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“Northern Sea Route: New Challenges” opens a new window of opportunities for global markets – ROSATOM

ST. PETERSBURG, JUNE, 22 – On June 15, 2023 Director General of Rosatom Alexey Likhachev took part in the session “The Northern Sea Route: New Challenges”, which was held within the framework of SPIEF-2023.

The session highlighted the new importance of the Northern Sea Route (NSR) as the most important transport artery linking the vast expanses of Russia’s Arctic territories, as well as countries with access to the Arctic Circle and the Pacific Ocean water area.

The route will improve the sustainability of global transportation, significantly reducing the waiting time in the queue for passage. An additional logistical corridor will help “unload” old routes, as well as increase the efficiency and cost-effectiveness of cargo for many countries, including those located closer to the equator in the Pacific. As a link between the Russian Far East and the western parts of the country, the NSR continues to be an important logistical hub between Asia and Europe. Located for the most part in the waters of one country – Russia – the Northern Sea Route guarantees the safety of all transportation.

“Global logistics has always sought a balance of safety, sustainability and efficiency. But over the past few years, events have occurred that changed world logistics. In such circumstances, safety and sustainability become obvious priorities. NSR is becoming a unique new route, and we see especially in current conditions a great potential for cooperation with friendly states in development of the transit cargo traffic, and we are already doing all the necessary work,” – Alexey Likhachev said.

It was noted at the session that the NSR is experiencing a momentum of development due to mining, infrastructure and logistics projects. In the past decade there was a radical change due to projects of “Nornickel”, “Novatek” and “Gazprom Neft”, who built a fleet of high Arctic class, which made the Northern Sea Route efficient and safe, there was formed a year-round navigation in the western part of the NSR, as these vessels can operate in certain ice conditions without icebreakers.

“Last year by order of the President of the Russian Federation in addition to icebreaker logistics Rosatom took power over maritime traffic management on the NSR. The organization Glavsevmorput coordinates all navigation: issuing permits, control over execution, routing for all vessels that operate on the NSR,” said Alexey Likhachev.

Novatek, Rosneft, Gazpromneft, Nornickel participate in the development of the Northern Sea Route, building the fleet, and participating in the creation of communication systems. “This task has a huge prospect. “This transport corridor should be used as a mechanism to connect territories. This task is inspiring. We understand that we can seriously improve the investment climate and the quality of life of people,” highlighted the Director General.

The problems of creating the global logistic corridor and transferring tens millions of tons of transit through a shorter and more efficient way were discussed. The main characteristic of the process is: business in the Arctic is not easy, the state takes some of the risks and even in a difficult budgetary situation continues to invest in the creation of infrastructure.

The participants of the session discussed the tasks of finding a new model of navigation, assuming year-round navigation in the eastern sector of the NSR. Next year we will already be able to tell how it works.

Alexey Likhachev stated the importance of stable power supply: “The world’s first floating nuclear power plant has been operating in Pevek for years. In Chukotka, the Baim ore zone has already requested four small nuclear power plants. We are expecting orders for about 15 more units. We have hit the mark. A floating solution is very much in demand in today’s Arctic conditions.

Director General of ROSATOM, Alexey Likhachev

DP World CEO Sultan Ahmed Bin Sulayem said, “The Northern Sea Route development project has a huge potential, and it is important to determine what exactly needs to be done to make it a success. Among the main measures to be taken are: ensuring customer support for the project, developing infrastructure and informing customers about the environmental studies. I am confident that through the participation and support of multiple stakeholders, cargo owners will be able to appreciate the economic benefits of the project and the plan to implement it. This will contribute to building trustful relations with the public and to the fact that the NSR will soon become an alternative to the existing popular routes between Europe and Asia”.

For reference:

Rosatom has been designated the infrastructure operator of the Northern Sea Route (NSR) since 2018 and is responsible for organizing navigation on the NSR, construction of infrastructure facilities, navigation and hydrographic support and the system of navigation safety in harsh Arctic conditions. The Corporation supervises two federal projects “Development of the Northern Sea Route” and “The Northern Sea Route – 2030”, and participates in the plan of the Northern Sea Route development till 2035 as well as the initiative of social and economic development of the Russian Federation till 2030 “Year-round Northern Sea Route” approved by the Order of the Government of the Russian Federation. The contour of the NSR Directorate of Rosatom State Corporation includes “Atomflot”, “Hydrographic Enterprise” and “Glavsevmorput”.

The Chief Directorate of the Northern Sea Route (Glavsevmorput) was established by the Decree of the Government of the Russian Federation from 23.07.2022 № 2019-p. The main purpose of the organization is to organize the navigation of ships in the waters of the Northern Sea Route (NSR). Glavsevmorput solves the following tasks: – providing organization of icebreaker escort of ships and piloting of ships by navigation routes in the waters of the NSR as well as development of the route of ships and deployment of icebreaker fleet in the waters of the NSR taking into account hydrometeorological, ice and navigation conditions in the NSR; – issuance, suspension, renewal and termination of permits for navigation of ships in the waters of the NSR and amendments to such permits. To solve these tasks, the organization deploys icebreaker fleet vessels in the NSR water area; monitors vessel traffic in the NSR water area; provides information on hydrometeorological, ice and navigation conditions in the NSR water area; and receives information from vessels in the NSR water area.

Comprehensive development of the Arctic zone of the Russian Federation is one of the strategic priorities of the state. Increasing the volume of transportation along the Northern Sea Route is of paramount importance for achieving the set objectives in the field of transport and cargo delivery. The development of this logistics corridor is ensured through the establishment of regular freight traffic, construction of new nuclear icebreakers and modernization of the relevant infrastructure. The enterprises of Rosatom take an active part in this work.–THE MALAYA POST

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