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«DEVELOPMENT OF MARINE RUSSIAN-NORWEGIAN TRADE FACILITIES IN NORTHERN NORWAY Prefeasibility study Akvaplan-niva AS Report: 4673-01 This page is ...»

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The Arkhangelsk port gets coal from the Kemerovo region delivered by South Kuzbass JSC, and sends cargo to ports of the Greit Britain (about 50%) and Belgium, with single deliveries to Denmark and the Netherlands. 97 Mineral fertilizers export The terminal of Agrosfera JSC in the Murmansk seaport receives mineral fertilizers from Apatit JSC and Kovdorsky GOK in the Murmansk region, Balakovo factories in the Saratov region, Voskresensk in the Moscow region, and Cherepovets in the Vologda region.

The recent five years, the Agrosfera terminal exported between 700 000 and 1.3 million tons of mineral fertilizers annually – 994 500 tons in 2010, and 649 600 tons for the first 6 months of 2011.

Apatite concentrate is shipped to Lithuania, Finland, Norway, Japan, Israel, the Netherlands and other countries. 98 Crude oil export Crude oil forms about one quarter of all export cargoes shipped in the ports of the Russian North. In 2010, 7.5 million tons of crude were exported, most oil came from the northern fields of the Nenets region via Lukoil's Varandey terminal in the Pechora Sea and FSO Belokamenka in the Kola Bay of the Barents Sea. Crude oil is also delivered to Belokamenka from RITEK (Lukoil's subsidiary) fields in the north of the Western Siberia via the STS terminal in the Ob Bay.

Oil extracted at the Kolguev Island in the Pechora Sea is exported via STS terminal of the Murmansk Shipping Company (RPK-1) in the Kola Bay. Belokamenka and RPK-1 ship crude oil to 100-120 thousand dwt tankers that deliver load to ports in Europe, where Rotterdam is dominating as the port of destination, and the Northern America. 99

Gas condensate export

Two ports in the White Sea – Arkhangelsk and Vitino were shipping gas condensate for export.

The recent years, condensate comes to Vitino only, and since 2008 the share of gas condensate in the Vitino cargo flow is increasing – 57% in 2010, and 67% in 2011.

Kozlova, O. and Grigoriev, M. (2011) Evaluation of prospects for cargo flows via ports of the Barents and the White seas. Gecon report.

See previous footnote.

See previous footnote.

Bambulyak, A. and Frantzen, B. (2011) Oil transport from the Russian part of the Barents Region. Norwegian Barents Secretariat and Akvaplan-niva report.

Condensate of Novatek Company, around 2.5 – 3 million tons annually, is delivered to Vitino by railway from Purovsky refinery in Yamal-Nenets region. 100 Novatek has built its own terminal with the gas condensate storage in Vitino for shipping condensate for export. 101 The company is also completing construction of a gas condensate terminal with the capacity of 6 million tons per year, that corresponds to the full capacity of the Purovsky refinery, in Ust'-Luga port in the Baltic Sea. The first line of the terminal is to be launched in 2012 and the second one should come on stream in 2015.

Gas condensate produced by Norilsk Nikel subsidiaries, Norilskgazprom and Taimyrgaz, in Taimyr in the north of the Western Siberia – some 50-100 thousand tons per year, is shipped for export via Dudinka port in the Yenisey River. In 2011, Norilsk Nikel got a new 20 000 dwt iceclass tanker Yenisey (see cover page photo) that in November 2011 delivered its first gas condensate load from Dudinka to Porvo in Finland. 102

Petroleum products export

Russian northern ports were sending between 4 and 6 million tons for export annually during the recent two years. In 2010, there were shipped 3.2 million tons of petrol; 2 million tons of heavy fuel oil (mazut); 265 000 of diesel; and 190 000 tons of naphtha (kerosene). Oil products are delivered by railway to the ports of Arkhangelsk (Rosneft terminal in Talagi) and Vitino in the White Sea; and Murmansk – The First Murmansk Terminal in the Fishing port and Commantid Service terminal near Severomorsk in the Kola Bay of the Barents Sea.

