Russia to order 24 ships for the Caspian Sea at an Indian shipyard
An Indian shipbuilder will be awarded a large newbuilding order for Russian customers. New cargo ships will be deployed in the Caspian region to serve shipping routes, a Russian official told the IAA PortNews correspondent.
The agreement was signed with the Indian state-owned Goa Shipyard Limited (GSL) during the Astrakhan International Forum “North-South ITC: A New Concept. Quick Access to the Premium Markets of the East, Asia, Africa and India.”
The shipbuilding project will be financed through the Russian Export Center (REC) with the participation of Russian Agency for Export Credit and Investment Insurance (EXIAR).
Dmitry Dubovik, General Director of the North-South Caspian International Integration Club says there are two advantages to building ships at an Indian shipyard, namely the cost and leasing rate.
“Firstly, it will be half the cost of building it in Russia. Secondly, it is the rate... A rate of 2-3% of the REC in foreign currency, well it's just a dream today,” Dmitry Dubovik was quoted as saying. “It is the decision that has long been discussed. In particular, Iran or India were considered for placing orders. And finaly, we achieved a solution in India, at GSL, they have confirmed readiness,” he said.
It is planned to build three types of ships: chemical tankers, bulk carriers, and container ships, bulk carriers and container ships. “The Indian shipyard will be ready to deliver 24 ships in three years. We hope to complete all the documents before 2024, and the first four vessels will be laid down in the first quarter of 2024,” he added.
Dmitry Dubovik explained that the customer of the vessels at the first stage will be a subsidiary of IRISL (state-owned Islamic Republic of Iran Shipping Lines), registered in Russia. In addition, the shipbuilding order in India is being considered by Astrakhan headquartered Volga-Port Production & Commercial Company LLC.
Domestic shipyards will also be busy, satisfying the demand for merchant ships on the Caspian Sea shipping routes. Southern Center for Shipbuilding & Ship Repair (SCSS, part of USC) signed a contract at the end of December 2022 with STLC for delivery of four multipurpose mixed river-seagoing dry cargo ships of Project 00108. The vessels will be deployed on the North-South ITC. Two of them are scheduled for delivery nest year, and the rest in 2025. The cost of each newbuilding is RUB 1.7 billion.
The Caspian Sea routes may receive a series of 21 multipurpose dry bulk / container carriers. David Adamia Deputy General Director, USC’ Development of Civil Shipbuilding Markets said in April that at least 45 new Volgo-Donmax container ships are required to serve the North-South ITC passing through the Caspian Sea. Their total cost exceeds RUB 78 billion. However, it is currently planned to build only 25 vessels. Overall, USC’ current order portfolio for the North-South route includes 130 vessels.
Goa Shipyard Limited (GSL) is an Indian government owned shipbuilding company based in Vasco da Gama, Goa.
The North-South Caspian International Integration Club, chaired by Ramazan Abdulatipov, ex-head of Russia's Dagestan, was created as a oordination platform for networking of representatives of states, businesses, public opinion leaders and scientists from the Caspian and other countries of the Eurasian continent who are interested in integration and development through improved logistics and interaction along the entire North-South ITC route. Russia, Iran, Azerbaijan, Kazakhstan, Turkmenistan are the Club members.
