Igor Tonkovidov’s first year at the head of Russia’s largest state-owned shipowner, Sovcomflot (SCF Group), has not been what he was expecting — but then 2020 has been a little odd for every chief executive.
Tonkovidov is no stranger to the top job. This is his third role heading a domestic shipping company.
“This first year is definitely interesting,” he says, acknowledging the challenges of the historic Opec cuts in production in April and Covid-19. But he appears unruffled by these major market-disrupting events.
“Mentally and technically, I am quite prepared to take all these challenges onboard. The job for the CEO is not about explaining why it was difficult to do something, it is to get things done. We are on track with our set goals.”
Those who know Tonkovidov would expect nothing less from him. They describe him as a natural leader, who gives clear direction.
His associates say he has a laser-like focus on work but is known to enjoy unwinding on a motorbike road trip — in non-lockdown conditions.
A marine engineer by training, Tonkovidov dreamt of going to sea from the age of 14 and spent six years as a seafarer, mostly on bulkers in the Russian Far East.
He headed Novoship and Russia’s largest river-sea company, Volga Shipping, each time moving from the technical arms to become chief executive before rejoining Sovcomflot in 2012.
The depth and expertise of his technical knowledge is frequently mentioned by industry associates who have worked with him.
He believes that actions say more than a thousand words, one says, describing him as “hands on” and “brave and courageous” in exploring innovative yet immature technologies to reduce CO2 emissions.
This combination of technical understanding and the conviction to put it into action will put Tonkovidov at the sharp end of shipping’s moves towards decarbonisation.
Sovcomflot has already claimed a pioneer title, starting a project to build the world’s first dual-fuelled aframax tankers in 2015 and ordering the vessels two years later.
Tonkovidov says the company will continue to adopt technological solutions to reduce its fleet’s carbon footprint.
But he is all too aware how this dovetails with the commercial side of the business.
He says “technological competition” is becoming more intense and he will focus on maintaining leadership in this area.
Sovcomflot will continue to explore the viability of alternative fuels. “It is the major area of the future competitiveness of each and every company,” he adds.
“If you stay in the pack of the leaders, you have a much higher chance to succeed in the future, and in this respect I guess the competition will be toughening.”
He says not all companies are ready and some will try to stay with previous technologies, which he believes will create a two-tier market.
“For the time being, LNG is the cleanest fuel available. We can talk for another decade about what is the best fuel, but if we are not doing something in the meantime, we are not reducing what was prescribed by the IMO road map for the reduction of the carbon footprint.”
Being head of a state-owned shipping company brings other responsibilities with a strong focus on serving Russia’s major energy projects and “meeting the national goal in Arctic shipping”.
This year the company ordered a raft of ice-breaking LNG carriers under its joint venture with Novatek Smart LNG for Russia’s Arctic projects.
For these vessels, and the global fleet, Tonkovidov says maintaining, retaining and motivating a highly skilled workforce is key.
He believes the shipping industry will be increasingly led by companies that develop strong environmental, social and governance strategies, prioritising sustainability, operational safety and planning fleet renewal for existing and anticipated regulations.
Vessel ordering discipline will be key to avoid oversupply and market volatility, he adds, for companies to be able to plan long-term.