International Seminar on Shipbuilding and Ship Repair in the Arctic

KEY CONCLUSIONS

Industry insiders willing to give preference to Russian companies

“We aren’t shutting down our shipbuilding or ship repair operations, and of course we’re willing to work together with our colleagues from friendly nations, if necessary, though we will be looking to give preference to domestic enterprises,” Boris Kabakov, Director of the Department of Shipbuilding Industry and Marine Equipment of the Ministry of Industry and Trade of the Russian Federation.

“We can guarantee solutions for companies that can afford to pay for the construction of this fleet even as margins continue to increase, in the Russian Federation as elsewhere. In this case we’re talking about companies dealing in chemicals, fertilizers, coal, and oil,” Aleksey Rakhmanov, Chairman of the Management Board and CEO of the United Shipbuilding Corporation JSC.

“By the end of 2021, the volume of ship repair services carried out within the territory of the Murmansk Region in accordance with ship repair capacities as they stand in our region at present amounted to only 27%. So our ship owners were paying primarily to have their ships repaired in Europe. Mostly Norway, Poland, and other countries. Our fishing fleet, first and foremost. Now, however, shipowners are looking to see what they can get done in our region,” Olga Kuznetsova, Deputy Governor of the Murmansk Region.

Regions intensify personnel training to meet growing ship repair needs

“One of the most important issues we’re currently working on is how to provide the industry with personnel. There are about 10,000 people working in the ship repair industry. Of course, most of them are coming to retirement age, but in any case, they can pass along their experience. We have created a College-Factory programme through our Industrial College, where ship repair companies are already training personnel. This year we’ll be opening three more engineering classes in different schools, ship repair classes, which will be following secondary and higher education through Murmansk State Technical University,” Olga Kuznetsova, Deputy Governor of the Murmansk Region.

“At present, we have, I think, seven institutions of higher and secondary vocational education training specialists for this industry - engineers, technicians, welders, and so on. The yearly average is 311 specialists joining the industry from all of these educational institutions. It’s not enough, of course. But plans to expand the volume of ship repair can be complemented by some training programmes of a totally different kind, and this is something we’re working on. We have launched a regional personnel strategy,” Alexander Tsybulsky, Governor of Arkhangelsk Region.

PROBLEMS

Additional infrastructure needed to repair ships

“There is significant growth of cargo traffic on the horizon for both solid minerals and hydrocarbons. Two conditions will have to be in place, however. The first is related to ships: an icebreaker fleet, a cargo fleet, an auxiliary fleet. The second has to do with repairs. We currently have 50 large and 100 small ship repair enterprises. Judging by those in the market, this is [...] expensive and time-consuming. A transformation needs to be carried out immediately,” Mikhail Kuznetsov, Director of the Eastern State Planning Center (FANU Vostokgosplan).

“We are experiencing a shortage of ship repair facilities, especially in the Arctic zone and the Far East. We’ll have to work together to resolve a number of important tasks,” Gadzhimagomed Guseynov, First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

“We took a look at the work schedule for ship repairs and maintenance. A year ago, on average, it was 3–4 months, the waiting list for repairs. At the beginning of the year, it had already increased – taking into account the increased volume of transshipments, cargo transportation – to 7–8 months. Our companies are currently accepting orders for May-June 2024,” Alexander Tsybulsky, Governor of Arkhangelsk Oblast.