GAC Russia Partners with Far East Development Fund for NSR Development

GAC Russia says it has partnered with the Far East Development Fund to make the Arctic's Northern Sea Route a more attractive option to shippers.

Gulf Agency Company (GAC) Russia Thursday announced that it has partnered with the Far East Development Fund to make the Arctic's Northern Sea Route (NSR), which runs along the Russian coast connecting Europe and Asia, a more attractive transport route to ship and cargo owners.

"Our aim is to bring about fast and positive change by July 1, 2016 when summer navigation commences, and all those who take part in the survey will in turn benefit from the expected mitigation of economical, technical and organisational challenges highlighted leading to optimum support during their NSR navigations," Arkady Podkopaev, GAC Russia’s Managing Director.

Under the partnership GAC says it will conduct "extensive" shipping community research in order to aggregate data on NSR navigation experiences, as well as a client survey to help inform the organisations' strategy, and will then investigate a variety of options to make the NSR more competitive and attractive to potential users.

GAC did not mention any specific bunkering related activities as part of the move, but it has long been noted that increased use of the Arctic will present new bunkering opportunities. 

"Pursuing the goal of practical development of the NSR and drawing on the GAC Russia team’s extensive local knowledge of the Arctic region and global shipping and logistics expertise, we believe that this partnership will address the challenges and help to form a hands-on solution for all users of the NSR," said Denis Askinadze, Managing Director of the Far East Development Fund.

Podkopaev says that the plan will see the company’s operational bases in Murmansk and Sabetta used as a single point of contact for a network of agents along the NSR, providing integrated shipping and logistics services within the region.

"We firmly believe we’re on course to make the NSR more attractive to shipping companies and encourage them to take advantage of the shorter distance and time benefits on offer," said Podkopaev.

In March, Ship & Bunker reported that interest from ship operators in utilising the Arctic's NSR has waned in recent years.