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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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On 20 February 2011 Tromsø municipality approved a regulation plan for Breivika, which will both expand the area and make a new four-lane main access road. The aim is that the main activities in Breivika should be transport, container terminal, industry, service activities and offices.

Tønsnes port and industrial area at Grøtnes will offer 470 000 m2 space, with additional 350 000 m2 available for development if required. Grøtnes will be a supplement to Breivika port area, and will have no or few limitations with respect to activities.

The strategy for development of Port of Tromsø is based on the government's High North Strategy and the status as particularly designated port; it is an important part of the implementation of a strategy to make Norway competitive in the international development of the north, and will develop infrastructure within the areas energy, environment and land/maritime based industry. 141 The development of Breivika and Tønsnes with connected infrastructure is also anchored in the municipal plan of Tromsø as a strategic goal. 142

Connected infrastructure:

Tromsø is connected to the European road grid by E6 to the south and E8 to Finland via Skibotn.

There is a large hub airport with 2392 meter runway located only 3 km west of the center of the town. There is no railroad connection.

Alta As the future transport flow will be concentrated to fewer and larger terminals, to the hub ports and with larger degree of containerization, Port of Alta is aiming for a larger part of intermodal/multimodal cargo transport to be passing through Alta.

With the present location of the main port facilities, a large hub airport and connection to the European road grid through E6, Port of Alta considers itself prepared to meet future demands to logistics and transport solution. Though, developing the port as a regional logistic hub, and to attract outside suppliers industry, will require new seawards industrial areas, new multipurpose terminals and plans for further development of Bukta and other industrial areas.

The present Port Plan has an increased focus on coordination, increased petroleum activities in the Barents Sea, facilitating new industrial areas for supplier industry and business development within transport and other sectors. The strategies include development of a hub strategy and to facilitate for intermodal/multimodal cargo transports. 143

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Connected infrastructure:

Alta is connected to the European road grid by E6 and by Rv93 to Finland. The hub airport Alta has 2057 m runway and is located in the center of the town, very close to the port. There is no railroad connection.

Hammerfest Hammerfest municipality is aiming to be a hub for the economic development in the north with competitive infrastructure and logistics. The strategy for reaching this goal is to promote development of a strong local business- and competence environment. 145 The overall objective with the port's development is to position it as an international fishery port and "/…/to be base port for the petroleum industry in the Barents Sea and a bridgehead for construction of petroleum installations on Russian continental shelf." 146 Hammerfest has a variety of maritime transport; passenger traffic, general cargo, cruise/tourism, fishery, petroleum, offshore supplies, etc. The town is in need for new areas to handle growing traffic over center piers, and there is planned a new 160 meter pier at Fuglenes to be constructed in cooperation between Hammerfest municipality and Riber Salt AS. In addition, there is planned a filling towards the quay Bølgebryterkaia to obtain areas which can Informasjon mottatt fra Alta havn 15 November 2011.

Hammerfest kommune: Strategisk næringsplan 2009-2018, kap. 2.3. Infrastruktur og logistikk.

Hammerfest kommune: Årsrapport 2010, p. 132.

fill the functions presently being handled over the public traffic quay. The new quay is also intended for cruise ships with length up to 250-300 meters. 147 There are also plans and options for development of several new areas for port and offshore base activities to the south of Hammerfest, from Rypefjord, which is included in the national maritime hub port grid, and southwards. But these are perspective projects.

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The supply base Polarbase's total area is 220 000 m2. There are 8 000 m2 indoor space, including a 400 m2 OCTG pipe inspection hall. It is possible to expand the area with 280 000 m2 by filling towards SW (Nordmannsbåen), but it is considered expensive due to water depth.

Mulighetsstudie Hammerfest Havn, p. 28.

Port of Hammerfest, 7 December 2011.

