Russia intends to acquire its own fleet, which will be able to deliver to any point on the planet everything that is produced, grown or mined in our country. The realization that such ships are needed came, as usual, when it turned out that it still had to be done “yesterday”.
Russian grain exporters need at least 60 bulk carriers with a deadweight of 40,000 to 60,000 tons. These are ships that can carry grain, coal, and other bulk cargo across oceans. Today there is not a single grain carrier in Russia, and all these ships have to be chartered in other countries. Naturally, politics interferes with business here and it is becoming more and more difficult to use foreign companies. The situation is similar with the export of coal, mineral fertilizers and other goods. Russia supplies only 30% of all its export deliveries with its own dry cargo ships.
Compounding the complexity of chartering is the fact that China is recovering from the pandemic, increasing the volume of purchases, which in turn increases the demand for large capacity vessels used in transcontinental transport. For example, the cost of chartering coal bulk carriers has tripled over the past year. The purchase price of giant bulk carriers has also risen sharply. You can now buy a 10-year-old Capsize bulk carrier (with a deadweight of over 150,000 tons) at just 10-15% less than the cost of a new ship.
A thunderstorm broke, a rooster pecked, and the clumsy machine of the Russian shipbuilding industry kicked into gear. If only 100 ships were produced in Russia over the past decade, by the end of 2027 factories should build about 260 ships.
The figures seem convincing, but what is the reality? Is it possible in Russia to sharply increase the production of dry cargo ships of large tonnage, moreover, in conditions where it is necessary to go from the creation of a project to the complete replacement of all fallen foreign equipment under sanctions.
There are not so many factories in Russia capable of manufacturing giant bulk carriers. These can be SSK Zvezda, which has experience in building Aframax tankers with a deadweight of more than 110,000 tons, Severnaya Verf, Baltiysky Zavod and a number of others large companies. Here it is important to understand that in the civilian sector the most popular in Russia were dry cargo ships of the “river-sea” class with a deadweight of not more than 10,000 tons. They cannot be used for long-distance transportation, so the country has to start, as they say, “from the drawing board”. Fortunately, the road has already been beaten by other maritime powers.
The first projects of Russian giant bulk carriers are already being developed at the Krylov State Research Center. The designers have been tasked with presenting dry cargo vessel designs of 40 and 60,000 tonnes deadweight by November. For comparison: the old Soviet “Volgo-Balts” could carry 10 times less cargo.
It is planned to hand over the first dry cargo ship to the customer at the end of 2025 – beginning of 2026. Then 2-3 such ships will be built annually.
The difficulty for designers is that all foreign components in the courts must be replaced by domestic components. The task is difficult, but doable. For example, the project of crab catchers, which is currently being carried out at a small shipyard in Petrozavodsk, had to be changed during the imposition of sanctions, moving away from the use of foreign components. They coped with the task, and in mid-June the flag was raised on the lead ship of the project. Another crab fisherman prepares for sea trials.
To speed up production, you don’t need to build new factories. It is enough to modernize the existing one. The creation of a “digital shipyard”, where all factory equipment operates within a single networked computer link, and modern machinery cuts and welds the hull with high precision, allows for faster production of at least twice.
The Ministry of Industry and Trade has even calculated the amount to be invested in national shipbuilding capabilities in order to provide Russia with its own merchant fleet. About 500 billion rubles came out.
The amount will not seem astronomical if we add to it the costs of creating the infrastructure of the Northern Sea Route. Not so long ago, Prime Minister Mikhail Mishustin announced that about 2 trillion rubles would be invested in the NSR over the next 13 years.
Today, it is this transport artery that is considered the most reliable and fastest way to deliver goods to our friendly countries – read China. That is why, in addition to dry cargo ships, several icebreakers are simultaneously manufactured at shipyards. From the leading giant “Russia” of the “Leader” project to small diesel ships that will operate in the port area. The development of the NSR leads to a reduction in logistics costs, which will make the same grain trade with China more profitable. Today, wheat from Russia to the Middle Kingdom mainly passes through land corridors.
Along with the northern ports, the infrastructure heading south is also being upgraded. The United Grain Company is currently rebuilding the terminal to increase grain export capacity by more than 1.5 times. Today, Turkey is Russia’s main economic partner.
Another potential partner could be Latin American countries. They traditionally import grain from other regions, such as North America and Argentina, which are geographically closer and have trade links with this region.
Nevertheless, in recent years Russia has actively sought new markets for its grain, and Latin America may be of interest to Russian exporters. Possible benefits for Latin American countries could include lower prices for Russian grain and the ability to diversify suppliers.
Of course, big plans to conquer the world market, given the rate that Russian shipyards can still produce (and this, with all the desire, no more than 8-10 large-tonnage dry cargo ships per year), Russia still can not do without a third-party fleet or the purchase of ready-made ships or the same bulk carriers on the secondary market.
Since the beginning of the year, such a mass purchase has begun. Until 2034, it is planned to purchase about 85 ships, most of which are bulk carriers, and more than 10 ships are Capesize type dry cargo ships – giants that do not even fit into the Suez Canal. Vessels aged 10 to 15 years are purchased. Considering that they have been working for about 30-40 years, the planning horizon becomes obvious, beyond which looms the prospect of creating a full-fledged Russian merchant fleet. Whether that’s the case, we’ll know by 2040. So far, all bets are on domestic shipbuilding.
Author: Mikhail Platonov
Read the Latest Government Politics News on The Eastern Herald.