Commandit Service terminal is specialized on shipping heavy fuel oil of Gazpromneft (96% in

2010) that comes from Omsk refinery in the Western Siberia. Heavy fuel oil is shipped via FSO to 50 000 tons tanker that deliver load to the Netherlands.

The First Murmansk Terminal in the Fishing port receives petrol from refineries in middle Russia – Republics of Bashkortosnat and Tatarstan, and Saratov region; and from KhantyMansiysk okrug in the Western Siberia. Petrol is exported by 30-40 thousand dwt tankers.

Vitino port gets petrol from refineries in Yaroslavl near Moscow, Tyumen and Omsk regions in Western Siberia (about 50% from Omsk refinery), and ships to 40-60 thousand dwt tankers that deliver export cargo to the European ports.

RN-Arkhangelsknefteprokukt terminal in Talagi receives petrol from Saratov, Yaroslavl and Omsk regions, and about 75% comes from Antipinsky refinery in Tyumen region. Petrol is shipped to 30 000 dwt tankers of Rosneft and delivered to the Netherlands. Heavy fuel oil comes to Talagi from the republics of Komi (Lukoil's refinery in Ukhta), Mariy-El (Mariysky refinery), Tatarstan (Taif-NK), and Tyumen region (Antinipnsky refinery).

See previous footnote.

See previous footnote.

Kozlova, O. and Grigoriev, M. (2011) Evaluation of prospects for cargo flows via ports of the Barents and the White seas. Gecon report.

Prospects for the Russian Arctic Port developments Increase of freight turnover and export capacities in the Russian Arctic ports in the coming decade is, first of all, connected to development of big oil-and-gas projects in Yamal in the north of Western Siberia, Nenets region in the northeastern Europe and continental shelf in the Kara, Pechora and Barents seas.





There are many big and smaller projects for building new port facilities in the Russian Arctic, some of them are under implementation, others are frozen. The table 6 below shows ones that were officially announced.

Table 6: Existing (2010) and prospected (2020) freight capacities of the main Russian Arctic ports and terminals, in thousand tons.

–  –  –

Among the above listed ports, Murmansk is the only acting multi-purpose deep-sea port in icefree area; which is connected to motor way and rail road, and can serve large vessels.

Norway National transport strategies Norwegian authorities have developed several plans and strategies for development of a more efficient and environmental friendly maritime transport and logistics, and some of them have a focus on the development of maritime transport in Arctic.

The key instrument is the National Transport Plan (NTP), and the present plan covering 2010is aiming on strengthening the maritime transport to meet the growing transport challenges Norway is facing, and to reduce the CO2 emissions from transport in accordance with the EU targets.

Supported by a new Law about ports and waters 104, this has brought significant changes in the maritime framework to support the development of more efficient port structures and better logistic chains, the government has defined 31 ports as national hubs. 25 have good connections to the European road grid, while the other six are sea based terminals. These ports are also connected to the national maritime grid, covering the coast from Svinesund in south to the Russian border in the north.

Nine of the national hub ports are located in north Norway (see figure 4):

1. Mo i Rana

2. Bodø (Bodøterminalen)

3. Narvik (Fagernes)

4. Harstad

5. Tromsø (Breivika)

6. Alta

7. Hammerfest (Polarbase and Melkøya)

8. Honningsvåg

9. Kirkenes (Kirkenes port) The governments new port structure also introduces "particularly designated ports" to be selected among the hub ports. 105 Their criteria were established in the previous NTP (2006Cargo volume; the ability to handle the transport demand in the area.

- Organization/cooperation; cooperation between business, private port actors and other public port facilities. Presence of an organization structure which allows necessary development and cooperation with other actors.

Infrastructure; access to the port from sea and land, the port's access to area in short and long perspective, environmental issues related to operations, neighborhood issues, technical equipment of the port and control-/preparedness actions.

- Planning status; the ports must have developments plans anchored in approved localand regional spatial plans and transport plans. 106 St.meld. nr. 16, 2008-2009, Nasjonal transportplan 2010-2019.

Law 2009-04-17 No. 19: Lover om havner og farvann.

Ibid., p. 180.

St.meld. nr. 24 (2003-2004): Nasjonal transportplan 2006-2015, pp. 46-47.

