CHINA’S SHIPPING ON THE NSR:ECONOMIC AND ENGINEERING

PROSPECTS

Prof. Gao TianmingDirector and Chief Expert,Arctic Blue Economy Research Center,Harbin Engineering University

Harbin Engineering UniversityArctic Blue Economy Research Center

Dr. Vasilii ErokhinResearch Fellow,Arctic Blue Economy Research Center,Harbin Engineering University

• opening and securing new trade routes

• facilitating Asia-Europe connectivity

• bridging the gap between traditional industries in the Arctic and China’s market

• collaborating with all concerned countries to establish a workable economic and transport corridor in the High North

• involvement in cargo transportation in polar waters and maritime and ice engineering and navigation security

The Polar Silk Road

• China: “the management of shipping routes in the Arctic ‘should be conducted in accordance with treaties including the UNCLOS . . . And that the freedom of navigation enjoyed by all countries in accordance with the law and their rights to use the Arctic shipping routes should be ensured” (China’s Arctic Policy, Part IV)

• Russia: “NSR as a historically established national transport route in the Arctic.”

• China demonstrates broad inclusiveness and calls for a liberal multilateral approach to the use of shipping routes in the Arctic.

• Russia advocates the exclusive rights in the NSR based on historical, geographical, climatic, and security conditions

Freedom of navigation on the NSR

Russian and foreign vessels on the NSR: permits

China’s vessels on the NSR in 2013-2020

China’s vessels on the NSR in 2020 (November 11, 2020)

Vessels Shipoweners

CH

INA

Mainland China

Tian You COSCO Shipping Specialized Carriers Co. Ltd.Nan Hai Ba Hao China Oilfield Service LimitedTian Hui COSCO Shipping Specialized Carriers Co. Ltd.Tian En COSCO Shipping Specialized Carriers Co. Ltd.Tian Zhen COSCO Shipping Specialized Carriers Co. Ltd.Nan Hai Jiu Hao China Oilfield Service LimitedTian Jian COSCO Shipping Specialized Carriers Co. Ltd.

Hong Kong SAR, China

Vladimir Vize Arctic Green LNG Shipping LimitedNikolay Urvantsev Arctic Purple LNG Shipping LimitedVladimir Rusanov Arctic Blue LNG Shipping LimitedGolden Suek Suek AGLNG Merak Artic Yellow LNG Shipping LimitedLNG Dubhe Arctic Red LNG Shipping Ltd.Da Cui Yun COSCO Shipping Specialized Carriers Co. Ltd.Da Chang COSCO Shipping Specialized Carriers Co. Ltd.LNG Phecda Arctic Orange LNG Shipping LimitedDa Tai COSCO Shipping Specialized Carriers Co. Ltd.

• development of the icebreaker, rescue, and auxiliary fleets;

• improvement of a control system for ensuring the safety of navigation;

• construction and modernization of seaports along the NSR;

• expansion of navigation opportunities on the rivers;

• expansion of railway network to facilitate cargo transportation from inland territories to the NSR ports;

• development of a space monitoring system and IT for support of navigation.

Russia’s needs

• improvement of navigation and hydrographic support for shipping;

• ensurance of navigation safety;

• development of transport infrastructure;

• shipbuilding technologies;

• radio and electronic equipment;

• engineering of icebreakers and ice-class vessels

Russia’s Plan for the Development of the NSR Infrastructure until 2035

Spheres of China-Russia collaboration in Arctic shipping and maritime engineering

• lack of icebreakers and transport vessels of appropriate deadweight and ice class;

• underdeveloped systems of navigation aids, ice monitoring, and support of navigation;

• inaccuracy of nautical charts;

• lack of transport hubs with appropriate logistics and capacities for loading and reloading of various types of cargo;

• lack of support and rescue points for safe and stable navigation;

• lack of refueling points for Chinese transit vessels.

Shipping on the NSR: brakes

• China-Russia Joint Statement on Developing Comprehensive Partnership and Strategic Interaction Entering a New Era (2019).

• Russia’s Strategy for the Development of the Arctic Zone and Ensurance of National Security until 2035.

• Advancement development zones, joint research centers, cost-sharing mechanisms, joint enterprises.

Shipping on the NSR: drivers

• Increase in shipping on the NSR depends on sustainable cargo base, year-round shipping, and navigational support and rescue infrastructure.

• Joint investment projects should be fostered by tax preferences and permissions to attract Chinese labour, conclude concessional agreements, and receive federal subsidies for the construction of infrastructure.

• The intensification of international transit on the NSR depends on Russia’s openness to accept Chinese technologies and engineering solutions and thereby tolerate China’s rising presence in the Russian sector of the Arctic

Concluding remarks

THANK YOU FOR YOUR ATTENTION!

Gao Tianming: gtmmail@163.com

Vasilii Erokhin: basilic@list.ru

Harbin Engineering UniversityArctic Blue Economy Research Center