Investment Portal of the Arctic Zone of the Russian Federation

A great sea journey ahead!

Pomor Shipping, a resident of the Arctic Zone, is set to acquire its own icebreaker

10.11 // Pomor Shipping, an Arkhangelsk-based company, transports all types of cargo by sea, road and rail both within Russia and internationally. The company's shipping routes include the Russian northern ports of Naryan-Mar, Varandey, Sabetta, Dudinka, Dikson, Khatanga and Pevek as well as ports in the Nordic countries, the European Union, Asia, North America and practically all over the world.

There are also no restrictions on the types of cargo that can be shipped as Pomor Shipping can handle bulk loads, such as grain, ore, coal and metal along with general cargo and oversized cargo. Moreover, the company provides logistics services for the shipments and helps clients prepare any required documentation. Pomor Shipping also offers agency services for passenger and research vessels.

In autumn of 2020 Pomor Shipping became a resident of the Arctic Zone. Its investment project is associated with the acquisition of a reinforced ice-class dry-cargo vessel with a deadweight capacity of 10,000 tons. This will be the company's first ship.

We spoke with CEO Anton Korobitsyn about his vision for the project and the history of Pomor Shipping.

From Spitsbergen to Japan

'Pomor Shipping was established in 2015. My business partner and I were working in the Arkhangelsk seaport and other ship-owning companies. We eventually decided to start our own business,' said Anton Korobitsyn, CEO of Pomor Shipping LLC. 'The initial investments were small, amounting to roughly RUB 300,000. We used these funds to lease an office and equipment. At first, we mainly transported cargo to Naryan-Mar and Sabetta. We were leasing ships, but the cost of lease was more than paid off by the shipment profits.

This profitability enabled us to quickly expand both our network of routes and our range of services.' Pomor Shipping delivers all types of cargo by all means of transport, excluding air. It has an extensive geographic network. According to Anton Korobitsyn, the company has shipped cargo everywhere from Spitsbergen to Japan.

However, the company still lacks its own fleet. While Pomor Shipping has a vehicle fleet of heavy-duty eighteen-wheeler trucks, it does not own any sea ships. As a resident of the Arctic Zone, Pomor Shipping will implement an investment project related to the acquisition of its first sea vessel. It will also oversee the reconstruction of a warehouse for packing the consolidated cargo.

Through Arctic ice

'We have prepared a business plan for the purchase of a reinforced ice-class sea vessel with a deadweight capacity of at least 10,000 tons. The dry cargo ship will operate in the Arctic region, particularly to transport general cargo to the gas condensate fields in Yamal. This project has allowed the company to become a resident of the Arctic Zone. We plan to invest RUB 192.5 million in the project and are prepared to bring in a co-investor. The total investments will amount to roughly RUB 300 million. The project will pay for itself in about 2.5 years. We have held preliminary talks with Gazprom, Sberbank and several leasing companies who are all interested in the implementation of our plans. As soon as we find a co-investor, I am certain that this business will go ahead quickly,' said Anton Korobitsyn.

The project will create 19 new jobs. As a resident, Pomor Shipping will pay more than RUB 400 million to various public budgets over 10 years. Following the implementation of this project, the company will increase its shipment volumes by 3.5 to 4 times, and profits are expected to grow tenfold. 'These figures take into account the benefits provided to the residents of the Arctic Zone,' said Anton Korobitsyn.

'Even when we were applying for residency, we received immense support. The Regional Development Agency helped us prepare the paperwork,' added Anton Korobitsyn. 'In terms of preferences, as residents, we are especially interested in the strong tax benefits, reduced rates for leasing and the customs preferences since we are also involved in international cargo transportation. As we understand, our specific customs privileges will be known by the end of this year.'