NEVA 2011 Exhibition Program Report

Speech by S B Ivanov, Deputy Prime Minister of the Russian Federation, Chairman of the Maritime Collegium under the Government of the Russian Federation, at the Opening Ceremony of the International “NEVA-2011” Exhibition, 20th September 2011:

"Ladies and Gentlemen, Friends, The opening of the “NEVA-2011” Anniversary International Exhibition of Shipbuilding, Shipping, Port Activities and Ocean and Offshore Development is undoubtedly a long-awaited and significant event.

Over its 20 years in existence, this St. Petersburg Forum has rightly become famous for being one of the world's leading platforms at which the most advanced developments in the field of maritime activities are exhibited.

Today, everyone can see first-hand how our capabilities have increased! The theme for this exhibition encompasses all stages in the development and operation of ships and marine equipment, advanced methods of navigation and logistics, innovative tools and technologies for the extraction of mineral resources.

This year, more than 650 different companies and enterprises are participating at the exhibition representing 43 countries. We are delighted by such a broad representation by our foreign partners!

It is not, however, our intention to stop there! We will continue to expand the potential of the Forum, make it more convenient to conclude contracts, develop international cooperation in the domain of shipbuilding and shipping and also in areas of port activities, and develop the natural resources of the oceans. I declare, as the Chairman of the Maritime Collegium under the Government of the Russian Federation, under whose auspices the Exhibition is traditionally held: “We are fully open to cooperation! We are ready to demonstrate our new technology and capabilities! We plan, increasingly, to enter the world market with our own competitive products!”

I am convinced that the “NEVA-2011” International Anniversary Exhibition will do everything possible to establish new business contacts, develop partnerships between producers and operators of marine equipment.

Dear Friends! I congratulate you on opening this Exhibition! I wish you success, good luck and new experiences!"

The “NEVA-2011” International Exhibition of Shipbuilding, Shipping, Port Activities, Ocean and Offshore Developments, celebrating its 20th anniversary, took place in “Lenexpo”, St. Petersburg on 20th – 23rd September 2011.

The “NEVA” Exhibition, created in 1991 at the initiative of the Ministry for Shipbuilding Industries and the Shipping Ministry of the USSR, is by right one of the leading international civil maritime exhibitions and conferences. The Anniversary Exhibition saw the participation of more than 700 principal exhibiting companies and enterprises plus nearly 800 co-exhibitors representing 48 countries, including a record number of 17 national pavilions and group exhibitions, over an area of almost 12,000 m2 net in pavilions 3, 4-1, 4-2, 5, 5A, 6, 7, 8, 8A of the Lenexpo JSC complex. The Exhibition space occupied this year gave an increase of 15% compared with the previous Exhibition.

It was organised with the support and participation of Governments, Export Councils and Marine Industries Associations from the leading maritime powers including: the Community of European Shipyards Associations – CESA, USCG/AMVER, American Bureau of Shipping (ABS), VDMA, VSM (Germany), Ministry for Industry of China, Association of Maritime Industries, Singapore, UBI France, Croatian Chamber of Commerce, Spanish Institute for Foreign Trade ICEX, State Administration “Ukrmorrechflot” of the Ministry for Infrastructure of Ukraine.

The “NEVA 2011” Anniversary Exhibition took place thanks to the support and active participation of the International Maritime Organisation (IMO UN).

The State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank) was the main sponsor of the “NEVA-2011” Exhibition.

The “NEVA” Exhibition is traditionally held under the auspices of the Maritime Collegium of the Government of the Russian Federation with the support of the Ministry for Industry and Trade of the RF, Ministry for Transport of Russia, Department of Shipbuilding and Marine Engineering of the RF Ministry for Industry and Trade, Rosgidromet (RF Service on Hydrometeorology and Environment Monitoring), the Government and Maritime Council of the St Petersburg Government, Union of Oil and Gas Equipment Producers, Union of Russian Ship Owners, Association of Sea Commercial Ports, Solomenko Institute of Transport Problems, Arctic and Antarctic Institute. The Anniversary “NEVA” Exhibition has also been held with the support of: the Russian Union of Industrialists and Entrepreneurs, RF Chamber of Commerce, the Executive Committee of the Coordinating Transport Council of Transport Ministers of the CIS, North-West Research Centre of the Russian Academy of Sciences, the “Russia-Brazil” Business Council.

In accordance with the Resolution of the Government of St. Petersburg dated 27.02.2009, "NEVA" is included in the priority list of exhibitions for 2009-2011.

Since 2009, the “NEVA” Exhibition has been held with the support of the Ministry for Transport of the RF and the United Shipbuilding Corporation (OSK). As part of the "NEVA-2011" Exhibition, the Corporation held round table discussions on "The USC Strategy in the Field of Commercial Shipbuilding" and "USC Procurement Policy in the Construction of Civil Ships."

