Dubai port company DP World to consider a role in Russia's 'Northern Sea Route' ambitions
DP World to jointly study expansion of Vladivostok seaport in major Russia push
Dubai: Dubai’s ports and free zone operator DP World is turning its attention on Russia, having signed an agreement to “study” the feasibility for a new container berth in the Far East of Russia.
The new berth – if the study is favourable - will help to expand the Vladivostok Commercial Seaport as a “major transshipment hub connecting cargo from countries in East Asia to North-West Europe via the Northern Sea Route”. The study will be done alongside Fesco, Russia’s leading intermodal transport company.
It follows an earlier agreement between DP World and Rosatom to explore sustainable development of the route, which will increase the resilience of global trade.
A record 33 million tonnes of cargo was carried along the Northern Sea Route last year. Russian President Vladimir Putin has set a target of 80 million tonnes by end of 2024. The project cuts some 4,000 nautical miles from voyages between East Asia and Northwestern Europe, cutting shipping time by around two weeks and reducing CO2 emissions.
DP World supports President Vladimir Putin's vision for the Northern Sea Route
"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,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World. “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."
Possible plan of action
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 Northwestern 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.
We are delighted to be working closely with a company such as DP World that is handling roughly 10% of the global container traffic