The Northern Sea Route project: advantages and disadvantages of the route
The Northern Sea Route is a grand government project that is a major step for the development of transportation in the Arctic. It connects the European part of Russia and the Far East, offering the shortest route for ships. The NSR is considered strategically important for the country in terms of attracting foreign participants of the logistics industry. Within the framework of development of this direction, the government launched a project of a port-hub, which will be located in Murmansk. The complex is estimated at 35 million rubles. The hub is to start working by the end of 2025.
Both local and foreign investments were attracted for the project realization. On the Russian side the Rosatom corporation is taking part in the construction of the hub, and its foreign partner is the DP World company. The new facility is expected to create 700 jobs.
A similar port-hub is already functioning in the Far East. According to the authors of the project, these facilities will be integrated with each other, thus creating a line for transportation of containerized cargo. Main deliveries are planned to be carried out to Europe.
DP World from the UAE is also cooperating with Rosatom to develop pilot container ships for use on the Northern Sea Route.
The Northern Sea Route has been identified by the government as one of the most promising projects. However, its implementation requires huge efforts and financial investments. The main points are the need to expand the approaches to the ports, as well as the construction of infrastructure to service ships. Now Rosatom is engaged in the production of the icebreaker fleet, which will be able to carry out transportation in the Arctic.
The NSR refers to alternative routes of the world’s logistic routes. In the past few years, experts have noted an increase in interest in this segment, but as for the Northern Sea Route itself – it can boast only of the delivery time. The other important points, such as infrastructure and regulation at the regulatory level are still far behind other transport corridors. According to experts, to attract investments and carriers it is necessary to think over a more universal regime for ships that use the route. The harsh climate of the Arctic is suitable for the transportation of bulk cargoes, which are not afraid of extremely low temperatures. Nowadays such products are transported by bulk carriers from Asia to Europe and back. However if we evaluate NSR possibilities in a long-term perspective we can’t do without modern and specialized containers.
Not so long ago the Russian president announced grandiose plans to make the traffic on the Northern Sea Route year-round. At present supplies on this route are possible only 5 months per year and to increase this period we need new icebreakers.
