Abstract

The Northern Sea Route (or the Northern through-passage) is a transport corridor, the use of which is called on in order to increase the efficiency of the Russian economy, activate the natural resources exploration for sub-sovereign entities located in the Arctic zone of Russia. The study purpose is to determine the Northern Sea Route cargo transportation development contemplations in consideration of the observed changes in the world commodity markets. Comparative analysis and a systematic approach is used as the main research methods, which makes it possible to hold a holistic management of ROE of the Northern Sea Route development, implemented at the federal level to ensure a sustainable innovative development of the national economy and the effective use of its resource potentia. The main conclusion is that the volume of cargo transportation along the Northern Sea Route will grow, but at a slower rate than the forecast of the Ministry of Economic Development and will reach 46 to 50 million tons in 2024.

Highlights

  • The Northern Sea Route is a new promising transport corridor, stretching from Murmansk to Chukotka, subdividing into the western sector from Murmansk to Dudinka and the eastern sector from Dudinka to Chukotka, which is able to become a highly competitive section of the world’s transport system in the future, but only if it is provided with a whole-year shipping traffic in consideration of the need to both fulfill a set of modern requirements for the maritime transportation safety and minimize anthropogenic impact on natural and climatic landscapes of the Russian Federation Arctic regions

  • It is noteworthy that Yamal liquefied natural gas (LNG) with a significant multiplicative effect for the Russian industry and the transport infrastructure development was implemented not by PAO Gazprom, but by a relatively small private company of that time, which managed to provide its project support from the Russian government, without which its implementation would be unprofitable

  • It should be noted that the capital investments in the transport infrastructure development made by the state, including the construction of a new deep water port of Sabetta, the construction of icebreakers, and the modernization of the traffic safety providing system successfully supplemented the expenses of the private NOVATEK company, which are directly aimed at the construction of the liquefied natural gas plant itself and its production and transportation infrastructure development

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Summary

Introduction

The Northern Sea Route is a new promising transport corridor, stretching from Murmansk to Chukotka, subdividing into the western sector from Murmansk to Dudinka and the eastern sector from Dudinka to Chukotka, which is able to become a highly competitive section of the world’s transport system in the future, but only if it is provided with a whole-year shipping traffic in consideration of the need to both fulfill a set of modern requirements for the maritime transportation safety and minimize anthropogenic impact on natural and climatic landscapes of the Russian Federation Arctic regions. What is meant here is the construction of the Norilsk manufacturing district, connected to the Dudinka port by a railway, which is isolated from the rest of the Russian railway system The consequence of such state of business was a significant slippage of the Northern Sea Route cargo carriage volume in the 1990s, when driven by a decrease in economic activity it fell 2–3 times as compared with the maximum index rates of the previous decade. During the economic downturn the Norilsk industrial cluster ensured the protection of the Northern Sea Route in a capacity of a functioning through-passage in its western part, even this project due to its limited cargo carriage volumes could not create the necessary conditions for strong traffic intensity of the NSR for many years to come, that negatively affected its infrastructure, which needs quite significant investments from the government in order to maintain it in working condition. In its eastern part the Northern Sea Route was used only for single cruises at that time

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