Dubai, UAE — DP World announced it will run ports that Russia plans to build along the northern sea route (NSR) in the Arctic to shorten shipping times between the east and west.
The Russian Direct Investment Fund—being an investment fund of the Russian Federation, investing together with foreign investors in Russian assets; ROSATOM— the infrastructure operator of the NSR; Norilsk Nickel—the world leader in the production of palladium and high-quality nickel, and DP World have agreed to jointly implement a project for the integrated development of the NSR.
The quadrilateral agreement of intent was signed on June 6, 2019 during the St. Petersburg International Economic Forum. The agreement outlines a comprehensive piece of work which will study of the most effective commercial options for the use of the Northern Sea Route. The parties intend to create a strategic partnership in the form of a joint venture for the development of transit cargo traffic through the NSR.
The key objective of the project is to increase the volume of freight traffic through the NSR and the Arctic zone of the Russian Federation. For the first stage, the parties to the agreement will have to develop a strategy to increase the efficiency of the use of the NSR and to determine ways of developing transit traffic.
According to DP World, the focus will be on linear transportation of containers and other bulk cargo along the Northern Sea Route. It will be necessary to determine the amount of funding for the design and construction of an additional ice-class fleet and icebreakers, as well as the port infrastructure. A separate important area of work: ensuring industrial safety and environmental protection in the implementation of transportation along the NSR.
“DP World is uniquely positioned to help drive the development of the NSR. We are excited about the possibilities and the benefits this will bring not only to the Russian economy, but to customers in Asia and Europe,” stated His Excellency, Sultan Ahmed bin Sulayem, chairman and CEO of DP World. “Our expertise in developing new Ports, infrastructure and innovative new supply chain solutions, are key factors in our successes over the last few decades. We see enormous potential in NSR and look forward to creating new successes with our partners”
The parties agreed to establish a joint working group to conduct an analysis and prepare a feasibility study for the project within six months. Subject to this work being completed a next stage decision will be made on the further development of the project. “Norilsk Nickel is one of the pioneers in the development of the Arctic, a company with unique experience in operating the Northern Sea Route. We will share it for the further development of this unique route”, said Vladimir Potanin, president of Norilsk Nickel.