Dubai-based multinational logistics company DP World has teamed up with Russia-based nuclear energy and technology company Rosatom to develop the Northern Transit Corridor as a “viable and sustainable” route connecting Asia and Europe.
According to the agreement, the entities will form a joint venture that will invest, build and operate transport as well as logistics capacity along the route between South-East Asia and North-Western Europe.
The Northern Transit Corridor intends to support economic activity by facilitating the development of ports and transportation linkages along Russia’s north coast.
The Northern route cuts up to 19 days from the journey time between the two continents. The groups said in a joint statement that about “one-third of the world’s trade flows between the two continents” and saving shipping time will “significantly reduce carbon dioxide emissions.”
“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. 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.”
“Building of sustainable transport infrastructure in the Arctic opens up new opportunities in developing Eurasian transit … which can be achieved in an optimal time frame and help reduce the environmental footprint through shorter route distances and the advanced, low-carbon energy solutions applied,” commented Mr. Alexey Likhachev, General Director of Rosatom.