Russia's large-scale Arctic project will outgrow the Northern Sea Route

An extensive transport and industrial network should appear in the coming years in the Russian Arctic. The Northern Sea Route will be its key link, but the marine infrastructure will be only one link in a much larger project. What is it about and why does it matter not only for our country?

At one time, the advanced road network for that time united the provinces conquered by Rome into a single empire. The British Empire was held by maritime trade (therefore the Suez Canal was the "aorta of the British Empire"). France of the XVIII–XIX centuries (before the era of mass construction of railways) was united by shipping channels.

In Russia, the problem of transport connectivity is particularly acute due to geographical features. Russia lost the Crimean War partly because reinforcements to Crimea from Central Russia were delivered (by land) slower than from Britain or France by sea, and the Russian-Japanese War because of the insufficient capacity of the Trans-Siberian Railway. Therefore, the Transsib was constantly expanding, and in 1974-1984, efforts were already made in the USSR to implement the construction of the BAM, which began in 1932.

However, for a long time the Arctic lands continued to remain isolated from the "mainland", and everything necessary to ensure the settlements and cities built in the Far North had to be delivered by sea during the so-called "northern delivery". And this is in stark contrast to the role of the Arctic for Russia. Today, according to President Vladimir Putin, "the Arctic zone accounts for over a quarter of the territory of the Russian Federation. Almost two and a half million of our citizens live and work here, making a significant contribution to the country's progress. The Arctic accounts for seven percent of Russia's gross domestic product and about eleven percent of exports."

One of the key goals of Russia's Arctic strategy is to ensure reliable and regular communication between the northern territories and the rest of Russia – and with foreign buyers of resources extracted in the North. Russia's attention to the Arctic is all the more important because its geopolitical competitors are China, Europe, Canada, and above all the United States, which openly proclaim their desire to annex Greenland.

The isolation and abandonment of the Russian Arctic must not be allowed, especially since there are all possibilities for its development. Related to both logistics and the resources of this region. Therefore, at the VI International Arctic Forum last week, President Vladimir Putin set ambitious goals for the development of transport infrastructure in the Arctic.

More ships: icebreakers and bulk carriers of reinforced ice class

The main transport artery of the Russian Arctic – and in the future, one of the world's main ones – is the Northern Sea Route (NSR). One of the key points in the development of the NSR is the replenishment and expansion of the capabilities of the icebreaker fleet. In ten years– from 2014 to 2024– shipments along the NSR increased from 4 million tons to 37.9 million tons, and this was supported by the growth of the icebreaker fleet. Currently, 42 icebreakers are in operation in Russia (8 of them are nuclear-powered). In the coming years, according to Prime Minister Mikhail Mishustin, the icebreaking fleet will be replenished with five more nuclear-powered ships. This includes the nuclear icebreaker Rossiya of the Leader project (with a displacement of 71.38 thousand tons and a capacity of 163.15 thousand hp), capable of navigating ships through ice up to four meters thick.

But if everything is developing according to plan with the means of wiring, then there are a number of issues with those vessels that will have to carry out icebreakers under construction. The sanctions had a negative impact on plans to attract foreign shipping companies to use the NSR. In these circumstances, according to the president, "Russia, as a sovereign power, needs its own merchant fleet in the Arctic, including cargo and rescue vessels that will provide transportation both in the northern seas and along the inland waterways of the Arctic regions."

Sanctions against the Arctic LNG-2 project have disrupted plans to replenish the domestic fleet with South Korean-built gas carriers. Domestic ice-class vessels are currently being built only at two shipyards: at Zvezda and at the Baltic Shipyard. Moreover, the pace of construction there has decreased due to the disruption in the supply of components (for example, from the same South Korea). In a situation where the existing capacities of domestic shipbuilding companies are not enough to quickly replenish the Russian merchant fleet, it is necessary, as the president said, to act in all directions: "To purchase and order ready-made vessels, establish cooperation with global manufacturers and generally build the entire system of Russian shipbuilding."

