SPIEF-2023: The Northern Sea Route to become an energy-efficient route for global shipping

On June 15, 2023 the session called “The Northern Sea Route: New Challenges” took place
within the framework of SPIEF-2023.
The session highlighted the new importance of the Northern Sea Route (NSR) as the most
important transport artery linking the vast Arctic space of eight countries, including Russia, as
well as providing an opportunity to significantly shorten the route to other countries of the world.
This advantage attracts the attention of international business, including the Persian Gulf
countries. By creating a new logistics corridor, the load on depleted routes will be reduced, it
will reduce time and energy costs, and hence the carbon footprint of the use of ships. In
addition, the NSR will help increase the efficiency and profitability of global transportation.
Sultan Ahmed Bin Sulayem, CEO of one of the world’s largest port operators DP World (UAE)
was among the panelists. The speaker noted: “The Northern Sea Route development project
has a huge potential, and it is important to determine what exactly needs to be done to make it
a success. Among the main measures to be taken are: ensuring customer support for the
project, developing infrastructure and informing customers about the environmental studies. I
am confident that through the participation and support of multiple stakeholders, cargo owners
will be able to appreciate the economic benefits of the project and the plan to implement it. This
will contribute to building trustful relations with the public and to the fact that the NSR will soon
become an alternative to the existing popular routes between Europe and Asia”.
It was noted at the session that the NSR is experiencing a momentum of development due to
mining, infrastructure and logistics projects. In the past decade there was a radical change due
to projects of “Nornickel”, “Novatek” and “Gazprom Neft”, who built a fleet of high Arctic class,
which made the Northern Sea Route efficient and safe, there was formed a year-round
navigation in the western part of the NSR, as these vessels can operate in certain ice conditions
without icebreakers.
“Last year by order of the President of the Russian Federation in addition to icebreaker logistics
Rosatom took power over maritime traffic management on the NSR. The organization
Glavsevmorput coordinates all navigation: issuing permits, control over execution, routing for all
vessels that operate on the NSR,” said Alexey Likhachev.
Novatek, Rosneft, Gazpromneft, Nornickel participate in the development of the Northern Sea
Route, building the fleet, and participating in the creation of communication systems. “This task
has a huge prospect. “This transport corridor should be used as a mechanism to connect
territories. This task is inspiring. We understand that we can seriously improve the investment
climate and the quality of life of people,” highlighted the Director General.
The problems of creating the global logistic corridor and transferring tens millions of tons of
transit through a shorter and more efficient way were discussed. The main characteristic of the
process is: business in the Arctic is not easy, the state takes some of the risks and even in a
difficult budgetary situation continues to invest in the creation of infrastructure.
The participants of the session discussed the tasks of finding a new model of navigation,
assuming year-round navigation in the eastern sector of the NSR. Next year we will already be
able to tell how it works.
Alexey Likhachev stated the importance of stable power supply: “The world’s first floating
nuclear power plant has been operating in Pevek for years. In Chukotka, the Baim ore zone has
already requested four small nuclear power plants. We are expecting orders for about 15 more
units. We have hit the mark. A floating solution is very much in demand in today’s Arctic
conditions.

“Global logistics has always sought a balance of safety, sustainability and efficiency. But over
the past few years, events have occurred and are occurring that are changing both the world
order and world logistics. In such circumstances, safety and sustainability become obvious
priorities. NSR is becoming a unique new route, and we see especially in current conditions a
great potential for cooperation with friendly states in development of the transit cargo traffic, and
we are already doing all the necessary work,” – Alexey Likhachev said.

Петербургский международный экономический форум, день 2. Сессия «Северный морской путь: новые вызовы». Санкт-Петербург, 15 июня 2023 года.\n\nSt. Petersburg International Economic Forum, day 2. The Northern Sea Route: New challenges session. Saint-Petersburg, June 15th, 2023


For reference:
Rosatom has been designated the infrastructure operator of the Northern Sea Route (NSR)
since 2018 and is responsible for organizing navigation on the NSR, construction of
infrastructure facilities, navigation and hydrographic support and the system of navigation safety
in harsh Arctic conditions. The Corporation supervises two federal projects “Development of the
Northern Sea Route” and “The Northern Sea Route – 2030”, and participates in the plan of the
Northern Sea Route development till 2035 as well as the initiative of social and economic
development of the Russian Federation till 2030 “Year-round Northern Sea Route” approved by
the Order of the Government of the Russian Federation. The contour of the NSR Directorate of
Rosatom State Corporation includes “Atomflot”, “Hydrographic Enterprise” and
“Glavsevmorput”.
The Chief Directorate of the Northern Sea Route (Glavsevmorput) was established by the
Decree of the Government of the Russian Federation from 23.07.2022 № 2019-p. The main
purpose of the organization is to organize the navigation of ships in the waters of the Northern
Sea Route (NSR). Glavsevmorput solves the following tasks: – providing organization of
icebreaker escort of ships and piloting of ships by navigation routes in the waters of the NSR as
well as development of the route of ships and deployment of icebreaker fleet in the waters of the
NSR taking into account hydrometeorological, ice and navigation conditions in the NSR; –
issuance, suspension, renewal and termination of permits for navigation of ships in the waters
of the NSR and amendments to such permits. To solve these tasks, the organization deploys
icebreaker fleet vessels in the NSR water area; monitors vessel traffic in the NSR water area;
provides information on hydrometeorological, ice and navigation conditions in the NSR water
area; and receives information from vessels in the NSR water area.
Comprehensive development of the Arctic zone of the Russian Federation is one of the
strategic priorities of the state. Increasing the volume of transportation along the Northern Sea
Route is of paramount importance for achieving the set objectives in the field of transport and
cargo delivery. The development of this logistics corridor is ensured through the establishment
of regular freight traffic, construction of new nuclear icebreakers and modernization of the
relevant infrastructure. The enterprises of Rosatom take an active part in this work.