An expansion of Polarbase is also seen in perspective with a future development of new areas for base- and supply activities at nearby Leirvika and Straumsneset, which have potential for up to 1 350 000 m2. Excavated rock from these projects might also be used to expand Polarbase. 149

Connected infrastructure:

Hammerfest is connected to the European road grid by Rv94, which connects with E6 at Skaidi.

There is also a STOLport with 932 m runway located close to Melkøya. It has daily connections to Tromsø, Alta and Kirkenes. Due to problems with side-wind in the area, causing reduced regularity, there are plans to construct and new and larger STOLport. Hammerfest has no railroad connection.





Honningsvåg

Sarnesfjorden at North Cape is today the only port for oil transshipment in North-Norway and has perspective to increase its importance with the future rise of export in the north. Today the transshipment includes condensate and some bunkering, but the expectations are that there will be lots of raw oil, bunkering and slop as well as intermediating in a few years. In longer perspective Honningsvåg also aims to be the location of a raw oil terminal for Russian raw oil to Asia via the Northern Sea Route.

As the future offshore petroleum exploitation in the High North will require a significant wholeyear use of special ships and other ships depending on using suitable "weather windows" while navigating to the East of North Cape, Honningsvåg also aims to be one of the ports which can be used for waiting, preparedness and services for this traffic. 150 Port of North Cape and Porsanger has quays in Honningsvåg, Nordvågen, Kamøyvær, Gjesvær, Skarsvåg, Hamnbukt (Porsanger).

Connected infrastructure:

Honningsvåg is connected to the European road grid by E69 and (later) E6. A part of E69 is a toll road. There is also a STOLport with 840 m runway located 4.5 km north of the town. It has daily connections to the regional centers hub airports. There is no railroad connection.

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Mulighetsstudie Hammerfest Havn, p. 35-38 Strategiplan Nodkapp og Porsanger Havn IKS, p. 13.

North Cape municipality is in process of developing a plan for a 700 000 m2 industrial area at Sarnesfjorden - Veindes, close to Honningsvåg. Here STS-operations are presently taking place, and there is already some infrastructure, such as roads, power lines and transformer with 25 mW free capacities. The plan, which is likely to be ready in 2012, includes construction of two quays with vessel capacity 300 meters and with 20 m waterfront depth. 151

Kirkenes

Kirkenes municipality is aiming to develop Port of Kirkenes as a national maritime hub for goods traded with Russia, and for base functions for Norwegian and Russian petroleum activities in the Barents Sea. The strategies to reach that target include development of larger areas for port activities, better infrastructure and more effective multimodal logistic. 152 Kirkenes port has total 900 meter of quay fronts, of which 700 meters are concrete constructions. The quays are partially private and partially owned by the municipality.

There is more than 200 000 m2 space connected to the port. The largest areas are located at the municipal quays at Prestøya. 153

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Port of North Cape, 28 November 2011.

Kommuneplan for Sør-Varanger kommune, 2004-2016, p. 16.

www.kirkenesgateway.no/norsk/tjenester-kirkeneshavn.html Port of Kirkenes, 2 December 2011.

Kirkenes Base has two store houses with total 4000 m2 located between Damskipskaia and Dypvannskaia, near the sea on the industrial area at Prestøya.

Sydvaranger AS is planning to expand its existing 400 meter deep-water quays to approximately 600 meter through the development of Sydvaranger Industrial Park (SMIP) in cooperation with Sør-Varanger municipality. 155 It includes 9000 m2 area on Slambanken in Langfjorden, where 1000 m2 will be developed as base/terminal to primarily support petroleum activities in the Barents Sea. The area might also be used for other maritime transport and logistics, and for general business activities. 156 Kirkenes is located to the European road grid by E6 to the west and E105 through Russia to the east. There is also a hub airport with 1755 m runway 10 km west of the town. It has daily connections to Oslo, Alta and Tromsø. There is no railroad connection.

Mulighetsstudie for Kirkenes Havn, s. 31-32 og Sydvaranger AS – Industrial Area på www.sydvaranger.no Forslag til planprogram – utvikling av Slambanken, Sør-Varanger kommune, pp. 3-7.

