HANSA 09-2019

Finanzierung | Financing

Finanzierung | Financing In this project, the state-owned Russian Direct Investment Fund, Rosatom – the infrastructure operator of the NSR –, Norilsk Nickel – the world leader in the production of palladium and high-quality nickel – and DP World agreed to jointly start a project for the integrated development of the NSR. The most effective commercial options for the use of the Northern Sea Route shall be studied. The parties intend to create a strategic partnership in the form of a joint venture for the development of transit cargo traffic through the NSR. The key objective of the project is to increase the volume of freight traffic through the NSR and the Arctic zone of the Russian Federation. For the first stage, the signatory parties will have to develop a strategy to increase © VesselsValue the efficiency of the use of the NSR and to determine ways of developing transit traffic. The focus will be on linear transportation of containers and other bulk cargo. »It will be necessary to determine the amount of funding for the design and construction of an additional ice-class fleet and icebreakers, as well as the port infrastructure«, it was said. DP World chief executive Ahmed bin Sulayem said: »Our expertise in developing new ports, infrastructure and innovative new supply chain solutions, are key factors in our successes over the last few decades. We see enormous potential in NSR and look forward to creating new successes with our partners« Another important step is to get China on board. As orchestrated with the DP World agreement, a cooperation was signed during St. Petersburg Economic Forum in June. Chinas Cosco Shipping Corporation and the official Silk Road Fund signed an agreement with Sovcomflot and PJSC Novatek to establish a joint venture called Maritime Arctic Transport. The focus is said to be managing an icebreaking tanker fleet, comprising existing and new vessels, »engaged in the transportation of LNG for current and planned Novatek projects, namely Yamal LNG, Arctic LNG 2 and others.« Some analysts saw the transaction as an alternative to a potential acquisition of up to 25% of SCF shares by Cosco. Rumours were spread in autumn 2018, however, nothing has been made official so far. Sergey Frank, CEO of Sovcomflot explained the need for cooperation with the »sheer scale and level of complexity to provide safe, year-round transportation of LNG across the Northern Sea Route«. This required the combination of a whole range of intellectual, technological, human and financial resources from leading Russian and Chinese organizations, he said, adding to be pleased to participate in such an important energy project for the economies of the countries. Sovcomflot specializes in the transportation of crude oil, petroleum products and liquefied gas, as well as the servicing of offshore oil and gas exploration and production. The company’s fleet includes 146 vessels, of which more than 80 units have ice class. The cooperation between Sovcomflot and Novatek began in 2010, following the organisation of experimental high-latitude voyages along the Northern Sea Route which helped ground the technical possibility and economic feasibility of energy shipping with large-tonnage vessels. However, this is not the only cooperation with China. In spring, gas producer Novatek announced to sell 20% of the Arctic LNG project to two Chinese firms. International financing One important aspect of SCF’s strategy is the use of LNG as fuel for some of its tankers. In 2018, the first »Green Funnel« LNG-fueled Aframax crude oil tanker was delivered from Russian Zvezda Shipbuilding Complex. SCF plans to have eleven of these tankers in its fleet 18 HANSA International Maritime Journal 09 | 2019

Finanzierung | Financing 0 Russian Second-Hand Purchasing History 60 Number of Vessels Total Spent USD m Total Spent USD millions 0 0 0 0 50 40 30 20 Number of Vessels in cooperation with 0 10 ###COLUMNCONTENT### 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 .000 Russian Fleet Age Profile 300 Number of Vessels Total Value USD bn .500 250 .000 200 Russian Fleet Vessel Types Total Value ($ millions) Bulker 5 (38 ships) Container (20 ships) Small Dry .006 (679 ships) Total Value USD millions .500 .000 150 100 Number of Vessels Tanker .820 (615 ships) Reefer 0 (136 ships) LNG .831 (14 ships)) 0 ###COLUMNCONTENT### On Order 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50+ 50 0 LPG 7 (5 ships) OSV 2 (123 ships) Russian Newbuild Ordering History MODU 4 (13 ships) OCV (6 ships) Total Spent USD millions .000 .700 .400 .100 .800 .500 .200 0 45 40 35 30 25 20 15 Number of Vessels 0 10 0 5 ###COLUMNCONTENT### 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 Number of Vessels Total Spent USD m .000 .500 Top Russian Owners by Fleet Value Live Number of Vessels On Order Number of Vessels Total Total Value USD m 125 .000 100 .500 Total Value USD millions .000 .500 .000 .500 75 50 Number of Vessels .000 25 0 ###COLUMNCONTENT### Sovcomflot Rosnefteflot Novoship Fecon International Corp Gazpromneft 0 HANSA International Maritime Journal 09 | 2019 19