Page 32 - Журнал Sozvezdye Review - «СОЗВЕЗДИЕ» #41
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Cargo base                                    The list of products that are critical to Arctic proj-  nal for offloading lead-zinc concentrate. To facilitate
                                                                                    ects and had previously been imported, is expected       transit container traffic, two transport and logistics
                                         The NSR Development Plan has its main focus on   to be finalized within the first six months of 2023,   hubs, Vostochny and Zapadny, will be set up in Vlad-
                                       the formation of cargo base. Among the promising   following which relevant orders with be placed with   ivostok and Murmansk before 2026.
                                       projects expected to contribute to the cargo traffic   the domestic industries. This spring will see comple-  In parallel with efforts to enhance port infrastruc-
                                       along the Northern Sea Route are the mining projects   tion of the ice-reinforced cargo carriers construction   ture, steps will be taken to expand the railway net-
                                       run by Norilsk Nickel MMC, Severnaya Zvezda and   program with timeline up to 2035. Alongside this, the   work. The Northern Latitudinal Railway is scheduled
                                       Baim Mining Company; Novatek’s LNG projects; and   Plan identifies the need for more ships for LNG pro-  for commissioning in late 2028, and there will be rail
                                       the projects operated by Gazprom Neft. The largest of   ducing projects, Vostok Oil, Severnaya Zvezda, the   connection to the terminals in Murmansk.
                                       them is called Vostok Oil and is implemented by Ros-  mining project of Baim Group, as well as for supply
                                       neft. As stated in the Plan, Vostok Oil is expected to   vessels to assist in Northern Supply Haul and nine   Port of Arkhangelsk
                                       represent, by 2030, 100 million tons in cargo traffic,   container ships to support transit traffic.
                                       equivalent to almost fifty percent. Other significant   The period until 2030 will see construction of five   Arkhangelsk’s role in the development of the
                                       contributors include deliveries under Northern Sup-  general-purpose nuclear-powered icebreakers (Project   Northern Sea Route has been pointed out many times.
                                       ply Haul, support cargoes and transit cargoes – these   22220) and the first-in-class icebreaker Leader (Proj-  This port serves as a key transshipment point for car-
                                       will account for 34 million tons in 2030 and 53.6 mil-  ect 10510). It is planned to build within this timeline   goes bound for the Yamal LNG, Arctic LNG 2, Yamal-
                                       lion in 2035.                                47 guard and rescue ships and their basing sites in      Nenets Okrug, Taimyr, Norilsk Industrial District, and
                                         For the purposes of Northern Supply Haul, the   Pevek, Dixon and Tiksi.                             Chukotka. The program to establish here the Arkhan-
                                       Plan  seeks  to establish  a single  logistics operator.   Outlined as key infrastructure projects are Utren-  gelsk Transport Hub is expected to be approved for
                                       Coastal and international carriages will be managed   ny LNG Terminal in the port of Sabetta; Bukhta Sever   funding this year. Once in place, it will consolidate
                                       by container transport operator. Transit container   Terminal for servicing the project Vostok Oil; Yenisei   Arkhangelsk’s position as one of the key Arctic ports.
                                       transportation is scheduled to be piloted in 2025–  Terminal for Syradasay coal deposit; Nagleinyn Cape   In its tentative version, the program provides for mod-  ny Island, Novaya Zemlya). In terms of the approved
                                       2027, by which time the proposals for container fleet   Terminal in the port of Pevek; LNG terminals in Ka-  ernization of the existing post facilities; construction   reserves, Pavlovsky holds 2.5 million tons of zinc,
                                       development and infrastructure improvements will   mchatka and Murmansk; coal and bulk cargo termi-   of general-purpose and specialized terminals for han-  549,000 tons of lead and 1,200 tons of silver. To en-
                                       have been submitted.                         nals in Murmansk; and the Novaya Zemlya Termi-           dling various types of cargo, including containerized   able their shipment right from the processing site, the
                                                                                                                                             ones; and construction of a deep-water area with the   Novaya Zemlya is going to receive a specialized sea
                                                                                                                                             designed capacity of 38 million tons per year.   terminal. The construction materials for this project
                                                                                                                                                The year 2022 saw the start of a subsidy program   are going to be shipped via Arkhangelsk.
                                                                                                                                             aiming to support the Arctic coastal transportation
                                                                                                                                             between St. Petersburg, Murmansk and the port ter-
                                                                                                                                             minals in the Far East. The program forms part of the   Alexey Alsufiev, Senior Assistant to Arkhangelsk
                                                                                                                                             NSR Development Plan and has recently been applied   Governor – Chairman of Arkhangelsk Government:
                                                                                                                                             by Arkhangelsk Government. In Arkhangelsk’s to-  The Arkhangelsk Transport Hub plays a key role
                                                                                                                                             tal cargo turnover (5.3 million tons), coastal shipping   in the transport system of the Northern Sea Route –
                                                                                                                                             currently represents about fifty percent.     and all the more so given the recent geopolitical and
                                                                                                                                                Concurrently, the government’s experts have cal-  economic shift. This port can be given a new impetus
                                                                                                                                             culated that Arkhangelsk port’s existing facilities   and evolve into new status.