Transshipment Transshipment of petroleum products from ship to ship, to be administered by a trading facility in a north Norwegian port will not necessarily be depending on the port infrastructure at the trading facility as it can be done at any suitable location. Sarnes at Honningsvåg (STS-FSO) and SE of Sørøya (FSO) are locations approved by Norwegian Coastal Administrastion for transshipment, where there has also been developed an infrastructure for such purpose.

Offshore operations Offshore petroleum development in the Norwegian Sea and the Barents Sea represents several interesting development opportunities for ports in North Norway in terms of handling work force, supplies, construction elements, waste etc.

A study of petroleum activities and its actual and possible impact on activities and development of ports and infrastructure in the region is not included in the frame of this report. It should be included in an in-depth study considering port and logistics in a total perspective of the most relevant development factors in the High North.

Import by container

RoRo-containers to Norway are mostly cargo from another European port, while LoLo are coming from both European and overseas ports. Overseas container goods arrive to the large European port hubs, like Rotterdam, Bremerhaven and Antwerpen, with ships carrying up to 12 000 TEU. 157 Import of goods by containers is rising rapidly in Norway. In 2007 there were 217 000 containers imported over Norwegian ports. Moss is the fastest growing hub port for import of containers to Norway, while Oslo is the undisputed largest port for containers, with nearly 50% of the import. In 2007 nearly 50% of all containers to Norway came from Asia, which is a 30% growth from 1999. 158 Econ Pöyri: Betydningen av effektive intermodale knutepunkter (report 2008-105), p. 23.

TØI: Globaliseringens effekt på transportmiddel- og korridorvalg til og fra Norge (report 970-2008).

Conclusions Access to parts of the cargo flow which is today passing north Norway by ships from Arctic Russia to the western market can be either by promoting the ports as storing- and transshipping hubs for cargoes from smaller ships, to be collected and transported further by larger ship in a more economical and environmental (CO2) friendly way; or it can be based on the principles of trading, where establishing ports as trading facilities may make them as commercial and competing actors on metals, petroleum, timber, seafood and other raw materials being sold daily by Russian companies and traders on the international market. This would facilitate upgrading of the existing port infrastructure to be developed as profitable transshipment- and storage hubs.

Russian export cargoes are being sold both in the spot market, on short term/single contracts or under long term frame contracts. A cargo owner is not necessary limited to one of these options, but might use all of them.

All national hub ports in North Norway are able to handle increased import/export, both with regards to safety of navigation, quay capacity and space. To handle any bottlenecks, the ports are also expected to cooperate – like Bodø, Hammerfest and Kirkenes have agreed to do. 159 The creation of international maritime trading hub(s) in North Norway to deal with raw materials and other cargoes brought from the Russian North and delivered via the Northern Sea

Route (NSR) will require a favorable presence of a number of key elements:

1. Good geographical location towards the market.

2. Good intermodal hubs – port infrastructure with adequate space and connected transport infrastructure.

3. Customs free areas for transit, transshipment and repacking.

4. Regulations that allow (if desired) good to be transported through hinterland to market outside Norway as transit goods, without being subject for taxations and fees.

5. General trading environment that attracts international trading companies.

6. Access to skilled labor.

Aiming at the NSR and the market for raw materials being exported from the Northern Russia, North Norway can offer several good hub ports already in process of development for handling of larger and more diversified types of cargo, connected by sea to good and safe sailing lanes and by land to large areas suitable for business- and business development and favorable transport infrastructure.

Custom free areas for transit, transshipment and repacking are already existing and considered as an advantage. It could be done in all ports based on customs warehouse type B and D.

Regulations that allow transit of goods without taxations and fees are also in force today and practiced daily on basis of the customs procedure EU8 and EX8. 160 Port Director Ingvar M. Mathisen, Bodø, 26 October 2011.



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