Launch of SUG mechanism applicable to construction of passenger ships can be advanced from 2018 to 2016
The launch of Ship Utilization Grant mechanism applicable to construction of passenger ships can be advanced to 2016 from 2018 initially scheduled by the dedicated programme of RF Ministry of Industry and Trade, Deputy Transport Minister of Russia Victor Olersky told journalists in Saint-Petersburg on September 23.
According to him, this measure is backed by Denis Manturov, Minister of Industry and Trade. “Manturov told me it is possible to shift it to 2016. Most probably it will cover the passenger fleet as we have not been building passenger ships for many years, it seems to be time to begin. Economically, current measures of state support do not work when it comes to passenger fleet. Today, river class passenger ships cannot be built without a ship utilization grant,” Victor Olersky said.
According to his estimates, SUG should be larger for passenger ships as compared with other sectors. “Only if SUG makes 20-25% of a ship cost, its construction is economically viable”, Victor Olersky said. He explained that although river class cargo ships also depend on seasonal factor reducing their operation period to 6-8 months per year depending on the region, efficient period of passenger ships operation is limited to 3 to 5 months including May and September with their ticket price discounts. Hence a longer payback period.
A type ship design for 300/500 passengers has already been developed for inland water ways of the Russian Federation. “Technical and economical solutions have been found, now it comes to ship utilization grants. Then we can embark on building our passenger fleet. Our shipyards are capable of it”, Victor Olersky added.
State measures intended to support domestic shipbuilding include the RF Government Decree No 383 (dated 22.05.2008) on granting subsidies to Russian transport companies and shipping lines to compensate for 2/3 of the cost of interest on loans obtained to acquire vessels built at Russian shipyards. The Minister believes this measure should be prolonged for 15 years from current year-long period subject to annual prolongation.
Besides, Federal Law No 305 (dated 07.11.2011) on support of domestic shipping and shipbuilding provides for tax privileges when it comes to registration of vessels built by domestic shipyards after January 1, 2010.
Related link:
RF Ministry of Industry and Trade says financing of ship utilization grants to exceed RUB 10 bln in 2017-2030 >>>>
RUB 400 mln allocated for 2018 to finance the programme of ship utilization grants>>>>
