The No. 1 platform for the sector: Asia’s leading event for air cargo and logistics

Air Cargo China is the leading event in the air freight sector in Asia – and it is continuing to grow in size and significance.

Come along and present your company and its expertise at this major exhibition, taking place for the sixth time from June 17 to 19, 2014, at the Shanghai New International Expo Centre.

On these dates a dynamic trade audience from around the world will be converging on Shanghai, that makes Air Cargo China to such an interesting platform for you, as a place to present your latest products and solutions and as a place to engage in intensive networking.

The Air Cargo China Conference
 
The experts’ view on sector trends Again this year, the international air freight conference is being held as part of Air Cargo China 2014. This forum attracts decision-makers in the industry to come and talk about the latest challenges facing the air cargo business – with a special focus on the Asian market of course.

As an exhibitor you also profit from the presence of the entire Asian logistics and transport sector, as Air Cargo China is an integrated part of transport logistic China.

This leading show for the Far East has expanded fast to become the most important meeting place for the transport, logistics and air cargo industry in this region.

Seize this opportunity, and secure your foothold in the markets of Asia.

Source: http://www.aircargochina.com/en/home/home.html

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Ocean secure: A new Initiative by DHL to enhance Ocean Freight

DHL, has enhanced its tracking capabilities by launching a new global ocean freight service called Ocean Secure.

This service has been designed for customers who use to ship sensitive or high-value cargo i.e. who specifically belong to sciences & healthcare, technology, automotive and consumer goods industries.

By using Ocean Secure, DHL and customers both can access real time tracking and temperature data at any given point and take remedial action if necessary.

“Ocean Secure is a significant leap forward regarding transparency along the supply chain and a further development of the ocean freight business itself. Knowing the exact whereabouts and condition of their goods will give our customers more planning flexibility,’’ said Andreas Boedeker, global head of ocean freight, DHL Global Forwarding.

An integral part of the DHL Ocean Secure services are in-transit visibility and in-transit control. Customers have access to real time information on the location and condition of their shipment at any given time via an online platform. In case of irregularities, a DHL team will intervene. Intervention points are all over the world, ensuring customers that their goods are taken care of quickly.

The service is globally available and can be individualised by customers, depending on their needs. Customers can choose between container tracking along key milestones, monitoring of any opening of the container, or of temperature and humidity in the container leveraging the DHL SmartSensor GSM technology as well as real-time and in-transit information for all container parameters from remote areas and at sea through satellite transmission.

Source: http://www.cargonewsasia.com/secured/article.aspx?id=7&article=33149

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DHL loose its Banglore city airport license for courier services

Top LOgistics Company DHL’s courier service licence for Bangalore’s Kempegowda International Airport has been suspended following confiscation of a consignment originating from Singapore that allegedly contained gold.

The company has approached the Karnataka High Court against the suspension.

“It is a fact that DHL’s license to operate as a courier service provider from Bangalore has been suspended,” said a source in the know of the development.

According to sources, customs officials at the airport confiscated a consignment ferried by DHL from Singapore to Bangalore as they found gold/gold items in a packet. When contacted, a DHL spokesperson said: “A suspicious consignment was intercepted by customs in Bangalore, which is being investigated.”

The company declined to comment on details such as to whom did the consignment belong and what was the value of the gold/gold items. “As the matter is sub-judice we cannot comment further,” the spokesperson said.

Under current regulations, precious metals, including gold and sliver, can’t be imported through courier-on-board mode.

“Our close working relationship with Customs authorities will help understand and address concerns raised regarding this shipment. We are fully co-operating with the Customs authorities to support the investigation,” the company spokesperson said.

Source: http://www.business-standard.com/article/companies/dhl-in-the-dock-over-smuggling-of-gold-at-city-airport-114032000924_1.html

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Hyderabad airport bags award for cargo operations

The Rajiv Gandhi International Airport in Hyderabad has been adjudged the “Best Cargo Airport of The Year” at the recently concluded 40th annual convention of Air Cargo Agents Association of India held at Jaipur.

