Dredging expenses in Russia in 2015-2018

2018-08-10 09:45 | Dredgers


Dredging expenses in Russia in 2015-2018

Up to 200 government contracts for dredging works are executed in Russia annually by efforts of about 100 specialist companies. The overwhelming majority of contracts are executed by domestic contractors. Foreign companies were involved in exceptional cases, for example, in 2011-2013 during the construction of Sakhalin-1 complex, in 2015-2017 during the construction of Sabetta port.
The order volume for dredging works in 2015-2017 varied from USD 51.7 to 561.7 mln (figure 1). The last value is determined by a huge work order in the area of a new Sabetta port.

Figure 1: Order volume for dredging works in the Russian Federation within 2015-2018, USD mln.

Our estimation of dredging works growth in 2018 is connected with Severodvinsk Zvyozdochka Shiprepairing Center project (reconstruction of shallow-water quay). By the second half of 2019, after the performance of dredging and construction works, the plant will be able to use it for the repair of the third-generation submarines. The reconstruction will also allow building module blocks for the NOVATEK Arctic LNG 2 plant. Four artificial islands in the Kola Bay of the Barents Sea are to be created (NOVATEK plans to invest USD 416.7 mln).

Arctic LNG 2 project

As for Sabetta port, during the construction in 2012-2017 the volume of dredging works was record-breaking 70 million m³. The following units are created under the construction of Sabetta port sea objects:
•    approach channel with the length of 6 km, width of 495 m, seabed level of minus 15.1 m;
•    marine channel with the length of 49 km, width of 295 m, seabed level of minus 15.1 m;
•    port area with the seabed level of minus 15.2 m.
The customer and investor of the Sabetta port is Rosmorport FSUE.
As known, Rosmorport has the considerable part of commissioned dredging works of the Russian Federation, but one must note that the enterprise performs considerable part of works using its own resources. Thus, the total volume of repairing dredging works in 2016 was 11.0 million m3 (in 2015 it was 8.2 million m3, and in 2017 – 9.5 m3). This is the largest annual volume of repairing dredging works ever performed by Rosmorport FSUE. The total amount of involved dredging equipment in 2017 was 7 units, 4 of them were dredging shovels of Rosmorport FSUE. For the purposes of spending cuts for contracting Rosmorport FSUE increases the composition of its own dredging fleet. The fraction of works volume performed by own equipment has already achieved 65%, and in perspective it will be increased up to 70%.

View of a dredge cutter head at Sabetta port      

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In 2015 the general contractor MRTS JSC became the leader in order volume for dredging in Russia (figure 2).

Figure 2: Top-5 contractors for dredging works in the Russian Federation in 2015, USD mln.

Mezhregiontruboprovodstroy JSC, or MRTS JSC (Taxpayer Identification Number 7706241963) is one of the largest companies performing turnkey construction of subsea technical facilities of main oil and gas pipelines. The registered trademarks are МРТС (MRTS).
MRTS also uses its own watercrafts for the performance of dredging works.   These are dredging convoy within “Servis” backhoe dredger and “Dikson” suction dredger with mechanic hoeing (cutter) and other dredgers.
Starting with 1999, the total length of projects on construction of underwater lines executed by MRTS is more than 1000 km.  Gazprom, Transneft, LUKOIL, ExxonNeftegasLtd, Rosneft, Norilsk Nickel and many other are among customers of MRTS JSC.
Notably, over the years of work five most difficult 17 km crossings over the Pur river were created during the exploration of Zapolyarny gas-oil-condensate field. The twin crossing of gas pipe line of Nakhodka field was laid down up to GCS 1, 2 Yamburgskaya over Taz Bay, with the length of 21 km. The full reconstruction was executed with the pipe replacement of underwater crossing of main pipeline Druzhba-2 on the Volga river.
Dredging in the Barents Sea was executed, and a twin oil pipeline of Varandey oil shipment terminal was laid down. Gas pipelines were laid down over the Nevelski strait in framework of implementation of the unique project “Sakhalin-Khabarovsk-Vladivostok gas pipeline system”.
The construction of 25 km marine pipeline of fossil water Artukun-Dagi of the second phase of Sakhalin-1 project that had been started in 2010 was finished. The construction of gas pipeline and condensate pipeline over Yenisei – “Pelyatkinskoye gas condensate field – Dudinka city” is being finished.

The main construction objects executed in sea offshore areas are the following:
1) Sakhalin-Khabarovsk-Vladivostok gas pipeline system. Underwater line over the Nevelski strait.
2)  Bobanenkovo–Ukhta gas pipeline system. Line section, I line. Area 111.7 km –186.7 km.
3) Bobanenkovo–Ukhta gas pipeline system. Line section, II line. Area 111.7 km –186.7 km.
4) Development of Kirinskoye gas condensate field.

