DP World and Russian state-owned energy company Rosatom will establish a joint venture which will invest in, build and operate transport and logistics capacity along the Northern Transit Corridor. Using the route is expected to save time, which will cut emissions.
Alexey Likhachev, general director of Rosatom, said: “Building of sustainable transport infrastructure in the Arctic opens up new opportunities in developing the Eurasian transit which can be achieved in an optimal timeframe and help reduce the environmental footprint through shorter route distances and the advanced low-carbon energy solutions applied.”
Congestion free
The Northern route cuts up to 19 days from the journey time between South East Asia and North West Europe. One third of the world’s trade flows between the two continents and saving shipping time will significantly reduce CO2 emissions. Critically the width and draft of vessels are not an issue along the Northern Transit Corridor. The alternative new route is not congested, shorter, more efficient and faster.
A record 33m tonnes was carried along the Northern Transit Corridor in 2020, with Russia’s President Vladimir Putin targeting 80m tonnes by 2024. To open the route to sustainable commerce, a comprehensive development programme will be carried out, including the development of ports and transport links along Russia’s north coast to sustain economic activity.
Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, said: “DP World has already committed to invest $2 billion with the Russian Direct Investment fund, and we will continue to work with our partners in Russia to find solutions that allow the Northern Transit Corridor to develop sustainably.
The pandemic highlighted significant challenges in the supply chain, with many cargo owners struggling to find containers to move their goods. Diversification and disruption of traditional routes and methods are required to sustain growth and build back confidence, stated DP World.