This is the second year in a row that RGIA has won the award for its cargo operations.

S.G.K. Kishore, Chief Executive Officer, said, “We are delighted to be recognised by a prestigious industry body such as ACAAI which represents India’s Air Cargo Industry."

The airport has emerged as India’s first airport based Free Trade Zone, offering services such as value processing, trading and distribution, duty deferment options and warehousing to optimise their logistics and distribution costs significantly and also enjoy the benefits of tax incentives as offered by the Government of India.

The facilities provided at the FTZ would help logistics companies to warehouse their commodities for both short and long term without impact on import duty.

Source: http://www.thehindubusinessline.com/industry-and-economy/logistics/hyderabad-airport-bags-award-for-cargo-operations/article5338627.ece

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Air freight to grow at slower pace over next 20 years

Air freight traffic has grown at 5.3 per cent annually since 1980. Today goods worth $6.4 trillion travel by air — that’s 35 per cent of all world trade by value.

The growth rate is expected to be 4.9 per cent for the next 20 years. This means by the year 2023 traffic will double, according to V.K. Mathews, Executive Chairman of IBS Software, based in Technopark here.

Minimal profit

However, the profit margins are going to be nominal, Mathews said while speaking at the IBS Air Cargo Forum held at Istanbul in Turkey recently.

IBS Software is a leading provider of solutions to the travel, transport and logistics sectors.

Held every six months, the IBS Air Cargo Forum brings together leading cargo airlines where experts debate how advancements in technology can be leveraged to optimise cost of operations and improve yields.

Airlines have no control over their biggest cost element, fuel prices, Mathews said. Capacity utilisation was less than 50 per cent, leading to yield erosion.

“These statistics need to be kept in mind as we devise strategies on how we conduct business going forward,” he said.

Supply chain

“We need to move on and make the best of a demanding situation. For 90 per cent of the time in the supply chain, the cargo is just waiting to be moved. This is where efficiencies need to come in.”

A digitised shipper-to-consignee process has to become the standard to not only shorten the delivery time but also reduce unit cost, Mathews added.

The two-day conclave in Istanbul saw the unveiling of the iCargo portal by IBS Software, which would enable greater adoption of E-freight.

The first phase of the portal is expected to be complete by November and the second phase by the next financial year.

At least 70 experts representing airlines such as South African Airways, Qantas, Hawaiian Airlines, Lufthansa, All Nippon Airways, Nippon Cargo Airlines and Turkish Cargo, attended the event.

Istanbul as hub

They discussed key issues shaping the global air cargo industry and shared insights on strategies to address some of the critical challenges facing them.

Gary Hoyle of South African Airways was appointed the new Chairman of the IBS Cargo Forum.

Meanwhile, Temel Kotil, Chief Executive Officer, Turkish Airlines, said in his address Istanbul was ideally positioned to be the global connection point for air travel within 10 years.

While Europe’s traditional airports were struggling to add travellers as weak economies hurt demand, Istanbul was racing ahead with double-digit growth, thanks largely to the success of Turkish Airlines.

Kotil said Turkish Airlines was one of the fastest growing airlines in the world and well-placed to have 120 million passengers and 450 aircrafts by the year 2023.

Source: http://www.thehindubusinessline.com/industry-and-economy/logistics/air-freight-to-grow-at-slower-pace-over-next-20-years/article5141007.ece

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Cargolux Airlines International Increases its Flights Number to Muscat International Airport

Muscat, Sep 17 (ONA)--- Cargolux Company, one of the major air cargo carriers in Europe decided to increase its weekly flights to Muscat international Airport by two flights a week with effect from next October.

The company said that Oman Airport Management Company , represented by Commercial Operations Public Administration said in a statement today that Cargolux's decision to increase its weekly flights to Muscat International Airport comes at a time the shipping activity via Muscat International Airport has witnessed remarkable growth ( 8%). The total unloaded cargo during 12 months and up to last August amounted to 116,338 tons compared to 108,152 tons at the corresponding period last year.

