27.12.2019 19:03

The analysis and development prospects of ship repairing industry in the North-West of Russia

The analysis and development prospects of ship repairing industry in the North-West of Russia

The purpose of the report is to study the market of ship repairing business in the North-West of Russia and development prospects of companies in this region. The actuality of the theme is determined by negative trends in the development of ship repairing industry. The first part of the paper deals with the analysis of the market environment in the ship repair industry in the North-West of Russia. Secondly, the report emphasizes significant problems in the ship repairing industry. Thirdly, the report considers the ways to develop the ship repairing yards. And finally the conclusion is made.

Starting with the background, the Russian Federation inherited shipyards of former soviet sea and river fleet ministries. As the result of market reforms all shipbuilding and ship repair enterprises were transformed into joint stock companies.

In the North-West region main shipyards are located in St. Petersburg and Murmansk regions. In St. Petersburg, one of the largest shipyards is JSC "Kanonersky Shiprepairing Yard". Ship repairing services can be offered by big shipbuilding companies such as JSC "Admiralty Shipyards". The total repairing market of Saint-Petersburg has about 50 lower-ranking organizations that offer repairing services. In Leningrad region "Nevsky Shipyard" (Shlisselburg) and JSC "Voznesenye Shipping Company" are engaged in ship repairing business. These companies entered the "North-Western Shipping Company". In Murmansk region leading enterprise in the ship repairing and recycling of ships is Federal State Unitary Enterprise Ship-Repairing Yard "NERPA". In Arkhangelsk, one of the leading companies is JSC "Shiprepairing Yard Krasnaya Kuznitsa" and JSC "Shipbuilding Yard Archangelsk RBF". Unfortunately, there are no large shipyards in the Republic of Karelia. The last one, "Onega shipyard", was declared bankrupt in 2012.

All these companies have common problems such as old technologies, physical and moral depreciation of fixed capital assets, small backlog of orders, and lack of young professionals. The following ways to develop the ship repairing yards may be offered:
1. Updating the fixed capital assets
2. Attracting young professionals, providing financial incentives for staff
3. Cooperation with other companies
4. Attracting investments
The Government could help the ship repairing and shipbuilding companies in these areas by the means of reducing the tax burden, lowering of interest rates, securing government contracts.

To sum up, the ship repairing is low-profit business nowadays. The main customers of these services are the shipping companies and the government. Financial conditions of the business depend on the financial environment of the shipping companies and the state policy in the water transport industry.

Д. С. Неслухов

The analysis and development prospects of ship repairing industry in the North-West of Russia

Опубликовано 27.12.2019 19:03 | Просмотров: 79 | Блог » RSS