Finland and Norway have agreed to explore building an Arctic rail link connecting Finland to the Barents Sea coast.

The proposed link would run from Finland's northern city of Rovaniemi to Norway's deep-water port of Kirkenes, near the Russian border.

The link would cost around €2.9 billion ($3.6 billion) and would open in 2030.

"The Arctic railway is an important European project that would create a closer link between the northern, Arctic Europe and continental Europe. The connection would improve the conditions for many industries in northern areas," Finnish Minister of Transport and Communications Anne Berner told a news conference.

Melting Arctic — A boon for shipping?

The Arctic is expected to become increasingly important for international trade as global warming, which has caused ice cover to melt, makes shipping routes in the region commercially viable.

Read more: Arctic warmer than much of Europe is a worrying sign of climate change

A majority of sea transportation between Europe and Asia currently passes along a much longer route that runs through the Suez Canal.

Last month China, a non-Arctic state, outlined its ambitions to develop Arctic shipping routes.

Earlier in August last year, a Russian tanker sailed from Europe to Asia without an accompanying ice-breaker for the first time.

Arctic journey highlights effects of global warming Safe harbour The Finnish icebreaker MSV Nordica is docked before setting sail for the Bering Strait in British Columbia, Canada. The giant vessel is about to take a team of international researchers through the Northwest Passage to record the environmental and social changes transforming this remarkable, forbidding corner of the planet.

Arctic journey highlights effects of global warming Bright ice Shards of broken sea ice shine brightly under the Arctic sun as the ship sails through the Franklin Strait on the Northwest Passage. Sea ice forms when the top layer of water reaches freezing point, usually in October. Should the ice survive the following year’s summer melt and beyond, it becomes the toughest kind.

Arctic journey highlights effects of global warming A distant ship, smoke on the horizon A cargo ship is framed distantly on the horizon from the deck of the MSV Nordica in the North Pacific Ocean. It’s one of the first sightings of marine traffic the Finnish icebreaker has encountered since it left Vancouver to traverse what is one of the most isolated maritime routes in the world.

Arctic journey highlights effects of global warming The Chukchi Sea The MSV Nordica sails past ice floating on the Chukchi Sea off the coast of Alaska as it continues its journey through the Arctic's Northwest Passage. The record-breaking trip remains a challenge for conventional ships but scientists predict the route will be ice free by 2050, if current levels of warming continue.

Arctic journey highlights effects of global warming Alone in the wild blue yonder Waves crash against the hull of the MSV Nordica as it heads towards the Bering Sea under a gray sky. For most of its 24-day journey through the Northwest Passage, the only companions the ship and her crew had were Arctic sea birds, seals and the odd whale. Late on in the journey, a crew member sighted a polar bear.

Arctic journey highlights effects of global warming At journey's end Boatswain Henri Helminen secures a rope as the MSV Nordica docks in Nuuk, Greenland, having traversed the Northwest Passage through the Canadian Arctic Archipelago. The 10,000 kilometer (6,214 miles) journey is the earliest transit of the Passage, breaking the record set by a Canadian Coast Guard ship in summer 2008. Author: Arthur Sullivan



Alternative route

The proposed rail link to the Arctic Ocean would improve Finland's logistical position and accessibility, and provide an alternative route for Finland's imports and exports, a study by the governments of Finland and Norway said.

Read more: Norway's climate hypocrisy: Clean at home, dirty in the Arctic

Finland is currently completely dependent on the Baltic Sea for its transportation needs.

Finnish transport minister Berner said the railway should be linked with the proposed project to build an undersea rail tunnel between Finland and Estonia. With the tunnel, the railway would also connect with Rail Baltica, a link between Tallinn and Warsaw.

The study showed that the link would have "significant" environmental impacts and would affect the reindeer husbandry sector in both countries.

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