Faroe Business Report — The International Review of Faroe Islands Industry and Trade - Faroe Business Report — The International Review of Faroe Islands Industry and Trade
Maritime Services
With growing awareness of maritime business opportunities in the Faroes, progress in the open ship registry and related developments could lead to major advances in merchant shipping — and give expatriates new reason to return.
The maritime services business in the Faroe Islands appears to be developing by leaps and bounds with expectations rising of a new major sector in the economy. Growing demand for goods and services to support the booming mackerel fishery, for example, is seen to combine with an increasing need to facilitate merchant shipping in all aspects of business.
Fishing gear manufacturer Vónin has designed a range of pelagic trawls of all sizes to meet growing demand from the new summer mackerel fishery in the Faroese exclusive economic zone.
Increased catch quotas for mackerel in the Faroese EEZ have, together with good fishing off North Africa and in the Pacific region, triggered demand for specially designed mackerel gear from fishing gear major Vónin. To meet the need for pelagic gear as fisheries get underway in the summer, Vónin has adapted its mackerel trawl designs for vessels across the range from 500 hp all the way up to 10,000 hp.
Determined to retain its top pelagic position, the Port of Fuglafjørður looks to foreign investors to fix its long-missing link: a local processing plant for pelagic food fish to complement its giant fishmeal and feed factory.
The Municipal Council of Fuglafjørður, the port authority for the Port of Fuglafjørður, is reintroducing the idea of setting up a local processing plant for pelagic food fish.
Recent developments in the Faroese seafood industry make Faroe Ship look well positioned to handle growing exports of mackerel, salmon, and saithe — as well as taking care of imports from all corners of the globe.
Transport and logistics company Faroe Ship seems poised to experience renewed growth in exports as a result of developments in the Faroese fishing and aquaculture industries. According to Faroe Ship managing director Jóhanna á Bergi, the new domestic mackerel fishery for human consumption together with the recent restructuring of the saithe business and the accelerating success of farmed salmon from the Faroe Islands, suggest that substantial increases in exports of seafood could be imminent.
The Port of Tórshavn expects to see its cargo throughput increase as exports of farmed salmon rise and landings of pelagic fish pick up pace at Kollafjørður, while the number of cruise ship calls remains stable with an upward bias.
The total amount of cargo passing through the Port of Tórshavn is expected to move upward thanks to growing exports of farmed fish and an increase in landings of pelagic fish that is set to accelerate this year (2011) at Kollafjørður.
Predicting sharp increase in future ship traffic, Faroe Agency continues to push for change to help further develop the Faroese maritime cluster after recent improvements in the marine and environmental legislation.
One striking example of the rapid development that the Faroese maritime scene has undergone over the last few years is seen in Faroe Agency, the locally owned shipping agency that was founded in 2005 when Iceland’s Eimskip acquired Faroe Ship.
The Faroese have been a nation of seafarers since Viking times — now the FAS (Faroe Islands International Ship Register) is leading the way for the country’s new ambitions in the global maritime sector.
Expecting to have 100 international merchant vessels flying the Faroese flag in a year’s time compared to today’s 60 — and several hundred in the future — the Faroese Maritime Authority (FMA) is quietly optimistic about the development of the Faroe Islands International Ship Register (FAS).
It will take a total of 300 to 500 international merchant vessels in the FAS ship registry before any serious economic impact may result for the Faroe Islands, according to maritime consultants of Shipping.fo.
With about 60 vessels registered under the Faroe Islands International Ship Register (FAS) almost two decades since its inception, some would argue that plans to build a successful registry of merchant ships flying the Faroese flag have moved little forward. Strictly numerically speaking, they would be right; yet a closer look at recent developments would suggest otherwise.
Three years after the launch of a locally based shipping company, Toftir Harbour sees business activities increase as fish processors resume production — and a major infrastructure plan moves forward after frustrating delays.
Even as added business services move in and local fish processors resume production after a period of uncertainty, the Municipality of Nes — the port authority for Toftir Harbour — braces for major change. According to the mayor, Símun Johannesen, the fact that several setbacks for plans to construct a giant submarine tunnel to Tórshavn have recently been overcome is cause for cautious optimism.
Newly opened Nordic Offshore Faroe Islands provide ship management and specialist recruitment services for the maritime industry, focusing on objective advice and international expertise to help clients save money, time, and effort.
In June 2010 Nordic Offshore Faroe Islands, a ship management and human resources consultancy, opened for business, with partner Pauli Joensen as managing director. One year on, the company manages numerous merchant ships from its Tórshavn offices.
At 800 tonnes of cleaning concentrate on an annual basis, Kemilux Industri’s manufacturing operations are far from full capacity — even as the company’s success in the maritime sector continues to drive export growth.
Producing tonnes of highly concentrated cleaning agents every week, Kemilux Industri is quietly gaining foothold outside the Faroe Islands, particularly in the maritime market. According to managing director and co-owner Debes Petersen, the company’s total output — an annual 800,000 liters of detergents and cleaning agents for dilution at 1:18 on average — can still be increased significantly without requiring new investments in manufacturing capacity.
Runavík has asked an engineering firm to turn its blueprint for future harbor development in the Skálafjord into a detailed masterplan, allocating areas for seafood industry, container shipping, offshore oil and gas, and cruise tourism.
The Municipal Council of Runavík, the port authority for the Port of Runavík, is for the first time working out a detailed masterplan to guide future harbor development in the Faroe Islands’ longest fjord.
As ro-ro ferry Norröna switches to Hirtshals for year-round port of call in Denmark, freight forwarder Smyril Blue Water has operations there streamlined — resulting in improved logistics and shorter processing times.
Smyril Blue Water has gained logistical advantages in Denmark by having two of its operating units combined into one after roll-on/roll-off ferry Norröna moved to Hirtshals for Danish port of call last October. Prior to the new arrangement, Smyril Line’s superferry called at Esbjerg most of the year with the port of Hansholm taking over during three-month summer seasons.
Welcome to the 2011 Edition of the Faroe Business Report
I’m proud to present the 6th edition of the Faroe Business Report. It’s a pleasure again this year to bring you this information package about the Faroese business scene in cooperation with leading businesses and government departments and agencies. I encourage you to take a read to check the state of affairs in the Faroese business environment and see what some of the main events are compared to last year or a few years back. I guarantee that there’s quite a few things that happen in the course of a single year — major change can occur very quickly in the Faroe Islands.
Búi Tyril
Publisher and Editor in Chief
Reach International Businesspeople with an Eye on the Faroe Islands
Sponsoring an article or placing an ad in the Faroe Business Report is a great way of accessing important market segments or conveying your values to key constituencies. For those keen to share with an international audience what their position in the Faroe Islands may mean, this yearly publication is recognized as the information medium of choice — an undisputed leader in its field.
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