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Cooperative Arctic Seaway: Ensuring Safe, Secure, and Reliable Maritime Activity in the Arctic

This report discusses pending US legislation for the establishment of a congressionally-chartered Arctic Seaway Infrastructure Development Corporation. The legislation aims to create a tariff-based seaway that promotes safe, secure, and reliable Arctic maritime activity. It highlights the need for infrastructure development, collaboration with stakeholders, and protection of the environment. The report builds upon the work of the Arctic Circle's Mission Council on Shipping and Ports, as well as previous agreements and regulations related to Arctic shipping.

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Cooperative Arctic Seaway: Ensuring Safe, Secure, and Reliable Maritime Activity in the Arctic

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  1. Time for a Cooperative Arctic Seaway? A report on pending US legislation Mead Treadwell, Chair Arctic Circle Mission Council on Shipping & Ports Co-chair, Polar Institute of the Woodrow Wilson Center  Bodo, Norway  -- April 3, 2019

  2. Alaska Governor Mike Dunleavy, right, 3.26.19, explains the challenge of financing the Alaska Marine Highway and announces a study of Public Private Partnerships to keep the system running. An opportunity for Hurtigruten?

  3. The Arctic Circle is the largest network of international dialogue and cooperation on the future of the Arctic. It is an open democratic platform with participation from governments, organizations, corporations, universities, think tanks, environmental associations, indigenous communities, concerned citizens, and others interested in the development of the Arctic and its consequences for the future of the globe. It is a nonprofit and nonpartisan organization. Chairman Ólafur Ragnar Grímsson Chair of the Board,                 Chair of Arctic Shipping Mission Alice Rogoff                              Council, Mead Treadwell

  4. The Arctic Circle Mission Council on Shipping and Ports recommends Arctic states and Observer Nations work together to create a tariff-based seaway that ensures Arctic Ocean activity is:  SAFE!                  SECURE!             RELIABLE!

  5. Summary of the legislation • Purpose: Establishes a congressionally chartered seaway development corporation in the Arctic.  • What does this legislation do? • The bill creates a U.S. Arctic Seaway Infrastructure Development Corporation. The Corporation will work with representatives from the National Oceanic and Atmospheric Administration (NOAA), the State Department, the U.S. Coast Guard, and Department of Transportation (DOT)—as well as representatives from the State of Alaska, the Alaskan business community, Alaskan coastal and subsistence communities, and the Alaskan maritime labor organizations—to develop services to Arctic shipping that are necessary for safe, secure, and reliable Arctic maritime activity.    • What authorities will be granted to the Corporation? • The legislation will authorize the Corporation to collect voluntary maritime shipping fees—consistent with customary international law– to help fund the infrastructural and environmental demands of safe and reliable shipping in the Arctic Region. • It authorizes the Corporation to work with the Army Corps of Engineers, the State of Alaska, and regional port authorities, to construct deep-water port facilities within the U.S. Arctic Region.   • It requires that the Corporation collaborate with the State of Alaska and the U.S. Coast Guard in providing facilities for icebreaker vessels operating in the Bering Sea and Arctic Ocean. • It requires the Corporation to work in partnership with Arctic residents and Arctic shippers to build an appropriate system that will support shipping in the Arctic in such a way that will protect the environment and biodiversity of the ocean Alaskans depend on for food. 

  6. More on the proposed law • Where does this language come from? • This legislation follows work commissioned by the Iceland based NGO Arctic Circle’s “Mission Council on Shipping and Ports.” • It builds upon the work the eight-nation Arctic Council has done to establish good rules for shipping in the Arctic through the International Maritime Organization, with the adoption of a mandatory Polar Code.  • It follows upon the 2011 creation of an Arctic-focused search and rescue agreement, the 2013 oil spill prevention and response agreement, and the 2017 science agreement.     • Why do we need this legislation? • Changes to the Arctic brought about by warming temperatures will inevitably result in an increase in international ship traffic in the Region. An increase in shipping means greater demand for services, and processes to ensure that Arctic shipping can be reliable for shippers who need to transport their goods from one place to another.  • Source: https://www.murkowski.senate.gov/download/seal-act-one-pager

  7. Eight Nations Set a Safety Agenda in 2009 Confidential and Proprietary

  8. Opening Seaways

  9. Our three basic goals: • Safety:   safe shipping in the Arctic requires infrastructure for ports of refuge...mapping and charting...ice reporting and forecasting, and ICEBREAKERS to assist when ice conditions require. • This bill has been called "Uber for Icebreakers." • Security:  An international presence in serving Arctic shipping, with full respect (and potential cooperation with) for the system Russia has in place, will attract greater usage of Arctic routes. • Reliability:  More resources means a dependable ocean, and dependable ocean shipping.

  10. International Arctic Seaway • Russia has Northern Sea Route Administration • Canada has Northwest Passage Rules • An international seaway can cooperate across administrations and support trans-Arctic shipping with an international fleet of ice breaker escorts

  11. St. Lawrence Seaway as a model

  12. Applying the St. Lawrence Model to the Arctic • Parallel legislation or international agreement to offer service • Revenue/Regulatory Model to support Icebreakers, Navigational Aids, Safety • Support from insurers, salvors • Respect legal differences in waters status; perhaps by invoking UNCLOS Article 234.

  13. Suez vs. NSREconomics Suez revenues: • $5.2 Billion/yr. • 17,000+ vessels • 1 billion tons Russian 2018 decree seeks 80 million tons/yr by 2024 CHNL reports 25 NSR transits in 2018

  14. Russia’s study of Northern Sea Route Economics suggests a shipping services market of close to $1 billion can arise, sufficient to support cooperative Seaway Development. Presented at Arctic Economic Council, February 2017

  15. Next steps: • US Congress will see legislation reintroduced, 2019 • Hearings will likely be held • Parliamentarians, shipping authorities, shipping firms from around the world will be asked to comment, and to identify whether legislation is needed in their nation. • Wilson Center, U.S. Arctic Research Commission, US Navy and others will convene a July 17-18 meeting on Arctic shipping, Washington, DC  • Congress, we hope, will act sometime in 2019-2020.

  16. Sign up to read our working papers and comment at: arcticcircleseawayreport.wordpress.com

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