Arkhangelsk Region stands for subsidizing of sea transportation by Northern Sea Route
50% of cargo from Arkhangelsk Region are delivered with delays due to lack of railway capacity
Eastward pivot of logistics has lead to overloading of land transport infrastructure, Aleksandr Tsybulsky, Governor of the Arkhangelsk Region said at the 10th International Forum “Arctic Projects - Today and Tomorrow”. He emphasized the need to develop sea transportation and to subsidize voyages of different ships, not only container carrier Sevmorput.
“Taking into account the dynamics and the volumes of cargo transportation by the Northern Sea Route, it is quite difficult to implement (the projects – Ed.) today without clear subsidies, I think. We see serious problems, particularly in the segment of export-oriented cargo. Let’s take the products of wood processing industry, fishery and some others. We see that today, with the eastward pivot ... even contracted cargo cannot be delivered by railway today because its capacity is limited. In this context, up to 50% of cargo is not delivered on time and our manufacturers are fined ... by today it stands at billions of rubbles – those are losses incurred by our producers due to the problems with logistics. So, we understand the need to turn to the sea, to transportation by water. To coordinate it with economic viability and volatility in the international market, a clear system of subsidies is needed for almost all types of cargo,” said the speaker.
