly and share access to reservation systems. Preliminary plans call for the airlines to share DC 10-30 jetliners on the New York-Moscow route and initiate a code-sharing agreement that would allow, for example, Russian passengers to reserve through Continental for destinations in the US not serviced by Aeroflot. The latter’s decision to sign hinges on its policy of ‘increased commitment to passenger comfort’ and should increase respect for the airline. This accord, which will last 5 years, should take effect by May.

Moscow needs hotels

Despite a population of 12 million, Moscow has only 12 quality, Western-style hotels. According to hotel industry sources, demand is far greater than the supply. The cost of building one or two new international-standard hotels could therefore offer a rapid return on investment. In fact, two hotels will open by next summer — Marriott’s Grand Hotel on Tverskaya Street, and a second behind the State Duma. Marriott is also negotiating with the city to buy and renovate the Intourist Hotel for an estimated $100 million. According to some observers, though, what Moscow really needs is more cheap hotels.  The city government intends to create a network in the $40-60 price range, but investors cannot afford to build them, since they need a quick return on their investments. Many city hotel projects lack funding because foreign investors are still wary of the Russian market.