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Experts on the return of Russia on the freight market competition
Material posted: Gornova Anna M.Publication date: 16-09-2018

In the late 80s, the sea ports of the Soviet Union handled about 400 million tons of cargo, of which about 240 million tons (60%) was transported by the court of the national flag. The right to a certain share of national goods was articulated in various international agreements of the Soviet Union, and was enshrined in them. In 2017 the ports of Russia has passed the order of 786 million tons of freight. Approximately 46,4 million tons passed through the ports of Ukraine and Baltic countries, excluding Finland. Courts of the Russian flag is carried today, we have only 1-2% of foreign trade goods. The rest of the traffic is about 750 million tons served by foreign carriers. The price for the country's economy - $ 30 billion annually is spent on chartering of foreign ships for the carriage of national cargo. Here even the money to build the fleet search is not necessary, it is sufficient to pass from the pocket of the foreigner in the pocket of a Russian organization which would have had the Russian budget. The situation is made comments by experts of the Center for strategic assessments and forecasts.

The Deputy of the State Duma of the Russian Federation, member of the Committee on transport and construction Viktor Deryabkin: "Today we are reaping the fruits of the post-perestroika legislation, the development of which was signed the relevant decrees and orders, which today very few people remembers. A vivid example we can see by reading the Agreement on Partnership and Cooperation between the EU and the Russian Federation signed on 24 June 1994 in Corfu. The Agreement (article 35, p. 39) opened for foreign carriers direct access to our national cargo. The sides agreed to hold talks about the gradual opening of inland waterways. Was lifted all restrictions achieved during the Soviet era. Foreign carriers have been able to freely expand its cargo base through its branches and subsidiaries in Russia. No special conditions and preferences for domestic carrier in the text of the document is not made. Thus, the signing of this agreement had secured the abandonment of the administrative regulation and liberalized market of transportations of foreign trade cargoes. The entry into force of this Agreement nullified previous relevant bilateral accords and documents of the Soviet Union, as well as all the preferences for the national carrier.

Merchant marine of Russia is faced with the realities of international shipping, including existing competition in the international freight market. Force at the time of the tax regime for shipping companies, did not allow ships to be competitive. It is understood that to solve the issue of the preservation of the national merchant fleet exclusively administrative and restrictive measures impossible, and therefore it is necessary to legislatively provide their flag competition. The question on creation of the Russian international register of vessels has been actively discussed since 1995, but in December 2005 the law was adopted-168 "On amendments to certain legislative acts of the Russian Federation in connection with the creation of Russian international register of vessels". After another 6 years, in 2011 the law was adopted-305 "On introduction of amendments to certain legislative acts of the Russian Federation in connection with realisation of measures of state support of shipbuilding and navigation" which established a set of additional measures to ensure competitiveness of the Russian fleet.

Here we see another aspect. The USSR Ministry of marine fleet. Today we have a Federal Agency of Maritime and river transport, in the statutes which is not even recorded the obligation to engage in the development of the Russian transport fleet. It turns out that in the country nobody is engaged in solving the problem of coverage of the national fleet of domestic goods. Navy is not, therefore, give permission for transportation to the foreigners, partly, it is the court of our Russian shipowners only under flags of convenience. Accordingly, in the state budget goes nothing. Obviously, this legal lacuna should be filled.

Say about the strategic development of the Arctic. To transport LNG from port Sabetta is planned to build 15 modern LNG carriers of large dimensions. The deadweight of these vessels to 85 thousand tons, carries one such vessel 170 thousand cubic meters of gas. The court is designed for navigation in ice thickness of up to 2.1 m. the Project Finnish shipbuilders – Republic of Korea, the customer is JSC Yamal LNG. The projected cost of each vessel of the order of 365 million $. Huge money, credit. A simple vessel for one day will cost the owner approximately$ 100 thousand of service credit obligations. Due to unforeseen downtime of the courts, the company may go bankrupt, financial inertia is not. PAO Sovcomflot took to control only one ship "Christophe de Margerie", with a tanker registered under the flag of Cyprus. 4 tanker owned by Bermudian, Japanese and Greek companies.

As a rule, in these modern high-tech vessels run by foreign crews, the salary of the captains of such vessels to 25 thousand $ per month. The remaining from the Soviet era Navy our sailors, who graduated from the higher naval College, the highest class specialists get no more than $ 2 thousand with all the worldwide recognized diplomas. Foreigners exhibit their demands to their courts worked their captains. So we destroyed the level of Maritime education, and graduates go to work in a foreign Navy. For their own budget money country for several decades already gives its specialists to foreigners. Today we begin to change this trend."

The Deputy of the State Duma of the Russian Federation, Deputy Chairman of the Committee on transport and construction Paul Fedyaev: "Russia has a long-term program of development of gas provinces of the Arctic, which can ensure the download of the Russian program of civil shipbuilding for many years to come. Because in addition to Sabetta the same volume of LNG is planned to be transported from the field on the Gydan Peninsula. Russian shipbuilding companies will get the orders and development. Here it is important that the fleet was built in Russia and freight rates at the end was competitive in the market.

The efficiency of the courts and price raises questions. Planned year-round operation of the LNG from port Sabetta to Europe, obviously in Rotterdam, and in summer-autumn time in China, Japan and Korea via the Northern sea route. To overcome 20% of the way (about 300-500 miles of ice sailing) from port Sabetta to West and about 30 - 40% (1700 - 2300 miles of ice navigation) in the summer on the East to Shanghai ordered the tanker - LNG a high Arctic ice-class cost twice the normal counterparts without ice class. The cost of the liquefied gas carrier-class Arc 7 – 365 million $. The cost of similar vessels without ice class of about 165 million $. The savings on investments – 1 billion $! This money is enough to build floating transshipment terminal, which can be drained it all. In this case we will create in the country, more jobs in the handling that much important. Our shipyard can handle such orders.

