Russian transshipment ambitions

Commerical Port of Vladivostok A new container berth at the Commerical Port of Vladivostok could help it become a major transshipment hub. Photo: FESCO

The Commerical Port of Vladivostok (CPV) could become a major transshipment hub with the help of a new initiative.

DP World has agreed to jointly study with FESCO, Russia's largest intermodal transport operator, the technical and economic conditions for developing a new container berth at CPV. The new berth is anticipated to help turn the FESCO-managed port into a major transshipment hub, connecting cargo from countries in East Asia to North-West Europe via the Northern Sea Route.

In July, Port Strategy reported that DP World and Rosatom would explore sustainable development of the Northern Transit Corridor in the Arctic.

Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, said: "DP World supports President Vladimir Putin's vision for the Northern Sea Route, which is one of the last great trading routes in the world to be developed. Opening up an alternative route to the Suez Canal between East and West will increase the resilience of world trade. It has great potential to develop economic activity and prosperity in Russia's far north. It must be done sustainably to protect the pristine waters of the Arctic."

Berth needed for Northern Route

The berth in Vladivostok is part of the infrastructure needed for full development of the Northern Route. Under the plan, cargo will be brought to Vladivostok by feedering ships and rail from countries in East Asia and loaded onto Arctic-class container ships. Murmansk will be further developed as a transshipment hub in the west to connect cargo to ports in North- Western Europe. DP World's feedering operations will serve both Vladivostok and Murmansk offering faster and cleaner cargo transport solutions to customers and improving supply chain resilience. The Northern Sea Route will allow DP World to continue to offer customers end-to-end logistics solutions.

A record 33m tonnes of cargo was carried along the route in 2020. Russian President Vladimir Putin has set a target of 80m tonnes by 2024. The project cuts some 4,000 nautical miles from voyages between East Asia and North-Western Europe, cutting shipping time by around two weeks and reducing CO2 emissions.

On its website, FESCO said it will work with JSC Atomenergoprom (part of the Rosatom State Corporation) to establish the Eastern Transport and Logistics Hub for the Northern Sea Route on the territory of the CPV.

CPV has annual throughput capacity of 5m tons of general cargo and oil products, 150,000 vehicles and over 600,000 TEU of containers.

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