Norilsk Nickel fleet commenced direct cargo transportations to European ports

The Arctic fleet of OJSC MMC Norilsk Nickel (hereinafter – MMC Norilsk Nickel or the Company) consisting of five ice-reinforced Arctic vessels has commenced direct cargo transportation from the Dudinka port to the ports of Europe (Hamburg and Rotterdam).

Earlier, the exported metal products on the way from Dudinka to Europe were transported to Murmansk Sea Port. In Murmansk the export goods were unloaded and then shipped to Europe by third party vessels. That increased the delivery time of metal products by an average of ten days. Direct shipping will substantially shorten delivery time of metal products to European consumers and cut the Company’s shipping costs. The delivery time of metal products by a Norilsk Nickel vessel during the summer navigation period from Dudinka to Europe under favorable weather conditions will be 10 to 12 days (distance – 3000 miles).

The first trial voyage was performed by Talnakh ice breaker in July. By the beginning of September, three direct voyages were made with a total of 47,5 thousand tons of export metal products transported to Europe. On Monday, September 7, 2009, ice-breaker Monchegorsk will go on its direct voyage from Dudinka to Europe.

The fleet of Norilsk Nickel is expected to make 6 direct voyages to European ports until the end of this year (including the trip by Monchegorsk vessel). A total of 75 thousand tons of metal products is expected to be shipped. Such voyages will take place on a regular basis, including transportation of the Company’s cargos between Murmansk, Arkhangelsk and Dudinka ports.

Sergey Buzov, Deputy General Director, Head of Transport Logistics of MMC Norilsk Nickel, says that “the availability of our own fleet ensures transportation safety for the Company and allows a significant reduction of transport costs. Through the development of transportation logistics we can substantially shorten the pay-back period”.

As it was announced earlier, the Company received its first ice-class container ship in April 2006. The building of the fleet was completed by February 2009, and the Company now has five diesel-electric vessels. During their operation period the vessels demonstrated high functional qualities of an Arctic ship. The price of one vessel is close to EU 82 million.

Currently, MMC Norilsk Nickel is the only international company to own a unique Arctic fleet of five LV-7 class vessels of Norilsk Nickel type.