President attends welcome ceremony for Panstar Acro's trial voyage

Route cuts distance by 29% compared to Suez Canal passage

President Lee Jae Myung delivers remarks at a welcome ceremony in Busan on Tuesday marking the completion of a trial Arctic route voyage. [Cheong Wa Dae press pool] [Yonhap]
President Lee Jae Myung delivers remarks at a welcome ceremony in Busan on Tuesday marking the completion of a trial Arctic route voyage. [Cheong Wa Dae press pool] [Yonhap]

President Lee Jae Myung said Tuesday that the newly opened Arctic shipping route could serve as "another sea lane and another option to fall back on in times of crisis."

Lee made the remarks in an address at a welcome ceremony in Busan marking the completion of a round-trip trial voyage along the Arctic route. "Through the recent tensions in Middle Eastern waters, we clearly learned how much South Korea's economy can be shaken when our sea lanes are blocked," he said.

The Panstar Acro, which returned to port that day, completed its round trip to Busan port on Saturday after about 50 days at sea, calling at three European ports along the way. It was the first time a South Korean shipping company had sailed a container vessel to Europe and back via the Arctic route.

According to the shipping company, the Arctic route reduces the distance from 20,000 kilometers to 14,000 kilometers compared with the Suez Canal passage — a cut of 29% — and trims transit time by about 10 days, from 30 days to 20.

Lee said he was deeply grateful to all those who worked through the complex challenges involved, "from preparing for departure to ship inspections, voyage coordination, maritime insurance and ship financing." He added: "Through your endeavor, the sea lanes South Korea can tread and the future it can look toward have grown considerably wider."

He described the voyage as "a meaningful challenge that confirmed the Arctic route's potential through actual cargo transport," noting that the ship carried export cargo — including chemicals, automobiles and cosmetics — equivalent to 700 containers to European markets, and that the voyage had confirmed a new route South Korean companies could use.

Lee said, however, that additional experience and data would need to be accumulated before the Arctic route could be used in earnest.

"There are voices worried about immediate economic viability," he acknowledged, "but as operating experience builds and cargo volumes grow, costs can be reduced and service reliability improved." He added: "If we only start preparing after the need arises, it will be too late. Experience and technology do not accumulate overnight."

Lee also outlined plans to link the development of the Arctic route to regional economic growth.

"As a new sea lane opens, we must also open the future of Busan and the southeastern region in preparation for the Arctic route era," he said. "We will connect Busan's ports, logistics and maritime finance with Ulsan's shipbuilding and eco-friendly energy, and South Gyeongsang Province's ship parts and advanced manufacturing."

Lee also expressed gratitude to employees of SK Shipping, H-Line Shipping and Heung-a Shipping, all of which have established offices in Busan.

He noted that Monday had marked the formal start of HMM's Busan era, as South Korea's largest shipping company officially launched operations in the city. "I look forward to our shipping companies growing even larger on the world stage, leading the way as the market evolves, here in Busan — a city where sea lanes converge," he said.


sang@heraldcorp.com