The company will operate two flights weekly on Wednesday and Saturday from Luxemburg using B747-400 and B747-800 freighters. 

Cargolux started operating flights to Muscat international Airport on 22nd June 2013, with one flight weekly to meet the growth in the economic and investment activities witnessed by the Sultanate. The move comes in response to the growth of the shipping activity via Muscat International Airport and the remarkable growth in the number of passengers. 

Source: http://www.omannews.gov.om/ona/english/newsDetails_inc.jsp?newsID=176908

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TNT Express boosts Oman fleet

TNT Express, one of the world’s largest express delivery companies, has announced the addition of a new 7-ton Mistubishi /Fuso trailer truck to its domestic fleet. 

 

Oman is a part of TNT Express widespread Middle East Road Network (MERN) delivering to countries such as Jordan, Saudi Arabia, Qatar, Kuwait and Bahrain, the network offers the best day-definite transit times in the express market. 

 

James Edgeworth, the TNT Express Middle East sales and marketing director, said: “The investment is part of our commitment to offering excellent road express services across Oman.” 

 

TNT Express in Oman offers a broad choice of Express services, from air to road freight as part ofd its tailor-made solutions to customer requirements, remarked Sivdasan Payangool, the country manager for TNT Express in Oman.

 

"The new Mistubishi /Fuso has comprehensive safety and security features, and offers improved fuel-efficiency," he added.

 

TNT Express is represented in Oman by GAC & Company Oman, a long-established company specialised in the express and freight business.

Source: http://www.tradearabia.com/news/IND_242666.html

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Lootah Biofuels and TNT Express gearing up for Expo 2020

Lootah Biofuels, a fully owned subsidiary of S.S. Lootah Group has signed an agreement with TNT Express, a leading global Express Company to supply locally produced environmentally superior and performance enhancing biodiesel made from used cooking oil for the latter's commercial vehicles in Dubai.

This agreement aims at reducing carbon footprints, and also supports Lootah Biofuels mission of converting 5% of transportation fuel to Biofuels by the year 2020.

The agreement was signed by Mr. Yousif Bin Saeed Al Lootah, CEO, Lootah Biofuels and Mr. Bryan Moulds, Manging Director Middle East and Sub Continent Associates, TNT Express. As per the agreement Lootah Biofuels will provide its high rich content biodiesel B5 to meet the needs of TNT's large fleet of commercial vehicles in Dubai.

The key benefits of this initiative include carbon foot print reduction as well as reduction of UCO waste. It is expected that the agreement will reduce carbon emissions by 18% per year. Through using B5, UCO is put into sustainable use as opposed to being discarded as waste, thereby impacting the environment negatively. This is a further step towards environmental sustainability.

Commenting on this agreement, Mr. Yousif Bin Saeed Al Lootah, CEO, Lootah Biofuels said "Keeping in line with UAE's vision, the project is a significant step towards sustainable development and the Expo 2020 bid for sustainability. Our mission is to deliver economic, operational and environmental benefits for long-term customer satisfaction and sustainable growth and with the TNT agreement we hope to take the consumption of B5 biodiesel to the next level."

"We are pleased to work with Lootah Biofuels who share the same vision as we do for a sustainable environment. This joins our other regional initiatives such as recent CNG vehicle fleet in Pakistan in our continued efforts to reduce carbon emissions globally. With this agreement, we look forward to creating an eco- friendly environment with economically viable biodiesel, thus promoting H.H. Sheikh Mohammad's vision for a green and sustainable Dubai." said Mr. Bryan Moulds, Managing Director Middle East and Sub Continent Associates, TNT Express.

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DHL launches downtown mobile service

DHL-Sinotrans, the leading air express company in China, launched mobile stations indowntown Beijing, Shanghai and Shenzhen to provide companies with convenient pick-upfacilities.

The move will help optimize shipment routes for express items and extend cut-off times forcustomers, according to Wu Dongming,managing directorofDHL-Sinotrans International AirCourier Ltd andexecutive vice-president ofDHL Express Asia Pacific.

