The Northern Sea Route: will it be the route of the XXI century?


CARDINAL PROBLEMS

Boris Usanov,
Professor

         The fact that the development of the Arctic transportation system in this century was discussed in St. Petersburg at the international forum is very appropriate. For it was here that Mikhail Lomonosov first scientifically explained and theoretically proved the possibility of passing from the Atlantic to the Pacific by the Northern Sea Route in the 18th century. And in our times, due to the research of the Polar Marine Prospecting Expedition enterprise, we can add an area of 1.5 million square kilometers of the continental shelf of the Arctic Ocean, which is extremely rich in resources,to the jurisdiction of Russia. Experts from the Malachite engineering company in our city are working on the project of an underwater Arctic transportation system that includes an underwater tanker. Yes, it is seven times more expensive than an above-water tanker, but designers are convinced that two such tankers can replace eleven Samotlor-type above-water tankers thanks to their speed, efficiency and other properties. Large expenses are certainly inevitable, especially at the beginning, but designers suggest a reduction of cost due to "demobilization" of many submarines no longer used by the armed forces. Besides, there is a large reserve of military submarine bodies, which are very unlikely to ever be used as submarines.
         One can give many more examples showing that the cardinal problems of the Arctic transportation system development are being solved in St. Petersburg. This will make it possible to significantly add to both local and federative budjets by restoring shipment volumes to the Northern regions (which have been reduced to a third over the past few years).
        

The Northern Sea Route: will it be the route of the XXI century?


THERE IS PLENTY OF WORK

Anatoly Yefremov,
Governor of Archangelsk region

         In our days, the development of the Northern Sea Route is especially important, for there have been new oil and gas fields discovered in the north, such as the Stockman field where gas reserves are estimated at 3.2 trillion cubic meters, or the Prirazlomnoye oil field in the sea with more than 100 million tons. Such fields have been discovered in the world for the first time. There is also a unique diamond field. It is well known that if 10 to 12 percent of diamonds are of gem-quality, the field is deemed to be very good. And we have 62 percent! Just imagine what rich resources we have. All that is needed Is to use them correctly.
         We have already started the Northern Gate program in order to ship oil and gas by sea. We are transforming the military industry that used to build nuclear-power vessels so that it will be able to build drilling platforms and ice-class tankers. The project of building underwater tankers is also attractive, and it has interested Japan. During my recent visit to that country, we discussed this problem with Japanese colleagues and we concluded that such underwater ships should be built and used in the Northern Sea Route. So there is plenty of work to be done.
        

The Northern Sea Route: will it be the route of the XXI century?


TO MAKE THE ROUTE SERVE THE ECONOMY

Nikolai Smirnov,
Deputy Minister for Transport, Russia

         The Northern Sea Route is a navigable waterway that passes along the Russian coast through the seas of the Arctic Ocean. Despite the financial difficulties, the Northern Sea Route administration and the Ministry for Transport are doing everything possible to make the route work for the economy of the North. We will enter the 21st century with automatic control systems of ship movement. There are already four stations in the western sector that allow us to determine the location of an icebreaker or a transportation vessel automatically. In the year 2000, we will install the last one, and we already have electronic maps and other technical means for this purpose.
         The state transportation fleet is certainly obsolete. Moreover, all its tankers were left in Latvia some time ago. That is why the Ministry for Transport has been looking for a private ship-owning company that could begin the development of the Arctic region. We have found such a company: LUKoil. This company has developed a program for building ten ice-class tankers. Two of them, Volgograd and Perm, have already been put into operation, and the rest will be completed before the end of the century. These ten tankers will supply oil to and from all locations on the Arctic coast.
        

The Northern Sea Route: will it be the route of the XXI century?


