Sovcomflot

Infobox Company
name = Sovcomflot

type = State-owned (100%) corporation
genre =
foundation = 1995
founder =
location = Saint Petersburg
area_served = Worldwide
key_people = Sergey Naryshkin, Sergey Frank
industry = Shipping
products =
market c

revenue = USD 510 million ("2005")
operating_income =
net_income = USD 179 million ("2005")
assets =
equity =
num_employees =
divisions =
slogan =
homepage = http://www.sovcomflot.ru/

Sovkomflot ( _ru. ОАО «Совкомфлот», ОАО «Современный коммерческий флот», Modern Commercial Fleet) is Russian maritime shipping company specializing in petroleum and LNG shipping, a 100% state-owned corporation founded in 1995. Since December 52006, its headquarters are located in Saint Petersburg. It is headed by Director General Sergei Frank. In 2007-2008 Sovcomflot absorbed the assets of state-owned, Novorossiysk-based Novoship and thus became the largest shipping company in Russia.

History

In 1973 the Government of the USSR decreed formation of a special shipping corporation, separated from the regular state-owned marine fleet, that could use long-term bare boat charter scheme for purchasing new and used foreign-built vessels. In 1976 the Ministry of Merchant Marine institited a special fund and the newly formed corporation used it to acquire two 40,000 ton (deadweight, DWT) dry cargo transports - "Sovfracht" and "Sovinflot".

In 1988 these operations were reorganized as "Sovcomflot Joint-Stock Company" ("SCF"), a one-of-a-kind state-owned corporation with special authorization by the USSR Council of Ministers. By 1990 its assets reached 1,800,000 DWT tons. A further reorganization in June 1995 confirmed the special status of "Sovcomflot" as a state-owned business, effective to date (July 2008).

In June 2007 Vladimir Putin authorized merger of Sovcomflot and Novoship; the state 'invested' its share in Novoship (50.34%) in Sovcomflot capital. [ [http://www.rg.ru/2007/06/21/novoship.html Rossiyskaya Gazeta, June 21, 2007] ] The legal procedures were completed in early 2008 and in January 2008 Sovcomflot offered a stock buyout to the remaining minority shareholders of Novoship. [ [http://www.rbcdaily.ru/2008/01/11/industry/312790 RBC Daily, 11.01.2008] ] The integration of Novoship assets into Sovcomflot operations continues as of August, 2008 (fleet management and sales were unified in July, 2008). [ [http://www.nnvrsk.ru/?article=1640 Nash Novorossiysk, July 24, 2008] ]

Fleet

As of January 2005, according to the Maritime Board ("Morskaya Kollegiya") of the Russian Government, Sovcomflot owned 45 vessels, with the total capacity of 3,263,000 tons. [ [http://www.morskayakollegiya.ru/morsk/morskie_i_rechny/nalichie_morskog/ Морская коллегия: Наличие морского транспортного флота, контролируемого Россией] (Maritime Board: Russia's Merchant Marine) ru icon]

As of July 2008, the company operates 101 tanker with 8,352,000 deadweight ton capacity, 9 dry cargo vessels with 135,000 deadweight ton capacity, 6 LNG carriers and one passenger vessel (SS Maxim Gorkiy). According to Sovcomflot statement, the company's tanker fleet is one of the youngest in the world, with an average age of 5.7 years. [ [http://www.sovcomflot.ru/pages.aspx?cs=1&cid=19&cs2=1 Sovcomflot website. Summary] ] Most recent additions, spherical-hold LNG carriers "Grand Aniva" and "Grand Elena", were delivered in January 2008 and October 2007. [ [http://www.sovcomflot.ru/pages.aspx?cs=4&cid=3&parm=@id=138&templ=vessel MS Grand Aniva specifications] ] [ [http://www.sovcomflot.ru/pages.aspx?cs=4&cid=3&parm=@id=137&templ=vessel MS Grand Elena specifications] ] Four Aframax class tankers (114,000 DWT tons each), three Panamax class tankers (70,000 DWT tons each), two membrane-type LNG carriers (73,300 DWT tons each) are under construction in South Korean shipyards. [ [http://www.sovcomflot.ru/pages.aspx?cid=3&cs=4&parm=@type=AM$@lang=EN$@type_search=AFRAMAX&templ=vessel_list_type List of Aframax tankers] ] [ [http://www.sovcomflot.ru/pages.aspx?cs=4&cid=3&parm=@id=114&templ=vessel List of membrane LNG vessels] ] Most of Sovcomflot ships operate under Liberian registry (flag of convenience).

Management

As a 100% government-owned company with global presence, Sovcomflot board of directors is usually headed by executives from the Presidential Administration of Russia. In July 2007 Igor Shuvalov, aide to Vladimir Putin, long-time chairman of the board, was replaced by Sergey Naryshkin, chief of staff of Presidential Administration. Other directors are: Andrey Kostin (Vneshtorgbank), Yury Medvedev, Alexander Misharin, Gleb Nikitin, Charles Ryan (of Deutsche Bank), Aleksey Sokolov, Elena Titova (Morgan Stanley), Alexander Tikhonov, Sergey Frank (chief executive).

Sergey Frank controls the operations as CEO since October of 2004. The Management Board also includes Sergey Burima (operations), Nicholas Fairfax (London operations), Andrey Khlunev (accounting), Nikolay Kolesnikov (finance), Aleksandr Kurtynin (audit), Callum Ludgate (charter and gas), Vladimir Mednikov (law), Sergey Popravklo (Cyprus operations). [ [http://www.sovcomflot.ru/pages.aspx?cs=2&cid=22&cs2=3 Sovcomflot website. Management board] ]

Notes

External links

* [http://www.sovcomflot.ru/ Official website]