President Lee Jae-myung and Minister of Oceans and Fisheries Jeon Jae-su included 'Arctic route development' as one of the reasons for the transfer of the Ministry of Oceans and Fisheries to Busan. The Arctic route is a newly opened sea route due to the melting ice in the Arctic caused by global warming, and it is also referred to as the 'new maritime Silk Road'.
If the Arctic route is developed, there are expectations mixed with predictions that the domestic shipbuilding industry's orders for icebreakers and ice-class vessels will increase, and that Busan Port could strengthen its status as a logistics hub in Asia. However, it has been pointed out that various challenges must be addressed first, including political risks, low economic viability, securing technology, and concerns over environmental pollution.
According to the Ministry of Oceans and Fisheries and the Ministry of Foreign Affairs on the 30th, the Arctic route is divided into three: the Northeast Passage (NSR) connecting the Atlantic and Pacific along the northern coast of Russia, the Northwest Passage (NWP) passing through northern Canada, and the Trans-Arctic Route (TSR) crossing the center of the Arctic. Among these, the route that Korea is paying the most attention to is the Northeast Passage, which connects Asia and Europe along the Arctic Ocean of Russia.
Currently, this route is navigable for about four months (from July to October), and it is anticipated that regular navigation will be possible year-round as early as 2030. When using the Arctic route, the distance between Busan and Rotterdam will be reduced by about 32% to 15,000 kilometers, and the number of sailing days is expected to decrease from 40 days to 30 days.
This is a comparison of the route that passes through the Suez Canal via the Red Sea. Currently, the Suez Canal route is constrained due to the terrorist threats posed by Houthi rebels in Yemen. As a result, shipping companies are navigating a detour route around the Cape of Good Hope instead of the Suez Canal route. Compared to the detour route around the Cape of Good Hope, the Arctic route would shorten the distance between Busan and Rotterdam by over 20,000 kilometers and the sailing days by about 15 to 20 days.
◇ Few shipping companies interested in icebreaker service costs and construction expenses
The issue is whether the Arctic route is economically viable. Currently, the Arctic route is primarily operated by irregularly scheduled tankers, bulk carriers, and fishing vessels. The container ships profit more when there are many ports of call, but the Arctic route has very few intermediate ports, making it difficult to generate revenue.
Additionally, vessels using the Arctic route must receive assistance from Russian icebreakers to avoid ice collisions. Ships attempting to navigate the Arctic route must also be ice-class vessels. Ice-class vessels have thicker steel plates, resulting in higher construction expenses, and currently, most Korean shipping companies do not possess ice-class vessels. Moreover, vessels operating on the Arctic route are required to use eco-friendly fuels, which may further increase costs.
An industry insider noted, 'Shippers tend to prioritize costs over speed, but the Arctic route is not yet economically viable,' adding that 'even if the sailing days are shortened by 10 days, if costs cannot be reduced, it will only establish itself as one of the options.' He further indicated, 'Usage of the Arctic route is likely to increase more with bulk carriers than with container ships.'
◇ Securing technology and addressing environmental pollution are also tasks
To activate the Arctic route, technological advancements are essential. When passing through the Arctic route, equipment with cold resistance and heat resistance, as well as technologies to reduce operational noise for Arctic organisms and to identify ice thickness and strength for safe navigation, are required.
Jung Seong-yeop, a senior researcher at the Shipbuilding and Marine Plant Research Institute, stated, 'Finland leads in core technologies related to polar navigation, while China has advanced trial navigation experience,' and emphasized, 'We need to enhance our ship and icebreaker technologies to secure economic viability.'
Environmental pollution is also a critical issue to overcome. Currently, the Arctic region is warming at a rate three to four times faster than the global average, prompting major shipping companies like MSC, CMA CGM, and Evergreen to declare that they will not use the Arctic route due to environmental protection reasons.
Shippers such as Nike and Gap have also stated that they will not use the Arctic route. Park Sang-nam, a professor at Hanshin University's Department of International Relations, emphasized that 'measures to address glacier melt, ecosystem changes, and destruction of biological resources must also be prepared in order to carry out policies with support and cooperation from the international community.'
◇ Russia occupies 53% of the Arctic coast... Improving Korea-Russia relations is essential
In addition to developing the Arctic route, restoring relations with Russia is essential for resource development, transportation, and trading in the Arctic. Russia, which occupies 53% of the Arctic coastline, holds the dominant position in the Arctic route. To navigate the Northeast Passage in the Arctic, entry permits must be obtained from Murmansk to the west and Vladivostok to the east.
However, the prolonged Russia-Ukraine war that broke out in 2022 has led to a closer relationship between Russia and China. While Western shipping companies withdrew from the Arctic route at that time, China's NewNew Shipping expanded container transportation on the Arctic route and increased trial navigation. China and Japan are actively engaging in Arctic resource development, while Korea remains largely excluded.
Hong Seong-won, a professor at Yeongsan University's Department of Maritime and Port Management (head of the Arctic Logistics Research Institute), stated, 'Restoring cooperation with Russia is the most important for the Arctic route,' adding, 'We need to start preparing diplomatically from now on.'
Kim In-hyun, an honorary professor at Korea University's Law School, remarked, 'Since we do not possess the Arctic and are not included in the Arctic Council, our voice is not strong.' He continued, 'For Busan Port to become the center of the Arctic route, it needs to provide benefits such as selling eco-friendly fuels more cheaply, easy supply of navigation personnel, or waiving entry fees, and preparations are needed for this.'