DP World and Rosatom team up to develop an Arctic sea route
DP World and Rosatom will collaborate to establish the Northern Transit Corridor in the Arctic as a feasible and sustainable marine route connecting Asia and Europe.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, and Aleksey Likhachev, Director General of Rosatom, inked the agreement in St Petersburg.
The agreement, provides for the establishment of a strategic alliance between DP World and Rosatom to invest in, create, and operate transportation and logistical infrastructure along the Northern Transit Corridor.
The Northern route shortens the voyage between South East Asia and North-West Europe by up to 19 days.
“As the world's leading provider of intelligent, end-to-end supply chain logistics, DP World supports Russia's efforts to diversify trade flows between Asia and Europe,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
The Northern Transit Corridor promises faster transit between east and west.
DP World has already invested $2 billion to the Russian Direct Investment Fund, and they will actively engage with their Russian stakeholders to support sustainable development solutions for the Northern Transit Corridor.
Reducing shipping time will drastically reduce CO2 emissions because one-third of the world's trade moves between the two continents.
Along the Northern Transit Corridor, vessel breadth and draft are not a concern.
In 2020, the Northern Transit Corridor carried a record 33 million tons, with Russian President Vladimir Putin aiming for 80 million tons by 2024.
To pave the way for sustainable trade, an ambitious development program will be implemented, which will include the construction of ports and transportation linkages along Russia's north coast.
Alexey Likhachev, Rosatom's General Director, added, "Developing sustainable transport infrastructure in the Arctic creates new opportunities for developing the Eurasian transit, which can be accomplished more quickly and with a smaller environmental footprint due to shorter route distances and advanced low-carbon energy solutions.
Today marks a critical milestone in the formation of a strategic worldwide collaboration between Rosatom and DP World”.
Read the article "Arctic Shipping: The New Gold Rush" on our blog to gain more insights.