Based on NTP and the new law on ports and waters, the government has chosen five "particularly designated ports". In north Norway it is only Port of Tromsø having received this status. 107 By this definition, the government is now in position to involve actively in the development of these ports by instructions and premises considered necessary for the port's abilities to meet the national transport policy targets. This includes involvement in how the port is owned and organized.

The policy aim is to create a port structure which is promoting intermodality and increased maritime transport. 108 This policy is also refined in the process with the next NTP (2014-2023). Here Norwegian import and export is expected to grow with 35-40 % in tons/km by 2040, and sea transport is expected to continue to dominate with total 82 % of transported volume (tons) and 92 % of tons/km.

One of the suggested actions will be the strengthening of some ports as logistic centers to offer the shipowners and forwarders more variety of services to attract more customers and goods. Tromsø seems presently to be the only cargo hub in north Norway which might obtain such priority. 109 In 2006, the Norwegian government issued a first High North strategy, whist boosted the national focus on the perspective development of High North. Even if the strategy has a strong focus on knowledge production and Figure 4. Hub ports in Norway. National Transport Plan.

Decision by the Ministry of Fisheries and Coastal Affairs on 21 December 2009.

St.meld. nr. 16, 2008-2009, Nasjonal transportplan 2010-2019, p. 98.

Nasjonal transportplan 2014-2023, hovedrapport utredningsfasen, 1 February 2011, pp. 15, 34-36 and 50-53.

competence development as a fundament for further strategies and actions, the strategy also carries focus on economic development. On maritime transport/infrastructure, the government

is making the following commitments:

1. The government is supporting the initiative on an international transport corridor over Narvik port. The corridor, which is named North East West Freight Corridor, consists of railroad connection between Central-Asia and Narvik and boat connection further from Narvik to North-America. The corridor will connect Narvik port and Ofotbanen to the Russian railroad grid via Sweden and Finland./…/ 110

2. To strengthen the maritime infrastructure in North-Norway the government will facilitate that ports, supply bases and yards on Norwegian side of the border also can serve activities and commercial interests on Russian side; whether it concerns supplies of goods and services, maintenance or repairs. 111 In 2009, a second High North Strategy was launched, pointing on perspectives, challenges and possibilities in the North. Here the government, among other things, stressed as particularly

important that:

/…/Norwegian ports in the north are positioning and develop adequate cooperation to attract activities. The State will monitor the progress, and if necessary contribute to prepare the coastal infrastructure for the increased activity./…/ 112 The government followed up both the 2006 and 2009 High North Strategy by specific actions in NTP 2010-2019, where High North and following up the High North Strategy is being covered by a sub-chapter. 113

Here the government makes the following statement regarding sea transport:

It should be made visible towards other countries and towards the international maritime society that Norway takes responsibility connected to increased maritime activity in north. It is important that Norway can offer ports and port services in Finnmark, which covers both preparedness and the need for service ports for a possible increased maritime activity. Norwegian ports in north should position themselves and develop adequate cooperation to attract activities./…/ 114 Through the High North strategies and NTP, a number of analytical studies were processed.

Three studies covered status and challenges with ports, maritime infrastructure and navigation in Norwegian High North. Among the conclusions provided, the following are considered as

relevant for our study:

1. Among the existing ports in eastern Finnmark, only Kirkenes can meet the requirements for a future petroleum base without significant development. Another five ports might meet the requirements for service- and supply ports given additional investments in infrastructure. 115

2. The navigational conditions for larger ship which need depth from 11 to 28 m to - and inside - all national hub ports in north Norway meets the requirements from coastal Regjeringens nordområdestrategi, 1 December 2006, pp. 56-57.

Ibid., p. 60.

Nye byggesteiner i nord – neste trinn i Regjeringens nordområdestrategi, pp. 21-22.

St.meld. nr.16, 2008-2009, Nasjonal transportplan 2010-2019, 8.4 Nordområdene og oppfølging av nordområdestrategien, pp. 130-137.

Ibid., p. 134.

Kystverket: Mulige oljebasehavner i Øst-Finnmark. Vurdering av lokaliteter (February 2010).



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