According to Jeon Jae-so, Minister of Oceans and Fisheries, the city of Busan should be able to compete with the Chinese port of Shanghai as an East Asian starting point for shipping across the Arctic Ocean.
Jeon recently announced the establishment of an organization to develop Arctic shipping. This is in line with President Lee Jae-myung’s vision of using the NSR to open up additional sources of revenue for South Korean shipping companies and shipbuilders.
When Arctic shipping began in the 2010s, the South Korean government experimented with NSR. However, this was discontinued after only five voyages, all of which were carried out with icebreaking tankers from Hyundai Glovis. In the last decade, global warming has made Arctic shipping a realistic option as the ice melts sufficiently in summer.
USA and China expand Arctic shipping
Jeon pointed out that the US and China, the world’s two largest economies, are seeking dominance in the Arctic and South Korea “cannot afford” to be left behind. The minister said Busan would compete with the Chinese port of Shanghai as an important part of the NSR.
Acknowledging the higher costs, especially for operating icebreakers and insurance premiums, he said, “Shipping companies will be supported financially. Research indicates that the NSR could be open year-round by 2027 or 2030 due to global warming. Busan will have an advantage over Shanghai in international competition as other countries try to contain China’s expansion.”
However, China has taken the lead: Yangpu Newnew Shipping is now the most active NSR user and is even working with the Russian government agency Rosatom to invest in ports and ice-class vessels.
Jeon announced that his ministry will move to Busan to promote the development of Arctic shipping. “We will become the ‘icebreaker ministry’ and the ‘preacher of the Northern Sea Route’ that breaks through the Arctic ice,” he said. Jeon envisions the creation of an NSR economic zone starting in Yeosu-Gwangyang and running through Busan, Ulsan and Pohang. However, it is not known which South Korean container line will participate in the NSR.
HMM: “No interest in container shipping”
A spokeswoman for South Korea’s flagship shipping company HMM told HANSA that they are not interested in transporting containers through the Arctic. “We are examining various options, but consider bulkers to be more suitable than container ships for operating shipping routes in the Arctic Ocean,” it said.
One possible candidate could be Sinokor Merchant Marine, the only South Korean shipping company still operating routes to Russia.
Today, officials from South Gyeongsang Province, where Busan is located, held a seminar to discuss how to develop the port city as the center of South Korea’s maritime industry and the base port of the NSR.
Officials believe that the new Jinhae Port in Busan is best suited as a base port for the NSR. The port has 21 berths for large container ships and is close to the new Gadeokdo Airport, which will be completed in 2030.
