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The government of the Russian Federation also emphasizes the region’s potential for development, being an active departure point for the Northern Sea Route (NSR). In that vein, in June, Murmansk Region governor Andrey Chibis talked about the progress taking place in the Murmansk transportation junction (MTJ) development project in terms of utilizing the shores of Kola Bay.
The Railroad Junction
According to information from Russian Railways, over January to June, 66.4 million tons were directed to the Northwestern ports (which includes Murmansk’s ports too), a figure 4.7% greater than that of same period the previous year. This route is currently exhibiting outperformance practically on par with the Southern and Far Eastern ports.
The Russian government has underscored the MTJ as one of the highest priority projects in the NSR's development. To that effect, as early as the end of 2022, the government allocated 37.7 billion roubles for the junction’s construction, planned to take place over 2022-2024.
The project is given high-level financing priority within the bounds of the VEB.RF subsidy tool in conjunction with the Ministry of Eastern Development. According to the June data, the junction is 80% ready and the railroad and port infrastructure is currently still being built.
For the purposes of the MTJ’s implementation, the construction of the 49.7 km-long railroad line between the Vykhodnaya and Lavna stations is nearly complete. The total shipments to the Murmansk ports will reach 45 million tons in 2025 and as high as 80 million tons by 2030, as Andrey Chibis announced in June. Complete implementation of the MTJ will require further development of the Volkhovstroi-Murmansk route.
Developing the Ports
A coal terminal is currently being created at the Lavna port. The total investments in erecting the terminal are estimated to be over 89 billion RUB. In May, Oleg Beloziorov, CEO and chairman of the Russian Railways’ management board personally examined the course of the railroad line’s construction to the Lavna port terminal.
“An ambitious task awaits us – to set in motion a functional traffic route from the current Vykhodnaya station to the newly erected Lavna station by the end of the present year,” he stated. Already by 2024, the transportation capacity for the terminal’s inbound traffic will be around 18 million tons.
The Murmansk Sea Commerce Port in terms of its January to June totals provided for the transshipment of 454.7 thousand tons of inert matter, ballast and sand, compared to 236 thousand tons the previous year. Furthermore, a new monthly shipment record at the facility was set for that category of cargoes – 181 thousand tons according to the port's press service. “In recent years, we have observed constant growth in the “arctic” shipping flow,” Vitaly Vlasov, head of production at MSCP, JSC, declared.
On top of that, work is being done in the region for a Western transportation logistics junction capable of transshipping 840 thousand TEUs (the analog of a 20-foot container) per year and a container terminal with a power of 600 thousand TEUs per year.
Priority Selection
Freight dispatchers also note the high appetite for logistics routes to be built in the region despite the closure of the European market. Thus, the National Transportation Company (NTC) was able to rebuild vessel routes departing from Murmansk and send cargoes to China, Turkey, and India. NTC manages two terminals on the Northwestern route – the Murmansk Sea Commerce Port (MSCP) and the Murmansk Bulk Terminal. The company is also developing a line via the Northern Sea Route (NSR).
The 2023 January-June shipped cargo totals for the NSR are 54 thousand tons, almost double the figure for the same period the previous year. “As a whole, the cargo revenue for the MSCP and the Murmansk Bulk Terminal in just a half year managed to rise by a whole quarter of its value compared to last year’s indicators,11.4 million tons,” NTC transportation management head Yevgeny Gartvikh reported to 1520 international.
Aleksander Solyanik
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