South Korea eyes new bid to encourage box shipping via the Arctic
Container shipping through the Northern Sea Route may only show profits after 2040 – due ...
By Alison Koo
South Korea and China are both racing to develop trade corridors to Europe via the Arctic.
State-backed ship finance institution Korea Ocean Business Corp (KOBC) said on Tuesday it had launched an organisation to explore the Arctic as a short-cut from Busan to Rotterdam.
It sees the Northern Sea Route (NSR) as an alternative to detours round the Cape of Good Hope, reducing Busan-Rotterdam voyages by 10 days, as well as saving on fuel.
KOBC said: “With the recent disruptions in the Suez Canal and Red Sea tensions, the Arctic’s value as a stable alternative is growing.”
It plans to tap into its government ties, maritime finance expertise, and network with local shipping companies, cargo owners, and shipbuilders to develop the NSR route.
And, KOBC said: “Once the Arctic project is completed, we plan to upgrade the southern part of our country into a maritime finance and logistics hub.
“By combining Busan and Ulsan ports and the shipbuilding industry, we aim to create an industrial cluster encompassing construction of ice-class ships, port operations and the supply of sustainable marine fuels.”
A fortnight ago, minister for oceans and fisheries Jeon Jae-so announced that a container shipping route would be trialled through the Arctic next year, the first time in a decade for South Korea since Hyundai Glovis halted its tanker trips in 2016.
Meanwhile, in China, Nanjing, a port on the Yangtze River, carried out its maiden container voyage to Europe via the Arctic.
Last Thursday, the 2,826 teu Honwell left the Longtan Port Terminal carrying lithium batteries and automobile parts. The vessel appears to be dedicated to Russian trades, ith tracking data showing it regularly calls at St Petersburg.
The Nanjing municipal government said: “The Arctic is the golden waterway, as it could shorten sailing distances between Asia and Europe by more than 3,000 nautical miles. We hope this route will lead to more opportunities for Chinese and European businesses.”
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