Melting Arctic ice thrills port cities

A Polar Bear is seen outside Churchill, Manitoba, Canada, in this Nov. 14, 2007, file photo. According to a report released on Aug. 26, 2008, by the U.S. National Snow and Ice Data Center (NSIDC), Arctic ice levels have dropped sharply due to global warming with the sea ice extent dipping below the 2005 minimum. Arctic sea ice extent on Aug. 26 was 5.26 million square kilometers, a decline of 2.06 million square kilometers since the beginning of the month, according to the report. / AFP-Yonhap

Coastal regions try hard to become hub port for Northern Sea Route

By Kang Hyun-kyung

Korean port cities and coastal provinces see thawing Arctic ice as a boon to revitalize their sluggish local economies.

Once their regions are designated as hubs for a new shipping lane connecting Europe to Korea through Siberia, dubbed the Northern Sea Route (NSR), officials believe, the economic benefits will go far beyond what has been envisioned.

Massive state investments to build infrastructure will follow, which will create jobs for residents.

Gangwon Province Governor Choi Moon-soon predicts that the shipping and fishery industries will benefit hugely if the shorter trade route becomes a reality.

"Demand for icebreakers will increase because cargo ships will need an icebreaker escort if they are to follow the maritime lane," he said.

Local governments, including Gangwon Province, have lobbied the Ministry of Oceans and Fisheries to consider designating their ports as hubs for the new sea lane.

Studies show that the emerging maritime route, created as Arctic ice melts, would cut 10 days off a traditional trade route connecting Rotterdam in the Netherlands to Busan through the Suez Canal.

So, experts say, many cargo ships would be tempted to explore the shorter trade route to save logistics costs and fuel.

The southern port city of Busan seems unrivaled in its capacity to become a hub for the NSR.

But provinces with smaller ports are vying to be the hub and have begun massive lobbying efforts to challenge Busan. Gangwon Province is one of the most active regions vying to be a hub port.

In September, the local government organized an international seminar to highlight the region's comparative advantages and its easy access to Seoul, where so many consumers live.

Officials presented data that showed the route from ports in Gangwon to Rotterdam would be two days shorter than between Busan and the Dutch port city.

Its location nearer to the capital city would also enable Seoul consumers in have more fresh products from the Arctic, they claimed.

Governor Choi has been pitching hard for his province. Last year, he visited the Ministry of Oceans and Fisheries to ask officials there to consider Donghae City.

Front-runner Busan has not been standing by idle.

This year, the city government set up a team to explore policy options to persuade the public that Busan was the right place for a hub port. Influential politicians stepped up lobbying efforts.

Last year, ranking ruling Saenuri Party lawmakers launched a public relations campaign to counter Gangwon Province's bid to become a central port for the Arctic age.

Then-lawmaker Suh Byung-soo, now Busan mayor, organized a seminar to highlight the port city as an ideal port. Rep. Kim Moo-sung, now Saenuri Party leader, and other influential politicians joined forces to put pressure on the fisheries ministry not to be distracted by Gangwon Province's pitch.

The competition is heating up as other minor port cities and coastal regions, including Ulsan and North Gyeongsang Province, also threw their hats into join the race.

Risks

Kim Jin-suk, a senior fellow of the Korea Polar Research Institute, said the northern sea route, if viable, would help cargo vessels save considerable fuel because of the shorter voyage compared with the traditional route via the Suez Canal.

"As ice floes in the Arctic are melting, a shorter trade route is being created," he said. "But it will take time for the new trade route to be fully passable as there are still risks because of ice floes."

It usually takes 40 days for cargo vessels from Busan to arrive in Rotterdam, via the Suez Canal.

The distance between the cities is about 21,000 kilometers. If the new route through Russia is viable, the voyage would be shortened to 30 days with the distance shortened to 12,700 kilometers.

Even though the Arctic sea is passable for cargo ships, this is possible for no more than four months of the year.

Kim noted the route was now being tested.

The Northern Sea Route first became ice-free in 2007. Since then, four cargo vessels sailed the entire route in 2010, 34 in 2011, 46 in 2012 and 71 last year.

Some analysts remain skeptical about the economic benefits of the northern sea route because the need for icebreaker escorts will add $400,000 to the cost.

Some worry that Russia, which probably has the most reason to be excited about the economic benefits and which has invested billions for the Arctic era, may suddenly raise costs.

Kim said economic benefits from the shorter shipping lane were one reason Korea was excited about the Arctic, although it was not an Arctic nation.

"The Arctic is believed to have rich natural resources and fish stocks, and this may create business opportunities for Korean companies," he said.

"Although Korea has no sovereign rights in the region, Korean companies can work with their partners in the Arctic nations to develop oil and gas there. Exploration for oil and gas believed to be there will require partners with strong science and technology capability."

In a 2008 report, the United States Geological Survey estimated that 90 billion barrels of undiscovered oil, 1.67 quadrillion cubic feet of undiscovered gas and 44 billion barrels of undiscovered liquid natural gas are in the area above the Arctic Circle.

If Arctic nations were to explore these natural resources, they would need a reliable partner with strong scientific research capabilities.

"Companies or countries from the region would want to partner countries or companies that know exactly where those resources are located," the scientist said. "They would also want to work with countries they have worked closely with even before they actually explore for oil, gas and other natural resources."

Korea Polar Research Institute researchers have been involved in this area in recent years.

Kim said that compared with other countries, Korea had an advantage with its new world-beating research icebreaker Araon.

The 7,000-ton icebreaker has drawn keen global attention since it was commissioned in 2009.

Kim said the icebreaker has made a huge difference to Korea's research in the Arctic.

"Before it was built, we kind of tried to ask for countries with a longer history in Arctic research to have us as a partner for a joint research," he said. "But after the launch of Araon, world-class polar institutes and researchers came to us voluntarily and asked us to consider them as partners."