Dubai’s global port operator DP World and Russian logistics company Fesco are planning to build a container terminal in Vladivostok to service the growing Arctic route between Europe and the Pacific, Maritime Executive reports.
The two will now carry out a feasibility study into the project. If this suggests a development would be successful, Vladivostok would become a transshipment hub on the eastern end of Russia’s Northern Sea Route.
The Vladivostok development would handle trains and feeder ships from China and elsewhere and move their cargo onto giant container ships. These would then transport the goods to Europe, cutting about two weeks from the Suez Canal route.
At the other end of the route, Murmansk would become a second transshipment hub for ports in northwestern Europe. DP World would serve both Vladivostok and Murmansk.
Separately, in July DP World signed an agreement with Russian nuclear engineer Rosatom to develop the Northern Transit Corridor.
DP World chief executive Sultan Ahmed Bin Sulayem said: “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.”
According to DP World, a record 33 million tons of cargo was shipped via the corridor in 2020, with President Vladimir Putin targeting 80 million tons by 2024.
Russia is investing heavily in LNG and nuclear powered icebreakers with the aim of keeping the Arctic route open all year round.
DP World handles some 10% of global container traffic; Fesco is Russia’s largest intermodal transport operator.
Rosatom and Fesco have also signed an agreement to create a transport and logistics hub at Vladivostok.
Image: Vladivostok is Russia’s main Siberian port (Sung Shin/Unsplash)