Over the next 10 years, USC is planning to reduce its capital consumption by up to 30-40%. According to its plans, “The United Shipbuilding Corporation” will reduce its capital consumption by 30-40% over the next 10 years. According to the PortNews correspondent, this was declared by Dmitry Sapov, Head of USC’s department of civil shipbuilding during the round table discussion on "USC Strategy in the Field of Commercial Shipbuilding". The Head of Department also added that, according to USC’s plan, labour productivity will be increased 3-3.5 times over the next 10 years. Among the main tasks, Sapov noted the need for a federal law “On measures to support shipbuilding and navigation in the Russian Federation” which would include the creation of industrial-production shipbuilding zones with special tax and customs regimes and also the need for reasonable lending rates.

JSC "United Shipbuilding Corporation" (USC) was established by Presidential Decree ? 394 on 21st March 2007. 100% of the shares are state-owned. The USC structure comprises 9 engineering design offices and 39 ship repair facilities. Its largest shipbuilding assets are: JSC "Yantar" Shipyard (Kaliningrad), JSC "Admiralty Shipyards" (St. Petersburg), JSC "PO" Sevmash" (Severodvinsk), JSC" DVZ "Zvezda" (Vladivostok). Major international projects: construction of the "Zvezda-DSME" shipyard as part of a joint venture with Daewoo Shipbuilding & Marine Engineering (South Korea), the construction of the "East-Raffles" shipyard as part of the joint venture with Yantai Raffles (Singapore). USC’s consolidated revenues in 2010 were 135 billion roubles. USC currently represents about 70% of the domestic shipbuilding industry. Russia forms the main market for the corporation which also exports its products to 20 countries worldwide.

On 22nd September 2011, according to the USC Press Service, and as part of the “NEVA-2011” Exhibition programme, a new generation of ships’ keel was laid at JSC "SNSZ" for the Russian Navy. To commemorate this event, a traditional cannon shot was fired from the Naryshkin ramparts at the Petropavlovsk fortress in the presence of the plant management and representatives of the Navy and the Administration of St. Petersburg and the cartridge sleeve from this shot will take pride of place in the factory museum.

The General Director of JSC “SNSZ”, VA Seredokho stated, “A unique ship for the 21st century has been laid”. We are proud that we have managed not only to reach a global level, but to achieve what has never yet been done. The largest single cast fibreglass housing in the world has been formed.”

An important feature of this project is that fibreglass-hulled ships and vessels will be developed, from the very start. By using such hulls, patrol ships and varying types of auxiliary vessels can be built both for military and civilian clients. With 800-ton displacement, this ship is unique and has the world’s largest monolithic fibreglass hull, which has been formed by vacuum infusion. JSC “SNSZ” is the only plant in Russia with such technology and the only one in the world capable of producing monolithic hulls of such a size. The advantage of this hull in comparison with steel hulls is its greater strength which gives the ship greater endurance when minesweeping. Fibreglass hulls have a far longer lifetime and a lighter mass than low magnetic steel ones.

The General Director of Almaz Central Design Bureau, AV Shlyakhtenko, stated, “Today’s event goes beyond simply laying a new minesweeper. We are witnessing the birth of a radically new technology. I stress that it is Russian technology, which is allowing a hull to be manufactured from composite materials for ships with differing purposes: guard-ships, corvettes, minesweepers, as well as for the widest range of civil ships. This has been made possible thanks to the workers, designers, engineers and builders who believed in the project.”

Despite difficulties encountered during the transition period, JSC “SNSZ” has managed to maintain its productive capabilities and personnel, is successfully and consistently implementing modernisation throughout its production, is using the latest world achievements in shipbuilding technology and has a competitive and diversified product line. On the eve of its centenary, staff at the plant, at all levels, understand the enormity of the challenge facing them, the potential for the company’s areas of manufacture, and it is confident in the future and is looking forward with optimism. The company's products have excellent prospects in the domestic market and good prospects in the global market and are being actively promoted there. Customer relationships are built on the principles of maximum client satisfaction, on establishing long-term, honest partnerships, supplying quality and reliable products and on strict adherence to delivery dates.

Shtokman Development AG and Sovcomflot signed Cooperation Agreement

Shtokman Development AG and Sovcomflot signed the Cooperation Agreement on September 20, 2011 in Saint-Petersburg at the 10th Annual Conference of Sovcomflot Business Partners. The participants of the Conference also visited the NEVA 2011 Exhibition and the SOVCOMFLOT stand at NEVA 2011.

