Renewal of vessel hull, machinery, electrical equipment allows to extend the vessel operating life and reduce ship repair costs.
Renovated vessel has a number of advantages:

maritime safety increasing and decreasing of vessel loss risk
vessel environmental safety increasing
Classification Certifications periodicity recovery
right restoration for certification extension
advantages at freight and insurance market
Renovation – replacement of hull part using sectional method for extending of vessel operating life (in some cases change of vessel class), machineries and equipment repair with partial substitution for the new ones.

Modernization – building of new vessel using elements of run vessels (as a rule, it is fore end and aft end). It gives an opportunity to construct vessel with new characteristics (changing of vessel dimensions, vessel class, purpose and etc.) with less expenses.