25.01.17 08:00

Press release


Royal Arctic Line orders a new vessel in China and show progress on the potential capacity sharing with Eimskip

On the 24th of January, Royal Arctic Line from Greenland, Guangzhou Wenchong Shipyard Co., Ltd, and China Shipbuilding Trading Company Limited signed a shipbuilding contract for the delivery of a new vessel in 2019.

The vessel is the first step in the renewal of Royal Arctic Line’s ocean fleet with the aim to replace the two container vessels Naja Arctica and Nuka Arctica, both rapidly nearing 25 years of service.

This is the first vessel Royal Arctic Line has ordered which will make use of the opportunities given by the new port of Nuuk. The vessel is designed without cranes although the vessel is prepared to be equipped with cranes. The transit facilities of the new port in Nuuk allows for breaking the length constraint imposed by other ports in Greenland. Put together with the fuel-efficient hull, the vessel will be the first in the history of Royal Arctic Line where economic efficiency is prioritized over the ability to call other ports in Greenland. The result is a design which shows increased efficiency as well as improved reliability of the service, increasing the length to around 180m and the beam to 31m. Thereby the vessel will also be the largest that Royal Arctic Line has ordered with a nominal capacity of around 2150 TEUs, almost 3 times the capacity of Nuka Arctica and Naja Arctica.

The vessel will meet the newest safety and environmental demands in the IMO regulations for sailing in Arctic waters (Polar Code) that became effective in 2017, required for vessels sailing on regular basis to and from Nuuk. Apart from improving the protection of the vessel’s fuel tanks, steps have been taken to reduce the emission of Sulphur Oxides and Nitrogen Oxides. The vessel remains a standard container vessel in other aspects, and this has assisted to keep the investment at a lower level. The use of standard container vessels allows Royal Artic Line to make use of globally available tonnage. This allows the company to secure the minimum capacity through its own vessels while seeking to make use of existing surplus tonnage globally to complete the deployment plan, with a view on driving constant optimization.

In parallel to this, Royal Arctic Line and Eimskip has moved one step further in the potential cooperation for sharing capacity by signing an agreement to undertake the necessary studies to implement a means of capacity sharing. The initiative is seen as an important contribution to increasing the economic growth potential in Greenland. The cooperation, once fully implemented, will connect Greenland to the regional and global container networks. Furthermore, the cooperation will provide better support for direct exports of more refined products and create more choices for importers in their logistical planning. While we are still unable to say when the cooperation will start, the objective is to start as soon as possible after the confirmation from the authorities.

Royal Arctic Line will continue to inform its stakeholders about any new development within these two important initiatives, in the pursuit of our vision: To make it easy to do business with Greenland.

Nuuk – January 25th 2017