Russia: Meeting on Developing Civilian Shipbuilding Sector

Russian President Vladimir Putin held a meeting in Vladivostok a few days ago on developing Russia’s civilian shipbuilding sector.

With the opening remarks on developing civilian shipbuilding sector, Russian President Vladimir Putin said:

“Shipbuilding is a complex high-tech sector and its development is of crucial importance. It creates a base for resolving defence and socio-economic tasks, boosting demand for specialised personnel and scientific developments, generates new orders for Russia’s metals sector, machine-building and other industries, and is a powerful instrument for developing whole regions of the country, including Primorye Territory, where we are meeting today.”

Putin pointed out that Russia’s commercial shipbuilding industry is losing out to foreign competitors. “The civilian shipbuilding sector is still having trouble picking up the pace and, to be honest, is losing to the competition. Our shipyards fail to give potential customers who approach them clear guarantees on deadlines, costs and quality. Not surprisingly, companies do not want to take on the risks and choose to place their orders abroad instead, buy ships made in China, Korea and other countries. There is no question that our companies also need to make use of this practice and follow strict contractual and technical discipline. We need to make it so that customers will find it convenient and to their advantage to work with Russian shipyards. Our domestic market also has big potential.”

Big Russian companies such as Rosneft, Gazprom, and Sovkomflot are in the process of putting a solid portfolio of orders through to 2030. The orders are for ships needed to develop offshore oil and gas fields and make active use of the Northern Sea Route.

“Preliminary estimates show that we could need 512 ships worth a total value of 6.5 trillion roubles [more than $195 billion] over the period to 2030. Our shipbuilders will need to make their best possible efforts to fight for these orders and turn them into real contracts. Above all, the United Shipbuilding Corporation must set out its general development strategy and the range of civilian ships into which it can put its experience and effective developments and make use of its competitive advantages.”

Putin continued: “we need to expand the product range and move into building other types of ships too, above all container ships and gas carriers – ships for which there will soon be demand. We need to make use of foreign experience and establish technology alliances with the world’s leading producers.”

He stressed the need to set new quality standards in civilian shipbuilding sector, to offer attractive and competitive working conditions, ensure decent wages and opportunities for further training and re-training, and carry out housing programmes with support from the state authorities and the companies themselves.

During the meeting the Russian President also gave his general backing to a proposal made by Rosneft President Igor Sechin to transfer responsibility for the construction of the modern large-tonnage Zvezda shipbuilding complex to a consortium of customers after a South Korean investor refused to participate in the development of the shipyard.

Construction of the Zvezda shipbuilding complex, a four stage construction project that was established in 2009, is now months behind schedule. When finished, Zvezda is expected to manufacture tankers with a displacement of up to 350 thousand tons, LNG carriers, ice class vessels, specialized vessels, and offshore platform units.

[mappress]
Shipbuilding Tribune Staff, September 3, 2013