As Arctic ice melts, polluting ships stream into polar waters

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The Northern Sea Route, which traces the coasts of Siberia and Norway, allows cargo ships to cut at least 10 days sailing between Europe and Asia. (Shutterstock)
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The Arctic has been warming at least twice as fast as other regions. (Reuters)
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Updated 29 August 2020
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As Arctic ice melts, polluting ships stream into polar waters

  • The region is covered by far weaker regulations than the waters of the Antarctic

LONDON: Traffic through the Arctic’s busiest lane along the Siberian coast increased 58 percent between 2016 and 2019. Last year, ships made 2,694 voyages on the Northern Sea Route, according to data collected by researchers from the Center for High North Logistics at Norway’s Nord University.

The trade is driven by commodities producers — mainly in Russia, China and Canada — sending iron ore, oil, liquefied natural gas (LNG) and other fuels through Arctic waters.
Even the COVID-19 pandemic, which has significantly slowed shipping worldwide as supply chains have been disrupted, has not prevented traffic increasing on the Arctic artery. Ships made 935 voyages in the first half of 2020, up to the end of June, compared with 855 in the same period last year, the data shows.
The increase in shipping is a worry for the environment. As those heavy ships burn fuel, they release climate-warming carbon dioxide as well as black soot. That soot blankets nearby ice and snow, absorbing solar radiation rather than reflecting it back out of the atmosphere, which exacerbates warming in the region.
The Arctic has already warmed at least twice as fast as the rest of the world over the past three decades. With the region’s warming rate increasing in recent years, governments are gearing up for a future of open Arctic waters.
“The driving concern is the reduction of Arctic sea ice and the potential for more shipping,” said Sian Prior, lead adviser with the Clean Arctic Alliance. “We are already seeing that happen.”
LNG tankers make up the largest proportion of traffic on the Northern Sea Route. They alone burned 239,000 tons of fuel in 2019, versus only 6,000 tons in 2017, according to previously unpublished data collected by the non-profit International Council on Clean Transportation and shared with Reuters.
The Northern Sea Route, which traces the coasts of Siberia and Norway, is the region’s busiest artery. It allows cargo ships to save at least 10 days sailing between Europe and Asia, shipping specialists estimate. The route is about 6,000 nautical miles shorter than sailing via Africa, and 2,700 nautical miles shorter than going through the Suez Canal.
That shortcut drew ships to make the 2,694 voyages in 2019, up from 2,022 in 2018, 1,908 in 2017 and 1,705 in 2016, according to Nord University’s Center for High North Logistics. Those trips are made each year by just 200-300 ships.
This year, unusually warm weather over northern Russia caused an early retreat of sea ice from Siberia.

FASTFACTS

● The Arctic has already warmed at least twice as fast as the rest of the world over the past three decades.

● As melting sea ice opens the Arctic to navigation, more ships are plying the loosely regulated polar waters, bringing increasing amounts of climate-warming pollution, a Reuters analysis of new shipping and fuel-consumption data shows.

That heatwave, which scientists have linked to climate change, had opened up the Northern Sea Route by the second half of July, marking the earliest complete thaw of that area yet recorded, scientists at the University of Colorado Boulder’s National Snow and Ice Data Center have said.
As summertime heat shrinks the sea ice further, traffic is expected to become even heavier.
Last year, September was the region’s busiest month in terms of the number of ships navigating the route, with 34 vessels passing though compared with 29 in August, according to data from shipping intelligence platform MarineTraffic.
Traffic beyond the Northern Sea Route is also rising.
A total of 1,628 ships entered the Arctic region, outside that route, in 2019, up 25 percent from 2013, a study by the intergovernmental Arctic Council working group showed.
“We have seen constant growth (in shipping) over the last several years,” said Kjell Stokvik, managing director of the Center for High North Logistics. This trend will continue as long as there is demand for fuel and mineral cargoes across the global market, he added.
Russia in particular is driving trade through the region by developing energy and mineral projects in the Arctic, Stokvik said. President Vladimir Putin has set a target of transporting 80 million tons of cargo annually via the Northern Sea Route by 2025, more than twice what it ships today.
Also of concern for environmentalists is the risk of fuel spills in Arctic waters, where the harsh conditions make clean-up efforts especially challenging and spills could have devastating impacts on sensitive ecosystems.
The 1989 crude oil spill by the Exxon Valdez tanker off southern Alaska spread out for months over 1,300 miles (2,100 km) of coastal wilderness, killing marine animals and plants throughout Prince William Sound.
The accident, considered one of the worst human-caused environmental disasters, led to new rules requiring double-hulled ships in the region.
But while Antarctic waters are protected by stringent regulations, including a ban on heavy-grade oil adopted in 2011 — despite no cargo moving through those turbulent southern waters — the rules for sailing the Arctic are far looser.
Waters at both poles are governed by the International Maritime Organization’s (IMO) Polar Code, and ships are “encouraged” to avoid using or carrying heavy fuel oil in the Arctic.
The IMO is pushing for a full ban on both the use and carriage of heavy fuel oil through the Arctic by 2024. “The approach is to take action to mitigate any potential negative (environmental) impact,” an IMO spokeswoman told Reuters.
Environmentalists note, however, that the draft rules being negotiated by member states currently include a clause to exempt ships flagged to countries with Arctic coastlines while operating in those waters until 2029.
That exemption would end up applying to some of today’s most active Arctic shippers, including Russia and Canada. Such “big loopholes” would make the regulation “virtually meaningless,” said Prior, of the Clean Arctic Alliance.
“A significant amount — probably three-quarters or more — of the shipping currently using the Arctic will not need to apply the ban until July 1, 2029, if it remains as currently drafted,” Prior said.
When asked about whether such exceptions would undermine the proposed regulation, the IMO spokeswoman said: “These are decisions made by the member states following discussion in the relevant fora.”


