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ARCTIC BUSINESS FORUM ARCTIC BUSINESS FORUM Yearbook 2014 Yearbook 2014 ARCTIC BUSINESS FORUM ARCTIC BUSINESS www.arcticbusinessforum.com FORUM Yearbook 2014 Yearbook 2014 Publisher: Lapland Chamber of Commerce ARCTIC BUSINESS FORUM YEARBOOK 2014 March 2014 Compiled and edited by Timo Rautajoki © Lapland Chamber of Commerce, 2014 3 ARCTIC SEA Airport Harbour Lakselv Railway Andenes Narvik Svolvaer Leknes Pajala Bodø Gällivare Mo I Rana Arvidsjaur Mosjøen Brønnøysund AND FINL NORWAY SWEDEN 4 ARCTIC SEA BARENBARENTSTS RUSSRUSSIAIA 5 TABLE OF CONTENTS 1. FOREWORD ....................................................8 2. ARCTIC COUNCIL, ARCTIC POLICIES AND ARCTIC BUSINESS .........10 2.1 Arctic Council. 10 2.2 Arctic Economic Council ..................................17 2.3 Report from World Economic Forum: “Demystifying the Arctic” ..................................25 2.4 USA and Alaska. 29 2.5 Crisis in Ukraine and the Arctic .............................38 3. NORTH OF FINLAND ............................................40 3.1 LAPLAND .............................................41 3.1.1 Investment Potential 2014–2025 ............................63 3.1.2 Development of the Region 2015–2020 ......................65 3.1.2.1 Investments expected to start first. 69 3.1.2.2 Investments waiting for better times .........................70 3.1.2.3 Key investment project of Lapland . .72 3.2 Oulu REGION .........................................74 3.2.1 Investment Potential 2014–2025 ............................86 3.2.2 Development of the Region 2015–2020 ......................91 3.2.2.1 Investments expected to start first. 93 3.2.2.2 Investments waiting for better times .........................93 3.2.2.3 Key investment project of Oulu Region. 95 3.3 KAINUU REGION .......................................96 3.3.1 Investment Potential 2014–2025 ...........................100 3.3.2 Development of the Region 2015–2020 .....................101 3.3.2.1 Investments expected to start first. .102 3.3.2.2 Investments waiting for better times ........................103 3.3.2.3 Key investment project of Kainuu Region ....................103 4. NORTH OF SWEDEN ...........................................104 4.1 NORRBOTTEN ........................................105 4.1.1 Investment Potential 2014–2025 ...........................113 6 4.1.2 Development of the Region 2015–2020 .....................114 4.1.2.1 Investments expected to start first. .116 4.1.2.2 Investments waiting for better times ........................117 4.1.2.3 Key investment project of Norrbotten .......................118 4.2 VÄSTERBOTTEN ......................................120 4.2.1 Investment Potential 2014–2025 ...........................129 4.2.2 Development of the Region 2015–2020 .....................130 4.2.2.1 Investments expected to start first. .131 4.2.2.2 Investments waiting for better times ........................132 4.2.2.3 Key investment project of Västerbotten .....................133 5. NORTH OF NORWAY ...........................................134 5.1 Finnmark, Troms, Nordland ...............................135 5.1.1 Investment Potential 2014–2025 ...........................145 5.1.2 Development of the Region 2015–2020 .....................148 5.1.2.1 Investments expected to start first. .152 5.1.2.2 Investments waiting for better times ........................154 5.1.2.3 Key investment project of North of Norway ...................155 6. NORTHWEST RUSSIA ..........................................156 6.1 MURMANSK REGION ..................................157 6.1.1 Investment Potential 2014–2025 ...........................170 6.1.2 Development of the Region 2015–2020 .....................171 6.1.2.1 Investments expected to start first. .176 6.1.2.2 Investments waiting for better times ........................177 6.1.2.3 Key investment project of Murmansk Region .................178 6.2 ARKHANGELSK REGION. 180 6.2.1 Investment Potential 2014–2025 ...........................192 6.2.2 Development of the Region 2015–2020 .....................194 6.1.2.1 Investments expected to start first. .196 6.1.2.2 Investments waiting for better times ........................196 6.1.2.3 Key investment project of Arkhangels Region ................198 7. SUMMARY AND CONCLUSIONS ..................................201 7 FOREWORD You are holding the 6th overview on the European High North invest- ments and business development published in association with the Arctic Business Forum. This time the name of the report is “Arctic Business Forum Yearbook 2014”. The leading idea of this Forum is to share infor- mation about the latest developments affecting the business in the Arctic and discuss the actions to be taken in order to overcome the known and foreseen barriers of business and trade. According to studies carried