DP World and Rosatom Sign Agreement for Northern Transit Corridor
DP World and Rosatom will work together to develop the Northern Transit Corridor as a viable and sustainable route between Asia and Europe.
The agreement 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 terms of the agreement DP World and Rosatom 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 from the journey 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. 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 million tonnes was carried along the Northern Transit Corridor in 2020, with President Vladimir Putin targeting 80 million tonnes 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.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: "As the leading provider of worldwide, smart, end-to-end supply chain logistics, 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."
"It is DP World's responsibility to provide credible, sustainable and reliable trade enabling solutions for our customers.
"With the launch last year of the World Logistics Passport and online trading platforms such as DUBUY.COM, as well as the recent acquisitions of Syncreon and Imperial Logistics, we are demonstrating that we continue to invest for our customers.
"Capacity shortages and disruptions during the pandemic exposed weaknesses in the global economy.
"The Northern Transit Corridor, along with land routes we are investing in across Asia, will open more options to move cargo, with Dubai as the hub for global trade in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai."
Alexey Likhachev, General Director of Rosatom, said: "Building of sustainable transport infrastructure in the Arctic opens up new opportunities in developing the Eurasian transit which can be achieved in an optimal timeframe and help reduce the environmental footprint.
"Today is an important step in the development of a strategic international partnership between ROSATOM and DP World".