MODON inks $453m in private sector deals to expand Saudi industrial cities

Updated 12 sec ago
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MODON inks $453m in private sector deals to expand Saudi industrial cities

JEDDAH: Saudi industrial cities are set for further growth as the sector's authority revealed it has signed 23 development contracts with the private sector, valued at over SR1.7 billion ($453 million). 

The agreements, announced by the Saudi Authority for Industrial Cities and Technology Zones, or MODON, encompass a wide range of projects aimed at boosting industrial capabilities.  

These include the expansion of industrial cities, the construction of ready-made factories, the enhancement of MODON’s safety and security systems, and initiatives aligned with the National Industry Strategy.  

Additionally, the projects will address water and irrigation needs, improve water treatment facilities, upgrade electricity services, and expand road networks. 

MODON’s latest contracts highlight the growing role of the private sector in supporting Saudi Arabia’s ambitious Vision 2030 goals, which emphasize economic diversification, local production, and the creation of an attractive environment for both domestic and foreign investment.  

The projects are expected to enhance the competitiveness of Saudi industrial cities, foster greater investment, and improve operational efficiency for businesses. 

The agreements will also contribute to regional development, improve environmental sustainability, and promote vegetation growth, MODON stated in a post on its X account. 

The development of these projects is in line with Saudi Arabia’s broader efforts to build a dynamic and innovative economy. 

This move follows a previous round of agreements in July, when MODON signed nine contracts valued at SR1 billion to enhance infrastructure and service facilities across various industrial hubs. Key initiatives from that round included the development of infrastructure in Makkah’s and Jeddah’s industrial cities and the installation of 132-kilovolt overhead power lines in Tabuk’s industrial city. 

Looking ahead, MODON plans further expansion with projects that will improve electrical services, such as the construction of 115-kV overhead power lines in Hafr Al-Batin’s industrial city. The authority is also focusing on enhancing infrastructure networks for the first and second phases of Dammam’s Third Industrial City. 

Since its establishment in 2001, MODON has overseen the development of 36 industrial cities and is responsible for managing both operational and under-construction industrial lands across the Kingdom.  

In the first quarter of 2024, MODON attracted SR3.4 billion in private sector investments, signed 142 new industrial contracts, and registered a total of 6,758 factories. 

As part of its commitment to sustainable growth, MODON also planted over 576,000 trees and finalized 335 logistics contracts, underscoring its broader environmental and economic development objectives.


2.25m freelancers in Saudi Arabia join national economy

Updated 27 min 30 sec ago
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2.25m freelancers in Saudi Arabia join national economy

  • The 25— 34 age group is particularly active in freelancing
  • 62% of freelancers hold bachelor’s degrees

JEDDAH: Freelancing is emerging as a key contributor to Saudi Arabia’s economy, with over 2.25 million individuals registered on the freelance platform by September.

This growth reflects the rising popularity of flexible work, supported by the Ministry of Human Resources and Social Development’s launch of the “Future Work” company in 2019 to enhance the freelancing ecosystem by promoting modern workstyles, including remote work and flexible-hour freelancing.

The company’s mission is to create more job opportunities, empower Saudi talent, and develop a labor market that complements traditional employment while aligning with global trends, according to the Saudi Press Agency.

