Russia Battles Incompetent Shipyards

[Manticore]

Russia Battles Incompetent Shipyards
by James Dunnigan
July 1, 2013

The Russian government is taking over more of the shipbuilding industry. The government owned UGC (United Shipbuilding Corporation) currently controls 39 shipyards that account for 70 percent of commercial shipbuilding. The government is taking over more of them, especially those that produce warships, mainly because of bad management and corruption which results in the navy not getting what it wants and often getting ships that are unreliable and poorly built. This problem will get worse as the Russian Navy spends $166 billion to get 24 submarines and 54 surface ships by the end of the decade. The navy wants better quality and to that end the government has been urging (without much success) Russian shipyard managers to seek out and implement foreign technology. Soviet era managers have long resisted this, out of pride, laziness, corruption, and fear (of dealing with the unfamiliar).

The corruption reached crises proportions two years ago, when Russian shipyards refused to build submarines for the Russian Navy. This was the result of the government trying to rein in rapidly rising prices charged for military equipment. Actually, this was part of a larger battle against corruption, or suspected corruption, in Russian defense procurement.

The situation put the Defense Ministry in a difficult position, as the Russian Defense Minister was caught between conflicting orders. The government was trying to reduce corruption in the military and ordered the Defense Ministry to make it happen. But in doing that, the ministry withheld payment to many military suppliers because these firms refused to explain why prices had suddenly increased. That created problems with the government, which was also demanding that defense industries produce the quantities of weapons agreed on and according to promised delivery dates. That was not happening as long as the Defense Ministry was putting contracts on hold to deal with corrupt practices. The government ultimately backed whatever the Defense Ministry wanted, and this ended up with submarine builders threatening to close shop.

Aircraft and missile manufacturers had agreed to lower their prices, but the submarine builders claimed they could not control their own rising costs. They pointed out that they would lose money if they received less than $1.6 billion for the first of the Graney class SSGNs (nuclear powered cruise missile sub). The second one was costing $3.5 billion, and the government wanted a lot more details before they paid. The government pointed out that this was more than twice what the new, and larger, Borey SSBNs cost. The government suspected dirty dealing.

The shipyards said they would not be able to continue operating if the government did not pay what the builders were asking. The government believed the higher costs are the result of inefficiency and mismanagement, as well as antiquated shipbuilding facilities. Ultimately the government sent in its own experts and began taking over more shipyards and sorting out all the problems. That process is still going on.
Procurement: Russia Battles Incompetent Shipyards

 

[MilSpec]

In my professional opinion, the west hasn't still caught up to the welding technology of the Russians. But it is indeed true, in other systems russians should cooperate with the west for better amalgamation of technology. Isolationist regime wont work in this day and age.

 

[vostok]

All modern shipbiulding difficulties are come from collapse of USSR. Half of plants and production chain are abroad. For example - all aircraftcarriers and half of other big warships were built in Nikolaev, Ukraine.
You just can not imagine - what happens when your state devided in 15 independence states.
I wish you never know.

 

[Fsjal]

To me, the West is ahead of Russia in shipbuilding. It would take quite a while (lets say 4 year) for Russia to make a warship, even a frigate, while China and the West would take 1-2 years to make.

Looks like Russia needs to catch up on the shipbuilding industry.

 

[vostok]

To me, the West is ahead of Russia in shipbuilding. It would take quite a while (lets say 4 year) for Russia to make a warship, even a frigate, while China and the West would take 1-2 years to make.

Looks like Russia needs to catch up on the shipbuilding industry.

Didn't you read what I wright? Russian shipbuilding industry was formed for more then 300 years. And all crushed in 1991. More then half of all contractors are abroad now. Many of them did not exist at all - cuase new independence state did not need them.
Russian Federation replacing all thet ex-Soviet plants now and build them on it's territory. It is huge and very difficult work.
You people just do not imagine what Putin have done - he saved Russia from death. It is unbelievable. Miracle.

 

[Fsjal]

Didn't you read what I wright? Russian shipbuilding industry was formed for more then 300 years. And all crushed in 1991. More then half of all contractors are abroad now. Many of them did not exist at all - cuase new independence state did not need them.
Russian Federation replacing all thet ex-Soviet plants now and build them on it's territory. It is huge and very difficult work.
You people just do not imagine what Putin have done - he saved Russia from death. It is unbelievable. Miracle.

Putin? I thought the previous president did better than Putin?

 

[Prechko]

To me, the West is ahead of Russia in shipbuilding. It would take quite a while (lets say 4 year) for Russia to make a warship, even a frigate, while China and the West would take 1-2 years to make.

Looks like Russia needs to catch up on the shipbuilding industry.

British D-45 , first of "Daring" class , needed six years to complete , due to new technology, weapons and systems. And UK didn`t suffer collapse of shipbuilding like Russia did. In fact according to Moscow defense brief , as of may of 2013:

To summarize, the Russian shipbuilding industry has obviously picked up the momentum in recent years. There were 48 ships, boats and submarines being built for the Russian Navy as of May 2013, with another 15 being repaired and about 550 undergoing maintenance.

10-15 years of non-investment is the main reason why newer, post-Soviet generation of ships are slowly built , but that is changing. Indian "Talwar" Class ships were built in timely manner , which is partially based on "Krivak IV" class of Soviet period.

 

[vostok]

Putin? I thought the previous president did better than Putin?

Eltsin? You must be joking? He was a drunkard and he was a man who help to destroy USSR and all it's might. The only good thing he made - appointed Putin.