Stockholm to inject $264m into box facility

2007-10-29

Swedish group Ports of Stockholm has the go-ahead for a new US$$264 million container and ro-ro facility at Norvikudden as part of its move to capture more boxship flows to serve Sweden¡¯s largest consumer region around the capital city.

The Baltic port group, which is based around facilities at Kapellskar, Stockholm and Nynäshamn, handled over the first six months of the year 25 percent move container volumes than a year ago. Strong economic conditions have driven this growth, with 26.8 million TEUs handled between the beginning of January and the end of July and the main increase was imports.

Ports of Stockholm deputy managing director Henrik Widerstahl said the economy is generating vigorous trade between countries and many firms are using the Ports of Stockholm to an ever-increasing degree.

Widerstahl said falling unemployment and increased purchasing power have resulted in rising sales and with it greater demand, such as in consumer goods and home electronics.

Figures from the sector association, Ports of Sweden, show a steady growth in foreign trade via the seaboard facilities, with more than 50 commercial facilities spread along the Swedish coastline. The eight ports in the east of Sweden area, including the ports of Stockholm, in 2006 accounted for 20 percent, or 27 million tonnes, of the total volumes handled in Sweden, second to the western ports based around Gothenburg with 35 percent, or 47 million tonnes.

Gothenburg remains the main port for Swedish box shipping activity, with 718 million TEUs handled last year followed by Helsingborg with 108 million TEUs and southern port Malmö handling 35 million TEUs. By comparison, the Stockholm port group for 2006 handled 38 million TEUs, although 34 million also came through the nearby eastern port of Malarhamnar and 18 million via Sodertalje.

The port group was the sixth largest point for the import of vehicles, with 34,000 out of 857,000 handled, and the fourth after Trelleborg, Gothenburg and Helsingborg for handling trailers and rolling goods.

In line with a Swedish trend to invest in new port facilities to meet growing demand and to move out of port centres, Stockholm City Council gave its go-ahead for a new Stockholm-Nynashamn container and ro-ro port at Norvikudden. And this week the council approved investments in the project totalling $264 million

Norvikudden will primarily replace freight and container handling at Frihamnen in Stockholm, with construction planned for next year. The port expects the first phase of the project to open for shipping in 2011.

Port bosses are looking for the private sector to be involved in the development of the freight and container port, which chairman Ulla Hamilton at the time said would fulfil market needs, securing the supply of goods and favourable growth for Stockholm.

The Port of Stockholm is relocating the box terminal from Frihamnen and rolling freight services from Nynashamn¡¯s inner harbour, in order to capture higher volumes of freight to and from the area around the capital. The ultimate vision is for the majority of freight coming into the region by shipping and close to the consumer.

Freight transport to and from the Baltic states and Poland via Stockholm¡¯s ports increased last year by 18 percent. Most of the trade between Sweden and Finland passes through the ports and also represents the highest freight volume and amounted to five million tonnes, up three percent on 2005.

Source: cargonews asia
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