Rules of icebreaker assistance and the NSR s tariff system

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The Arctic 2030 Project: Feasibility and Reliability of Shipping on the Northern Sea Route and Modeling of an Arctic Marine Transportation & Logistics System 1-st Industry Seminar: NSR s Legislation, Tariff System & Insurance Rules of icebreaker assistance and the NSR s tariff system Mr. Sergey Balmasov, Head of CHNL s NSR Information Office (sergey@chnl.no) Thursday 25 June, 2015, Oslo.

Rules of navigation in the water area of the NSR III. Rules of the icebreaker assistance of ships in the water area of the NSR Information on the necessity to use the icebreaker is provided by the NSR Administration in the Permission. Icebreaker assistance is rendered by the icebreakers authorized to navigate under the State flag of the RF. Icebreaker assistance involves ensuring safety of navigation for ships being in the zone covered by radio communication with icebreaker on VHF channel 16 including following: Ice reconnaissance by icebreaker Making channels in ice Formation of a group of ships and allocation of ships following the icebreaker Sailing of ship through the channel behind icebreaker in tow Sailing without towing in the independent mode or within a group of ships.

Rules of navigation in the water area of the NSR III. Rules of the icebreaker assistance of ships in the water area of the NSR The ice convoy is under control of master of the icebreaker. Master of ship while moving in the ice convoy has to ensure: Placing the ship within the convoy in compliance with the instruction of master of the icebreaker; Abidance by ship of the place within the ice convoy, ship s speed and distance to a ship ahead Fulfillment of the instructions of master of the icebreaker in connection with the icebreaker assistance; Immediate transfer to the icebreaker of the information about the impossibility to maintain the place fixed for ship within the ice convoy, speed and/or distance to other ship in the ice convoy Verification of water level in bilge wells every hour and after powerful impact of ship against ice; Immediate transfer to the icebreaker of the information about damages inflicted on ship.

FEDERAL LAW NO. 132-FZ Federal Law No. 132-FZ Main changes Federal Law On Natural Monopolies Icebreaker assistance and ice pilotage services included under the sphere of Natural Monopolies of Russian Federation. The amount of payment is determined based on vessel s GRT, ice class, distance (number of NSR zones) and navigation season. Payments effected only based on the amount of services actually delivered.

2) Navigational season 1) GRT 3) Ice Class 4) Distance??? (number of NSR zones)

GRT

Zones of the NSR: 4) Distance??? number of NSR zones (1-7) where icebreaker escorting services were actually provide

NSR tariff system Art. 234 of the Convention not only grants the special rights to the subarctic states, but also imposes special responsibility for safety of the marine environment on them. The icebreaking fleet has to be in a condition of constant readiness as for performance of the state functions, and icebreaking pilotage, emergency and rescue situations, elimination of possible spills, etc. Russian ship-owners insisted on the notion in the Federal Law No. 132-FZ to pay only for the rendered services. And if clear water and the ice breaker wasn't required, it isn't even necessary to pay for the ice breaker. The cost of the maintenance of the nuclear icebreaking fleet in a stand by position differs little from their cost while operating them. However payment according to the Law is raised only for performance of concrete icebreaking pilotage. It is necessary to pay for icebreaking pilotage in the water area of the Northern Sea Route according to tariffs of the FTS, while outside this water area payment can be made on the basis of the contract with the operator of icebreaking fleet.

Theoretical tariff calculation http://www.arctic-lio.com/nsr_tariffsystem 1 USD = 35 RUR / 20 June 2014 1 zone 2 zones 3 zones 4 zones 5 zones 6 zones 7 zones Summer period GRT Cargo mt «Varzuga» Arc 5 11 290 13 658 3 995 530 8,4 4 794 637 10,0 5 593 743 11,7 6 392 849 13,4 7 191 955 15,0 7 991 061 16,7 7 991 061 16,7 mt «SCF Yenisei» Arc 4 29 844 36 000 8 001 474 6,4 9 601 710 7,6 11 201 945 8,9 12 802 180 10,2 14 402 415 11,4 16 002 651 12,7 16 002 651 12,7 mv «Nordic Orion» Arc 4 40 142 66 000 8 968 525 3,9 10 762 471 4,7 12 556 016 5,4 14 349 560 6,2 16 143 506 7,0 17 937 051 7,8 17 937 051 7,8 LNGC «Arctic Aurora» Arc 4 102 236 113 826 13 704 735 3,4 16 445 682 2,6 19 186 630 4,8 21 927 577 5,5 24 668 524 6,2 27 410 493 6,9 27 410 493 6,9 1 USD = 55 RUR / 20 June 2015 1 zone 2 zones 3 zones 4 zones 5 zones 6 zones 7 zones Summer period GRT Cargo mt «Varzuga» Arc 5 11 290 13 658 3 995 530 5,3 4 794 637 6,4 5 593 743 7,4 6 392 849 8,5 7 191 955 9,6 7 991 061 10,6 7 991 061 10,6 mt «SCF Yenisei» Arc 4 29 844 36 000 8 001 474 4,0 9 601 710 4,8 11 201 945 5,7 12 802 180 6,5 14 402 415 7,3 16 002 651 8,1 16 002 651 8,1 mv «Nordic Orion» Arc 4 40 142 66 000 8 968 525 2,5 10 762 471 3,0 12 556 016 3,5 14 349 560 4,0 16 143 506 4,4 17 937 051 4,9 17 937 051 4,9 LNGC «Arctic Aurora» Arc 4 102 236 113 826 13 704 735 2,2 16 445 682 2,6 19 186 630 3,1 21 927 577 3,5 24 668 524 3,9 27 410 493 4,4 27 410 493 4,4 Calculation results are maximum costs and are given for information only. Ship s particulars and load capacity are given just as examples without guarantee. Availability and costs of icebreaker escorting services to be clarified with Rosatomflot.

Thank you