Freelancers make a notable contribution to Saudi Arabia’s economy. In 2023, the sector contributed SR72.5 billion ($19 billion) to the gross domestic product, representing 2 percent of the Kingdom’s total output. This highlights its role in diversifying income sources and strengthening the national economy.

The initiative, along with other efforts, has contributed to reducing the Kingdom’s unemployment rates. Saudi Arabia has revised its unemployment target to 5 percent by 2030, down from the previous goal of 7 percent, as part of Vision 2030’s ambitions.

The progress was highlighted by Minister of Human Resources and Social Development Ahmed Al-Rajhi during a panel discussion at the Budget Forum 2024 in November, where he detailed the Kingdom’s strides in improving employment figures. Al-Rajhi said that the unemployment rate among Saudis was 12.8 percent in 2018, and it has recently dropped to 7.1 percent.

The Ministry of Human Resources and Social Development issues freelance certificates to individuals specializing in specific fields, enabling them to work independently in activities approved by the ministry through the official freelance portal.

A recent report from Future Work highlights the sector’s rapid development and its alignment with Vision 2030. The report also emphasizes the diverse nature of freelance activities, with trade and retail leading at 38 percent, followed by industry at 13 percent and business services at 11 percent. The diversity demonstrates the sector’s adaptability to meet various economic needs.

Freelancing accommodates individuals with different educational backgrounds. According to the report, 62 percent of freelancers hold bachelor’s degrees, while 31 percent have high school diplomas or less, and 7 percent possess higher degrees.

Technology plays a pivotal role in the sector’s growth, with digital platforms becoming indispensable for freelancers, especially in fields like technology, information, and finance. These tools enhance productivity and connectivity, fostering sustainability and success in freelance careers.

Geographically, the Riyadh region accounts for the largest share of freelancers at 27 percent, followed by Makkah at 22 percent, and the Eastern Province at 14 percent.

The 25— 34 age group is particularly active in freelancing, reflecting the younger generation’s growing interest in this flexible career path.

The report said that 3.2 million women have expressed interest in joining the freelance market, underscoring the effectiveness of initiatives aimed at enabling women to balance professional and personal commitments.

Government programs like Reef, the Social Development Bank, and the Human Resources Development Fund further support freelancers by fostering an environment conducive to their growth and success, SPA reported.


Saudi Arabia’s food & beverage sales drive $3.14bn in consumer spending

Updated 42 min 13 sec ago
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Saudi Arabia’s food & beverage sales drive $3.14bn in consumer spending

  • Restaurants and cafes topped the list with SR1.69 billion in transactions: SAMA data

RIYADH: Saudi Arabia’s consumer spending reached SR11.8 billion ($3.14 billion) in the week of Dec. 15 to Dec. 21, with the food and beverage sectors continuing to lead in sales, official data showed. 

Despite a slight overall decline of 8.1 percent from the previous week, key sectors, especially dining and food, showed consistent performance, according to data from the Saudi Central Bank, also known as SAMA.  

The restaurants and cafes sector topped the list with SR1.69 billion in transactions, despite a 13.9 percent weekly dip. Food and beverage spending followed closely, settling at SR1.69 billion as well, reflecting a 9 percent decrease. These categories, however, maintained their dominance in consumer expenditure. 

The overall decrease in consumer spending is attributed to the timing of salary disbursements, traditionally paid on the 27th of each month, which typically leads to lower spending in the preceding weeks.  

Additionally, the winter holiday season, during which many expatriates travel home, further influenced the dip in domestic spending. 

Other sectors saw more moderate drops. The value of clothing and footwear transactions fell by 5.2 percent to SR864.15 million, while construction and building materials recorded a small 0.9 percent decline, totaling SR355 million.  

The electronics and electric devices sector saw an 8.7 percent weekly decrease in value, while gas stations and health-related sales also experienced declines of 9.4 percent and 7.3 percent, respectively. 

Jewelry sales recorded a 14.4 percent drop in transaction volumes, with a slight 3.9 percent decrease in value. Miscellaneous goods and services saw a 9.1 percent reduction in sales, totaling SR1.4 billion. 

Regional breakdown  

Regionally, Riyadh remained the largest market with a POS value of SR4.2 billion, although this represented a 6 percent decrease compared to the previous week.  

Jeddah saw a 7.5 percent drop to SR1.6 billion, while Dammam recorded a slight 3.6 percent decline to SR617.5 million. 

