Melting ice pulls Norway closer to Asia

The town of Kirkenes in northernmost Norway used to be further away from Asia than virtually any other European port, but it suddenly seems a lot closer. The reason: Global warming.

Melting ice has opened up the Northern Sea Route along Russia’s Arctic coastline, changing international trade patterns in profound ways — even if so far it looks more like a sleepy county road than a busy, four-lane highway.

In a change of potentially revolutionary significance, the travel time between the Japanese port of Yokohama and Hamburg in Germany has been cut by 40 per cent, while fuel expenditure is down by 20 per cent.

“For the first time in history we are witnessing a new ocean opening up in the high north which will have a major impact on both trade and provision of energy,” said Sturla Henriksen, president of the Norwegian Shipowners’ Association.

In 2012, when the ice reached its lowest extent on record, 3.4 million square kilometres, 46 ships used the new route, compared with only four in 2010, according to Rosatomflot, a Russian operator of icebreakers.

The traffic is still negligible compared with traditional routes. Ships transit the Panama Canal 15,000 times a year, while passing through the Suez 19,000 times. But the future looks promising.

The volume of goods transported along the Northern Sea Route is likely to grow strongly in the coming years, from 1.26 million tonnes last year to 50 million tonnes in 2020, according to the Norwegian Shipowners’ Association.

Kirkenes, whose 3,400 inhabitants live in nearly uninterrupted darkness during the winter months, is suddenly preparing frantically for the expected boom.

The Tschudi Shipping Group plans to open a logistics hub measuring the equivalent of 200 football fields in a fjord nearby that is held ice-free all year by the warm Gulf Stream.

The port’s location is extremely strategic. It is nine days’ travel from both the Pacific and the Mediterranean, and close to major oil and gas deposits in the Arctic as well as mines in northern Sweden and Finland.

Twenty-six of the ships that traversed the Arctic Ocean between Europe and Asia last year were carrying hydrocarbons, while six were transporting iron ore or coal.

The new route also opens up an interesting market for liquefied natural gas (LNG) extracted in the Barents Sea, especially after North America, the customer that local companies initially had in mind, has turned away following a decision to use its own shale gas.