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1 ARCTIC BUSINESS FORUM YEARBOOK 2015 March 2015 Compiled and edited by Timo Rautajoki © Lapland Chamber of Commerce, 2015 2 3 BARENTS ARCTIC SEA RUSSIA FINLAND SWeden NORWAY 4 5 Airport ARCTIC SEA Harbour Railway BARENTS FINLAND ay W eden nor W russia S 6 7 6. NORTHWEST RUSSIA ...................................144 TABLE OF CONTENTS 6.1 Murmansk Region ...............................145 6.1.1 Investment potential ...............................158 1. FOREWORD .............................................10 6.1.2 Development of the region 2016–2020 ................161 6.2 Arkhangelsk Region .............................168 2. ARCTIC COUNCIL, ARCTIC POLICIES 6.2.1 Investment potential ...............................181 AND ARCTIC BUSINESS ..................................12 6.2.2 Development of the region 2016–2020 ................182 2.1 Arctic Economic Council ............................12 2.2 Background and preparatory work of the AEC ............14 7. SUMMARY AND CONCLUSIONS ...........................186 2.3 US Chair in the Arctic Council ........................16 2.4 Arctic Council structure .............................19 8. MAPS AND STATISTICS ..................................191 8.1 European High North investment potential projects. 191 3. NORTH OF FINLAND. 26 8.2 Industry projects ..................................191 3.1 Lapland .........................................27 8.3 Mining industry projects ............................192 3.1.1 Investment potential ................................50 8.4 Energy projects ..................................192 3.1.2 Development of the region 2016–2020 .................53 8.5 Trade projects ...................................193 3.2 Oulu Region .....................................64 8.6 Tourism projects. .193 3.2.1 Investment potential ................................78 8.7 Transport infrastructure projects .....................194 3.2.2 Development of the region 2016–2020 .................82 8.8 Public investments ................................194 3.3 Kainuu Region ...................................85 8.9 European High North investment potential 2015 by regions 195 3.3.1 Investment potential ................................89 8.10 European High North investment potential 2015 3.3.2 Development of the region 2016–2020 .................91 by branches of business ...........................195 8.11 Main investment projects that start before 2020 by regions 196 4. NORTH OF SWEDEN. 94 8.12 Main investment projects that start before 2020 4.1 Norrbotten ......................................95 by branches of business ...........................196 4.1.1 Investment potential ...............................102 8.13 European High North investment potential by regions and 4.1.2 Development of the region 2016–2020 ................104 branches of business ..............................197 4.2 Västerbotten ....................................109 4.2.1 Investment potential ............................... 119 4.2.2 Development of the region 2016–2020 ................121 5. NORTH OF NORWAY .....................................124 5.1 Finnmark, Troms, Nordland .......................125 5.1.1 Investment potential ...............................134 5.1.2 Development of the region 2016–2020 ................137 8 9 This year the investment potential shown in the book consists of all pos- FOREWORD sible plans and projects in the regions. Some of them are clearly pos- sible to implement after 2030. Closer analysis is targeted to investment The cover picture of this Arctic Business Forum Yearbook 2015 describes projects that could start before 2020. There are two scenario alternatives, very well the current situation in the European High North Business. “normal” and “growth+”. Normal means slow recovery of global economy Snow covered road is narrow and it is going over a mountain. There is and solution of political crisis. The second scenario describes the process a traffic sign showing a lower speed limit further up on the road. Eco- in case the growth is more dynamic than expected. nomic crisis was downshifting the business cooperation already a couple of years ago. Now we have also political crisis started from Ukraine ready Business Oulu and Kainuun Etu Oy have contributed information to this to spread to the Arctic if it is going to further escalate. Sanctions and yearbook. On behalf of Lapland Chamber of Commerce I want to thank counter sanctions are limiting business cooperation. This is not the right Mr. Alpo Merilä from Business Oulu and Ms. Karoliina Heikkinen from forum to do politics, but the political situation has its impact on business Kainuun Etu Oy for their assistance. and investments. Investment potential in the High North is growing all the time, but starting of the projects seems to be far in the future. March 11th, 2015 at Rovaniemi 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 is the second time the name of the report is “Arctic Business Forum Yearbook”. The leading idea of this Forum is still to share information 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. Timo Rautajoki President and CEO These six publications are not identical in nature as each year the report- Lapland Chamber of Commerce ing manner has gained more or less a new approach. This year the pres- entations of European High North regions is basicly the same as in last years edition. Regional development from 2016 is updated and analyses are based on latest reports and strategies. 10 11 Question regarding the secretariat of AEC has been on the agenda from 2. ARCTIC COUNCIL, the very beginning of the Task Force. First St. Petersburg was ready to ARCTIC POLICIES AND take over it with big economical benefits to AEC within the first years. Then Norway has been offering Tromsö with economical benefits. Rus- ARCTIC BUSINESS sian government has confirmed that St. Petersburg is still ready to help with secretariat. And finally also Alaska has made its own offer for host 2.1. Arctic Economic Council the AEC secretariat. Obviously AEC Executive Committee is going to decide about the sec- Arctic Economic Council (AEC) was the most important goal of the Ca- retariat in next AEC meeting during Arctic Council ministerial meeting in nadian Arctic Council chair. This council was established in September April 2015 in Ottawa and the location is probably Tromsö due to strong 2014 after more than one year active preparatory work by special Task economic support from Norway. Force. Founding meeting was in Iqaluit, Nunavut on 2.-3.9.2014. Meet- ing decided that the AEC is an independent organization created by the EAC is establishing also six working groups to analyze the arctic busi- Arctic Council that will facilitate Arctic business-to-business activities and ness. Working groups are for infrastructure with several subgroups, en- responsible economic development, as well as the sharing of best prac- ergy, tourism, fishing and human resources. tices, technological solutions, standards and other information. Each working group is analyzing the business sector regarding main The AEC consists of 42 business representatives appointed by the Arctic themes as establishing strong market connections between the Arctic states and indigenous organizations. The AEC has selected a small inau- states; encouraging public-private partnerships for infrastructure invest- gural Executive Committee to guide its initial work to be lead by the chair ments; creating stable and predictable regulatory frameworks; facilitating Tom Paddonfrom Canada, vice chairs Tero Vauraste from Finland, Tara knowledge and data exchange between industry and academia; and tra- Sweeney from the United States who represents the Inuit Circumpolar ditional indigenous knowledge, stewardship and a focus on small busi- Council, and Evgeny Ambrosov from Russia. Initial administrative support nesses. for the AEC is being provided by Canada, and an offer by the Norwegian business community to support the AEC’s administrative costs going for- The work in groups should result in actionable recommendations to facili- ward was accepted in principle. tate trade, investment and industry collaboration, and to eliminate identi- fied barriers. It should follow these four basic steps: by analyzing the During the work of the task force AEC was planned to be included to the current status of the business area in relation to one or two overarching Arctic Council as some kind of associate organisation reporting to minis- themes; by defining actionable recommendations and items that will ad- terial meetings. In spite of this the AEC was established as an independ- dress the current status quo; by starting executing on identified actions; ent organisation. Arctic Council website describes the relationship with and by reports and reviews. AEC so that as an independent body, the AEC will decide on its mem- bership, roles and responsibilities, governance, structure, and activities, while ensuring strong participation from indigenous businesses. It may inform the work of the Arctic Council through the views of business. 12 13 Some working groups have already began their work. Working group Fostering Circumpolar Business Partnerships members have been selected from outside the group of AEC representa- tives. The operating term for each working
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