Presentation at the Alaskan Arctic: A Summit on Shipping and Ports in Anchorage, Alaska TOPIC: DEVELOPMENT OF MARITIME SHIPPING IN THE BERING SEA

1. MARITIME TRANSPORTATION
A PREREQUISITE FOR ARCTIC
DEVELOPMENT
Alaskan Arctic Summit 2015
Anchorage, August 24
Felix H. Tschudi
Tschudi Shipping Company
Centre for High North logistics

2. Tschudi Northern Logistics –
Cross Border transport and Ship Agency
Kirkenes Industrial Logistics Area (KILA)
Port and real estate development
Tschudi Aggregates
Tschudi Arctic Transit
Northern Sea Route and Oil Transshipment
The Tschudi Group in the Arctic
Tschudi Bulk Terminal

3. NSR
Europe/US
In the Arctic it is all about infrastructure!
Storage in Murmansk
9 Days to the Bering Strait!

4. ARCTIC RAILWAY ROVANIEMI-KIRKENES
www.arcticcorridor.fi
Many projects whic should be coordinated

5. The Kola Peninsula and Northern Norway
form an all-year ice free wedge into the
Arctic – a natural platform for serving
logistics in the Barents Sea and the
remaining Arctic
Several Arctics; geographical, climatical and
demographical conditions vary widely – one
size does not fit all!

6. INFRASTRUCTURE DEVELOPMENT AS CATALYST:
Kirkenes Industrial Logistics Area - KILA.
1.000.000 m² area and 600 m deep water quays.
6
POTENTIAL USE:
Marine Transportation
and logistics including
offshore base activities.
Bulk handling facilities
NSR Transhipment Hub

7. NSR Eastern
Transhipment Hubs
Aleutian Islands, Nome,
FE ports or all?
Nome

8. 8
The Floating Quay: Exploring infinite arctic opportunities
visualized concepts for important Arctic segments
Illustrations: Snøhetta
Note that buildings in the visualised concepts are not included in the cost estimates of the concrete shell.
FQHA-120
120 x 35 x 9 m
TOURISM AND RESEARCH
Tourist portal and research facility
FQHA-80
80 x 25 x 7 m
FISHING INDUSTRY
Floating fish processing plant

9. 2010 - 4 passages 111 000 mt
2011 - 34 passages 821 000 mt
2012 - 46 passages 1 260 000 mt
2013 - 71 passages 1 350 000 mt
2014 - 53 passages
2015 – similar pattern but some
heavylift cargoes to Yamal LNG
Serving a wide variety of vessels
and cargoes generating savings in
time, cost and emissions; large
tankers, bulkcarriers, LNG, reefer
heavylift, multipurpose and offshore
.
Turns a Freight Disadvantage
into an Advantage

10. “China Begins Using Arctic Shipping Route That Could
'Change The Face Of World Trade‘
China is eyeing the Arctic for better access to resources.”
.
What does it imply in practice? It means that we for the first time
receive requests as the following:
3/ Furthermore, mv. Yong Sheng will be available to ship general Cargo from
Baltic ports or a European ports to FarEast via Arctic Ocean with LayCan 25th
Aug. to 5th Sep. 2015. Your company are welcome to book your Eastbound
general Cargo with Cosfim Oy. The ocean freight rate could be discussed
amicably
•Below pls find the info about shipping service by mv Yong Sheng.
·
•Flag: HONG KONG (CHINA) Build: 2002
Home port: HONG KONG
Possible LAYCAN: 25TH AUG. TO 5TH Sep. 2015
•Name: YONG SHENG
•Type: GENERAL CARG Summer DWT: 19150 t Gross Tonnage: 14357
THIS IS GREAT NEWS!

11. Transport of oil, gas,
minerals and equipment by:
• Specialised shuttle
multipurpose vessels
• Shuttle tankers
• Shuttle LNG carriers
• Shuttle bulkers
• Purpose built offshore vessels
• Seasonal liner services
NP
In the medium term – regional destinational shipping serving the
developments in Siberia and Alaska will be the most relevant
activities. Suitable transshipment infrastructure is a pre-requisite.

12. WHERE RIVERS MEET OCEAN THERE IS
NORMALLY A PORT
THIS PROBABLY REPRESENTS THE LARGEST
FUTURE POTENTIAL FOR TRANSPORTATION
ALONG THE NSR

13. Yamal LNG - LNG carrier new building
orders

14. Export of gravel from Kirkenes to Sabetta on the Yamal Peninsula
500 000 tons
in 2014
Continuing in 2015

15. Ship to Ship
Honningsvåg
North Cape
Alaska?
Oil terminals and transshipment of oil

16. The same could be done on the Pacific side.
ADAK

17. Why?
Because Asian refineries buy European crude and there is a market in
Europe for Asian refined products
We have seen this cross trade along the NSR and under the right
market conditions it will continue.
The logistics principle remains the same; keep the specialized tonnage
in the ice and transship as close to the ice border as you can.
Oil and Oil Products

