The Svalbard archipelago: an exploratory analysis of port investment in the context of the new arctic routes
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RESEARCH
The Svalbard archipelago: an exploratory analysis of port investment in the context of the new arctic routes Elizabeth Nyman 1
&
Cassia Bomer Galvao 2 & Joan Mileski 2 & Rachel Tiller 3
Received: 24 October 2018 / Accepted: 16 May 2019 # Springer-Verlag GmbH Germany, part of Springer Nature 2019
Abstract The Svalbard archipelago, located in the Arctic Ocean, is administered by Norway through the 1920 Svalbard Treaty. There is a dearth of research investigating Svalbard’s economic development and associated political challenges. Due to its strategic location, the increasing activities of oil/gas exploration development and the possibilities of new routes to and from Europe and Asia using the Arctic passage, Svalbard represent a new potential development area within a new efficient transport route. The aim of this paper is to investigate Svalbard’s port development strategy. We explore this in three steps: what currently exists at Svalbard in terms of trade, traffic, infrastructure, and governance; what are future plans; and what are the possibilities. We address these issues with the support of the OLI (ownership-location-internalization) paradigm that works as a framework analysis to four main drivers of FDI (foreign direct investment) attraction: resources, market, efficiencies, and location. This is exploratory case study research using archival data from the Port of Longyearbyen Authority, Governor’s Office, and Longyearbyen Community Council. The findings indicate that the strategic plan for port development at Svalbard should emphasize their location to attract investment. Further research is required to address the institutional environment and other legal aspects. Keywords Svalbard . Port development . OLI paradigm . Port of Longyearbyen . Arctic geopolitics
Introduction Since the establishment of 200-mi economic zones (EEZ) in 1977, the paradigmatic shift from freedom of the seas to the partial closing of the commons represents a paramount example of state intervention in the environmental resource extraction industry globally. Since then, the complexity of the ocean
* Elizabeth Nyman [email protected] * Rachel Tiller [email protected] Cassia Bomer Galvao [email protected] Joan Mileski [email protected] 1
Maritime Studies Program, Department of Liberal Studies, Texas A&M University at Galveston, Galveston, TX 77554, USA
2
Department of Maritime Administration, Texas A&M University at Galveston, Galveston, TX 77554, USA
3
SINTEF Ocean, 7052 Trondheim, Norway
governance framework that has increased considerably with the effects of climate change especially in the Arctic may arguably demonstrate an unpreparedness of states that will lead to unknown effects on global ocean governance (Pinsky et al. 2018). One of these effects of climate change through rapid environmental change is a reduction in sea ice cover, which in turn may potentially increase shipping activities in this region. Increased water temperatures can also lead to poleward shift of fish species (Gattuso et al. 2015; Fo
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