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FSUE “Rosmorport” General Director Andrei Lavrishchev takes part in discussions on mechanisms to develop Arctic Region’s infrastructure

The Presidium of the Council for the Arctic Region and the Antarctic at the Federation Council gathered for a session on May 31, 2018 to focus on mechanisms to attract investments in major infrastructural projects in Russia’s Arctic Region.

The session held by chairman of the Council Vyacheslav Shtyrov representing executive authorities of the Republic of Sakha Yakutia in the Federation Council involved Murmansk Region Governor Marina Kovtun, Arkhangelsk Region Economic Development Minister Semen Vuymenkov, deputy director of the Regional Development Department of Russia’s Economic Development Dmitry Verigin, FSUE “Rosmorport” Andrei Lavrishchev and other officials.

Seventeen seaports are located in the Arctic zone. In 2017 cargo tonnage amounted to 73.2 million tons that is less 10% (9.32%) of total cargo tonnage of Russian seaports. As compared with the year 2016 cargo tonnage increased by almost 50% (47.3% amounting to 49.8 million tons in 2016) that considerably exceeded the average growth of cargo transshipment in Russian seaports.

Last year cargo transshipment on the Northern Sea Route amounted to 9.9 million tons. It has increased by 2.5 times over the past three years. In this context the goal is set to bring cargo transshipment on the Northern Sea Route to 80 million tons by 2025.

Russia’s strategic documents, including the state program “The Development of the Transport System”, envision the rapid development of the Arctic zones as the priority territory.

In his speech Andrey Lavrishchev said, under the state program, the capacities of the seaport of Pevek are now being reconstructed. In 2017 FSUE “Rosmorport” ended the project “The Construction of Facilities of Seaports in the Settlement of Sabetta on Yamal Peninsula, Including the Creation of a Seaway Canal in the Gulf of Ob”.

During discussions on special instruments, which would allow for attracting money to develop the infrastructure of the Arctic zone, the FSUE “Rosmorport” General Director noted that state and private partnership was one of such instruments.

At present, the first project of the concession agreement – one of the forms of state and private partnership – has been created. A coal terminal Lavna will be built in the seaport of Murmansk. The construction is part of the project “The Comprehensive Development of the Murmansk Transport Hub” aimed at developing the infrastructure of maritime and railway transport, as well as the logistic and storage infrastructure on the western coast of the Kola Bay.

Andrey Lavrishchev stressed that investment port dues can be considered an additional mechanism to stimulate the attraction of investments in creating and reconstructing facilities of federal property in the seaports.

Specified dues have the nature of compulsory purpose-oriented allocations designed for financing the new construction and the reconstruction of operational facilities of the infrastructure of the seaport related to federal property.

The participants in the session have worked out a resolution, which contains recommendations to the Russian government, the Russian Economic Development Ministry, the Russian Transport Ministry to create mechanisms for attracting investments in major infrastructural projects in Russia’s Arctic zone.