Russia’s Rosatom State Corporation and UAE-based DP World have signed strategic cooperation agreement to establish an international logistics operator to operate in the Russian and international markets.

The focus would be on increasing the efficiency of international trade, primarily among the BRICS countries and their partners, and creating seamless, sustainable global transportation and logistics supply chains, according to a Rosatom press statement.

The ceremonial signing ceremony took place in the COP28 Climate Change Conference in Dubai and was attended by Alexey Likhachev, Director General, Rosatom, and Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer, DP World.

The agreement would be implemented on the basis of the backbone infrastructure of Russia (including the Northern Sea Route), Eurasia, the Middle East, Africa, and South America, the statement said.

Likhachev said: “Reliable and flexible supply chains are essential for the world's economic and sustainable development, as well as international cooperation among BRICS members and partner countries, with the participation of Russia. Today, we reached an agreement with DP World to combine our expertise, competencies, and infrastructure capabilities to create a global logistics operator that will improve the transparency and accessibility of transport and logistics services, particularly in developing countries in Eurasia, the Middle East, Africa, and South America.” 

In June 2023, the companies had agreed to collaborate on the development of Eurasian transport logistics and container shipping along the Northern Sea Route. In October, they established International Container Logistics LLC, a joint venture company which is currently working on building the first regular Arctic container line.

Rosatom has been the infrastructure operator of the Northern Sea Route since 2018. The company is expanding its logistics business, including the Eurasian Container Transit Project, which aims to establish a maritime transit container shipping service through the Northern Sea Route.

DP World operates a unified global network of 190 locations spread across 75 countries and six continents. The company operates major ports, terminals, industrial parks, logistics and economic hubs worldwide, with a total annual handling capacity of more than 92 million TEU.  

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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