Arctic: A land of opportunity

It offers possibilities for shipping as well as oil, gas exploration ventures

Shrinking sea ice in the Arctic, opening up the region to increased human activities, will provide business opportunities for Chinese companies in the shipping, oil and gas industries, said a senior official from one of the world's leading shipping industry classification societies.

The latest research data show the Arctic ice is melting at an unprecedented speed. With its temperature rising at a rate twice that of elsewhere in the world, the region is expected to be ice-free within the next decades.

Scientific expeditions also confirmed the Arctic shipping routes are opening for longer periods in the summer than before. If this trend continues, shipping routes traversing the region will face increasing traffic in the near future.

Plying the Arctic routes, shipping companies could cut the sailing time between Asia and Europe by almost one-third. This would in turn reduce their fuel costs, which have been increasing steadily in recent years.

However, extreme climate conditions in the Arctic region, such as fog, low temperature, icing and long nights, mean that shipping companies would have to make further investments in new ice-capable vessels with enhanced hulls.

This would boost business for Chinese shipbuilders, said Remi Eriksen, chief executive officer of maritime and oil and gas from the Norway-based Det Norske Veritas.

"The vessels required by the Arctic routes would need enhancement and adjustments in certain parts, such as the hull and propeller system," Eriksen said.

"This represents new opportunities for Chinese shipbuilders," he added.

Shipping companies are indeed intrigued by the prospect of using the Arctic routes. But so far they have generally adopted a wait-and-see approach.

Maersk Line, the container operator arm at the Danish shipping conglomerate AP-Moller Maersk, whose container fleet carries the largest cargo volume on the Asia-Europe line, said it doesn't see any "immediate commercial possibilities in the Arctic routes".

But it also said it will continue "monitoring development and discussions on the subject and will get engaged whenever relevant", the company said in an emailed interview.