Bulk from Kirkenes to China via the Arctic

Iron-ore concentrate is loaded to the bulk-vessel at the harbour in Kirkenes.

- The Northern Sea route is probably ready, but the question is if the commercial international fleet is ready to start shipping via the Northern Sea route, says Felix Tschudi, chairman of the Tschudi Shipping Company.

Tschudi is also a shareholder in the mining company Northern Iron that operates the Sydvaranger Gruve AS iron-ore mines in the Norwegian border town of Kirkenes.

Most of the iron-ore concentrate produced in Kirkenes are shipped to the markets in China.

There are also many mining companies on the Kola Peninsla that might be interested in shipping ore or metallurgical products to the markets in Asia via the Northern Sea Route.

Felix Tschudi at the harbour in Kirkenes.

Arctic sailing route shorter

- Our interest in the Northern Sea Route is very simple explains Felix Tschudi.

The distance from Kirkenes to the markets in Asia is much shorter than sailing through the Suez Canal or around Africa. Shorter sailing routes means time saved and fuel-costs reduced. In the longer term it would have a positive impact on CO2 and other emissions as well.

The Kirkenes-based mining company is now in negotiations with Rosatomflot, the Russian fleet of nuclear powered icebreakers, regarding possible conditions for sailing the first ever bulk carrier from Kirkenes to China via the Northern Sea Route.

Tschudi will not confirm if this will happen already this summer.

- The Russian response has been very positive, they would like to see this happened, says Tschudi.

The nuclear powered icebreaker Sovietsky Soyuz.

Nuclear powered icebreakers

The on-going global warming might prolong the sailing period along the north coast of Siberia. Several other shipping companies are now closely following what happens in the Arctic this summer.

Last week, two tankers from Murmansk Shipping Company started on the route from Murmansk to Chukotka loaded with diesel-fuel and assisted by the nuclear powered icebreakers Taimyr and Rossia.

Later this fall, the first ever shipping of oil via the entire Northern Sea Route will take place when Sovkomflot sails with a 100.000 tonner from the Varandey oil terminal on the coast of the Pechora Sea to Japan.

The Sydvaranger iron-ore mine.

Iron ore

If the mining company in Kirkenes sends the first load of iron-ore concentrate later this summer via the Arctic, they will most likely use a Danish ice-classed bulker, also assisted with Russian nuclear powered icebreakers. It is the director of Rosatomflot, Vyacheslav Ruksha that writes on his blog that a Danish vessel will be used, but Felix Tschudi will not confirm which company's vessel that is in question.

-There are very few larger ice-classed bulk carriers available on the global shipping market, says Tschudi. Such vessels need to hold ice-class 1A. It is not good business to sail a small bulk vessel. The vessels used for iron-ore concentrate transport from Kirkenes to China have so far been around 70,000 tons, the so-called Suez-max or Pan-max bulk carriers carriers, but there are plans to increase the size of the shipments..

According to Ruksha, the Danish vessel in question can deliver 40,000 tons of concentrate.

Iron-ore concentrate.

First shippment a

- The Northern Sea Route is very interesting for the mining company in Kirkenes. Our customers are in China and if the costs are reduced this could represent an alternative shipping lane from northern Europe to Asia, says Tschudi, but underlines that this is a long-term project.

- If the first bulk vessel sails this year, it will be the outcome of a  case study “Unlocking the potential for bulk transportation from northern Scandinavia and the Kola peninsula to the Far East” organised by the “Centre for High North Logistics” in April this year. If this voyage works well the Arctic route may in the longer term develop into a  regular commercial  option for shipping to Asia during the ice free season, says Felix Tschudi.

The sea ice in the Arctic is decreasing and opening up for new shipping routes.

The Northern Sea Route is the shortest maritime passage between the Atlantic and the Pacific Ocean. Travelling along the top of Russia's Arctic coast takes only two thirds of the time it takes to go through the Suez canal to the south.

The Arctic lane also has the advantage of not being frequented by the sorts of pirates that lurk off the coast of Somalia.

Russia has said it will invests heavily in navigation safety systems along the north coast of Siberia.