The mobile stations will also help tackle logistic issues in urban centers.

The DHL-Sinotrans, established in 1986 as a joint venture between DHL and China NationalForeign Trade Transportation (Group) Corp, has deployed eight vehicles in the three cities,extending the pick-up time by up to 60 minutes.

In Beijing, DHL-Sinotrans extends pick-up cut-off time for customers in areas around Guomaoand Zhongguancun. In Shanghai, the service is in place within the CBD area.

The vehicles use a 3G wireless signal to access the DHL’s operations network.

Source: http://www.chinadaily.com.cn/business/2013-09/16/content_16973931.htm

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Air Libya forms partnership for cargo flights

Chapman Freeborn and Air Libya have formed a partnership to fly cargo in Libya using an Antonov An-26 freighter, which will be based at Tripoli’s Mitiga International Airport on a long-term lease agreement.

The venture will introduce internal scheduled services to connect Tripoli and Benghazi with Libya’s more remote airfields—including regular operations to the oil fields in the south of the country.

The An-26—which offers a 5.5 ton payload—will be available for ad hoc cargo charter requirements within Libya as well as international flights to and from the European Union and North Africa.

“The venture will provide much needed logistics solutions in a country where few international aviation companies are currently willing to invest in establishing services,” Chapman Freeborn said in a statement. “It will also provide a viable alternative to sea freight routes to and from Europe which have been subject to high rates.”

Source : http://atwonline.com/finance-amp-data/air-libya-forms-partnership-cargo-flights

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AP set to become major sea, air logistics hub

Andhra Pradesh commanded a lion’s share of over 46 per cent in the total basket of new port projects being implemented across Indian maritime States.


The port sector in Andhra Pradesh is set to receive a significant boost with the decks cleared for setting up of a second major port in the State.

The proposal to set up the port, with an initial capacity of six berths in Prakasam district, has been already placed before the Union Cabinet — the initial investment will be of Rs 8,000 crore.

While the State Government will hold about 11 per cent stake in the project, the rest will be picked by the other PSUs such as NMDC and steel companies, who are the major users of the port facilities.

Once commissioned, the State will have two major ports, the other being the country’s premier Visakhapatnam port, and 14 non-major ports.

Having occupied the top slot amongst all major ports in terms of throughput for six consecutive years, it slipped to the second position, after Kandla, in the last two years.

However, the port, which currently handles about 70 million tonnes of cargo annually, is expanding its capacity, after which it could regain the lost position.

RS 3,500-CR EXPANSION

The Rs 3,500-crore expansion, which includes setting up three coal berths, a fertiliser berth, a liquid cargo berth and a general cargo berth, are all scheduled for completion within a year.

It is being implemented through the (public-private partnership) PPP route, with private sector port players such as Essar, involved in the capacity building exercise.

The three non-major ports in the State, Gangavaram, Kakinada and Krishnapatnam ports, together handle about 40 million tonnes.

The State Government has prepared a master plan that envisages increasing the capacity of its non-major ports to handle 175 million tonnes in 2020.

Immediate on the anvil are two ports at Machilipatnam and Nizampatnam, with 20 million tonnes and 15 million tonnes capacity respectively.

Gangavaram port is expanding its capacity from 15 million tonnes to 45 million tonnes by adding three multi-purpose berths and a coal handling terminal, which may be commissioned by next year.

Already the port has made waves in the industry due to the natural draft that it has, allowing bigger ships to anchor.

A recently study by trade body Assocham has pointed out that Andhra Pradesh commanded a lion’s share of over 46 per cent in the total basket of new port projects being implemented across Indian maritime States.

The State is currently implementing three projects worth Rs 20,000 crore in the ports sector under the PPP model as on April 2013, according to a study.

However, the study revealed that Andhra Pradesh comes fourth in terms of completion of port-related projects in the Eleventh Plan period — it completed three projects worth Rs 1,425 crore, with a share of 5.8 per cent in the completed projects pie.

