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Iron-ore to break ice towards China

Felix Tschudi at the harbour in Kirkenes.

Norwegian shipowner says 4-5 voyages with iron-ore could sail from Kirkenes to China via Arctic this year given the right conditions.

Location

Melting ice due to climate changes makes the shortcut from Europe to the rapid growing market in China via the Northern Sea Route far more attractive today.

- We cooperated with a Danish shipping compay that owns the ice-classed bulk-carrier “MV Nordic Barents” last year. The vessel made a historical voyage when it became the first non-Russian flag to sail the Northern Sea Route in transit, says Felix Tschudi to BarentsObserver.

Tschudi is a Norwegian shipowner and a major shareholder in Sydvaranger Gruve, an iron-ore mining company located in Kirkenes on the shores of the Barents Sea.

Read alsoThe future history of the Arctic is now

Tschudi says they paid some €146,000 to Rosatomflot, the Russian state own company that assisted “MV Nordic Barents” with a nuclear powered icebreaker last autumn.

- 4-5 similar voyages are planned for 2011. The plan depends on many factors, especially the dry bulk freight market, Tschudi tells BarentsObserver.

The iron-ore mine in Kirkenes re-opened two years ago, and has like many other mining companies China as an important buyer.

Located in the very north of Europe was earlier seen as a disadvantage due to high costs for shipping. With the opening of the earlier ice-covered Northern Sea Route, the Barents Region is moving from being a remote corner to becoming a central hub for shipping between Europe and Asia.

Felix Tschudi says the potential savings are too big to be ignored.

- Fuel costs and time saved is important factors in shipping business, explains Tschudi.

The distance from Kirkenes, near the border to Russia’s Kola Peninsula, to China via the Arctic is half the distance of the voyage via the Suez Canal.

Read alsoNorthern Sea Route faster than expected

Earlier this week, BarentsObserver reported that Rosatomflot has received 15 apllications to accompany voyages across the Northern Sea Route in 2011.

- Several oil or gas tankers were applying for the route in 2011, Mikhail Belkin, Rosatomflot assistant director told Reuters on Wednesday.

- In 2011 the shipping on the Northern Sea Route is going to increase significantly, Belkin said.