DP World and Rosatom to Cooperate Developing Northern Transit Corridor

DP World and Rosatom to Cooperate Developing Northern Transit Corridor

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    DP World and Rosatom have signed an agreement to develop Northern Transit Corridor as a viable and sustainable route between Asia and Europe. The document was signed in St. Petersburg by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, and Aleksey Likhachev, Director General of Rosatom.

    Under the agreement, Rosatom and DP World will establish a joint venture, which will invest in, build and operate transport and logistics capacity along the Northern Transit Corridor.

    The Northern route cuts up to 19 days of the transit time between South East Asia and North-West Europe. One third of the world’s trade flows between the two continents and saving shipping time will significantly reduce CO2 emissions, DPW said. Critically, the width and draft of vessels are not an issue along the Northern Transit Corridor. The alternative new route is not congested, shorter, more efficient and faster.

    A record 33 mn tons was carried along the Northern Transit Corridor in 2020, with President Vladimir Putin targeting 80 mn tons by 2024. To open the route to sustainable commerce, a comprehensive development program will be performed, including the development of ports and transport links along Russia’s north coast to sustain economic activity.

    The pandemic highlighted significant challenges in the supply chain, with many cargo owners struggling to find containers to move their goods. Diversification and disruption of traditional routes and methods are required to sustain growth and build back confidence, DPW said.

    According to Rosatom, the pilot transit project for the Northern Sea Route will be developed by a JV to be established by Rosatom’s subsidiary Rusatom Cargo and DPW’s DP World Russia FZSO.


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