Mikhail Kotov: “We have laid the foundation for fishing fleet renewal and reconstruction at the domestic shipbuilding yards.”


Magadan fishing enterprise has signed the first construction contract in the Far East for the building of crab-fishing vessels under investment quotas.

On January 15, Mag-Sea International Co., Ltd. and JSC Khabarovsk shipbuilding yard (part of JSC United Shipbuilding Corporation) represented by Mikhail Kotov and Igor Vasko, heads of companies, have signed a construction contract for the building of two crab-fishing vessels. These vessels will be built under the design project modelled by Russian engineers after Japanese crab-fishing vessel model. The vessels to be built will have the following specifications: the length of the hull will be 63 m, the gross tonnage will be more than 1000 tons, vessel’s crew will be in amount of 21 persons. They will catch crab and ship live crabs direct to the port. Contract price of newbuilding vessels is 2.5 billion rubles.

Crab-fishing vessels’ keel laying is scheduled for April 2020 and they are expected to take 2 — 2.5 years to complete its building.

“Nowadays we underline the importance attached to this occasion,” commented Mikhail Kotov, the President of the Magadan Association of fishermen, the General director of Mag-Sea International Co., Ltd. “Even in the prime life in our country, vessels building was not developed sufficiently and Russian shipbuilding industry has not been widely developed over the previous 30 years. Most of shipbuilding yards which could overcome difficulties of that tough time are considered as debt-laden facilities or facilities are being in a pre-bankruptcy stage.”

According to his word, lack of experience, widespread lack of specialists, reliable suppliers of materials, supplements and equipment, lack of technological planning of Russian shipbuilders to commence vessel building for traders made it extremely complicated to find a good partner for this business. Nevertheless, the State ordered to build crab-fishing vessels at the domestic shipbuilding yards. The State returned the system of fish quota auctions and imposed the following obligations on winners of these auctions: “one purchased lot — one new vessel” and the cost of each vessel should be at least 1 billion rubles.

“We wish to build fishing vessels and repair them in our domestic yards,” continues Mikhail Kotov, “we are concentrated on improving nation’s economy of our own country and not the foreign one. All initiatives seeking to promote and develop domestic shipbuilding and ship repairing industries are thus welcomed. But the issue is that the State made a decision to solve all these problems at the expense of enterprises of fishing industry. Well, ok, let it be so, if only this the matter moves forward and will have some progress. At auction Mag-Sea International Co., Ltd. paid almost 8 billion rubles for the right to produce crabs. We have laid the foundation for fishing fleet renewal and reconstruction at domestic shipbuilding yards. We look forward to a successful result in this business cooperation.”

If JSC Khabarovsk shipbuilding yard fulfils his obligations and agreements on terms and work made results, Magadan fishing enterprises will make request for building of new four or six other types fishing vessels under a unique construction project developed by our and Chinese engineers. The fishing vessel “Atka” was designed and built under this project at the Dalian shipyard in China. This power-efficient, multifunctional, modern fishing vessel will call at the port of Magadan in Spring of 2020.

Despite another “shocking” regulations prescribed for the fishing industry, in fact – in 2019 Magadan fishing enterprises launched the destruction of the «historical principle» allocation of aquatic biological resources quotas.

“Production tasks have been accomplished in full. New fishing areas are being developed.  Nowadays, the enterprise Magadanryba commenced shrimp catching in the Barents Sea. The enterprise keeps on improving the catching and processing. Our fishing vessel “Alexander Shalin” catches whelk and nowadays we install on this vessel the equipment allowing us to produce and release not semi-finished products, but fully finished product in easy-to-use packs. We develop Russian retail market actively: nowadays 80 percent of all fishing products of Magadan fishing enterprises are produced for delivering to the domestic markets.

The average fishing industry salary was increased up to 162 thousand rubles. This is the highest rate in the regional economic sector. But the most important thing is that we managed to avoid a massive reduction in the number of employees and prevent social strain in the region.” said Mikhail Kotov.

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