Friday, 25 October 2013

Marine Week 2013

The Naval & Defence exhibition, part of the biennial Marine Week 2013 in Busan (South Korea), seeks to attract the interest of a worldwide growing audience of maritime and naval experts. Held at the Busan Exhibition & Convention Center (BEXCO) and organised by Seoul-based Kyungyon Exhibition Corporation, Naval & Defence covers an array of  sectors, including naval shipbuilding, machinery and marine equipment, weapon and control systems, radars, sonars, navigation equipment, communications system, naval aviation, and simulation & training Systems. More than 51,000 visitors came to Marine Week 2011 to inform themselves on the latest trends and innovations.
Stephen Elliott Esq., Marketing Director and designated Co-Publisher of NAVAL FORCES spoke with the President of Kyungyon Exhibition Corporation, Mr. Kim Young-Su, about the main focus of Marine Week. Kyungyon Exhibition Corporation has been one of the pioneers in organizing and managing exhibitions and conferences in South Korea and has been successfully operating in this field since 1979.

NAVAL FORCES: How many domestic and foreign naval defence vessels are at Marine Week?
Kim-Young-Su: The Marine Week is comprised of three exhibitions, Naval & Defence 2013, Sea-Port 2013 & Kormarine 2013. During the Naval & Defence 2013, five naval ships of the Korean Navy (including the LPH "Dokdo") will be revealed to the public in the Republic of Korea Navy Operational Command in Busan. How many foreign naval defence vessels will be at the exhibition is yet to be confirmed. For delegations visiting Korea, the Korean Navy is planning a marine action drill of small battleships built in Korea.
NAVAL FORCES: Which countries’ Navies are represented with delegations at the exposition?
Kim-Young-Su: In 2011, 40 people from 17 countries made a visit to Korea. This year, 50 people from 20 countries are expected. Below is the list of countries confirmed to be at Marine Week:
Vietnam, Cambodia, the Philippines, Turkey, Singapore, Kazakhstan, Malaysia, Indonesia, Sri Lanka, Pakistan, China, Thailand, Qatar, Bahrain, the UAE, Peru, Chile, Colombia and Egypt.

NAVAL FORCES: How does Marine Week support Korea’s mission for regional stability in increased international cooperation?
Kim-Young-Su: The Naval & Defence 2013 will serve as a forum to showcase how the Korean Naval Forces are contributing to world peace and their future orientations. By presenting the Navy’s activities for peace and development of the Northeast Asian region in a place where Navies from many countries are invited, this exhibition will contribute to ensuring that the region is kept in a stable condition based on mutual trust among these countries.

NAVAL FORCES: Marine Week is important for the Korean naval industry many reasons; how can non-Korean suppliers to the Korean Navy benefit from participation?
Kim-Young-Su: Korea is one of the leaders in the global shipbuilding industry, having the greatest share in the world market. Since the late 1990s, the nation has developed its own destroyers, large transport ships, AEGIS destroyers, and 209 and 214 classes submarines. More recently, it has won contracts with many countries based on its capabilities to specifically satisfy each country’s requirements. That is why Korea is emerging as a powerhouse in exporting naval defence-related products.
In Korea’s defence-related exports, the share of vessels was as small as 0.1 percent in 2008. But it has increased significantly, 11.8 percent in 2009, 30.8 percent in 2010 and 45.4 percent in 2011, having the greatest importance since 2010.
Major players in Korea’s shipbuilding and defence industries will exhibit in Marine Week. Companies that will have their own booth in the Naval & Defence 2013 include DSME that is an exporter of newly developed vessels and a manufacturer of submarines, LIG NEX1 that is a maker of high-tech torpedoes and guided missiles, and Samsung Thales that is a developer of battleship combat systems. The Agency for Defense Development, a developer of cutting-edge technology for weapon systems, will also participate in this show. Therefore, the Naval & Defence 2013 will offer good opportunities to those that are seeking for advancing into Korea’s defence markets and companies that are looking for partnerships with Korean companies for interstate exports.
In addition, participants in the Naval & Defence 2013 will have opportunities to take part in business meetings with delegates from 20 countries, attract them to their booths, have a closer look at battleships, watch a marine action drill and attend an on-board reception held by the Chief of Navy Operations. This will be a golden chance for companies that intend to strengthen their presence in the Korean market and overseas markets.

