Navibulgar – modern and reliable shipping

Captain Aleksandar Kalchev has been the Executive Director of Navigation Maritime Bulgare AD (Navibulgar) since 2013. He began his professional career in 2002 as a first mate in the Navibulgar merchant fleet. In 2008, he attained the rank of captain. In 2009, he became the Executive Director of the Bulgarian Maritime Training Center EAD. In 2011, he was elected Head of the Professional Training Center at the Fleet Management Department of Navibulgar and later began to perform the functions of Head of the Inspection Unit. Captain Kalchev holds a master’s degree in Navigation from the Naval Academy "N. Y. Vaptsarov" in Varna, and master’s degree in Shipbuilding and Marine Engineering from the Technical University in Varna. He is the Chairman of the Bulgarian Chamber of Shipping.

Captain Kalchev, you claim that sailors are the backbone of the world economy. What do you mean by that?

It is well known that over 80% of the transportation of goods worldwide is carried out through water routes, and specifically via the seas and oceans. Despite attempts over the last 10-15 years to create fully autonomous ships, we are still very far from being able to leave navigation entirely to computers. Working at sea is a difficult and very demanding job. Ships are very complex facilities, and their operation requires considerable knowledge and experience. The crew on each ship is limited, and the people composing it must master all processes flawlessly. They must be excellent navigators, know local and international maritime laws (which are increasingly restrictive), communicate with authorities in different countries, with shippers, with the head office, be able to operate ship machinery and equipment, deal with petroleum products, load, store and unload the ship's cargo, prepare the cargo holds for the next loading, etc...

They are required to present their ship to all kinds of inspecting institutions. All this must be done without unnecessary delay and at no time should it pose a threat to the environment, or human health and life. Sailors live and work for months on board these ships and it is a matter of survival in harsh metrological conditions, such as when they see her main deck flooded by the waves and have no confidence that she will keep afloat. This is a job not for everyone, and these people must be keep their working capacity 24/7. I am not convinced that those who write the laws and regulations for this sector of the world economy are sufficiently aware of these things.

What is important for the businesses that need to transport cargo to know about commercial shipping and the capabilities of Navibulgar?

Anyone looking for a way to transport their goods from one port to another should look for a reliable carrier above all. A reliable carrier is one whose ships are in perfect technical condition, who has appointed a crew of real professionals and enjoys an excellent reputation in the market. I am a fourth-generation employee of Navigation Maritime Bulgare, which means that this is not a new company. It is a privilege to be at the helm of one of the oldest merchant fleets not only in Europe, but also in the world. This year marks 133 years since the establishment of the Bulgarian Steamship Company (ed. note - the ancestor of Navibulgar). To survive for so long in the shipping market and to work with the largest shippers in the world means not compromising on the quality of the services you offer. This is Navibulgar today - a reliable and preferred partner, a result of the motivation, loyalty and professionalism of the people both working in the office and on board our ships. This is also an inherited experience that we are obliged to pass on to those after us.

What kind of business is marine cargo transportation? What kind of geopolitical and economic storms are raging out there that you need to navigate?

Oh, real sailors are made in the storms. No two days are the same in our work. Shipping has become a complicated and bureaucratic business, which has killed some of its charm and keeps young people away from it, and this will be the biggest challenge in the future. Problems arise every day. The increasing geopolitical tension over the past 10 years has put a very heavy burden on everyone in the sector. The war in Ukraine not only made normal trade in the Black Sea impossible, but it also literally divided the world in two and this can best be felt those of us who are involved in shipping. Cargo has disappeared; supply chains have changed on a global scale. This process will only deepen. Europe has significantly reduced the volumes of goods it exports to third countries, probably due to a recent decline in production. The inclusion of shipping in the European emissions trading system (EU ETS) and the new regulations for the mandatory use of biofuels (EU Fuel) will further deepen the problems. The topic is extensive, but I will highlight COVID-19, the conflict in the Middle East and issues with the Panama Canal capacity as factors, which have changed shipping trends worldwide.

What are the biggest challenges in terms of competition facing Navibulgar now?

The competition is balanced, and I would say that we have positioned ourselves relatively comfortably on the market. Over the past 15 years, we have managed to completely renew our fleet, and currently, we have one of the newest merchant fleets in the world. Nowadays, the efficiency of the ships is very important. We have found a niche in the so-called handysize segment of dry bulk carriers, which has historically been the strongest for Navibulgar. In 2014, we focused on developing new eco-ships that consume up to 30-35% less fuel than the average. The timely implementation of these projects has moved us into another orbit, and we are now among the leaders in having a minimal harmful footprint on the environment – and this sets us apart. The ratings we receive from vetting organizations make us a well-known and highly desirable partner in the marine cargo market. Our biggest challenge is to maintain the standards we have already set for ourselves.

