Shipping industry to be brought to standard
RF Government starts a program on development of Russia’s inland waterways till 2015. Within the program framework it is planned to develop construction of new large-capacity vessels. Moreover, if national ship owners fail to increase cargo turnover, inland waterways of Russia are likely to be opened for vessels flying foreign flags as a measure of competitiveness improvement. The program financing has been allocated till 2010 already.
Competition under foreign flag
On July 15, RF Prime Minister Vladimir Putin told the meeting on shipping industry development held in Rostov-on-Don that authorities are willing to order construction of vessels and encourage acquisition of vessels at Russian shipyards with partial compensation of loans and lease payments. The development bank is planned to be involved into implementation of shipbuilding projects. Besides, the government is to create an especially favorable environment for private companies provided that they raise investments and volumes of cargo traffic.
“However, we cannot always protect this market against competition in prejudice of customers,” Putin said. “If our companies fail to satisfy the demand regardless the situation improvement we will have to eye opening of our inland waterways for foreign-flag vessels.” By that time inland waterways are to be brought into conformity with international shipping standards.
Within the framework of federal targeted program
Before the meeting, Putin attended the new gateway of Kochetkovsky hydraulic engineering complex the reconstruction of which started in 2004 within the framework of subprogram “Inland Waterways” of federal targeted program “Modernization of Russia’s Transport System (2002-2010)”. Kochetkovsky hydraulic engineering complex (HEC) is the last in the chain of HEC of Nizhni Don. Its state is a crucial factor influencing transit transportation by sea-and-river going vessels to the ports of the Baltic, White, Caspian, Azov, Black And Mediterranean seas as well as the efficiency of Volga-Don navigation canal.
Until recently the gateway of Kochetkovsky hydraulic engineering complex was the narrowest place of Russia’s inland waterways. It was built in 1919 and didn’t meet current requirements to safe navigation. Besides, it used to limit the capacity of waterways at Azov-Volga section.
Federal budget allocated over RUR 3 billion for construction of the new gateway. Today large capacity vessels may pass this section.
State support
There are over 700 hydraulic engineering facilities (HEF) at inland waterways of the Russian Federation today. 75% of HEF have been operated for 50-80 years. All in all, Russia operates over 100,000 kilometers of inland waterways, while the share of cargo transported by inland waterways makes only 2%. Speaking about capacity of inland waterways, Putin noted that they are to be brought into conformity the existing standards. “It is necessary to eliminate so-called "limiting" sections and to upgrade the entire complex of hydraulic engineering facilities,” Putin said.
According to the Prime Minister, the state is willing to ensure maximally comfortable environment for Russia shipping companies. “And we count on adequate response – increased investments and volumes of cargo traffic,” Putin said.