NAVAL FORCES: How many foreign naval defence and maritime security exhibitors are participating in Marine Week?Kim-Young-Su: In the last Marine Week, 1,258 companies (634 overseas companies) from 43 countries participated. This year, 1,300 companies from 45 countries are expected.

In 2011 the tradeshow Marine Week - Kormarine, Naval & Defence, Sea-Port - The International Shipbuilding, Marine Equipment and Defence Exhibition served as a presentation platform for 638 exhibitors. These tradeshow exhibitors presented their companies and services on a total of 16794 sqm at Marine Week - Kormarine, Naval & Defence, Sea-Port.



Guest Editorial: Dr Agnieszka Gogolewska, Senior Lecturer, Private University of Management and IT EWSIE, Warsaw
Roughly, since 2010, most sectorial reports described Poland as a country of stable military budget and rapidly growing opportunities for defence companies around the world. No doubt, there were grounds for that overriding optimism: Polish military enjoyed a fixed budget allocation of 1.95% of national GDP and reached the record value of 31 bn PLN in 2013, almost 7% up compared to the previous year. Moreover, the funds earmarked for capital expenditure originally constituted 26.2% of the overall Ministry of National Defence (MoND) budget for 2013, also the highest value ever. In addition to all the good news, the Minister of National Defence announced a 10- year modernisation plan worth 140 bn zlotys that comprised: creation of a new missile defence system, building of new navy vessels, acquisition of upgraded tanks, training aircraft, 70 helicopters, UAVs and equipment for troops. The prospect of a shopping spree in the Polish military guaranteed to draw attention of many military contractors around the world; and, indeed, many of them started to watch the Polish defence market very carefully in the hope that the MoND would soon start to announce tender after tender.

The forecasts at the beginning of the 2013 eventually proved too optimistic. The sluggish economic performance of the first half of the year forced the government's hand and in September 2013 Polish state budget had to be amended in order to curb the growing deficit. Not surprisingly, the military was the biggest victim of budgetary cuts. The Polish MoND lost almost 3 bn zlotys and was compelled to downsize capital investment plans drastically for this year. In order to make the cuts possible, the much-celebrated rule of 1.95% of national GDP earmarked for the military spending was suspended (supposedly for the current year only) while the overall procurement budget fell back to the level of the previous year. The government declares that the difference between what the military receives this year and what it should have received under the suspended law will be reimbursed in the subsequent years, but nobody is that naïve to believe such promises. The government also says that not a single important modernisation project will be affected by the cuts; but, so far, practically all the acquisitions have been stalled and only necessary repairs and current maintenance is financed according to the budgetary spending plans.

Yet, despite the severe cuts and downscaling of military investment plans, a lot is happening in the defence procurement in Poland. This is thanks to the latest amendment in the Law on Public Procurement (PPL) of February 2013 that provided the MoND with the new instrument of market research and analysis dubbed “Technical Dialogue”. Before February 2013, the law did not explicitly prohibit consultations with the contractors; however, the extremely restrictive Code of Ethics for military and civilian personnel of 2011 was in fact highly prohibitive to any direct contacts between the MoND representatives and the defence industry. This has changed with the introduction of Article 31a of PPL, which provides that economic operators may conduct Technical Dialogue before commencing any contract award procedure. The aim of Technical Dialogue may be to seek advice or information necessary to prepare the description of the subject-matter of contract, specification of essential terms of contract SIWZ, or specification of conditions of contract.

