VLADIVOSTOK, September 3. /TASS/. A digital system to collect data on summer deliveries to Northern territories, which was designed by the Eastern Center for State Planning and the Ministry for Development of the Far East and Arctic, will be ready by end of the year, the Center’s Director Mikhail Kuznetsov said on the fringes of the Eastern Economic Forum.
Earlier reports said Yakutia would be a pilot region to test the new system, which will be a model to unite all participants of the so-called Northern Supplies: 25 regions, more than 300 vessels, cargos exceeding 3 million tonnes a year. By using the system, the regions will cut expenses and will have more reliable supplies.
"The first stage [to organize a system to collect data] will be finalized by end of this year," Kuznetsov said. "By that time, we will have a data base and models of the Northern Supplies per every region."
"Next year, it will be possible to use partially this system to plan the Northern Supplies not only for Yakutia, but also for other regions," he added.
Social effect
The new project will focus on fixing the program’s earlier shortcomings, like ineffective logistics and a lack of real-time statistics. The estimates say the new project will cut the North Supplies expenses by about 20 to 30%. Additionally, the shipped amounts will also decline due to gradually growing supplies from local producers.
The new system will offer options for planning, tracking and control of the logistics chains, and will make the shipments more transparent, the Center’s experts say, adding the new system will also analyze ecology risks.
Other economic effects to mention are bigger involvement of local businesses, lower production costs, better financial sustainability, the Center’s director said.
"I would like to highlight also the social effect from using the new system," he continued. "Those are bigger supplies of food and energy and a wider range of transported goods, as well as lower prices for the clients."
"Our key target is to improve the living conditions for people in far-away regions," he added.
Pilot region
Yakutia is a pilot region to test the Northern Supplies’ digital form. The cost of such a project for the region is up to 130 million rubles ($1.8 million).
"By implementing this project, we will offer effective management of logistics chains regarding transportation of socially important goods to the Far North and similar territories," the expert continued. "The big economic and social effect will mean better living conditions for people in the North."
The project is expected to cut by two times Yakutia’s expenses on the Northern Supplies transportation.
The upgrade of the Northern Supplies includes use of alternative transportation means — drones, planing vessels, snowmobiles, aerial sleds and their combinations. This will ensure year-round transport links between remote territories.
"The first primary task in making this system was to make all the processes transparent," Kuznetsov continued. "It is important that we have a united statistical system, which could be monitored at the federal and regional levels. It is impossible to manage anything without measures or information. When the system has collected information, we will be able to analyze the situation, to see how to cut costs by optimizing the logistics chains, but making new logistics centers."
The Center jointly with the Ministry of Natural Resources and VEF.RF has designed another digital system — ArcticLabs. It is a project to model the economy of Arctic regions, to analyze transport networks, as well as mining and extraction of natural resources, and other parameters. The project’s base would be a digital twin of the Northern Sea Route — a dynamic mathematical model to design development scenarios for the entire Arctic as well as for separate territories, and to offer logistics routes.
About forum
The VI Eastern Economic Forum is held in Vladivostok on September 2-4 in a hybrid format. The business program’s key topic is "New opportunities for the Far East in a world under transformation." The forum organizer is the Roscongress Foundation. TASS is the event’s general media partner and official host photo agency.