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Arkhangelsk cargo to China will go via Northern Sea Route KXan 36 Daily News

Date: February 24, 2024 Time: 22:05:14

Now, in the Arkhangelsk region, this project is being followed with hope by companies from the timber industry. “RG” has already spoken that it was the timber industry that suffered the most from the sanctions imposed last year in the north-west of Russia. The situation escalated in mid-summer, when restrictions on the supply of wood products to Europe came into force. Companies urgently began to reformat logistics chains in the eastern and southern directions, enter the markets of China, Egypt, Syria, Lebanon, Iraq and Turkey. As a result, products shipped to these countries now account for more than 90 percent of exports.

Hope for development appeared in the forestry business after the All-Russian meeting on the development of the timber industry complex in February of this year. First of all, this concerns the transportation of products by sea through the North-Western and St. Petersburg ports, as well as along the Northern Sea Route. It is expected that companies will be subsidized 80 percent of logistics costs. Moreover, if previously an average mechanism was used for this (when small companies were compensated for most of the costs, and large companies – no more than five percent of the costs), now the amount of funds allocated to large ones will increase. companies. By the way, this support is not intended for a short-term period, but for the next two or three years.

In addition, if before the transport subsidy was assigned only to cellulose and paper products and fuel pellets, this year it can also be received for plywood and sawn wood. The government of the Russian Federation also supported the proposal of the Arkhangelsk timber merchants to change the deadlines for the implementation of investment projects by 12 months.

However, the radical restructuring of logistics has become a huge burden on the timber industry. In general, during the reorientation of goods in the eastern direction, the transportation expenses of the Arkhangelsk business exceeded 12 billion rubles. In addition, on the way to the East, the business of the Northwestern Federal District is still struggling to overcome the “bottleneck” of the Russian Railways, which is why the overstock of products in warehouses reaches 120 percent or further.

At the same time, shipping from north to east takes almost twice as long as rail. But why do companies still choose it? Mainly because of prices: the cost of transporting a 40-foot container to China by sea today exceeds 350 thousand rubles; this is not profitable for most of the forest exploitations in the region, since this road “eats” more than 30 percent of the cost of production.

The maritime transit from the north to the east takes almost two times less time than the train journey.

At the same time, experts are sure that it is the Northern Sea Route that will be able to reduce the cost of logistics and speed up the delivery of forest products to China – the future belongs to it. But for this, according to expert Elena Tishchenko, an associate professor at the Department of Innovation Economics at Moscow State University, it is important to form an independent cargo container line. Its basis should be the products of the timber industry complex:

– These projects can be implemented in cooperative or coordination strategies. It is not about the mutual acquisition of companies, but about coordinating and balancing the speed of implementation of technologies, working in certain market segments. They are well modeled.

In addition, cooperation is at the center of everything – it will help create reverse freight “traction” and make transportation along the NSR more profitable and profitable.

How can it be a backload? According to representatives of the timber industry, these are chemicals, consumables, equipment – today a large volume of these products is imported north through Moscow and St. Petersburg, instead of being sent back by ships from Arkhangelsk to along the NSR.

“Now it is very important to develop shuttle diplomacy so that a cargo base, uncharacteristic for the region, begins to go to Arkhangelsk,” Elena Tishchenko believes.

According to experts, if we combine the cargo traffic of the Arkhangelsk region and the Komi Republic (provided that titanium and quartz sand are transported from the Pizhma deposit), together it will be equal to that of Moscow. It is possible to increase the traffic of the Northern Sea Route and make it more profitable by also “lowering” the continental freight to the NSR along the rivers; such experience is already being gained in Siberia.

Meanwhile, Pomorie will be able to use the practice gained during the first delivery of containers with timber from Arkhangelsk to Shanghai for future shipments of goods abroad. This is emphasized by the representative of the Governor of the Arkhangelsk region for the development of the Arctic, Dmitry Yurkov:

– The government of the region sent a proposal to the government of Russia that the port of Arkhangelsk cease to be exclusively a port of transit, and become a port of departure and shipment, – said Dmitry Yurkov.

By the way

SMP is today almost the only alternative that will help the companies of the North-West logging industry complex to “straighten out forest logistics” in a difficult period for Russia. Especially at the time of maximum rates for the Russian Railways:

“The key issue is the tariffs for the transport of containers along the Northern Sea Route, as well as the creation of a single container base operator that allows us to provide return cargo,” the trade representatives summarize. – Rates must become competitive. If the cost falls below $3,000 per container, it will be profitable to ship forest products along the NSR.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.

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