out the past years by Lapland Chamber of Commerce the main obstacle of trade among the Finnish companies is still the lack of knowledge about the Regions in the High North and what kind of business possibilities they offer. The purpose of this book is to patch up part of this need. Information is the core element for all decision making processes in companies and governments. Understanding and continuing discussion on the Arctic evolution is important. These six publications are not identical in nature as each year the report- ing manner has gained more or less a new approach. This year the new part is in the very beginning the introduction and overview on the arctic development in policies from the economic and business point of view. These structures, strategies and developments described are essential part of the current and future steps of the Arctic economy. This year the regions are introduced from a broader perspective as the investments environment today is formed of many parts breathing with local, regional, national and global trends. The familiar part from previ- ous years are the individual, regional and sorted by industry investment projects. The time frame which to a stand is taken and investment poten- tial evaluated is up to 2025. Additionally the future development of the regions is analyzed for the upcoming years until 2020 and the investment projects predicted to be started in this time frame are listed. In this part you may find new and exciting the view on the named “Key investment 8 project” within each region which would give a boost to some other pro- jects and developments in the region and beyond. You also find the pro- jects which are put aside to wait for the better times to come. It may be and more likely it is that not all the investment projects are taken into account in this report. What has been required is at least a feasibil- ity plan or comparable description of a project. Mere visions, needs or demands have not met the criteria. Project plans need to have at least a tentative conception of extend, estimated cost and a tentative schedule. Still, there may be plans meeting the criterion and not mentioned in this catalogue. Essential is to enlighten the whole diversity of economical ac- tivity and business growth there is in the Arctic. We are still in the mission of trying to convince the companies and authorities, Finnish Government included, that the Arctic and the regions of North truly is a great new op- portunity and should be dealt with the necessary severity. March 12th, 2014 at Rovaniemi Timo Rautajoki President and CEO Lapland Chamber of Commerce 9 2. Arctic Council, Arctic Policies and Arctic Business 2.1 Arctic Council The Arctic Council was formally established by Ottawa Declaration of 1996 as a high level intergovernmental forum to provide a means for pro- moting cooperation, coordination and interaction among the Arctic States, with the involvement of the Arctic Indigenous communities and other Arc- tic inhabitants on common Arctic issues, in particular issues of sustain- able development and environmental protection in the Arctic. Arctic Council Member States are Canada, Denmark (including Green- land and the Faroe Islands), Finland, Iceland, Norway, Russian Federa- tion, Sweden, and the United States of America. In addition to the Member States, the Arctic Council has the category of Permanent Participants. Out of a total of 4 million inhabitants of the Arctic, approximately 500,000 belong to indigenous peoples. Indigenous peoples’ organizations have been granted Permanent Participants status in the Arctic Council. The Permanent Participants have full consultation rights in connection with the Council’s negotiations and decisions. The Permanent Participants represent a unique feature of the Arctic Council, and they make valuable contributions to its activities in all areas. The following organizations are Permanent Participants of the Arctic Council: • Arctic Athabaskan Council (AAC) • Aleut International Association (AIA) • Gwich’in Council International (GCI) • Inuit Circumpolar Council (ICC) • Russian Association of Indigenous Peoples of the North (RAIPON) • Saami Council (SC) 10 This category is open equally to Arctic organizations of Indigenous peo- ples with a majority of Arctic Indigenous constituency representing: • a single Indigenous people resident in more than one Arctic State; or • more than one Arctic Indigenous people resident in a single Arctic State. The Arctic Council has also observers. As set out in the Declaration on the Establishment of the Arctic Council and governed by the Arctic Coun- cil Rules of Procedure, observer status in the Arctic Council is open to non-Arctic States; inter-governmental and inter-parliamentary organiza- tions, global and regional; and non-governmental
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