Skip to main content

BRI and the Polar Silk Road




s the Belt and Road Initiative (BRI) completes its first five years, not much is known about its forays into previously inaccessible parts of the Arctic region. Surprisingly, having made some headway there and actually made some sea- routes operational, China’s exploration and development of the Arctic may also be another indicator of progress. Much less publicized than other aspects of the BRI, it is a good time for an update about the Arctic territory and its difficult shipping routes, which used to remain under ice for the better part of the year. Known as the Polar Silk Road, this part is usually perceived as an “extension” of the BRI, and development plans for this route were first referred to in the BRI papers as the “Vision for Maritime Co-operation.”
Catching people’s attention, this unusual project came at a time when the world started experiencing climate change, and global warming melted the ice in the polar regions. It has been these modified temperatures that made the arctic zone more approachable. Nowadays, it is possible to sail through the northern seas in the summer using three traditional trade routes. Firstly, the Arctic region has the Northwest Passage running along the Canadian and Alaskan coastlines. Secondly, the Northern Sea Route runs down the Russian coastline and lastly, the Central Arctic Route runs from Iceland to the Bering Strait, which is still thickly covered with ice caps.
Providing a safe and secure alternate route, these icy sea lanes reduce the time required for shipping between Europe and China by 20 days
Investing in these Arctic routes comes down to saving money and time while transporting goods, so it may turn out to be a viable commercial trade opportunity. Providing a safe and secure alternate route, these icy sea lanes reduce the time required for shipping between Europe and China by 20 days. Travel time is shorter along the Polar Silk Road, which runs along the Russian coastline to link East Asia to Europe. Testing the waters, COSCO shipping has already sailed its vessels through this northeast Arctic passage. In comparison, the traditional route running through the South China Sea to the Indian Ocean and the Suez Canal is longer viable because ships are often attacked by pirates.
In recognition of these new possibilities, the Polar Silk Road was officially included in the BRI and details were shared in the Arctic Policy White Paper, which described it as one of its most important components. Oil and gas development has already been taking place in the Arctic regions, and the Polar Silk Road has greater relevance now as it provides a short supply route as well as improved energy security. However, there are some tough challenges as the arctic zone is harsh and remote, and special equipment, sophisticated technology and highly skilled experts are required to ensure smooth operation. Not only that, ships can sail through these channels only in the summer months, although some transpolar shipping with specialized tankers sometimes takes place in the winter.
Ultimately, as much as 5-15% of China’s trade in value could be plied along Arctic routes by 2020. Basically, due to weather constraints, these routes are more feasible for transporting oil, gas and dry cargo, which have more flexible delivery schedules. Up till now, not more than 2% of global shipping uses these routes and it is projected to rise to 5% by 2030. Nevertheless, Russian cargo traffic has already increased considerably in the past year and Moscow predicts a 10-fold increase by 2030. Having a major stake in the Yamal liquefied natural gas project in Russia, which would supply nearly four million tonnes of LNG per annum, development of these regions makes sense for China as well, and its interests converge with Russia’s.
Once the Arctic route is fully operational, the Yamal project can double Russia’s share of the global LNG market. The Arctic thawing has also given Russia greater access to minerals and other valuable resources in this region. Planning to invest in navigational aids and ports, Russian President Vladimir Putin announced his intention to make it a “truly global and competitive transport route.” Meanwhile, the Polar Silk Road’s Northwest Passage, located on Canada’s northernmost fringes, requires more time before it becomes a regular trade route.
Up until now, this part of the Arctic has been used mostly for “destination shipping,” which mainly involves picking up and dropping off cargo. Supporting China’s role, Global Affairs Canada spokesperson Adam Austen said, “We welcome China’s objective to work constructively and make positive contributions to the Arctic region,  and appreciate their stated commitment to international norms and laws.”
By developing these northern shipping lanes, China has tapped the remotest Arctic regions and taken initiative in their development as a pioneer. In the long run, these remote regions can benefit from investment and better facilities as exports used to be adversely affected by logistical issues, shipping delays and closures, particularly in places like Churchill, Manitoba.
Once the region is more accessible, construction of infrastructure and the development of commercial opportunities could take place along the Arctic routes.


Asia Times is not responsible for the opinions, facts or any media content presented by contributors. In case of abuse, click here to report.

Comments

  1. This comment has been removed by a blog administrator.

    ReplyDelete

Post a Comment

Popular posts from this blog

#BeltandRoadForum : a new way forward

The Belt and Road Forum: a new way forward By Sabena Siddiqui 0   Comment(s) Print   E-mail China.org.cn, May 10, 2017 Adjust font size:     The upcoming Belt and Road Forum for International Cooperation will serve as a powerful reminder of the Belt and Road project’s dedication to win-win international development. [Zhang Xueshi/China.org.cn]  The Belt and Road Forum for International Cooperation will be held in Beijing on May 14 and 15; it will be hosted by President Xi himself, who will address an opening ceremony attended by at least 28 heads of state and more than 60 global organizations. Pakistani PM Nawaz Sharif will lead a Pakistani delegation to the forum, and later he will have a meeting with President Xi and attend the round-table summit for leaders. The forum promises to be the biggest diplomatic event of the year, with greater attendance than both the NATO and the upcoming EUCO summits. The audience of 1,200 people includes UN ...

Is China opening up to the world via Belt Road Initiative?

Rebranding modern China today, the Belt and Road Initiative (BRI) is a focal part of Chinese foreign policy as well as the basis of its domestic economic strategy. Titled “Vision and Actions on Jointly Building Silk Road Economic Belt and 21st Century Maritime Silk Road”, the official document signifies the “opening up” of China to the world. China has not looked back since the successful implementation of Deng Xiaopeng’s reforms in 1978 and it wants to share its expertise and experience with the world by executing an open economic venture for all. Unfortunately, the Belt and Road Initiative has been received with suspicion on the whole by the Western bloc and its allies. In the beginning, it was considered an alternative to the ASEAN grouping in the region but as time passed it became more large-scale and experts started linking up BRI with the “String of Pearls” theory. Coined by defense contractor  Booz Allen Hamilton  in his research study in 2005, this term descri...

Hopes high for the Saudi Vision 2030

In the aftermath of Crown Prince Mohammad bin Salman’s unveiling of the unprecedented Vision 2030 reforms, a sense of renaissance seems to exist in Saudi Arabia. Diversifying the oil economy along new routes for rapid progress, it is definitely the brainchild of the young Prince; however, he modestly insists he is only "one of 20 million people. I am nothing without them." Nevertheless, such a holistic package for economic, cultural and societal reform has not been seen before in recent Saudi history. Opening up Saudi Arabia to the world, the Prince announced his country would become "moderate" and "open" and that he would "eradicate" radical Islamist ideology. "We are returning to what we were before -- a country of moderate Islam open to all religions and to the world," he told an audience of world luminaries attending a major investment conference in the country. Announcing a futuristic new city named "NEOM," 33...