Russian Tanker Company to Develop Arctic

Tuesday, June 26, 2007
According to RIA Novosti, Russian President Vladimir Putin signed a decree ordering the country's two largest tanker companies to be reorganized into a single corporation. The objects of the merger are 100% state-owned Sovkomflot in St. Petersburg, the country's largest tanker company by capacity, and Novoship, the second largest, in which the government owns an 87.4% stake, in Novorossiisk on the Black Sea coast.

It will take nine months to complete the merger and hold an IPO. The new company will then become the fifth or possibly the third largest tanker operator in the world. Putin recently met Sovkomflot CEO and former Transport Minister Sergei Frank and said this project was largely the idea of the ministry and Frank himself. Frank proposed the merger seven years ago and continued to lobby for the project after resigning as transport minister and while he worked as an aide to Prime Minister Mikhail Fradkov. In 2004, he was appointed Sovkomflot director general and started working on the merger project.

The Russian shipping industry is not alone in consolidating. In 1999, Denmark's A.P. Moller Maersk Group took over Sealand Corporation, an American shipping company, to establish Maersk Sealand, the largest container company in the world. Both Sovkomflot and Novoship were privatized in the early 1990s and started operating the most advanced vessels of that period. Both companies eventually established Russia's largest cargo fleets for transporting fuel and energy. Although Russian vessels are on average almost 25 years old, the two companies operate vessels that were commissioned 5.5 and nine years ago, respectively. Sovkomflot and Novoship each own 56 vessels, mostly tankers, and their consolidated fleet will displace over 8 million metric tons. These figures will make the new company a strong rival to the global leaders.

In early June, both companies submitted a joint design for Arctic shuttle tankers intended to transport oil from the Prirazlomnoye deposit in the Barents Sea. The keel of the first shuttle tanker was laid a week later in an impressive setting at St. Petersburg's Admiralty Shipyard, one of the old Russian shipbuilding companies. It thus appears that Russia can minimize foreign involvement in developing its hydrocarbon deposits on the Arctic shelf.

Until now, Russian shipyards operated below capacity, because it was cheaper to order ships from foreign companies, which have the most advanced equipment and technologies. Novoship, for one, does not have a single Russian-made vessel.

Source: RIA Novosti

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Conrad Shipyard Forms LNG Business Unit

Conrad Shipyard has formed a new business unit focused on LNG projects.   Conrad, builder of North America’s first LNG bunker barge scheduled for 2017 delivery,

Prince Charles Places Final Section of UK Aircraft Carrier

The second of the largest warships ever built for the U.K. Royal Navy, the Queen Elizabeth Class carrier HMS Prince of Wales, was given the royal seal of approval when HRH The Prince of Wales,

New Zealand: Maritime Trade is Key

Globally, shipping is on the rise – already 80-90 percent of the world’s trade is by ship; that is more than 12 billion metric tons of goods annually, shipped by 1.

Ship Repair & Conversion

Turkey to Modernize Pakistan’s Subs

The Turkish defense firm Defense Technologies and Engineering (STM) won the tender to modernize Pakistan's submarines against its French competitor DCNS, reports Daily Sabah.

Turkey Launches F-513 TCG Burgazada

Turkish Navy’s third Milgem class corvette, the F-513 TCG Burgazada, created as part of the MILGEM project, was launched with a ceremony attended by Turkish President

SeaPro FourStroke Making Gains in the Commercial Market

Mercury Marine’s family of SeaPro FourStroke outboard engines is suited for high-hour applications and harsh environments, according to the manufacturer, who said

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1912 sec (5 req/sec)