Indeed, Andhra Pradesh is well on its way to becoming a major logistics hub not only in the realm of sea transportation but also air cargo.

AIR CARGO HUB

The Rajiv Gandhi International airport, located at the centre of the country’s production hub with a strong regional connectivity, is gaining ground as India’s first full-fledged air cargo hub.

With more than 20 important domestic and other South Asian cities located less then two hours of flying time away and South-East Asian cities such as Singapore, Kuala Lumpur and Bangkok and Westa Asia cities four hours away, the airport is gearing up to cash in on this natural advantage.

Hyderabad airport currently handles over one lakh tonnes a year, which can be modularly scaled up to 1.5 lakh tonnes.

Lufthansa has already nominated the airport as its pharma hub and Cathay Pacific recently added Hyderabad with a twice-a-week Boeing 747 freighter service. Also Thai Airways and Blue Dart are offering main-deck through their Boeing 747-400F MD-11F and Boeing 757F freighters.

MORE AIRLINES

In addition, about 18 scheduled airlines, including 13 international, have cargo bases here, offering belly spaces, ranging from 2-3 tonnes in a 737 type aircraft and 20-25 tonnes in the larger 747 type aircraft.

The airport has a 33,000-tonne capacity dedicated temperature-controlled pharma zone, a 20-acre Free Trade Zone with warehousing and distribution and the integrated terminal operated by GMR and Menzies Aviation of the UK.

New initiatives include cool container links for pharma products, general and temperature-controlled warehouses within the cargo village, promotion of road feeder services and 24x7 customs clearance of cargoes.

Source: http://www.thehindubusinessline.com/news/ap-set-to-become-major-sea-air-logistics-hub/article5071494.ece

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Turkish Cargo expects continued global growth

Turkish Cargo, the freight service of Turkish Airlines, has ambitious plans for growth, and it seeks to continue the rapid expansion it has experienced over the last several years. The cargo carrier has averaged a 20 percent growth rate over the past five years.

“We have a strategy independent from market conditions,” says Mehmet Kizilkaya, Turkish Airlines’ regional cargo director for Central and Southern Europe. “Over the last 10 years, we are playing our own game. Of course, for the airfreight sector in general, the first half of 2013 has been challenging. Based on the positive indications, we believe that there will be a recovery during the second half of 2013 and for 2014.”

Turkish Airlines’ blueprint for growth includes a major expansion in its fleet, which now numbers 232 planes. That figure includes nine freighters and 45 wide-bodies. The Turkish fleet will grow majorly over the next three years, reaching 14 freighters, 71 wide-bodies and 338 total aircraft by the end of 2016.

Turkish Cargo is projecting growth around the globe, with concentration in Africa, the countries of the former Soviet Union, Asia and the Americas, but one region stands out for growth in 2013 and beyond.

“This is an Africa year for Turkish Airlines,” Kizilkaya says.

The southern region of Africa is “interesting,” and is a growing market for the carrier, Kizilkaya says. Central Africa, especially Nigeria, is a strong market, as are the traditional great markets of Algeria, Morocco and Libya.

“We have allocated resources to Africa and we believe in the future of Africa,” Kizilkaya says. “The developing nations will find that Turkish Airlines is a good partner and a good friend.”

The expansion into Africa has been brisk in 2013. Cargo flights to Khartoum, Sudan; Johannesburg; Nairobi; Entebbe, Uganda and Kigali, Rwanda, have been added to the existing network. Trucking networks have also been added in South Africa and Nigeria.

Kizilkaya, who moved over to the cargo department in 2012 after working eight years on the passenger side for Turkish Airlines, says several factors are contributors to the airline’s cargo success. These include Istanbul’s logistics-friendly central location, a young, energetic, well-educated staff and aggressive investment in the company’s infrastructure.

“We are optimistic, but we are more than just optimistic,” he says. “We plan everything. We develop five- and 10-year budget plans and each year, we work hard to achieve our targets.”

