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Murmansk hub development impossible without new rail lines — expert

"By 2030 already, the transshipment via MTH may double - to 100 million tons, and as the hub is integrated into the North-South corridor, the cargo traffic will grow significantly," Alexey Fadeev said

MURMANSK, September 2. /TASS/. The international transport corridor to Murmansk, the Murmansk transport hub development and the Northern Sea Route integration into this process require the Oktyabrskaya Railway's upgrade and construction of new railway lines in the Russian Arctic, said Alexey Fadeev, Doctor of Economics, Professor of the Higher School of Industrial Management at the Peter the Great St. Petersburg Polytechnic University, Deputy Chairman of the Public Council at St. Petersburg's Committee on Arctic Affairs.

At the 4th Railway Congress, Russia's President Vladimir Putin announced plans to make a smooth connection between Murmansk and the Indian Ocean. The North-South International Transport Corridor will connect Russian ports on the Baltic Sea, as well as the Murmansk Transport Hub (MTH), with the Persian Gulf's and the Indian Ocean's ports. Shipment terms from Murmansk to Mumbai should be about 15 days.

"By 2030 already, the transshipment via MTH may double - to 100 million tons, and as the hub is integrated into the North-South corridor, the cargo traffic will grow significantly," the expert said. "Thus, the main efforts should focus on overcoming infrastructure limitations. The Oktyabrskaya Railway has to be upgraded, and it is necessary to build new railway lines throughout the Russian Arctic."

Murmansk's advantages

The Northern Sea Route's integration into international transport corridors would mean the Murmansk port's advantages are used to the utmost, thus creating multiplicative economic effects, he continued. "The Murmansk Transport Hub is Russia's largest Arctic transport hub, its upgrade is about to be completed. It is a strategic task to connect the Northern Sea Route to international land routes, in particular, the North-South route, as well as to extend the transport corridor to Murmansk. This task will develop MTH into a largest international transport hub. Murmansk will become a mainstay of the global transport corridor to Asia," he said.

Murmansk has certain advantages: a non-freezing port, a direct access to the world ocean. Due to the upgraded Murmansk Commercial Seaport and the Kola Bay's dredging, the port now can serve vessels with the displacement exceeding 350,000 tons. These features are unique for Russia's ports in the country's European part, the expert noted.

Further development

The international transport corridor's extension to Murmansk and the Northern Sea Route's integration into this process will favor cargo traffic along the NSR (Northern Sea Route). Investments in the Arctic route are planned at 1.8 trillion rubles ($20 billion), where the cargo traffic is expected to grow dramatically: in 2024 - to 80 million tons, in 2030 - 150 million tons, and by 2035 - to more than 200 million tons.

"Maritime transport services can become Russia's second largest export item after the export of oil and gas raw materials in the Arctic, which already now accounts for 15% of the country's GDP," the expert said. "I would like to highlight an opinion, which now becomes more popular, that Murmansk plays a strategic role for the Russian economy in development of the Arctic shelf's hydrocarbon resources similar to the role Scottish Aberdeen or Norwegian Stavanger played 50 years ago, at the beginning of commercial hydrocarbon production on the North Sea shelf. Taking into account prospects for the logistics development, it is also developing into a globally-important transport hub in the Arctic," the scientist said in conclusion.