Russia Blazes an Arctic Shipping Route
Russia’s state-run nuclear energy company Rosatom and Dubai-based logistics firm DP World established a joint venture to develop and operate the Northern Sea Route, a shipping route between Asia and Europe.
Russia will start regular container shipments across the route’s northern flank from Vladivostok to St. Petersburg next year, says President Vladimir Putin.
The Northern Sea Route shortens the distance between Northwest Europe and East Asia compared to the Suez Canal, shaving up to 19 days off voyages. This opens up opportunities to develop Eurasian transit and reduce carbon emissions, the companies say.
Russia plans to move 80 million tons of goods along the route by 2024. Establishing the route, including the development of ports and transport links along Russia’s northern coast, would require $11.7 billion in investments.
The companies plan to test container shipping, a sector that is typically hesitant to head north due to risks related to remoteness, lack of infrastructure, and environmental impact, Rosatom says.