Both South Korea and China are working intensively on the development of trade corridors to Europe via the Arctic.
The state-sponsored South Korean ship financing company Korea Ocean Business Corporation (KOBC) has now announced the establishment of an organization to explore the Arctic as a shortcut from Busan to Rotterdam.
KOBC sees the Northern Sea Route (NSR) as an alternative to detours around the Cape of Good Hope and claims that the NSR will shorten voyages between Busan and Rotterdam by ten days and save fuel. “In light of the recent disruptions in the Suez Canal and tensions in the Red Sea, the Arctic is becoming increasingly important as a stable alternative,” the company said.
KOBC said it would use its government relationships, expertise in maritime finance and network with local shipping companies, cargo owners and shipbuilders to develop the NSR.
“Once the Arctic project is fully completed, we plan to develop the south of our country into a maritime finance and logistics hub,” it continues. “By merging the ports of Busan and Ulsan and the shipbuilding industry, we aim to create an industrial cluster that includes ice ship construction, port operations and the supply of sustainable marine fuels.”
Two weeks ago, the South Korean Minister of Oceans and Fisheries, Jeon Jae-so, announced that a container shipping route through the Arctic is to be tested in 2026.
China launches trial run on Arctic route
Meanwhile in China, Nanjing, a port on the Yangtze River, launched a maiden voyage to Europe via the Arctic. On August 14, the 2,826 TEU “Honwell” left the Longtan Port Terminal in Nanjing with lithium batteries and car parts on board. The ship appears to be destined for Russia, as ship tracking data shows that the “Honwell” regularly calls at the port of St. Petersburg.
The port of Nanjing has also declared its intention to develop the Arctic route as a shortcut to Europe. The Nanjing city government said: “The Arctic is the golden waterway as it could shorten the shipping distance between Asia and Europe by more than 3,000 nautical miles,” the city government said. “We hope this route will provide Chinese and European companies with more opportunities.”