Construction objects executed in river offshore areas:
1.    Second stage of Eastern Siberia – Pacific Ocean pipeline system.
2.    Pelyatkinskoye gas condensate field – Dudinka city gas pipeline and condensate pipeline. Underwater crossing of the main pipeline line over the Yenisei river, and underwater crossing of reserve pipeline line over the Yenisei river, including bottomland areas.
The construction object on the land area is the trunking transport of hydrocarbons of Zapolyarny OGKF gas and condensate fields.
The main dredging objects in 2012-2016 were located at the area of Sabetta port on Yamal peninsula (objects of preliminary period; objects of main period, construction of the process pipe rack base of CNG and GCF transshipment complex; Terminal №1 reconstruction; creation of approach channel in the Gulf of Ob; root section of south-eastern ice barrier within the artificial land plot with the help of a bank protection).

2016

The main customer is Rosmorport FSUE with the total amount of USD 14.2 mln (8 contracts).
Top-5 contractors are shown in (figure 3).

Figure 3: Top-5 contractors for dredging works in the Russian Federation in 2016, USD mln.

Yuzhnaya stroitelnaya companiya LLC (Taxpayer Identification Number 6167073060) concluded a lump-sum contract with the Capital construction management of the Rostov region and held the top spot in 2016.

2017

In 2017 the leaders in orders were Rosmorport and the Ministry of Agriculture of RF.
Main contractors of dredging services in 2017 are shown in (figure 4).

Figure 4: Top-5 contractors for dredging works in the Russian Federation in 2017, USD mln.

In 2017 Spetstekh-Poltava LLC (Taxpayer Identification Number 2336023616) concluded under Federal Law FZ-44 a lump-sum contract with the Ministry of Agriculture of RF on “Reconstruction of water relief system of Kuban and Protoka river regulation with preparatory works on cleaning river beds of Kuban and Protoka, second stage, Krasnodar Krai”. The tendering authority was Directorate for land melioration and agricultural water supply in Krasnodar Krai  FSBI (Taxpayer Identification Number 2312042708). The project was prepared by Kubanvodproekt Design and survey institute OJSC. The works were executed within the Federal target program “Development of water utilization scheme of the Russian Federation in 2012-2020”.
Kuban and Protoka river regulation system is used for water relief, and together with the Krasnodar water storage takes part in the protection of Kuban lower reach from flooding and underflooding. The main task of reconstruction is the complete recovery of performance characteristics of the river regulation system and increase of its effectiveness and reliability in the areas included in the second stage of construction.
The river regulation system is a federal property and is on the books of Federal Government Budgetary Institution on operations of gas transmission nets of Kuban and Protoka rivers. The total length of flood-breaking dams from Krasnodar water storage to Kuban and Protoka river mouths is 650 kilometers. The river regulation system was constructed in 1943-1947. Repairing works on the river regulation system were not systemic during the long period of operation.
Through the execution of diagnostic, survey and project works the following list and volume of projected activities are provided:
– construction of bypass dams at the length of 2.17 km;
– reconstruction of existing flood-breaking dams at the length of 64.521 km;
– construction of bank protection areas at the length of 9.43 km;
– training works with the length of 14.77 km.
Total length of projected activities is 90.89 km.

Customers location regions

Analysis of customers gives a distorted perspective, because the main large enterprises are registered in Moscow, and the works are executed at the coast in remote regions (table 1).

Table 1: Regions of dredging works customers in 2017, USD mln.

Share of import services

De jure, all state dredging contracts in 2015-2017 were concluded with Russian juridical entities.
However, de facto about 50% of about 100 m3 of dredging services were executed by foreigners with the help of their own equipment.
For example, JanDeNul company (Luxembourg) worked at Sabetta port. The company’s dredging fleet is the most up-to-date, it includes the most powerful cutter suction dredgers and the world’s largest trailing suction hopper dredgers. On Yamal there were three trailing suction hopper dredgers (Bartolomeu Dias, Al-Idrisi, Francescodi Giorgio), two cutter suction dredgers (Leonardo da Vinci and Niccolo Machiavelli), eight hoppers with opening body frame (Le Guerrier, Boussole, De Bougaville, Amerigo Vespucci, Astrolabe, Tiger, L’Aigle, Pinta), three inshore survey boats (Gardian, Gladius, Burevestnik-780), two ferryboats (DN 46 and Sandy), towing hawser Shoalbuster, and also pantoon with two excavators Hitachi EX 1200. Commercial contracts were not published, however, their volume may be estimated to USD 416.7 mln.

Prices of dredging services

The RF market has three kinds of prices (table 2):
•    Calculated internal prices of own works.
•    Prices of Russian contracting organizations.
•    Prices of western contracting organizations.

Table 2: Price range of dredging works in 2017, USD/m3

When it comes to prices indicated in commercial contracts for the execution of cleaning, then the amounts per 1 cubic meter of soil reaches up to USD 83.3. It is related to the fact that sometimes the volume of required cutting is so small that expenditures for equipment relocation compose the large amount of production cost.
It should be noted that a substantial difference in production cost during the execution of dredging works with the help of own fleet and prices of contracting organizations makes Rosmorport increase its own dredging fleet. Other state customers which have spent more than USD 166.7 mln on buying different types of dredgers in the past five years, have the same motives (see more details in the article “Analysis of Public Purchases of Dredgers”).

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