Fleet Financing

New shipyard for the Lena river

Andrey Tarasenko, Prime Minister of
Yakutia, image source: prav.sakha.gov.ru

The construction of the Zhatai Shipyard is the only project in Yakutia included in the Russian Federation State Program “Development of Shipbuilding and Facilities for Offshore Fields” implemented under the aegis of the Russian Ministry of Industry and Commerce. The high-tech shipyard will build modern river vessels for the modernization of Lena’s river fleet involved in cargo deliveries to the arctic areas of Yakutia. In his interview with IAA PortNews, Andrey Tarasenko, Prime Minister of the Republic of Sakha (Yakutia), recounts the construction of the shipyard.

 Mr. Tarasenko, what has been done as part of the project? How far has it gone?

– Construction of Zhatai Shipyard started in May 2019. Zero-level work on the construction of the main building (hull production workshop) was completed during this period. In particular, the works included the demolition of two buildings, the clearing of the site, the excavation of 94,400 m3 of soil. A pit was dug, 1,157 piles were fabricated and installed, permafrost soil temperature stabilization was achieved with the laying of 15,000 meters of cooling pipes.

In progress, the assembly of the metal structures of the hull manufacturing workshop. Some 2,167.9 tonnes of metal structures have already been assembled.

The first phase of construction is due to be completed in December 2021.

 How did you manage to solve some of the shipyard construction problems you encountered last year?

– Indeed, construction slowed down last year due to the coronavirus infection and severe frosts in December-February (the temperature was lower than usual during this period). The general contractor addressed the problem of completion of construction and assembly work.

A catch-up schedule has been drawn up. The pace of construction and assembly work has already reached those foreseen in this schedule.

Regarding the registration of the ownership of the plots and some facilities, LORP and Zhatai Shipyard are currently working on the handing over of 17 real estate units required for the implementation of the project.

 What is the source of funding for phase I of the project. Are additional resources needed?

– The project is estimated at 5.75 billion rubles. The initially approved funding structure was as follows: RUB 4.1 billion from the federal budget, RUB 750 million to be invested by Sakha Republic Development Corporation, the remaining RUB 894.5 million to be raised by Zhatai Shipyard JSC.

The government of the Republic of Sakha (Yakutia) has approved a decision to cover the resources raised by the Zhatai shipyard from Yakutia’s 2021-2026 budget.

Negotiations are underway with Sberbank, Sberbank Leasing and Russian Regional Development Bank on a possible participation in this investment project. We await the decisions of the credit commissions of these banks in the near future.

Image souce: prav.sakha.gov.ru

 Is further development of the shipyard planned?

– The Phase II design and budget documentation is nearing completion. The sources of funding are being discussed with the Russian Ministry of Industry and Commerce.

 Is there a list of ships to be built by the shipyard? When should the first ship be delivered?

– It will take at least a year to build the first ship, so it must be delivered in 2023.

The production program of the Zhatai Shipyard provides for the construction of 17 oil tankers with a total capacity of 36,000 tonnes. It is planned to build a river / sea barge with a capacity of 4,300 tonnes; six ТО-4000 class “О” tankers with a capacity of 2,000 tons (draft – 1.8 meters); five МН-2000 class “О” barges with a capacity of 2,500 tons (draft – 1.8 meters); six “О” class dry / liquid bulk vessels with a capacity of 800 tonnes.

In addition, to maintain the capacity of the freight fleet operating in the Lena River Basin and the supply of vital cargoes to the Republic of Sakha (Yakutia) under the Northern Delivery Program, it is planned to build 17 dry cargo carriers and auxiliary vessels: three self – propelled dry cargo carriers with a capacity of 2000 tons (project СК-4000, class “О”); five barges (including 2 mixed river / sea class barges); seven tugs (including 4 mixed river / sea class); Floating crane R3 РМРС; Non-self-propelled suction dredger with a capacity of 1000 m3 / h.

 How old is Lena’s current river fleet on average?

– More than 700 vessels of different types are in service in the Lena Basin on each navigation. With a legal lifespan of 24 years, the fleet is 38 years old. It was a timely decision to build a high-tech shipyard because river transport in Yakutia has no alternative and needs to be modernized.

 How will you approach the staffing issues typical of the national shipbuilding industry?

– According to the revised recruitment needs, the fully operational Zhatai Shipyard will need 664 people including 323 production staff, 119 auxiliary staff, 222 staff working in two shifts.

It is the technical college of Zhatai which serves as a base for vocational education. In addition, specialists are trained at the Yakutsk Water Transport Institute and the Siberian State Water Transport University. A subject matter expert will be drawn from other parts of the country. For this, we are designing a corporate dormitory and a multi-storey building for the employees of the shipyard. In the future, we will build day care centers and preschools. The construction of medical centers is under consideration.

 What social and economic effect is expected from the implementation of the project?

– The construction of advanced ships will make it possible to cope with several tasks, mainly the continuous delivery of cargoes to the remote northern settlements under the Northen Delivery program, to reduce the environmental impact on the Lena Basin through the operation of ships modern and efficient double hull and double bottom, increase the performance of the workforce, reduce transport costs and implement investment projects in the arctic and northern territories of Yakutia

By Tatyana Vilde

[email protected]

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