A STRATEGIC TASK

Michail Nikolayev,
President of the Republic of Sakha (Yakutia),
Chair of the Northern Forum

         Not so long ago, the Northern Sea Route was the locomotive of both the Russian economy and of the country's scientific and technical progress. Now many ports on the Arctic Ocean coast and many mining, construction, and other enterprises have practically ceased operating.
         We are losing the lands that we have been developing for centuries. It is possible to gain back what we have lost, but only provided we have the Northern Sea Route. This does not concern shipment volumes alone and represents a strategic task for Russia. Without the Northern Sea Route it is impossible to use the bowel reserves of the north. Along the coasts of our republic alone, we have $700 billion worth of reserves. And ours is but one republic!
         We are proposing the establishment of an International Bank of Reconstruction and Development of the Arctic that could be founded by all the regions and the Federal government itself. We are prepared to put 0.5 percent of the annual volume of industrial production volume into its ownership capital. This would be 40 billion rubles. I believe that Tyumen, Komi, Archangelsk and Murmansk would all agree to contribute their share as well,considering their great industrial potential. The next step would be establishing a Northern Sea Route corporation or holding company.
         Finally, we suggest making this project not strictly Russian but a part of the transcontinental transport system of the 21st century, in which Scandinavian countries, Japan, the U.S. and other interested parties could enter the holding company.
        

The Northern Sea Route: will it be the route of the XXI century?


ADVANTAGEOUS FROM EVERY POINT

Artur Chilingarov,
Hero of the Soviet Union,
Deputy Chair of the State Duma
of the Russian Federation

         The main task of operative commissions has now become handling the shipment of fuel and foods to the North. Whenever a crisis occurs, Minister Shoigu flies to the place of the problem. Why? To take fuel from one place to another? If the state structure worked normally, such things would not occur. It is high time that the problem was radically changed.
         Since the Northern Sea Route is not an ordinary road owned by one or another region, but rather, as the law states, a national transport artery, its work should be controlled by the state. In other climatic conditions, similar structures make profits for the state. That is why I think that making arctic ship companies private was a mistake. 61 percent stakes of Murmansk, Archangelsk and Far Eastern shipping companies should have remained with the state. The same may be said of controlling stock portfolios of all the structures related to the Northern Sea Route. Ports, airports and villages must all remain with the state, which should not keep them for reasons of prestige but rather in order to make money.
         The Northern Sea Route is a very promising transport route. But it is necessary to convince foreign partners that it is safe to navigate here and that it would be advantageous for them as well.
        

The Northern Sea Route: will it be the route of the XXI century?


CARGOES CAN BE SHIPPED IN ALMOST HALF THE TIME

Yury Yevdokimov,
Governor of Murmansk Region

         The sharp drop in traffic on the Northern Sea Route does not mean that this important Arctic transport artery is dying, believes Yury Yevdokimov, governor of Murmansk Region. In his opinion, the Northern Sea Route will maintain its functions of providing for northern shipping and transportation of traditional cargoes, such as ores, non-ferrous metals and timber. Yevdokimov is confident that it may soon become one of the most important routes by which cargoes will be shipped from Europe to Asia.
         Until recently, potential Western partners of Murmansk seamen were perturbed by the harsh climatic conditions of the Arctic Ocean. Wary of the unpleasant consequences for ships sailing in heavy Arctic ice, they used longer southern sea routes. However that makes the voyage from Europe to Japan or China twice as long than when the Northern Pass is taken (the Western name for the Northern Sea Route.) Meanwhile, the numerous test journeys of Kandalaksha motorships along the Northern Sea Route from the Baltic Sea to Japan have proved that cargoes can be shipped in almost half the time.
         However this is only realistic during the five or six summer and fall months, when the ice conditions in the Arctic are not so severe. According to Yevdokimov, this is the period when the powerful icebreakers of the Murmansk Sea Ship Company work most effectively. They break their way through any kind of ice.
         Experts believe that the nuclear ice-breaker fleet can be profitable in the present situation if annual traffic on the Northern Sea Route is not less than 2.8 million tons. During last year's navigation season it was almost three times less. Nevertheless, the governor is certain that attractive opportunities exist for increasing Arctic transportation. These are first of all linked to the fact that LUKoil, the giant Russian oil corporation, has come to this region. Next year, the company plans to begin intensive development of the Timan-Pechora province fields. A large tanker fleet is necessary for transportation of oil products, recovered from Arctic bowels. LUKoil has recently restructured its organization in anticipation of work to be conducted in the region.
         As oil and gas production is developed in the Arctic, needs for the shipment of other cargoes will also rise, including those from Western European countries. Traffic increase is possible by means of the export of metals and mineral fertilizers from Russia to South Asian countries.
        

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