Dubai, United Arab Emirates,
23
July
2021
|
16:34
Europe/Amsterdam

DP World and Rosatom sign agreement for Northern Transit Corridor

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World
DP World supports Russia's efforts to diversify trade flows between Asia and Europe. The Northern Transit Corridor holds out the prospect of shorter transit times between East and West.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World
  • Joint venture to build and operate transport and logistics capacity sustainably and responsibly 

  • New route between East and West will reduce emissions and build resilience in global trade 

DP World and Rosatom will work together to develop the Northern Transit Corridor as a viable and sustainable route between Asia and Europe. The agreement was signed in St Petersburg by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, and Aleksey Likhachev, Director General of Rosatom. Under the terms of the agreement DP World and Rosatom will establish a joint venture which will invest in, build and operate transport and logistics capacity along the Northern Transit Corridor.

The Northern route cuts up to 19 days from the journey time between South East Asia and North West Europe. One third of the world's trade flows between the two continents and saving shipping time will significantly reduce CO2 emissions. Critically the width and draft of vessels are not an issue along the Northern Transit Corridor. The alternative new route is not congested, shorter, more efficient and faster.

A record 33 million tons was carried along the Northern Transit Corridor in 2020, with President Vladimir Putin targeting 80 million tons by 2024. To open the route to sustainable commerce, a comprehensive development program will be performed, including the development of ports and transport links along Russia's north coast to sustain economic activity.

The pandemic highlighted significant challenges in the supply chain, with many cargo owners struggling to find containers to move their goods. Diversification and disruption of traditional routes and methods are required to sustain growth and build back confidence.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, 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. The Northern Transit Corridor holds out the prospect of shorter transit times between East and West. DP World has already committed to invest $2 billion with the Russian Direct Investment fund, and we will continue to work with our partners in Russia to find solutions that allow the Northern Transit Corridor to develop sustainably.

It is DP World's responsibility to provide credible, sustainable and reliable trade enabling solutions for our customers. With the launch last year of the World Logistics Passport and online trading platforms such as DUBUY.COM, as well as the recent acquisitions of Syncreon and Imperial Logistics, we are demonstrating that we continue to invest for our customers. Capacity shortages and disruptions during the pandemic exposed weaknesses in the global economy. The Northern Transit Corridor, along with land routes we are investing in across Asia, will open more options to move cargo, with Dubai as the hub for global trade in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai".

Alexey Likhachev, General Director of Rosatom, said: "Building of sustainable transport infrastructure in the Arctic opens up new opportunities in developing the Eurasian transit which can be achieved in an optimal timeframe and help reduce the environmental footprint through shorter route distances and the advanced low-carbon energy solutions applied. Today is an important step in the development of a strategic international partnership between ROSATOM and DP World".

About DP World

We are the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. Our comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions.  

We deliver these services through an interconnected global network of 148 business units in 60 countries across six continents, with a significant presence both in high-growth and mature markets. Wherever we operate, we integrate sustainability and responsible corporate citizenship into our activities, striving for a positive contribution to the economies and communities where we live and work. 

Our dedicated, diverse and professional team of more than 54,620 employees from 137 nationalities are committed to delivering unrivalled value to our customers and partners. We do this by focusing on mutually beneficial relationships – with governments, shippers, traders, and other stakeholders along the global supply chain – relationships built on a foundation of mutual trust and enduring partnership. 

We think ahead, anticipate change and deploy industry-leading digital technology to further broaden our vision to disrupt world trade and create the smartest, most efficient and innovative solutions, while ensuring a positive and sustainable impact on economies, societies and our planet.