DP World and the Russian state nuclear company Rosatom have formed a joint venture called International Container Logistics to advance transit container shipping along the Northern Sea Route (NSR).
According to a Reuters report, the route is made viable by the melting of Arctic sea ice due to climate change, and runs from Murmansk near Russia’s border with Norway to the Bering Strait near Alaska.
Although the agreement was signed in June, the JV was officially registered in Moscow this month.
“Global trade needs global solutions. The blockage of the Suez Canal in 2020, the vulnerability of global trade to shocks, holding up trade valued at $9bn a day. The Northern Sea Route could be transformative for both global trade and the environment. Not only would it cut maritime carbon emissions, but it offers a new option for customers who depend on a single trade artery.” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
Rosatom Cargo holds a 51 percent stake, while DP World Russia possesses the remaining 49 percent. The collaboration, with an equity capital of 960 million rubles ($10.28 million), is led by Alexei Levitsky.
“The volume of global trade is growing every year, and efficient, safe and rhythmic cargo transportation routes are needed to ensure the sustainability of global supply chains. The Northern Sea Route is one of these routes, and strategic cooperation between Rosatom and DP World will contribute to the development of its transit potential. As a result, global trade’s actors will be offered an opportunity of greater variety and safety of cargo shipping routes, as well as reduced delivery times and environmental burdens.” said Alexei Likhachev.