In 2012 it is planned to start the construction of a new modern shipbuilding and ship repair complex in the city of Azov



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



 KEM Co., Ltd (South Korea)


 Designing of the technological part, procurement of high-technology equipment


 Designing of the constructural part

 VEB - Leasing

 Project financing(equipment leasing)


 Project financing(crediting)

 “Avers” GC



 The shipyard construction



 Equipment and materials procurement

 The Azov Shipyard

 Shipbuilding and ship repair


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  


Ship repair and service


Dry cargo ships
Tank vessels
Fishing vessels
Dedicated 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.




Up to 10,000 tones


Up to 150 meters

Production volume

Up to 10 vessels

per year


  • 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



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

Floating dock purchase is 150 billion rubles

Project payback period in whole is 7 – 8 years






Useful results and risks

Useful results

For the government

  • Fulfillment of national programs of the transport system development;
  • Higher competitiveness of the Russian economy means the creation of an effective alternative to foreign shipbuilders;
  • Tax revenues into the federal budget.

For the region

  • Creation of the modern high-technology enterprise;
  • Job creation;
  • The impetus to develop a social sphere of Azov (accommodation, health facilities, community facilities, training and re-training);
  • Tax revenues into the local budget.


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