November 27th, 2019

Rosatom To Invest $7bn in Arctic Shipping to Compete with Suez Canal

Russia’s Rosatom Group plans to spend $7  billion to become one of the world’s largest container shipping  operators. The company aims to offer container liner service along the  Arctic’s Northern Sea Route (NSR), a shortcut between Asia and Europe,  competing with the Suez Canal. 

Shipping traffic  along Russia’s Arctic coastline continues to be at an all-time high  reaching nearly 30 million tons in 2019. The vast majority of this  traffic comes from the transport of oil and gas and general cargo.  Container shipping, however, has been very limited, with Danish shipping  giant Maersk as the first company to send a container ship along the NSR  last year. Now, the state-owned Rosatom Group is in talks with VTB  Bank, one of the country’s largest banks, to secure $7 billion in funds  to acquire up to 55 ice-class container ships and upgrade port  facilities along the NSR, news agency Interfax reports

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