The investment component of the cost of the ship will form the level of rates of freight, which is extremely important in the increasingly challenging international competition shale. This is a very important point that prices eventually turned out to be competitive. Miracle ships carry as much LNG to Europe: 500 miles in the ice and 2,000 miles for clean water. In practice, that prompted our managers a "best" logistics any foreigner. Is not it easier to carry the goods by vessels of the class Arc7 for example to Murmansk and Teriberka, and then you can work conventional tanker without ice class, which will carry gas and oil to China, Qatar, India. All 15 new LNG carriers should be operated only in the Arctic ice. Outside of the Arctic they are uncompetitive. Today we study the possibility of building a port hub in Kamchatka, not to carry on these wonder-LNG cargo in Japan and China, but only to this hub, where you will be able to approach has conventional tanker without ice class. The use of a huge LNG carriers of enhanced ice-class long distances in addition to the lack of competitiveness of end products, greatly enhance the environmental risks from the point of view of potential threats from large volumes of consignments of dangerous goods being transported to the ecology of the sea in case of emergencies in the Arctic".

Vice-President, International transport Academy, captain Vitaly Zbaraschenko: "We see that the private trader today we have willingly goes to the shipping sector. So, here one solution could be the re-establishment of the Institute of public shipping companies that the state was involved in the management and operation of transport fleet. Public-private partnership in which at least 51% state owned and 49% private entrepreneurs. This will increase the status including private owners, they will be considered in the ministries. And today, in comparison with the Soviet period our shipping company languish, prospects essentially no, because the economy is not in their favor. Lost all that created generations in the fleet, but there were profits in the ports. It turns out that Russia is ready to service exclusively by foreign fleets in their home ports.

Please note, FSUE Rosmorport now a successful thriving organization. In operation they are icebreakers, search and rescue, pilot boats, even sailboats training. And in General our ports are developing successfully. In the Maritime transport sector, the ports occupy a leading share. In the Soviet Union was a different picture. 83-85% of the capacity of all Maritime transport complex was formed by the Navy, including the cost of fixed assets, revenues and profits. The remaining 15% did ports, shipyards and the social sphere. The absence in the economy of the Russian Federation is a major naval segment, which is a natural extension of land the industrial potential of the country, creating one of the causes of lack of financial resources to solve the pension problems and the weak domestic market.

As part of the Federal Agency of Maritime and river transport today is by analogy with FSUE Rosmorport makes sense to consider the option of creating a holding company - the Federal state unitary enterprise Replot, to whom to entrust the formation of the state or a PPP shipping companies and pass them to the control of the current support fleet and transport fleet. In all basins to restore public-private shipping company as subsidiaries of the holding company.

In terms of securing a long-term program of development of gas provinces of the Arctic to date, no single Federal document, which would reflect the projected volumes of extraction of fields based on which you can confidently calculate the phased development of our shipbuilding programs. Used opinions of individual experts representing the individual in most cases, commercial companies who are planning to implement projects for the development of the Arctic, whose main task is to pay off loans and increase profits. Public interest in such circumstances it is difficult to balance.

Coordinator of the project "Marine policy" Center for strategic estimates and projections Anna Gornova: "Maritime boundaries in the 37 thousand kilometers (20 thousand miles) we are a great naval power, but the thinking is largely most executives, unfortunately, land, mainland. Let's see, today is given a lot of instructions for the construction and development of port infrastructure. But since your fleet we have, for whom all this build for budget money? For foreigners? In order to serve them? That they carried our loads? Where is state logic?

The legislation, written in the 90s-early 2000s, in many areas has been very liberal and not in favor of our country. As a result, Russia was expelled from the freight market in the global competition. Today we are not there. Niche import substitution in the freight market today, there are only courts we have. The President requires that the national freight especially in the Arctic, rich in natural resources, transported by ships under the national flag. At the end of 2017 adopted amendments to KTM. Such vessels are not. The amendment does not work. Try to go on the principle of prohibition of vessels of foreign flag, on SMP, forbid foreign vessels when transporting fish, etc. As a result, the business becomes even harder.

The Foundation is laid, the first steps for the return of items already made in 2011 was adopted No. 305-FZ "About the support of domestic shipping and shipbuilding", and then created and refined the so-called second international register of vessels. You need to continue with strategies for the future. Perhaps it including interest-free loans for the construction of new vessels as it is in Japan for fishermen. Need competitive action ahead that will make the conditions of registration of the vessel under the Russian flag is not worse than it is in offshore countries that provide flags of convenience used by the majority of shipowners in the world. Here is seen the development of preferential modes of the Free port and Free economic zones, the establishment of trade Union of port cities on the Black sea, where it was possible to provide conditions offshore for business, for Commerce, shipbuilding and ship repair. But the main and fundamental step that you need to do is to identify the state body responsible for the development of the national transport fleet. To review the incorporation documents to the Ministry of transport and the Agency of Maritime and river transport, which according to the Government. To include responsibility for transfer of 100% of cabotage national fleet, at least 60% of foreign trade cargo, and also to participate in the transportation of cargoes of foreign charterers, to engage in the export of transport services to Supplement the budget of the country.

Strategic goal – to return to the presence of the Russian fleet in those areas where he worked until the perestroika era. To return, of course, harder than it would be to get hold of at the time, but the fact will not change. The question is, what prompted the strategic objective? The way the ban is seen as less efficient than creating conditions. If to pass every decision through the filter in favor of the Russian shipowner and shipbuilder, in the end, after a few years we can expect positive results in this direction."

Olga Zenkovich


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