The document was signed by Alexei Zagorovskiy, Chief Executive Officer and Sergey Frank, Chairman of the Board of Sovcomflot.

The Agreement stipulates mutual consultations and exchange of information on support fleet services for the Shtokman Project, organization of environmentally safe marine transportation patterns, transportation of liquid hydrocarbons, and operation of onshore logistic bases.

"SDAG, as the operator of phase 1 of the largest Russian gas project on the Arctic shelf is interested in the promotion and analysis of Sovcomflot experience, the first class operator, which provides service for offshore oil and gas fields. We consider mutual consultations with Sovcomflot to be of utmost significance, taking into account the fact that the company has been operating in the Russian, as well as in world markets, and for long has been a partner of Gazprom, our main Shareholder", stated Alexei Zagorovskiy after signing the Agreement.

"Extension of the company role in providing services to energy projects on the Russian continental shelf is one of the directions of Sovcomflot development strategy. The Shtokman Project ranks high in our plans. I am confident that close cooperation with the Project Operator will contribute to development of optimal logistics patterns strongly sought-for during the Project realization", pointed out Sergey Frank.

SCF Group of Companies (Sovcomflot) is one of the world biggest shipping companies specializing in shipping of oil, oil products and LNG. The company owns the fleet of 156 vessels of about 12 million dwt. The company is registered in St.-Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, London, Madrid and Singapore.

Owing to its wide fleet of ships represented in segments greatly sought after by the largest Russian oil and gas companies plus its developed products and high-end technologies (unique for a shipping company) Sovcomflot meets the highest requirements of its clients, providing reliable and effective transportation services for oil and gas companies.

Resolution of the International Workshop Conference "Water Transportation In Europe: Integration, Investment, Innovation"

The International Workshop Conference "Water Transport in Europe: Integration, Investment, Innovation" was held on 20th September 2011 as part of "NEVA-2011” International Exhibition of Shipbuilding, Shipping, Port Activities, Ocean And Offshore Developments.

Leaders and specialists from the Ministry for Transport of the Russian Federation, the Federal Maritime and River Transport Agency, the St Petersburg Administration, representatives from shipping companies, ports, ship building companies, universities, research and development, design and other organisations from Russia and foreign states.

Having heard and discussed the reports and speeches from the discussions, the participants noted:

In many European transport corridors, inland waterway transport provides a competitive alternative to road and rail transport, offering a sustainable and environmentally friendly method of transportation in terms of energy consumption, noise and gas emissions. Inland waterway transport is often the most economical mode of internal transport due to low infrastructure cost and low external costs associated with the negative impacts on the environment. However, this form of transport is currently under-utilized in many European countries, when faced with obstacles of an infrastructural, institutional, legal and technical nature, which requires an active policy on the part of governments and international coordinating bodies.

The role of inland waterway transport varies greatly depending on individual European countries and regions, reflecting the strong influence of national and regional transport policies as well as economic and geographical factors. In most countries, in comparison with the mid-1990s, a slight weakening of the position of inland waterway transport can be noted, which confirms a continuing trend towards an increase in the share of road transport in the total volume of freight and passengers at the expense of inland navigation.

The UN Inland Water Transport Committee is constantly conducting in-depth studies dedicated to the potential of inland shipping within a united Europe. An extensive consultation process is underway concerning the development and the possibilities of promoting inland water transport. The following were discussed during the debates: issues of integrating inland waterway transport into the transport logistics chain, fleet modernisation, raising the prestige of river trades and the skill levels of specialists, improving technology and transportation infrastructure, etc.

Russia has the longest operational network of inland waterways in the world - 101.3 sq km - most of which has a developed infrastructure regarding the organisation and maintenance of shipping. Inland water transport is often the only option for many people’s livelihoods in the Far North regions and for the development of new and remote regions with resources. At the same time the share of inland waterway transport accounts for less than two percent of the total volume of freight traffic in the Russian Federation. This figure is much lower than in European countries which have a less developed network of inland waterways, such as Germany, France, Belgium and the Netherlands, where an increase in the volume of transport by river transport has been noted.

Container traffic is growing especially quickly, which represents less than one percent of the total freight traffic of the Russian Federation on inland water transport. In modern conditions, when the infrastructure of rail and road transport in most ports in Russia and Europe operates almost at full capacity, inland waterways are not used to their fullest. Moreover, improving the quality of inland waterway transport services could speed up freight delivery and the ability to cope with growing volumes of traffic, given denser and more complex traffic networks.

