2021 May 27 18:10

Expert estimates shipbuilding industry to generate 3.5% of Russia’s gross national product

Image source: USC

Tendering procedure for procurement of equipment under shipbuilding projects is among the key factors hindering the industry development

Shipbuilding industry generates 3.5% of Russia’s gross national product while employing about 1% of the country’s working population, IAA PortNews correspondent cites Oleg Timofeyev, Dean, Faculty of Shipbuilding and Ocean Engineering, St. Petersburg State Marine Technical University, as saying at the roundtable meeting "Marine Engineering, Shipbuilding and Technologies for the development of the World's Oceans" held in the framework of the International Scientific Forum "Caspian 2021: Ways of Sustainable Development".

“It is a very efficient industry in terms of labour resources”, he said.

The industry numbers about 180,000 employees and attracts some 700,000 employees from related sectors.

According to the expert, Russia’s shipbuilding industry numbers over 2,000 companies (shipbuilding or ship repair is among their core activities). Among them are about 120 shipyards, about 40 design bureaus and 15 scientific and research institutes. Half of the largest shipyards are state-owned.

There are two integrated structures in the industry: United Shipbuilding Corporation (44 companies accounting for over 70% of the total capacity) and Concern of Marine Instrument Engineering and Naval Armament.

Among the problems hindering the industry development, Oleg Timofeyev mentioned the tendering procedure for procurement of equipment under shipbuilding projects. In his opinion, that makes the construction process several times longer.

Besides, shipbuilding needs technological modernization.

One more hindering factor is insufficient experience in designing for competitive niches (fishing ships, dredging equipment, passenger vessels) which can be overcome successfully in the future – some of the above mentioned types are already being built by domestic shipyards. Meanwhile, the problem of restrictions in attraction of foreign suppliers can be resolved in the future through establishment of local manufactures.