Russia looks to increase NEA traffic

News 25 Jan 2018 by WCN Editorial

According to a report by Russia’s Natural Resources Ministry, freight volumes in the Russian Arctic Ocean could rise to 80 Mtpa by 2030

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“We forecast annual traffic of mineral resources in the Russian part of the Arctic Ocean to reach around 41 Mtpa by 2030 on the basis of government-endorsed technical projects, but taking into account private initiatives, the figure may well be doubled,” commented Natural Resources Minister Sergey Donskoy.

In 2016, cargo traffic along the Northeast Passage reached a new record of 7.3 Mt, up 35% on 2015 and including 3.4 Mt of “general cargoes.” Viktor Zubarev, a Duma member involved in energy generation issues, noted that with the launch of new oil and gas production facilities, overall transportation volume in the Russian Arctic is likely to reach 40 Mtpa by 2022 and he believes the figure for 2030 will be in the 70 Mt to 80 Mt

He says that Russia will continue to develop its Arctic transport infrastructure. Between 2019 and 2022, three new nuclear-powered icebreakers (ARKTIKA, SIBIR and URAL) are due to be delivered in the scope of the 22220 project. In addition, LEADER, a multipurpose atomic icebreaker, is at an advanced stage of design at the Saint Petersburg-based design bureau Iceberg.

Last year, Russian Prime Minister Dmitriy Medvedev signalled that Moscow is prepared to invest up to US$4B in the development of Arctic infrastructure and Continental Shelf activities by 2025. He said the government will revise the existing Arctic development programme and back it with federal funding.

However, the government also wants to attract private capital. Sergey Batekhin, SVP at Norilsk Nickel, amongst the region’s most prominent shippers and port operators, said the company would continue to contribute to development of the Northeast Passage, not only for national o/d cargoes, but also for international (Europe-Far East cargoes).

Last year Norilsk Nickel and Atomflot, Russia’s state-run operator of nuclear icebreakers, signed a new agreement extending icebreaker escort of its vessels during winter navigation periods. The agreement, which first dates from 2009, has now been extended to 2022.