The Unified Deep Water System of European Russia, which is 6.5 thousand km long, is part of the "Great European Water Ring” - the most important inland waterway with international significance. In 2010, almost 70 million tons of cargo and 12 million passengers were transported along the Unified Deep Water System of European Russia, accounting for two thirds of the total traffic on inland waterways in the Russian Federation. The route of the ring extends over 10 thousand miles and runs through 12 countries and along the coasts of another four countries. Transport along this international route is not fully realized because of legislative obstacles, incomplete readiness of waterways and an insufficient number of vessels of the appropriate class and corresponding shipping standard.

In the Russian Federation, realizing the benefits of inland waterway transport is currently hindered by a number of factors, including: the availability of limited sites on inland waterways; unfavorable age structure of the fleet and shortage of modern ships, cargo handling facilities and port terminals; reduction of innovative developments in technology and organisation of the transport process; the lack of organisational, economic and institutional measures designed to attract cargo and passengers on inland water transport, etc. The combined effect of these factors causes low investment attractiveness of the industry, a drop in freight and passenger traffic and negative trends in the changing the structure of the transported freight.

The Russian Ministry of Transport and Rosmorrechflot are continually implementing innovative ways of developing the transport system in accordance with the objectives and tasks set out in the Transport Strategy of the Russian Federation for the period up to 2030.

Taking into account that the federal programme “Development of the Transport System of Russia (2010-2015)” is the main tool to implement the Strategy, cuts in programme funding over the period 2009-2011 and for the period to 2014 will significantly delay the lead-time to commission the majority of infrastructure projects. In this regard, the Russian Ministry for Transport has planned to extend the federal programme "Development of the Transport System of Russia (2010-2015)", including the "Inland Waterway Transport" sub-programme, until 2019 and will uphold the previously approved level of funding and appropriate indexing.

The conference participants considered that the dynamic development of inland waterway transport, the implementation of its strategic advantage and competitiveness of river traffic can be achieved by:

harmonization of existing inland navigation regimes in European countries, identifying areas for further coordination, cooperation, transparency and harmonization of rules and regulations for inland waterway transport at a European level, promoting the use of transparent and standard European shipping codes for inland waterways;
creation of conditions to improve the quality of river traffic, namely to build a new modern fleet, the development of ship-repair facilities, improving the infrastructure of inland waterways;
coordinate the development of a network of category E European waterways, completion of complex investment projects, and within the planned time scale, for the reconstruction of hydraulic structures for the Unified Deep Water System of European Russia within the Federal Program

"Development of Transport System of Russia (2010-2015)", and also fill the Cheboksarski Reservoir to a level of 68 m, and reach a positive decision on the construction of the Bagaevski hydroelectric complex;

coordinate measures to modernise the inland vessel fleet at a European level and support the adoption of such measures, including the promotion of research to create modern types of vessels with energy-efficient ship propulsion units, modernise the fleet and improve its effectiveness, continue with the ongoing development of technical requirements for "river-sea" vessels;
integration of the inland waterways of the Russian Federation with the Great European Water Ring by implementing measures to open the inland waterways of the Russian Federation allowing for the navigation of vessels under foreign flags, and to increase the attractiveness of the ITC "North-South" water-transport route;
development of multimodal transport using inland water transport by establishing a terminal and distribution logistics network and multi-modal multi-purpose facilities on Russia’s inland waterways to reduce transport costs, external environmental costs, budget costs for the maintenance and development of the transport infrastructure;
ensure safety of shipping, to include the establishment of river information systems (RIS), integrated with similar marine systems, maintenance of the European dialogue on the implementation and further development of the RIS.
increasing the innovative capacity of water transport through the integration of science, education and production, realisation of innovative pilot projects, establishment and operation of research and education centres based on industry-leading universities, setting up grants to conduct relevant research, etc.

The conference participants noted the relevance of issues concerning training qualified personnel for inland waterway transport to a European level, including:

Increase the prestige of marine trades;
Continue work on harmonising requirements for the certification of skippers and crews on inland shipping vessels, particularly in terms of the planned opening up of national inland waterways in some countries;
Expand the range of innovative programmes within additional vocational education in accordance with the needs of companies in the industry;
Prepare and implement international projects to train water transport professionals in priority areas of development based on modern training methods and technologies, including distance learning;
The feasibility and need for the active involvement of Russian shipping companies, ports and other shipping companies in training specialists by reaching agreements about the contracted training, as well as by targeted training contracts, which would ensure the financial participation of commercial structures in the training of its personnel, etc.

The conference participants acknowledged the relevance and fully supported:

The proposal to develop a Strategy for the development of inland waterway transport in the Russian Federation in the period up to 2030, which will develop systemic approaches to solving problems in the industry and enhance its attractiveness, define priorities and directions for further development, ensure the growth of competitiveness of river traffic, and create conditions for the effective integration of inland waterways of Russia and European countries.

To read more about NEVA 2011, click here.