18. Dutch Harbor
Frozen Fish

19. •100 000 tons of mackerel from Norway to the Far East
•100 000 tons of haddoc from Dutch Harbor, Alaska to the Continent
•17 days saved both directions. 34 days saved on a round voyage.
•Frozen fish going in both directions.
•Refrigerated storage in Nome in addition to Dutch Harbor???
Russian sanctions on import of fish creates a need for new
markets
Frozen Fish

20. 10days
11days
Offshore

21. Korea –Bering Strait - Alaska 11 days
Kirkenes - Bering Strait 10 days
The North Sea is the second largest off-shore market
in the world moving north towards the Barents Sea.
Russia starting in Kara Sea, Bay of Ob, moving towards
Laptev and Chukchi Sea. Not to forget Sakhalin and Okhotsk.
Alaska North Slope and Chukchi Sea.
The NSR will offer tremendous savings in moving equipment
between the Alaskan, Russian and Norwegian markets
Offshore Rigs and Supply vessels

22. SHIPPING SUMMARY
There will be an increase in traffic for sure:
LNG and Condensate
Oil and Oil products
Minerals and metals
Supplies, equipment and structures related to the oil, gas
and mining industries
Fish
We do not believe in big volume container business.
Significant development: The launch of the COSCO NSR Line

23. The
Arctic:
Where
Gas
meets
Ore

24. The Barents region – potential for
industrial value creation
Alaska is in the same situation
Associated or “stranded” gas can be
transported as CNG (Compressed Natural
Gas) directly from the offshore installations
to be used for low emission industrial
processing of regional rawmaterials
employing natural gas instead of coal eg.
Direct Reduced Iron (DRI) production
This requires the offshore oil and gas and
onshore mineral and metal producers to join
forces with processing industries.
Political will is a prerequisite for
incentivising the stakeholders into realising
these joint opportunities.

25. Some potential gas and mineral and
metal based processing potential
• Iron (Direct Reduced Iron)
• Carbon Black (high purity carbon
materials)
• Petrochemical industries
• Quarts to silicon - potential for Direct
Reduction to solar grade quality
• New refining and agglomeration methods
for quality upgrading

26. Kirkenes, 4th October 2012 26
Fe
Ni
Al
Fish
Energy
Raw materials
Future:Today:
Consumables
Vision

27. THOUGHTS ON EMERGENCY PREPAREDNESS AND COOPERATION –
JOINT NECESSARY INFRASTRUCTURE
• The best safety measure against accidents is the Russian
mandatory ice breaker escort and regulatory
requirements.
• The Arctic Council agreement on developing a joint
framework for SAR is important as these countries are the
ones with an interest in developing the resources of the
region while keeping potential negative effects at a
minimum ie. sustainable development.
• The increased economic activity in the region will
improve the general preparedness to respond to potential
accidents due to higher availability of vessels, equipment
and people provided necessary coordination is
facilitated.

30. Thank you
for
your
attention

31. CO2
Alloying metals
Cr, Ni, Mn, Mo, Si, REE
Legering
Export
• Fishfarms on land
• Drying
• Freezing
• Electricity
CH4 Export
Natural
gas
Export
Direct reduced
iron (DRI)
LKAB pellets
EAF
Steel
minimill
Electricity
Export
CO2storage
PCC
Integrated gas-mineral processing
Export
jernmalm
Iron ore
Pellets plant
BO
G
Pilot processes
Fermentation
P3HB/ectoin
Solid carbon
C(s)
Carbon
Black Reaktor
Hydrogen
Quartz
Karbonater,
dolomitt, olivin
Olefins
Reduction to
trichlorosilan
e
Plastic;
composites
Export
Export
Epitaxial
solar cell
Slag form
ing
Steel slag
Export
GCC, PCC
Carbonate
processing
F2013-11 LNG bunker for marine vessels
F2011-12 Gassmaks Ofoten
F2009-16 Industriutvikling i Nord Norge 2030
F2013-21 CO2 binding with olivine
F2010-01 Gassmaks Nordland -
mulighetsstudie
F2011-09 P3HB bioplastic from methane
F2012-17 Conversion LKAB pellets plant to
natural gas
F2012-16 GeoGass project conclusions
F2013-10 Gas demand and branchpipe
landfall to Ofoten and Nordkalotten
F2013-13 Direct reduction of iron in fluid bed
F2013-25 Agglomeration mineral fines
F2013-27 Gas-Mineral Processing status
F2014-02 CO2 storage and utilisation
F2014-09 PUFFIN report; Narvik: where
Swedish ore meets Norwegian gas
F2014-13 Pilot Technology Processes
F2014-14 Integration of a DR-plant in Narvik
F2014-17 Reduction technology: specfication
of a Direct Reduction plant in Narvik
NORUT Narvik studies
F2014-xx PhD study by Reza Beheshti
F2015-xx PhD study by Chen Chen
Carbon
anode
F2014 Borealis Solar business plan
Waste
energy
Hot
briquetted
iron (HBI)
Gas Power stn?
El-kraft