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New AZRF resident to create an off-dock railway terminal in Arkhangelsk

11.05.2022 // The company Polar Trans Port will build a modern railway terminal in Arkhangelsk with a platform for unloading and storing cargo and a warehouse platform with an approach line. The resident of the Arctic Zone of the Russian Federation (AZRF) intends to satisfy the demand for additional capacity in the region, formed by the growing needs of Rosneft's, Nornickel's and Novatek's new Arctic projects.

In addition to the construction of buildings and structures, the company will purchase a gantry crane with a lifting capacity of up to 60 tonnes for unloading and loading various types of goods. The more than 2.3 km long railway line will be able to receive any type of rolling stock. The terminal itself will be able to handle about 200,000 tonnes of cargo per year and store the required amount of goods on its premises.

"As soon as we register a three-hectare land plot within Arkhangelsk city limits, we will start working on creating modern infrastructure. ... We plan to commission the terminal in 2023. Starting from autumn we will provide transportation services to companies implementing large-scale petrochemistry and mining metallurgy projects in the Arctic Zone and needing additional capacities. Our project will allow to improve the overall market situation for consignors and increase regional cargo turnover by forming express train routes," says General Director of Polar Trans Port Sergey Brilin.

The AZRF resident is mainly focused on the projects implemented by Rosneft, Nornickel and Novatek. As a resident of AZRF, NOVATEK-Murmansk LLC is building an Offshore Superfacility Construction Yard (OSCY) in Murmansk, which will assemble LNG trains for the Arctic LNG 2 project. Rosneft is building the largest seaport in the Arctic for its megaproject Vostok Oil, which will extract oil on the Taymyr Peninsula. Nornickel plans to invest in new projects in the mining and metallurgical sectors, including the Big Copper project at Kola MMC.

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"The project will increase the storage and transshipment capacity for cargo intended for the Arctic projects not only in our region, but also, for example, in the Murmansk region. The volume of investment exceeds RUB 220 mn. Arkhangelsk is a major transport hub for Russia's Arctic Zone, and a higher cargo turnover and new terminals will help to realize the region's economic potential. This is extremely important for us," emphasizes Arkhangelsk Region Governor Aleksandr Tsybulskiy.

Today, 416 AZRF residents are implementing projects worth over RUB 530 bn and plan to employ over 17,200 residents of the Russian North under agreements with the Far East and Arctic Development Corporation. Getting an AZRF resident status is easy. It is given to projects with RUB 1 mn or higher investments. Unprecedented preferences and benefits allow investors to launch new facilities that help to substitute import, reduce environmental impact, create new jobs and invest in the economy of the Arctic regions.

The world's largest special economic zone, the Arctic Zone of the Russian Federation, offers investors comfortable conditions for bringing their business ideas to life. These include RUB 1 mn investment threshold, zero property, land and profit tax rates for five years, subsidies for 75% of insurance premiums for newly created jobs, and mineral extraction tax reliefs in the amount of 0.5 of the current rate for solid minerals at new deposits. The Far East and Arctic Development Corporation (FEDC) supports AZRF residents at all stages of their projects, providing them with services and facilities.

Companies can apply for an AZRF resident status on the Arctic Russia portal.