«AN ARCTIC RAILWAYVISION: Connecting and China through the Northern Sea Route» - Dr. Kenneth Stålsett, CEO Sør-Varanger Utvikling AS

March 9, 2018 “An Arctic Railway Vision”

Delivered to the Norwegian rail authorities January 23, 2018

January 26, 2018 China publish ”Arctic Policy” VISION

The Vision for the Arctic Railroad is to offer an cleaner and faster transport option for goods between Northeast Asia and Northern Europe via through the use of the Northern Sea Route and the development of as a hub. BASIS FOR VISION

10 percent of today's total exports, with only containers from China, South Korea and Japan to the northern European countries, Germany, Denmark, Finland, and Norway, use the Northern Sea Route (NSR) with reloading to railway in Kirkenes.

10% of the container traffic offers great opportunities! The Northern Dimension is the EU and members operative instrument - with support of Russia

The NDPTL is the tool for connecting the European TEN-T and the Chinese Belt and Road Initiative networks 10 trains 750 meters per train from Kirkenes per day 1 train = 65 trailers =

10 trains = 650 trailers Yokohama - Suez - Kemi Yokohama – NSR – Kirkenes - Kemi 41 days 26 days COMPARING THE PROFITABILITY OF SUEZ vs. NSR

= Suez NSR 15 000 TEU 4 800 TEU

Jiao Tong University, Shanghai COMPARING THE FUEL CONSUMPTION OF SUEZ vs. NSR

= Suez NSR 11 430 NM 6 920 NM

-20%

Arctic Shipping Routes - Cost Comparisons with Suez SEA ICE 1980 MELTING 2007 2030

The Arctic Institute, 2012 New search and rescue centers IN THE RUSSIAN ARCTIC ZONE Alexey Tukavin First deputy Governor of Murmansk Regional Government Kirkenes February 2016

“Russian authorities have already established five Arctic centers for search and rescue. They are planning to establish another four during the next Provideniya three years. The Russian Emergency Ministry will complete the establishing of Arctic SAR centers by the end of 2020, says acting Department Director Maxim Maksimenko.” January 2, 2018 High North News

Pevek Murmansk Anadyr

Naryan-Mar Arkhangelsk Sabetta Tiksi Vorkuta Dudinka

Nadym

RUSSIA THE CHINA EFFECT

1 Billion € = Per day 2 Billion € From China to Finnish 2017-2022

Arctic Business Yearbook 2017

Rovaniemi 2016

China Hamburg

11 million 8 million tons tons 1,55 million 996 000 containers containers WHAT IS IN IT FOR US

China Kirkenes 10% OF TODAYS EXPORT CONTAINERS PR. MONTH

Kirkenes Oslo Gothenburg

74 000 17 250 66 500 (7,5 months per year) (12 months per year) (12 months per year) Tanker alone through NSR January 2018

https://www.vg.no/nyheter/utenriks/i/0Er3n0/historisk- vinter-aapning-av-polhavet LABOUR FORCE

Kirkenes Gothenburg

600 600 VOLUME IN 2030-2040

70% 60% Additional increase increase

2016 2030 2040 RAIL Estonia - Asia Import 99 073 tons Export BALTICA 229 242 tons

Riga Latvia - Asia Import 107 096 tons Export Poland - China 503 378 tons Import 2 928 097 tons Vilnius Export 641 865 tons Lithuania - Asia Import 231 057 tons Export Hamburg 237 131 tons Warsaw EFFECTS FOR FINLAND New transport corridor between North Finland and Europe

Arctic Railway will make Northern Finland and Lapland more attractive for establishing businesses

Arctic Railway will increase trade and cooperation across borders

Arctic Railway will give Finland access to the Barents Sea

Reduces the distance between Finland and Asia Pöyry Finland 2014 WHY KIRKENES?

Closest western port to Asian markets

Excellent conditions for logistic development

Located next to Finland and Russia

Close to airport and hospital

Experience with international shipping KIRKENES

Ice free, deep water port which is easy to navigate PORT TERMINAL

PORT TERMINAL

THE NEW KIRKENES

PORT TERMINAL AIRPORT Developed by the Ministry of Transport and Communications E6 Kirkenes – land of opportunities

The new port terminal Several private initiatives THANK YOU!

Please feel free to contact us:

www.kirkenes.no [email protected]