Turkish handles a wide range of cargo. Recent examples include:

• 14 tonnes of gold shipments between September and October 2012
• 130 tonnes of live fish between September and November 2012
• 730 tonnes of mobile phones and computers between September and November 2012
• 335 tonnes of hunting weapons between September and November 2012
• 10 tonnes of live bird between September and November 2012.

A major facility expansion is also in the works at Istanbul’s Ataturk Airport. Turkish Cargo is on track to open a new dedicated cargo terminal in the third quarter of 2014. The new terminal will be 42,500 square meters (457,725 square feet), have a 1.2 million tonne capacity and have a special cargo are of 5,250 square meters (56,542 square feet). The current building is 23,000 square meters (247,710 square feet), has a 500-tonne capacity and a special cargo area of 1,200 meters (12,924 square feet).

“With the increase in our fleet and destinations, our base should also coincide with the high demand from our customers,” Kizilkaya says. “The expansion will allow us to handle more special cargo such as live animals and valuables.”

Source: http://www.aircargoworld.com/Air-Cargo-News/2013/08/turkish-cargo-expects-continued-global-growth/2815102#sthash.62iXfM7j.dpuf

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Ethiopian Airlines opens second cargo hub in Africa

Addis Ababa, Ethiopia - Ethiopian Airlines, which operates the largest cargo services in Africa, is to open its second cargo hub in Africa, in partnership with the Lome-based ASKY Airlines, the Ethiopian flag carrier has announced on its website.

PANA reports Saturday that the new cargo hub will commence operations in September 2013 using a B737-400F aircraft.

For the past three years, Ethiopian and ASKY have partnered to serve the needs of passengers travelling within, to and from West and Central Africa through the Lomé hub.

Now, Ethiopian and ASKY are partnering in the establishment of a new cargo hub in the Togolese capital for the transportation of goods between West Africa and the rest of the world.

'This partnership will enable easy and convenient air transport of high value and perishable goods to and from West and Central Africa, thereby playing a critically essential role in the growth of trade and the economic development of the region,' Ethiopian Airlines said.

“As Africa continues with its fast economic growth, we are expanding our cargo network to serve the continent better and make air cargo accessible to more countries and more people,' it added.

Ethiopian Cargo, the cargo operations of the Airlines, serves 25 cargo destinations globally using six dedicated freighter aircraft.

Ethiopian Airlines, which has been in operation close to seven decades, is the fastest growing Airline in Africa. It is 100% owned by the Ethiopian government

ASKY, a passenger airline operating out of the Togolese capital, was founded in 2008 as a hub carrier for West and Central Africa, and it is 40% owned by Ethiopian Airlines.

Source: http://www.afriquejet.com/news/10782-ethiopian-airlines-opens-second-cargo-hub-in-africa.html

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Russia wants to increase trade, commercial ties with Pakistan

ISLAMABAD: Russia considers Pakistan an important country of the region as it has great economic potential and wanted to increase bilateral trade and cooperation with Pakistan in diversified areas of economic activity. 

Strong bilateral trade and larger cooperation between Pakistan and Russia would bring prosperity and integrity to the region.

Yury M Kozlov Trade Representative of the Russian Federation in Pakistan at Islamabad Chamber of Commerce and Industry (ICCI) said, “Russia eyes Pakistan as a significant market and many Russian investors are taking interest to explore Pakistan for joint ventures and investment”. 

He said previously Russia participated in some big projects in Pakistan including Pakistan Steel Mills and now there was a renewed interest to enhance trade and economic ties with Pakistan in multiple areas. 

Kozlov said negotiations are in process with Pakistan for energy projects and cooperation in science and technology. He said a Russian company has already offered $1 billion financial and technical assistance for rehabilitation and upgradation of Pakistan Steel Mills. He said Russia was also ready to implement 500-600 megawatts coal-fired thermal power projects near Muzaffargarh and Jamshoro and also to modernise and convert some other power projects in Pakistan to coal. 

