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First phase of Baku shipyard to cost $470m

13 January 2014 18:21 (UTC+04:00)
First phase of Baku shipyard to cost $470m

By Aynur Jafarova

The 1st phase of Baku's shipyard project, being under construction in Garadagh district, will come on stream at the cost of 470 million dollars, Executive Director of Azerbaijan's Investment Company (AIC) Rovshan Najaf said.

"Once the shipyard comes on stream, it would undertake the construction of a wide range of specialized vessels and merchant ships including subsea vessels, anchor handling tug/supply vessels, and multi-purpose offshore support vessels such as platform supply vessels, as well as tankers and cargo vessels," Najaf said in an interview with "The Business Year's Journal".

He went on to note that the yard will also have ship repair and conversion capabilities.

"Although Keppel O&M owns just 10 percent of the project, it would have full responsibility for management and operation. The largest shareholder, at 65 percent, is SOCAR, followed by AIC, which owns 25 percent equity in the company," Najaf said.

The new shipyard which is jointly owned and developed by Azerbaijan's state energy company SOCAR, AIC, and Keppel Offshore & Marine Ltd. (Keppel O&M) - a Singapore-based world leader in the maritime industry - was inaugurated by Azerbaijani President Ilham Aliyev on September 20, 2013.

Najaf also noted that, when completed, the shipyard is able to undertake up to 100 repairs and conversions per annum.

The plans for the second phase of the construction include construction of a graving dock with added facilities for offshore projects.

"With highly skilled human resources, world-class expertise and know-how, as well as well-structured capital investments, we will not have to wait too long to see the shipyard becoming a globally recognized center of excellence in shipbuilding, repair, and conversion. Baku Shipyard Company LLC will be meeting not only local demands in Azerbaijan, but also that of the littoral countries of the Caspian basin. It also will become an important production hub for maritime industries in the region," Najaf noted.

The shipyard is being built on an area of 880,000 square meters, with closed production area of 75,000 square meters. The length of berths is 1,300 meters. The plant's production capacity is 25,000 tons of steel per year.

The facility is designed to produce annually four tankers with deadweight of 15,000 tons or two tankers with deadweight of 70,000 tons.

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