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BREAKING THE ICE Prospects of the Transarctic Route Akureyri, Iceland March 28 th Industry perspective Guðmundur Nikulásson Executive Vice President.

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Presentation on theme: "BREAKING THE ICE Prospects of the Transarctic Route Akureyri, Iceland March 28 th Industry perspective Guðmundur Nikulásson Executive Vice President."— Presentation transcript:

1 BREAKING THE ICE Prospects of the Transarctic Route Akureyri, Iceland March 28 th Industry perspective Guðmundur Nikulásson Executive Vice President

2 The Iceland Steamship Company Ltd. was founded in 1914 and was the first Icelandic owned steamship line Founding shareholders were 14,000 or over 15% of the nation’s population at that time Emskip began scheduled sailings in 1915 when the vessel Gullfoss entered service Eimskip has since then remained the prime maritime transportation company in Iceland The first Icelandic Steamship Line

3 our Mission To run a total transport network as cost-effectively as possible for customers and the company our Vision To consolidate our position as a transport market leader offering total services in the North Atlantic To be the leading short sea supplier in the Baltic states and Russia To be a key international player in temperature-controlled cargo globally our Strategy Eimskip is a unique company operating according to three carefully defined markets strategies. The company has a strong market share in the North-Atlantic transportation market and aims to use that foundation to build further growth and diversification into other areas of transport services, mainly the global temperature controlled cargo market and the short sea market in the Baltic states and Russia.

4 Our activities last three years Jan 2007 Eimskip acquires 100% equity stake in Daalimpex

5 Business Snapshot Approximately 8,500 employees 163 operational bases in 21 countries 40-50 vessels 30.000 teus – container units Around 100 coldstores 1,350 trucks and trailers Empty container Plant/ware- house Domestic transport to port Export port International transport Import port Domestic transport from port Plant/ware- house Empty container Complete transport services

6 Worldwide service network

7 Coldstore facilities

8 Eimskip Activities in North-Atlantic The region is comprised of: –Eimskip Iceland –Faroe Ship –Eimskip-CTG / Euro Container Line Main emphasis: –Eimskip North-Atlantic offers total transportation services to its customers with specialized focus on this market area –Eimskip aims to be the leader in terminal operation warehousing and distribution services in Iceland and Faroe Islands

9 N-Atlantic locations

10 N-Atlantic sailing network

11 Iceland as center point Eimskip has been using Iceland as a center point for its North Atlantic sailing system –Hub to connect US/Canada services with European services –Various connection possibilities Between container vessels Seafood to/from North Norway via Iceland to US/Canada US/Canada via Iceland to/from Baltic/Russia/Scandinavia and continental Europe –Infrastructure has been developed for such transshipment services TA cargo is 4-5% of total volume via Iceland

12 Biggest terminal operator in Iceland Container cranes Eimskip has two container cranes – Jarlinn and Jakinn in Reykjavik Combined liftings approx. 100,000 containers per year Eimskip is builing up a new terminal with one container crane in Reydarfjördur to service the east cost of Iceland as well as stevedoring services for Alcoa Vessel cranes are used in discharging in other ports Container transfers 750,000 container transfers per year 1,200,000 TEUs/2.000.000 tonnes 370.000 container transfers in Sundahöfn Sundahöfn terminal is the sixth largest Nordic port, with an annual container throughput of 160,000 TEUs – state of the art IT system from COSMOS in Antwerp

13 Sundahöfn terminal Reykjavik

14 New Trans-Arctic route World leading carriers –Have made huge investments in container terminals worldwide thinking long term will continue to be World leading carriers –Fleet of larger container vessels are not ice-classified 25-30 years lifetime –These facts will most likely affect the interest for new Trans Arctic route time perspective ? maximum size of vessels ? Shorter transhipment time ? Cost effective solutions !

15 Summary With this new arctic sailing route Eimskips sees various possibilities –Eimskip strength is its sailing network which is the best one in the North Atlantic Eimskip has over 90 years experience to operate transportation vessels in North Atlantic Eimskip sees more opportunities in US and Canada instead of main ports in Europe –Smaller terminals in US/Canada –Deep sea carriers have done big investments in its container vessel fleet that is non ice class and terminal operation in Europe »In the main stream of the cargo traffic Iceland will not be competitive as transshipment hub for containers in Europe »Sailing time from Iceland to main Europian ports only 2-3 days »Container terminal operation can though be competitive Also opportunities in specilized traffic and project cargo

16 Summary Eimskip is ready to participate in developing new sailing routes and services for the transportation industry –operating vessels on certain routes –terminal operation in Iceland Would transhipment port in Iceland be competitive ? –Skilled labour and good service –Closeness to TA shipping routes –Close to oil shipping routes –Close to international airports –Good natural port conditions –Privatized ports –Access to fresh water and electricity –Good conditions to ensure port security

17 Summary Transhipment-Hub in Iceland: –Eimskip has very long experience in terminal operation in the N-Atlantic region Unit cost for terminal handling service in Iceland can be competitive –New transportation network has to result in lower cost for the carriers compared to existing sailing routes Cost leadership is the key issue ! Small terminal = Big terminal

18 Summary Transhipment-Hub in Iceland –Eimskip professional approach to all new projects: Powerful management & high skilled people Stable labour environment Contracts with world leading container handling equipment manufacturer Resonable price of electricity Global Contract with Cosmos for IT solutions –We are in the buisness to serve the industry always looking for new opportunities !


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