EuropeOperations

Russia makes plans to make Northern Sea Route a cheaper option than the Suez

Russia is determined to get far more traffic transiting its chilly northern shores. It has been a long held, strategic goal of president Vladimir Putin to take the Northern Sea Route mainstream. Financial incentives may soon be on hand to make this a reality.

“Transportation of goods along the Northern Sea Route should not be more expensive, but in the long term cheaper than along the Suez Canal”, deputy prime minister Yury Trutnev told reporters earlier this week.

Trutnev has asked the Ministry for the Development of the Far East, the Ministry of Transport and Rosatom to conduct an economic analysis together to work out how to make the alternate Asia-Europe waterway more competitive with the Suez.

The massive Vostok Oil project will come online in 2024, likely seeing many more tankers transiting Arctic waters alongside growing volumes of LNG carriers.

Plans are now being made to get more rail lines to key ports such as Sabetta.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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