A new Memorandum of Understanding was recently signed between Mitsui O.S.K. Lines, Ltd. and The Far East Investment and Export Agency observed by the Ministry of the Russian Federation for the Development of the Far East. The new agreement is for cooperation in the continued development of Far East Russia and the Northern Sea Route.
Mitsui O.S.K. Lines are of the part of the Yamal LNG Project, this project is a first large-scale energy project to use the Northern Sea Route for export cargo. Mitsui will provide their first ice-breaking LNG carrier to go into operation on this service route by the end of March.
The Arctic region is abundant with resources of natural energy, coal, oil and natural gas. Up until now the farming of these resources has been limited due to transport options in the region. Now due to the reduction in ice and the new designs and technology of commercial ice-breaking ships the Arctic’s resource are now commercially and economically viable.
Compared to the traditional route of the Suez Canal, the new Northern Sea Route offers many benefits for trades between Asia and Europe, the route is much shorter in total distance resulting in lowered transit times along with reduced CO2 emissions and overall costs.
FEIA General Director, Leonid Petukhov said, “We hope that MOL will be effectively using the Northern Sea Route for transporting cargos to Japan and other Asia-Pacific countries and jointly we will be able to attract significant investments into the Northern Sea Route infrastructure development. The Agency is ready to help MOL in implementing all its current and future projects.”
Alexander Galushka, Minister for the Development of the Russian Far East added, “One of our key goals is to create a model for the development of the Northern Sea Route as a global transit corridor between Europe and Asia. It is undoubted that this work helps to reinforce Russian-Japanese economic relations,”