Northern Sea Route: Competitive Transport Corridor of Global Importance

3 february 2016 | Gudok

The Analytical Center will develop a financial and business model of the Northern Sea Route (NSR) for the Ministry for the Development of the Russian Far East. Svetlana Ganeeva, the Deputy Head of the Analytical Center, told The Gudok about the upcoming project.

Svetlana Ganeeva
Svetlana Ganeeva
Deputy Director General

“In terms of revenues, we will study the global freight transit market to see what companies may want to use the Arctic Ocean sea routes to ship their cargoes (considering the terms and costs of the new service), and evaluate the prospects for the development of our own cargo base. The NSR currently services a number of large mining projects and each additional project will result in a considerable increase of cargo traffic and, accordingly, a reduction of unit operating costs,” Svetlana Ganeeva said.

According to her, the financial and business development model will position NSR as a competitive transport corridor of global importance, in particular for container shipping. As to investment costs, the Analytical Center will analyze the state of the NSR transport infrastructure and the available transportation capacity for different types of transport; it will also evaluate capital expenditure for NSR development taking into account the condition of ports, navigation facilities, meteorological and other coastal equipment. This will enable the experts to determine the amount of investment required to bring these facilities to an acceptable level.

“Another important aspect is the fleet: both freight carriers and icebreakers. We need to assess the existing ships and those yet to be built to provide for the potential volume of shipping. The results of separate studies will be used further to develop organizational, financial, business, and competitive models for NSR’s development and operation in the short and the long term in the context of Russia’s social and economic development tasks,” Ms. Ganeeva explained.

Source: The Gudok