The future of the shipyard
In 2012 it is planned to start the construction of a new modern shipbuilding and ship repair complex in the city of Azov
PLANNED SHIPYARD TERRITORY
PROJECT BACKGROUND
Shipment needs
- From 2000 the annual increase of cargo ship transportation capacities in Russia makes up 5-8%
- Foreign carriers prevail on the Russian shipping market
- Russian cargo fleet tonnage is 2% of the total world fleet tonnage
Fleet deterioration
- The average age of the river fleet is over 28 years old. During the next 5 - 10 years, about 90% of these vessels will be written off due to the technical conditions
- The average age of the fishing fleet goes beyond 20 years, and about 60% of the vessels are operated in excess of their lifetime
Shipbuilding state
- The Soviet Union fleet provided 40% of the country's foreign trade shipment. Today, the Russian fleet provides only 4%
- The Russian ship owners build annually $ 1 billion worth vessels overseas, $ 60 million on the domestic scene.
- Technological backwardness of the domestic shipbuilding industry:
- the labor coefficient is 3-5 times higher than abroad, building period is 2-2.5 times more
PROJECT PARTICIPANTS
KEM Co., Ltd (South Korea)
|
Designing of the technological part, procurement of high-technology equipment |
Soyuzproektverf |
Designing of the constructural part |
VEB - Leasing |
Project financing(equipment leasing) |
Vnesheconombank |
Project financing(crediting) |
“Avers” GC |
Projectadvisorysupport |
Yuzhtehmontazh |
The shipyard construction |
Providers
|
Equipment and materials procurement |
The Azov Shipyard |
Shipbuilding and ship repair |
PROJECT DESCRIPTION
The shipyard structure
-
Open slipway sites for shipbuilding (2 sites)
- Open slipway sites for ship repair (2 sites)
- Slipway sites in the shop of block building (2 sites)
- Two outfitting bays
- Floating dock
- Hull manufacture
- Assembly-welding manufacture
- Hull building manufacture
- Pipe manufacture
- Mechanical manufacture
- Fitter hull items manufacture
- Installation ov vessel ventilation pipes
Shipbuilding |
Ship repair and service |
|
Purpose |
Dry cargo ships |
- hulls repair determination and repair; - repair (including major repairs) of ship internal combustion engines; - repair of hull system, seaborne machinery, ship equipment and ship procurement; - technical documentation development on re-equipment and modernization; - vessel heeling experimentation. |
Class |
“sea-river” |
|
Tonnage |
Up to 10,000 tones |
|
Length |
Up to 150 meters |
|
Production volume |
Up to 10 vessels per year |
PROJECT REGION
- Advantageous geographical location The developed transport infrastructure (railways and highways of federal importance, 5 ports, including 3 – international ones, the international airport in the city of Rostov-on-Don)Temperate continental climate
- A highly developed industry, particularly the machine building complex
- The availability of high human resources
- Stable social and political situation
Rostov region development quotients for 2010
Item |
Russian Federation |
Rostov Region |
Index of industrial production (in % by 2009) |
108,2 % |
115,9 % |
The advantages of the Azov shipyard’s local position
The waters of the shipyard are located:
- 14 km away from the mouth of the Don River
- In close proximity to the Azov-Black Sea basin
- Front to the leaf railway bridge in Rostov-on-Don
Project finance indicators
The total amount of financing is 4,5 billion rubles |
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Floating dock purchase is 150 billion rubles |
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Project payback period in whole is 7 – 8 years |
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Useful results and risks
Useful results
For the government |
|
For the region |
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Project risks
- Large volume of investment;
- Long payback period;
- Extremesectorcompetitiveness.
Necessary backing for a project
At the federal level
- Government protectionism towards ship-owners (the promotion of the domestic vessels purchase)
- Development of the project within the appropriate state policies and federal target programs
- Assignment of customs facilities
- The ability to implement the project on PPPs
At the regional level
- Acceleration of all the necessary approvals at the local level
- Local tax benefits