The role of polarseaworthiness in shipping planning for infrastructure projects in the Arctic: The case of Yamal LNG plant

Abstract

The numerous Artic port industrial complex projects are currently marked by a lack of both railroad and road infrastructures and require a heavy cargo shipping service. Yet, navigation in the Arctic implies facing harsh sailing conditions. To prevent risk arising from this singular region, the IMO Polar Code imposes mandatory tools as the Polar Ship Certificate and suggests others such as POLARIS. At the crossroads of container and tramp market, scholars have paid little attention to the transportation of heavy cargo. The objective of this research is to assess the impact of the Polar Code policy framework and its tools on the management of a highly strategic project. To do so, we shall rely on the case of the transport and assembly of the Yamal LNG plant modules. Yamal LNG started its production in late 2019 and has already produced 19 million tons per year. The paper contemplates a ship routing and scheduling optimization model that considers different fleet types and ice conditions and applies the POLARIS Risk Index Outcome (RIO) in Arctic waters. Even though the modules are required on site in summer, due to the extreme weather conditions and limited accessibility in winter, our results highlight that the use of Polar Class vessels allowing year-round navigation in Arctic waters is critical to ensure the success of such projects. Indeed, Polar Class 3 vessels, as ships with the greatest possible “polarseaworthiness”, are capable of significantly reducing delays in project’s completion. It also emphasizes the paramount role of the Polar Code and related tools in the shipping risk management of Arctic infrastructure projects.