Daria Gritsenko

Governing shipping externalities: Baltic ports in the process of SOx emission reduction

This paper analyses the debate which has unfolded in the Baltic Sea Region regarding the reduction of sulphur content in vessel fuels, in order to illustrate how tightening environmental regulation challenges traditional forms of maritime governance. Using an interactive governance approach, this study reconstructs the process of sulphur emission reduction as a complex multi-stakeholder interaction in multiple contexts. The empirical investigation has drawn on documentary material from around the Baltic region, including Russia, and has applied the method of qualitative content analysis. The empirical study focuses on two interlinked questions: (1) How sulphur emission reduction policies are being anticipated by maritime industry, in particular by Baltic ports and (2) How port adaptation strategies are tied into Baltic local and energy contexts. Addressing these questions highlights the role of polycentricity in shipping governance and explains how the same universal international regulations can produce varying patterns of governance. The paper concludes that policy-making shall take an account of the fact that the globalized shipping industry is nevertheless locally and sectorally embedded.

A review of Russian ice-breaking tariff policy on the northern sea route 1991–2014

In recent years, interest in the economic potential of the Arctic has been mounting, facilitated by environmental developments caused by climate change. In this context, the viability of shipping in Arctic waters is pivotal. This article explores the interplay of market considerations and the non-market drivers (climatic, navigational and political components) regarding the viability of the most prominent Arctic shipping route, the northern sea route (NSR), as a global shipping route. In particular, it concentrates on the Russian ice-breaking tariff policy on the NSR and presents a review from 1991, when the route was officially opened to international shipping, until 2014. The study integrates qualitative and longitudinal quantitative data related to NSR traffic, ice-breaking tariffs and ice conditions. The paper shows that the ice-breaking fees play a key role for the functioning of the NSR by providing a source of funding for the ice-breaking fleet, which constitutes a basis for safe shipping. However, the development of the NSR into a competitive transcontinental shipping route is determined by a dynamic mixture of factors in which the Russian ice-breaking fee represents an additional cost item for shipping companies and shippers. It is argued that the development of ice-breaking tariff policy has been guided by structural changes in external factors consequently influencing the demand for ice-breaking services (a derivative of NSR demand), which limits the extent to which tariff policy influences the attractiveness of the NSR in a global context.

The Russian Dimension of Baltic Maritime Governance

This paper seeks to reconstruct the development of Baltic maritime governance by filling in the gap in the systematic study of Russian maritime policy. In a review of historical, administrative, economic, and political facets of Russian maritime policy, the paper identifies the logic of “greatpowerness” underpinned by the category of “national interest” as its main driver. In this overall logic, cooperation with the EU in maritime affairs is a part of larger Russia’s EU politics. Thus, Baltic maritime governance depends on the ability of the EU and Russia to maintain constructive relations beyond the scope of the maritime domain.

The impact of the Polar Code on risk mitigation in Arctic waters: a “toolbox” for underwriters?

ABSTRACT The existing risk weighing on vessel, crew and ecosystem in the Arctic and more globally in Polar waters promoted the adoption of the Polar Code (PC) early 2017, a mandatory international legal framework intended for enhanced safety and environmental protection. While the substance of the PC has been extensively analyzed, few studies have focused on the underlying relationships between the PC and underwriters. Based on an extensive literature review, documentary materials and interviews with insurance companies, this article conceptualizes the PC as a “toolbox” and analyzes how underwriters can exploit it in their work within the emerging Arctic market. The PC does not only regulate the navigation in Arctic waters in legal terms, but is also aimed at mitigating risks in the Polar areas through the identification of hazard sources and proceduralization of risk assessment. As a result we observe a certain “Polar Code paradox”. Even though the PC is a risk-based instrument and constitutes a key step for improving ship insurability, it has only limited capacity to assist underwriters in assessing risks and insuring vessels. Marine insurers still face a lack of data and high pending uncertainties leading them to exercise extreme caution with Arctic risks appraisal.

Policy environment analysis for Arctic seaport development: the case of Sabetta (Russia)

ABSTRACT In this paper, a structuration model is developed to evaluate opportunities and constraints that may arise for a port authority operating a port in the Arctic. The study builds upon the new institutionalist approach to transport infrastructure policy. It argues that given the specificity of operational conditions in the Arctic, as well as the expectations of the resource-driven future transformations, the conventional port development models cannot accurately depict factors of Arctic port activity. The proposed structuration approach focuses on how four dimensions of the policy environment (physical, economic, institutional, and environmental) enable and constrain policy choices available to a port authority. Application of this model to the case of Sabetta, a deep-sea multi-functional port constructed in the Ob estuary of the Yamal peninsula (Russia), demonstrates the inextricable links between actions and institutions and pinpoints the uncertainty factors that affect Arctic port development ‘from scratch’. The practical objective of this research is to introduce a dynamic multi-factor model for systematic evaluation of the policy environment in Arctic port development. Given that industrial activities in the Arctic region will proceed at the current speed or accelerate, lessons learned from the case of Sabetta will be relevant to other port infrastructure projects in the Arctic.