Feasibility report on ship repair cluster development in Arkhangelsk Region to be completed in November 2020

The project foresees the construction of a floating dock worth up to RUB 1 billion

The report on feasibility of ship repair cluster development in the Arkhangelsk Region is to be completed in November 2020, Yuliya Ivanova, Director of the Investment and Analytical Agency “PrCS” (operates under the support of the Arkhangelsk Region’s shipbuilding cluster), said at the Arctic Forum Week.

According to her, ship repair facilities of the region can handle about 200 ship per year today. More than 35 private companies are involved in dock repair, class repair, maintenance and modernization.

Among the factors that affect operation of ship repair companies is the tough competition with other companies of Russia and Norway, restrictions due to the length and depth of the navigable channel (depth of up to 8.2 meters, length of up to 164 meters), deficit of up-to-date equipment, low margin and problems relating to obtaining of cheap financing.

To address the challenges, the Agency suggests establishment of a customs wharehouse for imported components at the ship repair yards. The project is to be financed jointly by the stakeholders.

Another proposal is to develop a unified information system for a balanced loading of ship repair companies, advance listing of required components and spare parts.

According to the Agency, the key task today is to join hands in the purchase and operation of a floating dock with a length of 250 meters minimum. It can be operated by a specially established company through equal financing by major ship owners operating in the Arkhangelsk Region. According to the speaker, such a dock can cost about RUB 500-600 million, new dock is estimated at RUB 1 billion. Subsidies are possible under such a project.