                                                                                                                                             have capacity for 12 million tons of cargo annually.   For one reason, there has been a change in the
                                                                                                                                             The prospects of increased throughput depend on the   transshipment market conditions for the Baltic ports –
                                                                                                                                             success of larger infrastructure projects – the deep-  Arkhangelsk’s main competitors. Expert estimates
                                                                                                                                             water port area, which we mentioned earlier, the Bel-  show that the recently imposed embargoes, sanctions,
                                                                                                                                             komur Railway (Arkhangelsk – Syktyvkar – Perm),   disrupted supply chains, container carriers’ with-
                                                                                                                                             and international transport corridors. These projects   drawal from Russia, and related geopolitical factors
                                                                                                                                             have had their start dates shifted multiple times and,   have put at risk 62% of Russian ports’ export/import
                                                                                                                                             given today’s situation, it’s uncertain if they will start   cargo turnover and 35% of foreign trade. Secondly, in
                                                                                                                                             at all. In making forecasts for Arkhangelsk Transport   the event the conflict escalates with NATO countries,
                                                                                                                                             Hub’s cargo base, one should probably consider fac-  the Baltic ports, given their geographical location, can
                                                                                                                                             tors that are more realistic.                 become blocked. This can give Arkhangelsk a tangible
                                                                                                                                                Currently,  one  possible  source  of  increase  in   advantage over other ports.
                                                                                                                                             the port’s transshipment volume is timber industry   The Arkhangelsk Transport Hub project is on the
                                                                                                                                             and pulp and paper mills. In Russia’s total output of   list of the Northern Sea Route Development Plan and
                                                                                                                                             wood-based products, Arkhangelsk accounts for one   implies improvements not only to the port itself, but
                                                                                                                                             third of pulp and cardboard, for about 8% of sawn   also railways, motor roads and bridges. Its concept
                                                                                                                                             timber, and for 11% of paper. A significant part of   was developed by the Arkhangelsk government in co-
                                                                                                                                             these products is exported by rail. In 2022, when ex-  operation with the Russian Ministry of Transport and
                                                                                                                                             ports started to be re-oriented to the East, the rail   is currently being coordinated with relevant authori-
                                                                                                                                             network became heavily overloaded: about 50% of the   ties and organizations. We hope it will soon be ap-
                                                                                                                                             export deliveries from Arkhangelsk reach their des-  proved for federal funding and all our major infra-
                                                                                                                                             tinations late, resulting in penalties and losses. One   structure projects will be given a go.
                                                                                                                                             viable alternative to rail is sea. According to the es-  Once the East-bound exports start to be sustain-
                                                                                                                                             timates of the Arkhangelsk government, the port’s   ably transported via the Northern Sea Route, we ex-
                                                                                                                                             turnover could well be at least one million tons more,   pect Arkhangelsk port’s capacity to reach a four-fold
                                                                                                                                             if there were regular connection via the Northern Sea   increase by 2040. A major portion in the East-bound
                                                                                                                                             Route and specialized ships to carry timber indus-  exports will be timber. And we hear the local timber
                                                                                                                                             tries’ exports.                               industries expressing their readiness to reorient their
                                                                                                                                                Another possible contributor to cargo base is fish   produce to the Northern Sea Route, provided there   SOZVEZDYE #41
                                                                                                                                             produce from the Russian Far East. Transporting it by   are decent multimodal carriage tariffs.
                                                                                                                                             rail from Vladivostok to central Russia takes between   Arkhangelsk Oblast is known as the center of
                                                                                                                                             30 and 45 days, whereas if shipped via the Northern   Arctic shipbuilding and ship repair. Our largest in-  перспективы
                                                                                                                                             Sea Route, the fish would be there in less than two   dustries – Sevmash, Zvyozdochka and Arktika – are
                                                                                                                                             weeks. Arkhangelsk offers a convenient location for   members of the United Shipbuilding Corporation.        outlook
                                                                                                                                             transshipping fish for further delivery to Moscow and   They have the capacity and competency to deliver
                                                                                                                                             St. Petersburg: these destinations are 24 hours away.   some of the most sophisticated projects. While having
                                                                                                                                                Mining is a more export-led industry. Scheduled   their manufacturing facilities tailored to the needs
                                                                                                                                             for commissioning in 2027 is mining and processing   of state defense, these industries offer a vast expe-
                                                                                                                                             facility at Pavlovsky lead-zinc-silver deposit (Yuzh-  rience in high-tech civil engineering as suppliers of       31
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