New investments are crucial for maintaining competitiveness. What is Navibulgar doing in this regard?

Over the past 15 years, through significant investments, we have managed to completely renew our fleet. I am happy that we have the support of the major shareholders and literally every cent of our profits has been invested in the development of the company. Since 2010, we have built 33 brand new vessles, five of them in 2024 alone - a feat that has never been achieved in the entire 133-year history of the company. This year we received three new ships, while six more are under construction, with delivery deadlines in 2026 and 2027. These ships are the fruit of the knowledge and experience of Navibulgar specialists and leading shipbuilders from Finland and China. Our ambition is to continue at this pace - these are also the expectations of our clients. Even now we are developing a new design for the market, which I hope to see in service as early as 2028.

What do the Navibulgar numbers and statistics show – such as number of ships, number of personnel, number of markets, size of investments?

The company provides over 1200 jobs, between its offices and on board the currently operated 39 vessels - bulk carriers and port tugboats. The total deadweight (DWT) of the cargo ships is over 1.3 million tons with an average age of only 7 years. As I already mentioned, under the new building contracts we expect the delivery of 6 new ships in the next 2 years, with which we will reach a total DWT of over 1.5 million tons, maintaining the low average age of the fleet. This makes us one of the youngest and most modern fleets in the world. Our investments in new ships in 2024 alone amount to over 175 million US dollars. Since the company’s privatization in 2008, these investments amount to over 1 billion US dollars. These are figures that the entire team of the company is proud of, because they are the fruit of our joint efforts.

How can we ensure the security of commercial shipping?

This topic is inexhaustible. First of all, we need to find an option to normalize the geopolitical situation. Second, I would focus on the activity of nowadays pirates, who definitely pose a threat. The issue of ensuring a sufficiently high level of cybersecurity is also becoming increasingly critical. Modern ships have computer systems that are in constant communication with shore-based ones. We sail using electronic navigation charts, which are also digitally updated. You can imagine what would happen if a ship carrying dangerous goods suffered a navigational incident due to incorrect information.

Are there difficulties in attracting good professionals for the various positions in the shipping industry?

The decline in interest in maritime professions is a global trend that is difficult to change. When work is constantly increasing, the only option to motivate is to compensate with better pay and more rest. At the same time, new regulations are constantly being imposed on shipping, which are not only an administrative burden, but also significantly increase costs, which limits the possibilities for maneuvering. Just as an example - with the increase in the freight (tariff) necessary to cover emissions under the EU ETS, it is possible to achieve between 30 and 40% increase in the remuneration of seafarers and onshore specialists. Naturally, environmental responsibility is important, but the approach to the topic must be balanced.

Another, rather temporary problem, is the fact that Varna is starting to become a global shipping center. In just the last few years, many leading global companies have opened offices there and now operate their fleets using Bulgarian specialists. The good news is that they don't do it because we are cheaper labor, but because we really have high professional capacity here. I believe that the increased demand for specialists and competition will improve the labor market, and therefore the interest in maritime professions. We are convinced that the Naval Academy "N. Y. Vaptsarov" and the Technical University of Varna have the potential to prepare more young and promising personnel for the industry.

How far has Navibulgar come and where is it headed next?

Navibulgar has reached its 133rd anniversary, however, thanks to the development of the new fleet and the results from recent years we can safely draw an analogy of the company as a young and ambitious person who dreams of being more successful. We have goals to once again look into other shipping sectors, such as multi-purpose ships, tankers, and why not – container carriers. Few know that in the late 1970s, Navibulgar was among the first in the world to offer this type of transport service. However, our next steps will also be a function of geopolitical processes as shipping can never fail to take these into account. We dream and "sail" forward to new and clearer horizons.

You are the chairman of the Bulgarian Chamber of Shipping. What is the most acute problem of the Bulgarian maritime industry nowadays?

Probably the lack of vision and policy for the sector in the last 35 years. Bulgaria's maritime industry has been left to develop without clear rules. We don't even have operational master plans for the port areas of Varna and Burgas, and this largely hinders investments in new infrastructure. We maintain a very good dialogue with the Bulgarian Ministry of Transport, but for other authorities it’s like we don’t even exist. We must admit that there hasn’t been an increase in the volumes of cargo handled by the Bulgarian port operators, which means that Bulgaria has not increased its exports and imports in recent years, and this is not a good sign. We hope that at some point a political consensus will be reached in our country and we will move towards development and prosperity.

There are many sayings about the sea and captains, do you have a favorite one?

Already over 40 years I am a sailor, and I have always drawn a parallel between sailing and the way human life goes. I like this saying: "I cannot change the direction of the wind, but I can adjust my sails correctly". This means that there is always a solution in finding how to reach the port you are headed for.