The Northern Sea Route is gaining strength

Companies are increasingly using the Northern Sea Route (NSR) for cargo transportation. At the end of autumn, several events at once consolidated the emerging trend in the commercialization of the route.

The importance of the NSR has increased sharply against the backdrop of geopolitical and military risks in other international transport corridors. Shippers and carriers are increasingly considering the Russian Arctic route as an alternative to the Suez Canal. The development of the Northern Sea Route is also discussed at the interstate level.

The first meeting of the Russian-Indian working group on cooperation in the development of the Northern Sea Route was one of the main events on the news agenda of the commercial development of the route this year. On October 10, representatives of the two countries discussed the targets for transit Russian-Indian cargo traffic along the Northern Sea Route, joint projects in the field of Arctic shipbuilding and the possibility of training Indian sailors in polar navigation. The meeting participants also considered a draft memorandum of understanding between the governments of the Russian Federation and India for the development of cooperation on maritime transportation in the waters of the Northern Sea Route.

India, along with China, is one of the key economic allies of the Russian Federation, including cooperation within the BRICS. Therefore, India's plans to develop the NSR following the example of China are of particular importance. According to Rosatom, India plans to launch a pilot line for container cargo transportation through the NSR, following the example of China, which is already actively developing the Arctic route.

Earlier, the Chinese shipping company NewNew Shipping Line (NNSL) opened regular liner container transportation between the ports of St. Petersburg, Arkhangelsk and the base ports of China through the NSR. Rosatom calls this event the beginning of the launch of transnational routes through the Arctic.

Vladimir Panov, Special Representative of Rosatom State Corporation for the Development of the Arctic, notes the success of the route roll-out. "A cargo from the Baltic in the direction of Asia went to the NSR. There is a high probability that the volume of transit through the NSR will update historical highs this year," he said. In 2023, about 2.1 million tons were transported along the Northern Sea Route, which were handled in ports outside the NSR. This is a record in the entire history of the development of the route. This year, Rosatom expects a new achievement - 3 million tons of transit cargo.

Vladimir Panov also reported on the active work on the formation of an international container line for voyages along the NSR, which will increase transit volumes.

Improving the accuracy of ice forecasting and navigational support has improved the pilotage of ships along the NSR. This has led to an increase in the popularity of Arctic voyages and the ability to escort larger vessels.

So, at the end of September, the largest vessel in the history of the Arctic route - a Panamax container ship - passed along the NSR. The capacity of this vessel is 1.5 times greater than the capacity of each of the container ships that sail along the Northern Sea Route. Chinese carriers OVP Shipping and Safetrans Line ventured on such a flight.

Thus, the Flying Fish 1 vessel with a length of 294 m and a width of 32 m in early October delivered 664 20-foot and 1727 40-foot containers, or 41 thousand tons of cargo, from St. Petersburg to the Chinese port of Qingdao in Shanghai in 21 days at an average speed of 16 knots. The Northern Sea Route was passed in less than six days at an average speed of 15.5 knots. If the Flying Fish 1 had transported these cargoes through the Suez Canal, it would have arrived at its destination two weeks later.

The successful rolling out of the Northern Sea Route has also attracted Belarusian companies that are already using Russian ports for import and export supplies. The first batch of cargo along the Northern Sea Route arrived in Belarus from China at the end of September in 35 days. "The trial delivery has launched a new logistics service for Belarusian enterprises, which will be in demand by business," said Alexander Skachkovsky, First Deputy General Director of Beltamozhservice.

Currently, the ice-free season is more often used for commercial flights on the NSR, which begins around April and ends in mid-October. "Pilotage of large vessels, which, accordingly, have a large draft, implies navigation only on deep-water routes. The route of the container ship (Flying Fish 1. – Ed.) was developed by GlavSevmorput in accordance with this condition and the emerging and predicted ice situation at the time of passage," explained Sergey Zybko, head of GlavSevmorput.

Russian companies do not lag behind Chinese carriers. In September, the Eurosib holding for the first time organized the shipment of goods along the Northern Sea Route. First, a train of 76 40-foot containers with products of KAO Azot from Kuzbass arrived in Arkhangelsk. Then the containers were loaded onto a ship of the Chinese company Torgmoll and delivered along the NSR to China.

In addition, Eurosib planned to build a deep-water seaport in Arkhangelsk together with the government of the Arkhangelsk region. The port is scheduled to start operating in 2031. Since 2023, the region has been actively using the NSR to reorient the export of its timber products to China. Eurosib together with the regional authorities estimated the cargo base of local enterprises at 25 million tons per year with the potential to increase to 55 million tons. Along the NSR through the new port, it is planned to increase the supply of not only the traditional range of goods (woodworking products, fertilizers), but also oil products, ferrous metals, container cargo with local products.

According to the Northern Sea Route development plan, such modern ports should complement the coastal infrastructure along the route, increasing its attractiveness and accelerating the development of the Arctic regions.

In 2024, another record of cargo transportation along the Northern Sea Route is expected to be reached - about 40 million tons. Last year, this figure was 36.3 million tons, in 2022 - 34 million tons, said Stanislav Mamulat, Scientific Director of the Laboratory "Sustainable Development of International Transport Infrastructure" of the Department of World Economy of the Plekhanov Russian University of Economics, member of the board of the International Transport Alliance "One Belt, One Road" (BRITA).

At the same time, he noted, this figure is significantly lower than the figure (80 million tons) scheduled for 2024 in the plan for the development of the NSR until 2035, which was approved in August 2022 by Russian Prime Minister Mikhail Mishustin. According to Stanislav Mamulat, this was due to the underfulfillment of many measures that ensure the plan.

Russian Railways is modernising its infrastructure to increase the throughput and carrying capacity of railway approaches to the key ports of the NSR water area.

As told in the Department of Capital Construction of Russian Railways, the project "Development and Renovation of the Railway Infrastructure on the Approaches to the Ports of the North-Western Basin" has been implemented. The main goal of the project was achieved - the development of the projected volume of cargo transportation on the approaches to the ports of the North-Western basin in the amount of 145.6 million tons in 2024.

In the autumn of this year, as part of the expansion of approaches to the Murmansk transport hub, Russian Railways opened traffic on a new second track on the Khibiny - Nepheline Sands stretch. Freight and passenger trains to Murmansk pass through this section, and after the launch of the port of Lavna, trains in the direction of the new Vykhodnoy - Lavna line will be added to them.

According to the plan, the development of approaches to the Murmansk transport hub will ensure the transportation of up to 45 million tons of cargo to the ports of the Kola Bay from 2025, including 18 million tons per year in the direction of the Lavna coal terminal. Part of the cargo will be sent along the NSR.

The development of the Eastern Polygon is planned in accordance with the passport of the investment project "Modernization of the Railway Infrastructure of the Baikal-Amur and Trans-Siberian Railways with the Development of Throughput and Carrying Capacity", which was approved by the order of the Government of the Russian Federation. Until 2031, the development of three stations and the Amurskoye depot is planned on the approaches to the ports of the Vanino-Sovgavansky transport hub on the Komsomolsk-Sortirovochny - Volochaevka section. On the Volochaevka - Smolyaninovo - Nakhodka section on the approaches to the ports of the Primorsky Territory, it is planned to reconstruct 12 stations, design and survey work on bypasses of the Khabarovsk railway hub, the Smolyaninovo - Nakhodka section and the development of the Nakhodka hub. The implementation of these projects will increase port capacities for transshipment of goods along the Arctic route.