Russia’s policy to develop trans-arctic shipping along the Northern sea route

ABSTRACT

This article explores changing transport-logistic capabilities of the Northern Sea Route (NSR) and Russia’s policy to further develop them. The authors begin with a study of latest changes in the NSR management system in Russia, and characterise a series of systemic measures undertaken by Moscow over the last decade to improve the transport potential of the NSR. They also assess Russia’s key actors, their economic interests and projects in the Arctic, emphasising that large scale energy and infrastructure development projects have become catalysts to accelerate development of the NSR. However, the main research issue of this paper is to determine the most optimal conditions for the NSR utilisation that could ensure time and cost savings for shipping carriers. According to the authors, the key obstacle to successful development of trans-Arctic shipping is the lack of an economically effective model to organise it along the NSR. In this regard, the main research thesis that the authors are trying to prove is that the application of the concept of shuttle transportation between two large logistic hubs, built on the basis of the ports of Murmansk and Petropavlovsk-Kamchatsky will create optimal conditions for trans-Arctic shipping along the NSR. Another research issue for this paper is to assess the prospects of the NSR as an international transport line. For this purpose, recent trends in Arctic shipping and the prospective for international cooperation in the implementation of major LNG extraction and transport-logistic projects in the Arctic have been analysed.

KEYWORDS:

• Russia’s Arctic policy
• the Northern Sea Route
• shuttle transportation model

Disclosure statement

No potential conflict of interests.

Notes

1. Moe and Jensen, “Opening of New Arctic Shipping Routes”; Storey, “Russia’s Arctic shipping ambitions”; Inozemcev, “Absurd Investments”; Hansen et al., “Arctic Shipping: Commercial Opportunities and Challenges”; and Pruyn, “Will the Northern Sea Route ever”.

2. Xu et al., “The potential seasonal alternative of Asia-Europe”; Furuichi and Otsuka, “Cost Analysis of the Northern Sea Route”; Lukin, “Analiz deiatel’nosti Severnogo morskogo”; Engdahl, “Huge Implications of Russia’s Northern Sea Route”.

3. Liu and Kronbak, “The potential Economic Viability of Using”.

4. Brigham, “The Arctic waterway to Russia’s economic future”.

5. Development strategy of the AZRF.

6. Gilpin, “The Challenge of Global Capitalism: the World Economy in the 21th Century”.

7. Haas, E. (1958), “The Uniting of Europe: Political, Social and Economic Forces, 1950–57”.

8. Keohane R., Nye J. Power and Interdependence: World Politics in Transition.

9. Trejvish, “Rossijskaja geopolitika ot Gostomysla”.

10. Schøyen and Bråthen, “The Northern Sea Route versus the Suez Canal”.

11. Sevastyanov and Kravchuk, “The Russian Approach to National Security in the Arctic”.

12. Mohov and Hon, “Prodolzhitel’nost’ navigacionnogo perioda”.

13. Foundations of the State Policy.

14. Ibid.

15. Development strategy of the AZRF.

16. Basic principles 2035.

17. Sergunin and Konyshev. “Forging Russia’s Arctic strategy”.

18. Zakvasin, “The Arctic is Close”.

19. Rossijskaya gazeta. Bet on Taymyr.

20. Sevastianov and Sokolova. “Russian Gas Companies Strategies in the Asia-Pacific and in the Arctic under Western Sanctions and Selective Government Support”.

21. Ibid.

22. TASS. Rosatom to Enter Market.

23. High North News. Rosatom To Invest $7bn in Arctic.

24. Foundations of the State Policy.

25. EMERCOM of Russia. Search and Rescue, and Salvage Formations.

26. NSR Administration. Summing up Activity.

27. Zakvasin, “The Arctic is Close”.

28. Atomic-Energy. Rosatom Will Finance Half the Cost.

29. RIA Novosti. Technical Design of Nuclear-Powered Icebreaker.

30. Seanews. Russian Government has Allocated 127 Billion.

31. Verny and Grigentin, “Container shipping on the Northern Sea Route”.

32. IMO. Polar Code.

33. Nazipova, “Plan for Test Passages Along the NSR”.

34. NSR Administration. Tariffs for the Icebreaker Escorting.

35. Storey, “Russia’s Arctic shipping ambitions”.

36. Engdahl, “Huge Implications of Russia’s Northern Sea Route”.

37. Regnum. Putin: Russia’s Political Task.

38. Konyshev, Sergunin and Subbotin, “Gosudarstvennyj Prioritet — Ustojchivoe Razvitie”.

39. Decree of the Government. On the Creation of the Territory of the Advanced.

40. Federal Law. On the Free Port of Vladivostok.

41. Kamchatinfo. More than 240 Off-Budget Investment Projects.

42. Kam-24. Kamchatka Plans to Build Marine Terminal.

43. Neftegaz. Novatek and Kamchatka Signed Agreement.

44. Vedomosti. Construction of Novatek’s LNG terminal.

45. Neftegaz. Novatek’s Transshipment Complex.

46. Mintrans. Volume of Cargo Transportation along the NSR.

47. NSR Administration. Summing up Activity.

48. Rambler. Tanker “EDUARD TOLL”.

49. Pruyn, “Will the Northern Sea Route ever”.

50. Marine Traffic.

51. Russia Today. Russian LNG tanker navigates Arctic.

52. Brigham, “The Arctic waterway to Russia’s economic future”.

53. CDB “Iceberg”. Nuclear Icebreaker “Leader”.

54. Sevastyanov and Kravchuk, “The Russian Approach to National Security in the Arctic”.

55. Sevastyanov, “China’s Integration Projects in Asia-Pacific and Eurasia”

56. Interfax. Putin Proposed a New Way.

57. Xinhua. Vision for Maritime Cooperation.

58. Liu, “China-Russia Trouble on the Arctic”.

59. Xinhua. China’s Arctic Policy.

60. Sevastyanov, Kravchuk, “The Russian Approach to National Security in the Arctic”.

61. Sevastianov, Sokolova, “Russian Gas Companies Strategies in the Asia-Pacific and in the Arctic under Western Sanctions and Selective Government Support “.

62. Ibid.

63. World Maritime News. China COSCO, Russian Majors Ink Arctic.

64. Drobysheva, “Russia and China increase investment”.

65. EastRussia. State Corporation from China.

66. Sevastyanov, “Hopes and Realities in Relations Between Russia and Japan: Is a Breakthrough Possible?”.

67. Fadeeva and Filipenok, “Japanese State Bank Announced Plans”.

68. MOL. MOL, JBIC, and NOVATEK Sign Cooperation.

69. MTRK “Mir”. EEF: South Korean Leader Calls.

70. Vesti PK. Alexander Galushka: “Payback Period of Container Line”.

71. Kang, “Hyundai Merchant Considers Exploring Arctic”.

72. Doe, “South Korea Completes First”.

73. Kravchuk, “Arctic and Development of Far Eastern Cluster of Russian Shipbuilding”.

74. VladNews. Fifth Giant Aframax-Type Tanker.

75. Neftegaz. Rosatom-Cargo signed agreement.

76. Independent. Container ship crosses Arctic.

77. Vedeneeva et al., “Icebreakers got lost in the fog”.

78. TASS. Atomflot and Maersk Line signed a memorandum.

79. Engdahl, “Huge Implications of Russia’s Northern Sea Route”; Liu, “China-Russia Trouble on the Arctic”.

Additional information

Funding

None