Arctic ra

ARCTIC RAILWAY
Rovaniemi––Kirkenes
Rovaniemi
Arctic railway, preliminary study
– Part of the development of transport and logistics connections in the
Arctic Corridor –strategy
– Goals
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Estimate of impacts on employment, economic life and environment
Estimate of the significance of using the railway in mining projects as well as regarding oil and
gas investments in the Barents area and opening of the Northern Sea Route
Preliminary estimate of the economic preconditions and alternatives of railway construction
Promotion of the market value and interest in the Arctic railway connection
– Study period: November 2009 – February 2010
– Nord-Lapland Regionråd, Kirkenes Næringshage and Ministry of
Employment and Economy participates in the financing of the work
– Consultants: Liidea Ltd & JT Con
NEW MINING PROJECTS IN
LAPLAND
• AEM, Suurikuusikko, Kittilä (Au)
• First Quantum Minerals, Kevitsa
(Ni, Cu)
• Lappland Goldminers Oy,
Pahtavaara (Au)
• Northland Resources, Sahavaara,
Tapuli, Pellivuoma, Hannukainen
(Fe, Cu, Au)
• Yara, Sokli (P)
• Anglo American, Sodankylä?
ARCTIC CORRIDOR
The EU’s most important link to the North
• The Arctic Corridor is an
international corridor from
Finland to Norway and Russia that
facilitates the development of
transport, energy management
and livelihoods
• The Arctic Corridor links Finland
and the Baltic Sea area to the
deep-water harbours of the Arctic
Sea, large production regions of
the oil and gas industry and the
western end of the Northern Sea
Route
Existing railway network
– The railway network is not
very extensive in the North
Calotte area: the railway network in Finland extends to
Kolari in western Lapland and
to Rovaniemi-Kemijärvi-Salla
line in eastern Lapland; in
Russia to Murmansk and Nikel
– Railway connection is planned
between Kirkenes and Nikel
– Main part of Lapland and the
whole northern Norway do
not have a railway network
and railway connections
Port of Kirkenes
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Port is located on the northern end of the Arctic Corridor and is included in
the national port development programme of Norway
Port is an important node for passenger traffic and the end point of Hurtigruten: regular, all-year traffic operations between Bergen and Kirkenes
Port has ore transport (2,9 million tonnes), fish transport and service
transport of oil and gas industry (total volume of other transport is 112 000
tonnes)
Deep-water channel and
all-year ice-free transport
services
Ready-made plans and
ongoing investments exist
for developing the port for
unit load transport
Already 2-3 billion crowns
have been invested in the
port
Jäämeren rata
Transport potential
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The Barents area has large raw material reserves – investments of almost 70 billion
euros have been planned in the area by the year 2015
Oil and gas industry as well as fish industry are experiencing strong growth in Norway
and Russia
Transport needs of extractive industry will significantly grow in Finnish Lapland: several
new and potential mining projects
Forest industry is strong in Lapland and it has significant transport needs which will
increase with stronger forest growth and increasing use of wood in energy production
Unique nature and climate as well as tourist resorts attract plenty of tourists to the
area, tourism has significant growth potential in the Saariselkä and Pyhä-Luosto areas
Utilization and processing of raw materials significantly increase the mobility needs of
labour force
Opening of the Northern Sea Route from Europe to Asia and to the Pacific Ocean
creates a significant opportunity to organize the logistics system of Finland and Europe
in a new way
Kuljetuspotentiaalit
Northern Sea Route
Source: YLE
Transport potential
Transport
potential
Mining industry
Forest industry
Tourism & commuting to work
Fish transport &
other freight
transport
Transport on the
Northern Sea
Route
before 2020
(railway to
Sodankylä)
500 000–800 000
tonnes
400 000–500 000
tonnes
800 000–1 000 000 tonnes
400 000–500 000 tonnes
1 train / day
1–2 trains / day
100 000 tonnes
0
300 000 tonnes
3–7 million tonnes (approx. 10% of
estimated container traffic volumes
between the Northern Baltic Sea
area and Asia will pass through the
port of Kirkenes)
40 million tonnes along the
Northeast Passage --> 0.4 million
tonnes shifted to the railway (1% of
oil and gas transport volumes)
20–40 trains / day
Oil & gas
TOTAL
by 2030
(railway to the Arctic Sea)
0
5–6 trains / day
Implementation and alternatives
of the railway
• Railway will be implemented in two phases: in the first phase to Sodankylä
and in the second phase to the Arctic Sea coast
• Railway will be built to standard which enables fast and cost-efficient
passenger and freight transport connections
– electrified single-track main railway
– axle load of 25 T
– speed of 140 km/h
• There are several conservation areas and sensitive areas with regard to natural
values in the impact area of the railway: railway alignments are planned to
follow the existing road traffic corridors as much as possible
• The usability, feeder connections, construction potential and impacts on
regional development have been considered in the identification of railway
alternatives
Railway alternatives
Estimates of construction costs
– 1A-2-3A: 1169–1606 M€
– 1A-2-3B: 1107–1523 M€
– 1B-2-3A: 1201–1650 M€
– 1B-2-3B: 1139–1567 M€
– In Finland total of 558–1038 M€
– In Norway total of 384–838 M€
– Kemijärvi–Sodankylä 173–238 M€
– Rovaniemi–Sodankylä 205–282 M€
– Sodankylä–Ivalo 256–352 M€
– Kolari–Sodankylä 222–306 M€
Economic preconditions
First implementation phase of the railway -2020
– Transport demand of mining activity and forest industry would
attract traffic volumes to the railway which correspond to the
existing freight traffic flows on several rail sections in Finland
– There will be sufficient transport demand if starting, planned
and other potential mines choose railway as their main mode of
transport and the volume of mining operations is high enough
– Raw wood transport and passenger traffic development potential of tourism resorts support the first implementation phase
of the railway
– Implementation of the railway can be argued for from the
viewpoints of promoting functional transport system, industrial
policy and regional policy
Second implementation phase of the railway -2030
– Transport volumes can grow significantly and even exceed rail
capacity
– Preconditions for implementation will also exist in the long run
for the second implementation phase of the Arctic railway, but
they are based on heavy assumptions on the use of the
Northern Sea Route and how the logistics system and transport
volumes will develop between Europe and Asia
– Implementation of the railway can be argued for based on the
above mentioned preconditions from the viewpoints of
industrial policy and national competitiveness