Ports : DP Signs Agreement on Northern Sea Route

.On July 23, at the Arctic Day, which took place in St. Petersburg (Russia), a Cooperation Agreement was signed between ROSATOM and DP World Corporation.

The document was signed by ROSATOM Director General Alexey Likhachev and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.

ROSATOM seeking to develop its logistics business and DP World, a global leader in the logistics business, signed an agreement to join efforts in developing pilot container shipping between Northwest Europe and East Asia using the Arctic support transport infrastructure.

The national infrastructure operator of the Northern Sea Route (NSR) and the international global logistics leader believe that their cooperation in developing and testing the integrated Arctic-based cargo transport infrastructure services will give the market an opportunity to pilot an optional cargo transportation route that will improve the sustainability of the Eurasian exchange of goods and the world trade as a whole.

Building sustainable transport infrastructure in the Arctic opens up new opportunities in developing the Eurasian transit, which can be carried out in the optimal time frame and help reduce the environmental footprint through shorter routes and the advanced low-carbon energy solutions applied. Today, an important step in the development of a strategic international partnership between ROSATOM and DP World has been made,” Alexey Likhachev, Director General of ROSATOM said.

Commenting the event, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World said: “As the leading provider of worldwide, smart, end-to-end supply chain logistics, DP World supports Russia’s efforts to diversify trade flows between Asia and Europe. The Northern Transit Corridor holds out the prospect of shorter transit times between East and West. DP World has already committed to invest $2 billion with the Russian Direct Investment Fund, and we will continue to work with our partners in Russia to find solutions that allow the Northern Transit Corridor to develop sustainably.”

For reference

ROSATOM is a designated sole infrastructure operator of the Northern Sea Route (NSR). The Northern Maritime Transport Corridor (NMTC) is being created in stages on the basis of the Northern Sea Route under the NSR Infrastructure Development Plan 2035 approved by the Government of the Russian Federation. The Corporation is actively developing a new line of logistics business and the Eurasian transit powered by Rusatom Cargo, the logistics integrator within the industry.

DP World (Dubai, UAE) – the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. DP World delivers its services through an interconnected global network of 129 business units in 55 countries across six continents, with a significant presence both in high-growth and mature markets. It operates the global networks of marine ports, terminals, industrial parks, logistics, and economic centers in the world with a total cargo handling capacity of over 90 million TEU per year

ROSATOM and GDK Baimskaya LLC sign agreement to jointly supply energy to Baimsky plant

On another side – ROSATOM and GDK Baimskaya LLC have signed an agreement to jointly implement a project to supply power to the Baimsky mining and processing plant (Baimsky GOK), which is located in Russia’s Chukotka Autonomous Okrug. The agreement was signed by ROSATOM Deputy Director General and Director of the

Northern Sea Route Directorate Vyacheslav Ruksha and GDK Baimskaya LLC’s Chairman of the Board of Directors Oleg Kovalchuk. The signing ceremony took place as part of the ROSATOM-organised event “Arctic Day.”
The parties agreed that they would conclude a long-term “take-or-pay” contract for the sale and purchase of electricity by April 2022.

ROSATOM has proposed using optimized floating power units (OFPU) to provide electricity to the Baimsky GOK. These units are already under construction at ROSATOM’s machine-building division, Atomenergomash.
“We expect to build four power units: three main units and one standby unit that will be used during the repair or refueling of one of the main units,” said Vyacheslav Ruksha.

Ruksha noted that the first two units are expected to be delivered to their working location in the water area of ?? Cape Nagleynyn and connected to power lines leading to the Baimsky GOK at the end of 2026; the third unit will be connected at the end of 2027.

An important part of the agreement is the parties’ intention to assist in changing current Russian legislation concerning the electric power industry to allow for more efficient investment in the Arctic. The parties maintain that change is necessary to create effective mechanisms by which to repay investors who develop long-term projects in the Arctic.

The conclusion of long-term electricity purchase and sale agreement between ROSATOM and GDK Baimskaya LLC will become the most important events in the largescale program for the development of the Russian Arctic,” said Oleg Novachuk at the signing event.

This agreement has been concluded in the framework of a comprehensive roadmap for the implementation of investment projects for the development of the Baimsky metallogenic zone. This roadmap (No. 5645p-P9) was approved by Russia’s Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District Yury Trutnev on 7 June 2021.

GDK Baimskaya LLC is developing the large Peschanka copper deposit, which is situated in the Baimskaya licensed area of Russia’s Chukotka Autonomous Okrug. It is estimated that the deposit contains 9.9 million tonnes of copper with an average grade of 0.39% and 16.6 million ounces of gold with an average grade of 0.21 g/t. Both estimates have been recorded in accordance with the JORC code. The project’s construction budget is estimated at $8 billion.