Among smaller cities, Hail experienced the largest decrease, with spending down 14.8 percent to SR169.6 million, and a 12.2 percent reduction in transaction volumes. Makkah recorded a 4.4 percent decline in value, settling at SR502.8 million, while Tabuk saw a 12.8 percent decrease in transaction value to SR210.4 million. 

Despite the seasonal slowdown, the food and beverage sectors continue to drive the market, maintaining a steady pace as consumer behavior shifts with the winter season. 


Saudi Arabia leverages project management to achieve Vision 2030 milestones

Updated 25 December 2024
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Saudi Arabia leverages project management to achieve Vision 2030 milestones

RIYADH: In Saudi Arabia’s pursuit of the ambitious goals set out in Vision 2030, project management has emerged as a key enabler, ensuring that planning aligns seamlessly with execution to achieve transformative outcomes.

This vital discipline is playing a crucial role in turning visionary ideas into reality, as highlighted during a prominent forum held on Tuesday.

The event emphasized the central role of project management in realizing Vision 2030, a comprehensive framework launched in 2016 by Crown Prince Mohammed bin Salman.

The vision aims to diversify the economy and reduce the Kingdom’s dependence on oil. Currently, over 5,000 projects, valued at $5 trillion, are underway, signaling Saudi Arabia's substantial progress in reshaping both its economic and social landscapes.

“Project management is the bridge where vision meets ambition, converting plans into tangible results,” said Badr Burshaid, chairman of the Global Project Management Forum.

He also pointed to the Kingdom's significant investment in human capital, particularly through initiatives such as the Human Capability Development Program, which has placed Saudi Arabia among the top 10 nations globally in equipping professionals with essential business skills.

The forum highlighted the importance of strategic execution in driving economic transformation.

Badr Al-Dulami, deputy minister of transport and logistics services for roads affairs, described project management as the “pulse of transformation,” underscoring its role in fostering competitiveness and innovation.

“This summit is not just an event but a platform for uniting expertise and driving collaboration,” Al-Dulami said.

During the forum, excellence awards were presented to pioneering projects that exemplify Vision 2030’s focus on innovation, sustainability, and impactful outcomes.

Al-Dulami noted that these awards serve as an invitation to explore new horizons of creativity while staying aligned with national objectives.

Saudi Arabia’s success under Vision 2030 is evident across several key sectors. With 87 percent of initiatives either completed or on track, the Kingdom has made significant strides in improving its business environment, generating employment, and advancing major projects like NEOM and the Red Sea Project.

These achievements not only demonstrate Saudi Arabia’s strategic capabilities but also highlight its leadership in executing large-scale initiatives.

In closing, Burshaid urged participants to harness the insights and momentum gained from the forum to ensure continued progress.

“The seeds planted today will grow into achievements that inspire future generations,” he said, encouraging stakeholders to prioritize innovation and collaboration as Saudi Arabia moves forward.

With project management at the heart of Vision 2030, Saudi Arabia is setting a global benchmark for strategic execution and sustainable development, solidifying its role as a leader in transformative growth.


Egypt and Jordan discuss collaborations in natural gas

Updated 25 December 2024
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Egypt and Jordan discuss collaborations in natural gas

  • Two parties explored ways to exploit shared expertise and resources
  • It aligns with both countries’ national security and sustainable development strategies

RIYADH: Cooperation in energy and natural gas between Egypt and Jordan is set to grow as the North African country’s Minister of Petroleum and Mineral Resources Karim Badawi met with the Jordanian Minister of Energy and Mineral Resources, Saleh Kharabsheh.

The talks at the Ministry of Energy and Mineral Resources in Amman revolved primarily around diversifying energy sources and propelling natural gas projects, the Jordanian news agency Petra reported.

This aligns with both countries’ national security and sustainable development strategies.

During the meeting, the two parties explored ways to exploit shared expertise and resources to implement future projects that are projected to yield positive economic returns and further strengthen regional cooperation.

The meeting came during Badawi’s visit to Jordan, during which he assessed the plans and operations of the Jordanian-Egyptian Fajr Co. in developing the natural gas infrastructure in Jordan.

The visit underlined the strategic importance of the 500-kilometer main gas network stretching from southern to northern Jordan. 

Badawi also evaluated the progress in enhancing the network’s capacity and related facilities during his stay.

The Egyptian minister reviewed the current and upcoming projects by Egyptian petroleum sector companies planned for implementation in Jordan. 

He highlighted the importance of accelerating these initiatives to maximize the economic and environmental benefits of natural gas use across various sectors in Jordan. 

Badawi’s visit to Jordan underscores the strong ties and fruitful collaboration between the two nations.