Very seldom is a new legal instrument so quickly and whole-heartedly embraced as has been the Technical Dialogue. Eight months into practicing public procurement in Poland under new rules compliant with the European Defence Directive, and one may search in vain for any acquisition procedure that would be launched without prior market research and analysis. The introduction of the Technical Dialogue has undeniably transformed the defence market in Poland and contributed to its professionalization. At long last, the specialists from the Armaments Inspectorate may openly engage in consultations with defence industry specialists regarding available products and solutions, their technical specifications, performance data and price; all this, without being exposed to possible accusations of preferential treatment or corruption charges. While until recently the military were limited to collecting random information on available equipment coming from industry leaflets and exhibitions in the process of preparing detailed technical specifications in a tender, risking the forming of technically unobtainable conception, nowadays they can invite all interested parties and discuss every aspect of the desired solutions at length, free of disciplinary risk and free of charge.  Perhaps most importantly, it is possible to conduct Technical Dialogues without initiating any procurement procedures, or even guaranteeing its commencement in the future.

Technical Dialogue has indisputable advantages in achieving transparency and precision of the defence procurement processes; however it is not  necessarily the most desired option for the military contractors.  The mechanism was introduced in Poland without any prior pilot practice, or legal framework limiting its possible scope and field, or at least a minimal guidance from the Public Procurement Office. As a result, the military have set their own ground rules for the process and now anything goes as “Technical Dialogue.” Since February, when “TD” became legal practice, the Armaments Inspectorate announced well over 20 Technical Dialogues and NOT A SINGLE TENDER PROCEDURE. Within the framework of 'Technical Dialogue' detailed legal and economic aspects are discussed at similar level of expertise as are purely technical issues.

Consequently, prospective military contractor engage similar resources into a dialogue with the Inspectorate as they would have normally engaged into preparing the offer, but without as much as a promise of prospective invitation to a tender. Yet, not participating is a hard choice to make as nobody knows what procedure the military would adopt after the completions of the dialogue and if those missing out on the dialogue would not miss out on invitation to a tender, either. There is also an additional source of discomfort for the defence industry, and that is the issue of copyrights to materials submitted by contractors during Technical Dialogue —and, thus, concerns about providing materials at all.

In brief, there is no going back to the “pre-dialogue” realities of defence procurement. Being an easily accessible, free-of-charge source of market information to the public administration, it is likely to become an accepted standard and expand to institutions other than the military, though maybe not to such a degree. Once the procurement funds are again available to the Polish military and tender procedures opened, thanks to preceding conduct of “Dialogues,” technical specifications should be deliverable and procurement budgets realistic. Conduct of Technical Dialogues will also favour big defence companies or consortia over small contractors, as only the big ones have resources to engage in Dialogue and answer increasingly complex questions from the military.

Military contractors around the world should hope that the Public Procurement Office in Poland will establish some ground rules or issue guidelines for the pre-tender consultation processes and bring about a better balance between the awarding entity and economic operators wanting to make business in Poland. Before this happens, however, brace yourselves - with the budget cuts and unsure military funds for the following year we are sure to see more Technical Dialogues coming soon. As for the actual tenders, maybe Santa will come early this year...

Friday, 18 October 2013



Special Technical Equipment - Innovations at International Exhibition of Means of State Security Provision

17th International Exhibition of Means of State Security Provision INTERPOLITEX- 2013 will be held in the territory of the main Russian exhibition grounds: All-Russia Exhibition Centre (VVC, Moscow) from 22 to 25 October 2013.


The exhibition is organized by the Russian Federation Ministry of the Interior, Federal Security Service and Federal Service for Military-Technical Cooperation. Exhibition operator is Exhibition Companies Group “BIZON”.
At present INTERPOLITEX- 2013 is the central event of Federal significance in the Network of Safety and Security Exhibitions held in Russia and CIS.

