ST PETERSBURG: June 2019. DP World has signed a Letter of Intent with the Russian Direct Investment Fund to develop a port infrastructure along the Northern Sea Route (NSR) linking Asia with Europe via the Russian Arctic coast.
The agreement, which also included Rosatom, Russia’s nuclear energy corporation and Norilsk Nickel, a Russian nickel and palladium mining and smelting company, was signed during the St. Petersburg International Economic Forum last week.
As a first step, the potential partners will produce a feasibility study by the end of the year with a view to increasing the volume of containers and other bulk cargo along the NSR via a joint venture. They note any development will include funding for the design and construction of an additional ice-class fleet and icebreakers, as well as the port infrastructure.
Norilsk Nickel, whose production facilities are located in northern Russia, provides cargo transportation on its own behalf and other NSR participants. “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 president Vladimir Potanin.
“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,” commented bin Sulayem. “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.”
Pictured: The agreement 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 Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World.