The UAE-based global port operator DP World and the Russian state corporation that specialises in nuclear energy Rosatom will work together to develop the Northern Transit Corridor as a viable and sustainable route between Asia and Europe.
Under the terms of the agreement, the two companies will establish a joint venture which will invest in, build and operate transport and logistics capacity along the Northern Transit Corridor.
DP World has already committed to invest US$2 billion with the Russian Direct Investment fund, according to Sultan Ahmed Bin Sulayem, Group Chairman and CEO, who said, "we will continue to work with our partners in Russia to find solutions that allow the Northern Transit Corridor to develop sustainably."
The Northern route cuts up to 19 days from the journey time between South East Asia and North West Europe, according to the announcement, while one third of the world's trade flows between the two continents and saving shipping time will significantly reduce CO2 emissions.
"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," commented Alexey Likhachev, General Director of Rosatom.
The width and draft of vessels are not an issue along the Northern Transit Corridor, according to a statement, while the alternative new route is expected to be not congested, shorter, more efficient and faster.
A record 33 million tons were 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.