DP World to Operate Ports Along Russia’s Northern Sea Route
This transaction is in line with our strategy to grow our presence in marine logistics and become a solutions provider to end customers
The Russian Direct Investment Fund - being an investment fund of the Russian Federation, investing together with foreign investors in Russian assets; ROSATOM - the infrastructure operator of the NSR; Norilsk Nickel - the world leader in the production of palladium and high-quality nickel, and DP World - one of the largest global port and logistics operators have agreed to jointly implement a project for the integrated development of the NSR.
The quadrilateral agreement of intent was signed on June 6, 2019 during the St. Petersburg International Economic Forum. The agreement outlines a comprehensive piece of work which will study of the most effective commercial options for the use of the Northern Sea Route. The parties intend to create a strategic partnership in the form of a joint venture for the development of transit cargo traffic through the NSR.
The key objective of the project is to increase the volume of freight traffic through the NSR and the Arctic zone of the Russian Federation. The document was signed by Dmitriyev Kirill Alexandrovich, Director General of the RDPI Management Company, Vladimir Potanin, President of Norilsk Nickel, Alexey Likhachev, Director General of Rosatom, and His Excellency Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World (DPW) For the first stage, the parties to the agreement will have to develop a strategy to increase the efficiency of the use of the NSR and to determine ways of developing transit traffic.
The focus will be on linear transportation of containers and other bulk cargo along the Northern Sea Route. It will be necessary to determine the amount of funding for the design and construction of an additional ice-class fleet and icebreakers, as well as the port infrastructure. A separate important area of work: ensuring industrial safety and environmental protection in the implementation of transportation along the NSR.
The project partners are all world-renowned experts in their field of competence. The Russian Direct Investment Fund has many significant opportunities to attract foreign capital in the largest investment projects in the Russian Federation. ROSATOM is the authorized infrastructure operator of the Northern Sea Route and the owner of the world's only nuclear icebreaking fleet. "Norilsk Nickel", whose production facilities are located in the Far North, have many years of experience and knowledge in the field of logistics passing through the NSR.
The company provides cargo transportation not only for its own needs, but is a key participant in the “northern delivery” in the Arctic region of the country. DP World is one of the world's largest and recognized global port operators and a leader in global digital supply chain solutions that specializes in freight logistics, terminal services and freight services.
His Excellency, Sultan Ahmed bin Sulayem said, “DP World is uniquely positioned to help drive the development of the NSR. We are excited about the possibilities and the benefits this will bring not only to the Russian economy, but to customers in Asia and Europe. Our expertise in developing new Ports, infrastructure and innovative new supply chain solutions, are key factors in our successes over the last few decades. We see enormous potential in NSR and look forward to creating new successes with our partners”
The parties agreed to establish a joint working group to conduct an analysis and prepare a feasibility study for the project within six months. Subject to this work being completed a next stage decision will be made on the further development of the project. “Norilsk Nickel is one of the pioneers in the development of the Arctic, a company with unique experience in operating the Northern Sea Route. We will share it for the further development of this unique route”, noted Vladimir Potanin.
DP World is a leading enabler of global trade and an integral part of the supply chain.
We operate multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services, to technology-driven trade solutions.
We have a portfolio of over 150 operations in over 45 countries across six continents, with a significant presence in both high-growth and mature markets. We aim to be essential to the bright future of global trade, ensuring that everything we do contributes positively and sustainably to both the economy and society.
Our dedicated team of more than 46,000 employees from 120 countries cultivates long-standing relationships with governments, shipping lines, importers and exporters, communities, and many other important constituents of the global supply chain, providing quality value-added services today and tomorrow.
Container handling is the company’s core business and generates more than 50% of its revenue. In 2018, DP World handled 71.4 million TEU (twenty-foot equivalent units) across our portfolio. With its committed pipeline of developments and expansions, the current gross capacity of 91 million TEU is expected to rise in line with market demand.
By thinking ahead, foreseeing change and innovating, DP World aims to create the most productive, efficient and safe trade solutions globally.