Specifically synergistic complex of exhibition, business and live demonstration programs of the exhibition ensures its success with exhibitors, guests and visitors. This year more than 440 companies will take part in the exhibition, including 78 foreign companies from 25 countries including Austria, Republic of Belarus, Germany, Denmark, Israel, India, Italy, Spain, Canada, China, the Netherlands, Norway, Pakistan, UAE, USA, Turkey, Ukraine, France, Croatia, Czech Republic, Switzerland, Japan, Kazakhstan, Republic of South Africa.

At the exhibition four countries will demonstrate production of their manufacturing companies within the framework of their National Pavilions and expositions.
One can observe the increase of space in the French National pavilion – France has the status of the Partner Country of Interpolitex 2013. The French National Pavilion organized by GICAT - French Land Defence and Security Manufacturers Association, - will include about 10 companies including RENAULT TRUCKS DEFENSE, ACMAT DEFENSE, PANHARD DEFENSE AND SECURITY, COGES-Eurosatory 2014, GICAT, ACOEM01 DB METRAVIB, BERTIN TECHNOLOGIES, GK-Professional, Noble Sport, Proengin and some others. Stands of the French exhibitors will  take more than 160 sq. m. of exhibition space.

Within the framework of Chinese National Pavilion Chinese manufacturing firms and companies will demonstrate their developments in the field of special vehicles, armored protection, police equipment etc. Republic of South Africa will also take part in the Interpolitex 2013 with its National Exposition organized by TRADE and INVESTMENT KWAZULU-NATAL company. In the Republic of South Africa National Pavilion, organized with the financial support of South African Department of Trade and Industry will participate 7 companies. Several companies from Kazakhstan will also participate within the framework of the integrated exposition.

Total indoor exhibition space located in all 3 halls of Pavilion № 75 is equal to 25,500 sq.m. The exhibition presents the well adjusted combination of several integrated exhibitions and specialized expositions including International Exhibition of Police Systems and Equipment, Military Technical Salon, Exhibition of Technical Systems and Facilities for Border Protection and SecurityGranitsa”, which celebrates its 15 year anniversary and Exhibition of Unmanned Multipurpose Vehicle Systems UVS-TECH 2013.

Among exhibitors one can see such large and well known companies as State Corporation “Rostech, Concern “Vega”, Association “Eleron”, Scientific and Production Complex “Dedal”, Association “RELERO”, Research Centre “Fugas”, companies “Horizont” and “Zala Aero”, Groups of Companies “GAZ”, “KAMAZ”, “StilSoft” and othesr.

This year the exhibition includes a new programme of promotion of innovative developments and ideas. More than 110 exhibitors introduced in the Exhibition Catalogue their innovative solutions. One can see here new samples of weapons, armoured vehicles, multifunctional robotic systems, unmanned flying vehicles and boats, protection suits and search and screening equipment, et cetera.

For example, Centre of Speech Technologies will present Complex Biometric Platform VOICE KEY; Research and Production Firm “Micran” – equipment for communication with UFV, Companies Group; “RK-Telekom" – mobile communication centre for The Ministry of Russian Federation for Civil Defence, Emergencies and Elimination of Consequences of Natural Disasters.

A broad and extensive business program will be presented to the participants and guests of the exhibition: 7 conferences, 6 round tables, 5 workshops and 8 presentations, which are devoted to most urgent problems of the Russian state and its citizens. About 70 speakers will make their reports and presentations for more than 1500 listeners.

One of the most interesting events held within the exhibition Business Programme is Research to Practice Conference "Prospects of Developing of New Items of Armaments and Special Equipment of New Generation", organized by Federal Scientific-Production Association “Special Equipment and Communications” of  the Russian Federation Ministry of the Interior. Six sections of the Conference will be devoted to issues of future development of special purpose transport and search and screening equipment, special nonlethal weapons and systems, systems of communications, technical systems of security and protection, data security et cetera.