He briefed the local businessmen about the upcoming trade exhibitions in Russia and invited them to participate in these exhibitions for exploring new areas of business cooperation.

Zafar Bakhtawari President Islamabad Chamber said Pakistan was now focusing on Central Asia for trade and exports and developing strong economic relations with Russia was vital for tapping huge markets of this region. 

He said Pakistan was occupying a key economic location in the region and Russia should provide support to Pakistan to get the membership of Shanghai Cooperation organisation.

He said the bilateral trade of $542 million between the two countries was far less as Pakistan and Russia has the potential to take bilateral trade up to $4 billion for which serous efforts are required to be made by both sides. 

He said many Pakistani products including food, fruits and vegetables, livestock, leather products, surgical equipment and sports goods have the potential to meet Russian consumers’ needs and private sectors of both countries should be facilitated for direct contacts to tap all untapped areas of mutual cooperation. 

He stressed for direct air flights between Islamabad and Moscow and soft visa policy for promoting trade up to potential.

Russia is the third largest textile importing country of the world importing textile products of $20 billion annually and Russian textile importers should avail quality textile products of Pakistan, which are very competitive and affordable. a
He said the government in Pakistan was determined to undertake big infrastructure development projects including roads and railway network and invited Russian investors to take active part in these projects.

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Russia to build three new-generation ice-breakers for Northern Sea Route

Russia will float out a new-generation nuclear ice-breaker by 2017 with two more to follow in 2020 under a government program to ensure commercial shipping along the Northern Sea Route (NSR) – a 6,000-km Arctic waterway stretching from the Barents Sea in the west to the Bering Strait in the east. Russia is the only country with a nuclear-powered ice-breaking fleet. By the early 2020s, the NSR is expected to start recouping its cost.

The NSR is currently operational all year round. As cargo traffic increases, Russia will need more ice-breakers to cut the way for commercial ships. At present, Russia has five ice-breakers in its Arctic waters. But by 2021, four of them will be decommissioned.

In former Soviet times, the NSR was closed for military reasons. Now that foreign commercial ships are allowed to use it, more and more companies are seeing it as an effective transport corridor connecting Europe and Asia, said Yuri Shcherbanin from the Institute for Economic Forecasts of the Russian Academy of Sciences.

"The distance between Northern Europe and Northeast Asia is much shorter than the traditional route through the Far East and the Suez Canal. Cargo transportation along the Northern Sea Route has grown considerably over the past two years. More than 45 commercial ships sailed through it last year, including a liquefied gas tanker that brought over 66,000 tons of LNG from a Statoil plant in Norway to Japan."
In 2012, The Norwegian-flagged Marika tanker shipped more than 65,000 tons of aviation fuel produced from Sakhalin oil from Korea to Finland.

Within a few years, Russia will start developing oil and gas deposits on its Arctic shelf. The Novatek company is launching the construction of the Sabetta port and an LNG refinery in the Gulf of Ob. Future LNG exports both to Europe and Asia will require more ice-breakers, Mikhail Babenko, a gas environmental policy coordinator at the World Wildlife Fund (WWF), told the Voice of Russia.

"It’s absolutely evident that no diesel-powered ship can manage to sail the whole length of the NSR without refueling. A diesel-powered ship can’t cut its way through ice as efficiently as a nuclear ice-breaker. Another big advantage of nuclear ice-breakers is the absence of soot emissions."
New-generation ice-breakers will surpass their current analogues over a whole range of parameters, said Alexander Voznesenksy, Director of the Baltiysky Zavod shipyard.

"The new ice-breaker will have a draft of between 8.5 m and 10.5 m. Thanks to its unique design, it can be operated both at the Northern Sea Route and in the estuaries of Siberian rivers. Its width – 34 m – means that it can cut the way for tankers with a dead weight of 100,000 tons."

New-generation ice-breakers will be equipped with advanced security and navigation systems.

Source: http://voiceofrussia.com/2013_08_25/Russia-to-build-three-new-generation-ice-breakers-for-Northern-Sea-Route-9892/

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