Russian President Vladimir Putin has been asked to endorse the ambitious Northern Maritime Transport Corridor project to open up the Northern Sea Route, which is arousing the interest of the international business community.

Rosatom chief executive Alexey Likhachev told Putin at a meeting in the Kremlin on Wednesday that the container shipping industry is increasingly expressing interest in the Northern Sea Route following the events of the Canal de Suez and the growth of world trade.

“We would like, with your agreement, to start developing a large container transport logistics corridor based on our Northern Sea Route project,” Likhachev said.

He added that the development of the route for the commercial shipping industry will open a whole new level of commercial and economic positioning, not only for the state-owned company but also for Russia, with the broader objective being to profit to the global economy.

The project includes the development of two terminal hubs, a fleet of icebreakers, port infrastructure, communication and navigation systems, among other investments.

According to Likhachev, Rosatom is implementing projects to pave the way for commercial shipping with an emphasis on performing additional analysis on icebreaking support needs for medium and long-term operations.

The company estimates that it may need three to six powerful new icebreakers to keep the entire Northern Sea Route open for daily shipments throughout the year. He launched plans to build the first batch of icebreakers powered by liquefied natural gas (LNG).

“All of the Northern Sea Route projects are developing, perhaps even at a faster pace than expected. In this regard, we are conducting further analysis of the post-2024, post-2030 icebreaking support needs, ”said Likhachev.

The Northern Sea Route is emerging as a strategic economic front for Russia as countries and shipping companies seek alternative routes to Asia and Europe. Disruptions such as the blockade of the Suez Canal in March and continued COVID-19 disruptions in ports have weighed on an otherwise booming ocean freight industry, which is enjoying unprecedented demand and profitability. .

Rusatom Cargo, a subsidiary of Rosatom, says the flow of goods in transit along the Northern Sea Route could reach 80 million tonnes per year by 2024, up from 33 million last year.

Last month, Rosatom signed an agreement with DP World establishing a joint venture that will invest, build and operate transport and logistics capacity along the northern transit corridor.

“DP World supports Russia’s efforts to diversify trade flows between Asia and Europe. The northern transit corridor offers the prospect of shorter transit times between East and West, ”said Sultan Ahmed Bin Sulayem, CEO of DP World.

He added that the northern route cuts travel time between Southeast Asia and Northwest Europe by up to 19 days because it is shorter, faster, less congested and more efficient.