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
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.

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

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