Chinese Shipping Company Eyes US$2.5 billion Investment in Arkhangelsk

China’s NewNew Shipping Line may invest in a deep-water project at Arkhangelsk’s seaport, Arkhangelsk Region Governor Alexander Tsybulsky said at a meeting with President Vladimir Putin on Thursday (July 24). Tsybulsky said that “The Chinese company NewNew Shipping Line is showing interest in the project. They’re prepared to invest up to ₽200 billion (US$2.52 billion) in this project for a 30% stake in the port. We are now working out the technical issues with them, but, given your approval, we’re prepared to continue this work and sign a memorandum for now on the main areas that we’re prepared to use at this port.”

The cost of building a deep-water port at Arkhangelsk is estimated at ₽375 billion (US$4.72 billion). The project, which would take until 2032 to complete, would allow the port to accommodate cargo vessels with a deadweight of up to 75,000 tonnes and a draft of up to 14.5 meters. The region has sent an investment declaration on the project to Russia’s Federal Maritime and River Transport Agency.

The Russian government approved a comprehensive plan for the development of the Arkhangelsk transport hub to 2035 in autumn 2023. A cabinet order said that the creation of the deepwaterarea at the port and construction of a new terminal, with an approximate capacity of 25 million tonnes per year by 2040, were the main projects of the plan. Dvina Bay on the White Sea was named as the location for the project.

Arkhangelsk Region, Sberbank, and Eurosib Group signed an agreement at the 2024 St. Petersburg International Economic Forum to work together on the project to build the deep-water terminal.

China’s NewNew Shipping Line has launched a new trade route called Arctic Express No. 1 that runs through the Northern Sea Route in July 2024, connecting China’s main ports, Shanghai and Ningbo, with Arkhangelsk. Up to 20 ship calls from China are expected in 2025, double the 2024 volumes.