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JSC "Rigas kugu buvetava" informs about active working
Emitents Rīgas kuģu būvētava, AS (48510000DWP0BMQCTM64)
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Datums 2017-01-26 09:00:30
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 At present seven vessels are in different stages of being built, and alongside with it several procurement procedures for building of new vessels are ongoing, in which JSC “Rigas kugu buvetava” takes part. This is the characterisation of the present situation given by Genadijs Slyozkins, Head of Shipbuilding Department of JSC ”Rigas kugu buvetava” (RSY). He acknowledges that last year in total seven new vessels were started to be built, from which the majority has to be delivered to the customers in the spring this year. In parallel, RSY participates in several procurement procedures of building of new ships abroad, too, but draft agreements on building of some new vessels will be signed soon.

“The sphere of building of new vessels is based on three whales – the price, term and quality – therefore lack of any of these pillars means failure to acquire the potential order,” the overall picture is described by G.Slyozkins. He points out that the biggest competitors of RSY are shipyards based in Poland. Although shipyards exist also in Finland and Germany, they build vessels of different categories, and RSY does not put big hope on receiving orders for building of them, although there already have been several projects on execution of specific projects. “RSY has its advantages, which we try to maximally exploit,” emphasises G.Slyozkins. He indicates that currently the largest part of ships built at RSY are fishing vessels. Such vessels are ordered by entrepreneurs from Norway, Iceland and Ireland. “It is undeniable that the target audience of RSY are the vessels required for running of Norwegian fish farms,” such is the answer by G.Slyozkins to the question which is the largest target audience of new vessel building. He recognizes that the customers have different requirements and, consequently, the scope of work executed by RSY is changeable. “On average the new vessels are prepared at RSY in the stage of 75-80%, because the owners entrust the performance of several specific tasks – installation of communication systems and electric systems – to cooperation partners approbated during decades,” so G.Slyozkins replies to the question about the stage in which vessels are delivered to the customers. He adds that there are also such vessels which are equipped by RSY for 100%, and they immediately start to operate. “One such vessel equipped by RSY for 100% will be delivered to Norwegian clients this year,” tells G.Slyozkins. He doesn’t deny that the company wants to manufacture fishing vessels in series. “In Norway, farms of salmon and other fish are installed in fiords, but the poor water exchange was called forth diseases of salmon and protests by environmental activists, as a result this industry has to move closer to open sea – therefore service vessels of a different calibre are needed,” so G.Slyozkins answers the question which developments permit to hope that fish farm owners would need new vessels. He mentions the fact that orders are executed also for fishermen from other countries – Ireland and Iceland, and with the system of trawling and of catching with hooks. “One fishing vessel means a transaction for approximately one million euro,” such is the answer by G.Slyozkins to the question about the price of those ships. He points out that this is neither a very expensive, nor a very cheap purchase.

Several shipbuilding projects currently are in different stages of execution. “There is an interest about many-functional vessels, one of which was built by RSY for Finland. Namely, the vessel is equipped so that it is able not only to perform monitoring of the environment, but also collection of pollution – oil products that have leaked into the sea, as well a rescue works and simultaneously fulfil functions of coast-guarding, therefore its crew are marine forces,” G.Slyozkins tells. He indicates that the vessels of such type of vessels are owned by Finland, but of a smaller size – by Estonia. “At present we wait for announcement of the procurement on delivery of such a vessel in Lithuania,” G.Slyozkins points out to the nearest procurement. He also does not deny that the interest for vessels of this type is shown also from other countries. “It would be very fine,” is the answer given by G.Slyozkins to the question whether procurement of such vessels is expected in Latvia, too.

RSY in cooperation with a Swedish company has built a vessel for pilot ship service in a port of North Germany. “This is another promising direction of operation, but at present no boom is expected in this field,” G.Slyozkins says and mentions the procurement for building of ferries, as well as prolongation of existing vessels. “It is neither the building of new vessels, nor their repair in true sense, but there is a certain demand for such services,” explains G.Slyozkins. He tells that RSY has executed a prolongation of one vessel by 10.5 meters for a Finnish company.

Chairman of the Board of RSY Janis Skvarnovics acknowledges that building of new vessels has been influenced also by the availability of ES structural funds. “It was planned that last year RSY would begin building the floating power plants, but the customer had frozen the start of these works, because the project is financed from the 2015 – 2020 programs of EU structural funds, but, regrettably, they are not opened yet,” indicates J. Skvarnovics. He still hopes that this delay soon would be a matter of the past. “Delays with opening of programs of EU structural funds happen not only in Latvia, but in other EU member states, too,” the situation is commented by J.Skvarnovics. He adds that the postponement of work execution term is nothing unusual, but this does not permit to take on additional work and perform it within the planned term.

The chief executive of the company also points out that the vessel owners in the circumstances of standstill of cargo shipments (due to EU and Russian sanctions) have become very thrifty, and therefore the competition has intensified both in repairing of vessels and building of new ones. “Now the vessels are repaired only when it is necessary or when the term of technical inspection expires, therefore the competition has become tougher and the prices for this service have dropped,” J.Skvarnovics explains. Under the influence of these factors the net turnover of RSY would also be lower than prognosticated previously, but the indicators of profit would be very close to those planned. “In order to enlarge the assortment of its services for ship owners, the associated company of RSY, JSC “Tosmares kugubuvetava” has received the EU certificate for cutting of vessels (up to 165 m in length, up to 25 m in width and up to 7 m of draught,” J.Skvarnovics points to the extension of the scope of services. He acknowledges, though, that cutting of vessels in the EU has been of significance in the previous years, when the EU financed the removal of old fishing vessels from operation in sea. “The EU regulation stipulates that vessels may be cut only by those companies which have received the EU certificate, and our nearest competitors are nearby – in Klaipeda and Poland, but the most serious competitors will be companies of third countries that will receive the EU certificate, although it has not yet been granted to any of such countries,” tells J.Skvarnovics. He admits that the greatest part of violations of rules in cutting of ships have been committed by the companies of third countries, through ignoring the requirements for nature and work environment protection, as a result of which fuel and grease of ships have come into the water and polluted the environment, and employees who had worked without protective devices have suffered, as well.

Genadijs Slyozkins, Head of Shipbuilding Department of JSC ”Rigas kugu buvetava” (RSY): “At present all our facilities in shipbuilding for the first month of his year have already been provided with work, and currently the main emphasis is put on the final months of the year and beginning of 2018.”

 

 

         Janis Skvarnovics
         Chairman of the Board of Directors
         of "Rigas kugu buvetava" JSC
         t.+371 67353433

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