2020 April 22
Neglected shiprepairIt is impossible to develop further the Russian ship repair sector without government’s increased focus and its real support. To operate serviceable fleet is no less important than building new ships
Ship repair is a capital- and resource-intensive sector of industrial production in Russia. The entire fleet operation depends on the sector’s efficiency. For decades, this industry has survived on its own remaining on the sidelines. Due to financial restraints, fixed assets of the majority of shipyards are gradually becoming obsolete. Only the enterprises that specialize in maintaining and refitting inland vessels can afford their expansion. Shipyards focused on the repair of seagoing and mixed class ships are in a more difficult position. They can maintain their financial and economic stability thanks to contracts for repair of state-owned vessels. These vessels can be repaired only in the Russian Federation.
Actually, shipowners prefer placing orders for repair of their seagoing / mixed class commercial fleet with foreign shipyards. After all, technical support of ships abroad, even with mandatory VAT and customs charges appear to be cheaper and faster than in Russia. It’s possible to reverse the situation only by developing and introducing measures of the state support aimed at the development and modernization of the domestic ship repair complex.
Under “Neglected Shiprepair” special project, PortNews IAA has prepared a series of publications on the conditions and challenges facing domestic ship repair enterprises. Market participants shared their views on how to solve the problems specific to this sector in order to ensure the development and upgrading of ship repair sector in Russia, which will allow performing technologically advanced maintenance and repair services at competitive price.
The capacity of ship repair facilities in Russia does not meet the fleet requirements. The revival of this segment is possible if the state undertakes certain support measures.
While addressing the problem of non-calling ships, Russian authorities threaten with hindering operations of the entire fishing fleet. In fact, after repairs performed abroad this status can be extended to all Russian fishing ships.
Nikolay Shablikov, Chairman of the Board, Nordic Engineering on the specifics of the ship repair sector development in Russia.
Almost all ship repair yards of Russia, regardless of competition with foreign counterparts, have limited opportunities to upgrade and develop their production facilities. Deterioration of the country’s ship repair base will continue unless the state offers economic