In parallel, it is necessary to modernize and expand production facilities. The Government has been instructed to support shipbuilding and ship repair enterprises. In the medium term, it is necessary to create modern shipyards (construction in Murmansk and Vladivostok is being discussed) and closer cooperation with Chinese and Indian colleagues.

More shipping and logistics companies

Currently, the routes passing through the Northern Sea Route are mainly operated by vessels of four shipping companies. NOVATEK and Sovcomflot are involved in LNG transportation. Vessels of this company are used for transportation of Norilsk Nickel products. The Far Eastern Shipping Company, owned by Rosatom, transports containers and other goods ("northern delivery"). FSUE Atomflot, which operates icebreakers, conducts vessels along the NSR, although in summer reinforced ice-class vessels can pass through the NSR independently.

The President does not expect that the growth of traffic will be provided only by Russian vessels. "We are open to setting up joint ventures here. International logistics operators could profitably invest in such companies not only with capital and technology, but also with part of their merchant fleet," he said. Our partners from Belarus, China and the United Arab Emirates, as well as from other countries, are showing interest in developing the transport infrastructure of the Arctic.

The growth of cargo turnover through the NSR is planned to be achieved not so much by expanding gas production. It is planned to export coal from Taimyr in significant volumes to Asia. In addition, there are plans to increase the volume of transit container traffic through the NSR from China to Europe. This route is 30% shorter than the traditional route through the Suez Canal (and if compared with the route around Africa, it is more than two times shorter).

Not a single sea

The transport development of the Russian Arctic is not exclusively related to the Northern Sea Route. It is planned to widely use the meridional waterways Lena, Ob and Yenisei for cargo transportation.

including the modernization of the Northern Railway in the Komi Republic and the Yamalo-Nenets Autonomous Okrug. In the future, it is planned to create the Northern Latitudinal Passage and connect it (and a number of ports on the coast of the Arctic Ocean) with the Russian railway network. In other words, sea and land transportation in the Russian Arctic should become a single complex, which has already been named the Transarctic Transport Corridor (TATC). The model of its development should be approved by the government in a few months.

TATK will open up enormous opportunities for the development of Russian territories. The regions of Siberia, the Urals, and northwestern Russia will have direct access to the Arctic ports, which will make it possible to unload the Trans-Siberian Railway and effectively use sea transportation. In addition, new access points to the Arctic will appear along the North–South corridor, which connects Russia with the states of Central Asia and the Persian Gulf.

Ports and multimodal hubs

The implementation of these plans will increase the transport connectivity of the northern ports with the territory of the main Russia. At the same time, it will be necessary to supplement the port facilities with container multimodal terminals in some of them.

The reconstruction plans include the Murmansk port, where it is planned to triple the capacity due to new terminals, and become a multimodal hub (the railway and the port already exist there, it remains to ensure trouble–free stitching of land and sea routes for carriers). Sabbeta, where the berths for LNG tankers will be expanded, will turn into the main LNG hub. And it will be connected to the railway network by a branch line from the Gulf of Ob.

A timber industry cluster will be developed around Arkhangelsk, whose products will be shipped south by rail and north by sea. Dudinka will remain the main loading terminal for Norilsk Nickel. But if the ore is likely to be loaded onto ships and shipped by sea, then the metallurgical products of the plant can largely be shipped by rail.

The village of Indiga will be connected to Syktyvkar by an already under construction railway, and in the future it will expand as a port. Connecting the meridional river transport arteries to the Northern Sea Route will require upgrading locks and deepening fairways.

For urgent goods, movement along the North-South international transport corridor from Iran is possible./Transcaucasia to Arkhangelsk or Murmansk, from where by sea along the Northern Sea Route (or around Norway to Europe).

But in order for this logistics network to be operational, it is necessary to synchronize tariffs and develop digital end-to-end cargo tracking systems. "Infrastructure projects are complex, costly, and have a long payback period. But it is they who ensure Russia's true transport sovereignty at a new level," Vladimir Putin stressed.

Dmitry Skvortsov