Dedicated terminal, shipper incentives key to Arctic route's commercial future, Panstar says

Panstar Line.com, the first South Korean container shipping company to complete a round-trip voyage via the Arctic route, has called for a dedicated terminal at Busan Port, shipper incentives and broader policy support to attract cargo if the route is to transition into regular commercial operations.

The Busan Chamber of Commerce leadership visited Panstar Line.com at Busan Port International Passenger Terminal on Wednesday to hold an on-site meeting on the policy support needed for Arctic route commercial operations. At the meeting, Panstar put forward five proposals: establishing a dedicated Arctic route terminal at Busan Port and introducing transshipment incentives; launching a shipper consultative body for Arctic cargo and providing shipper incentives; expanding support for container manufacturing costs; securing support for European logistics hubs; and covering the costs of complying with EU carbon regulations.

Panstar particularly stressed that "a dedicated terminal and transshipment incentives must be put in place at Busan Port to concentrate Arctic route cargo there, and a shipper consultative body should be formed within the Korea International Trade Association to provide incentives to shippers using the route — only then can stable transport demand be secured."

Expanding the container fleet and overseas logistics infrastructure were also identified as priorities. Panstar called for the Korea Ocean Business Corp.'s container manufacturing cost support program to be extended beyond shipping company consortiums to cover small-scale individual orders, and urged the government to help secure European logistics hubs to ensure reliable sailing schedules.

On EU maritime carbon regulations, Panstar said "the Arctic route's shorter sailing distance offers a carbon-reduction advantage, and for that advantage to translate into a more active route, the government needs to cover the costs of purchasing carbon allowances at European ports of call and the costs of meeting greenhouse gas emission standards for ship fuel."

Panstar Group Chairman Kim Hyeon-gyeom said: "Opening a route is something a shipping company can do on its own, but sustaining it depends on port infrastructure and cargo. We hope the proposals put forward today will be reflected in policy and serve as a foundation for Busan Port to emerge as the undisputed maritime capital of Northeast Asia."

Busan Chamber of Commerce Chairman Yang Jae-saeng said that since a local company had taken the lead in opening the route, the government and relevant agencies must actively back efforts to secure cargo volume through shipper participation and to build up port and overseas logistics infrastructure. "The Busan Chamber of Commerce will also do its part to help the Arctic route become a new export corridor for local businesses," Yang added.

Meanwhile, Panstar Line.com's container vessel Panstar Acro departed Busan New Port on Aug. 22, sailed through the Arctic route to call at European ports, and returned Oct. 11. The Busan-to-Rotterdam leg via the Arctic route covers approximately 13,000 kilometers — about 7,000 kilometers shorter than the route through the Suez Canal — demonstrating the potential of the passage as a new logistics corridor.