Participants of 9th International Research-to-Practice Conference “Industrial Disposal of Armament, Military and Special Equipment and Munitions AMSEM -2013” will discuss pressing issues of disposal and utilization of retirement items of ammunition. The event is organized by the Russian Academy of Rocket and Artillery Sciences (RARAS) with strong support of RF Governmental Military Industrial Commission.

7th International Specialized Conference "Technologies of Unmanned Flying Systems - UVS 2013" will be held during the first day of the exhibition work.

More than 50 exhibitors presented their products within the framework of the «National Security» Contest. The winners of the contest are awarded with the «Quality and Security Guarantee» Gold Medal and with the Diploma of Laureate of the Contest.

As usual, live demonstration of technical, operational and combat capabilities of armaments, police and military technical equipment and special tactical training exercises of Special Forces units of Russian Federation Ministry of the Interior will take place on 26 of October on the special testing and shooting range of the Federal State Enterprise “Geodesia” in the town of Krasnoarmeysk, Moscow Region. This year the show program will somewhat differ from the last year one. Combat capabilities of small arms will demonstrate not only soldiers of Special Forces units of Russian Federation Ministry of the Interior but also specialists from the profile industrial enterprises.

Representatives of the companies-manufacturers will demonstrate running and technical capabilities of special purpose vehicle. For example, ZEM Ltd. company will show Mobile Robotic Complex for Aerial Observation «BLASKOR» consisting of helicopter type UAV equipped with HD camera and thermal imaging device; Corporation “Zaschita” (Protection) – three armoured vehicles for various applications and Science and Production Enterprise “Soliton” will demonstrate special purpose vehicles “Ratibor” and “Volkodav”.

More detailed information about 17th International Exhibition of Means of State Security Provision INTERPOLITEX- 2013 is available on the official exhibition site

The exhibition will take place within the popular All-Russian Exhibition Centre, Pavilion 75 (Moscow) daily from 22 to 24 October from 10.00 to 18.00 hours, and 25 October – from 10.00 to 16.00 hours.

The live demonstration programme will be held on the special testing and shooting range of the Federal State Enterprise “Geodesia” in the town of Krasnoarmeysk, Moscow.
This exclusive report has been made through courtesy of, and partnership with, the INTERPOLITEX- 2013 Organizing Committee. More information and reports will be made following the success of this enormous event.

Wednesday, 16 October 2013


NAVAL FORCES Magazine has been chosen by the chairman and organising committee of the 13th BALT MILITARY EXPO to be its OFFICIAL NAVAL MEDIA PARTNER, recognising the magazine’s editorial excellence and analytical ascendancy.
“This official enhanced partnership makes perfect sense to NAVAL FORCES,” asserts Co-Publisher Stephen Elliott. “The BALT MILITARY EXPO is the ideal platform for those companies concerned with naval defence and maritime security in this vitally important region – the lynch pin of Europe’s energy surety. NAVAL FORCES – and the Mönch Publishing Group – has been a long-time supporter of the BALT MILITARY EXPO, since our former celebrated and esteemed publisher Jan Wiedemann took the magazine’s helm; we intend to build on this relationship. You only need to lightly break the surface of the water to find an ocean of deep support for the Polish and greater Baltic Military-Industrial Complex from the entire Mönch Group of defence and national security publications.”
( L-R: NAVAL FORCES Co-Publisher Stephen Elliott, Balt Military Expo's Director and Sales Manager, Marek Buczkowski and Krzysytof Smiech, respectively. Source Mönch)
NAVAL FORCES Editor-in-Chief Stefan Nitschke (PhD) assures that there will be much Baltic Coverage in the May-June issue of NAVAL FORCES (III/2014) next year along with information before, during, and after the BALT MILITARY EXPO to present the challenges, concerns, innovations and strengths of this region.
The BALT MILITARY EXPO takes place in Gdansk, Poland – in the heart of the Baltic region – from 24 to 26 June 2014.  For more information, to exhibit or to register, please visit