DP World will work with Russian state nuclear energy firm Rosatom to develop pilot container routes between northwest Europe and east Asia through the Arctic
The agreement was signed by Rosatom director general Alexey Likhachev and DP World chairman and chief executive Sultan Ahmed Bin Sulayem.
Rosatom, the designated sole infrastructure operator of the Northern Sea Route, is seeking to develop its logistics business and DP World is a leading logistics firm.
The two firms believe developing and testing the Arctic-based cargo transport infrastructure service will give the market an opportunity to pilot an optional cargo transportation route that will improve the sustainability of the Eurasian exchange of goods and world trade as a whole.
Commenting on the agreement, Sultan Bin Sulayem said, “As the leading provider of worldwide, smart, end-to-end supply chain logistics, DP World supports Russia’s efforts to diversify trade flows between Asia and Europe.”
DP World has already committed to investing US$2Bn with the Russian Direct Investment Fund, and said, “we will continue to work with our partners in Russia to find solutions that allow the Northern Transit Corridor to develop sustainably.”
Russia has long seen its northern sea route as a strategic asset to exploit, to shorten transit times and create an alternative trade route. In June, Russian deputy prime minister Yury Turtnev told the media the route “should not be more expensive, but in the long term cheaper than along the Suez Canal.
Rosatom plans to develop the Northern Sea Route into a fully-fledged transport corridor, as the Northern Maritime Transport Corridor is being created in stages on the basis of the Northern Sea Route under the NSR Infrastructure Development Plan 2035, approved by the Russian Government.
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