Only four years after Icelands fast-growing international transport company Samskip set up offices in the Faroes, a symbol of the highly successful venture is taking shape at the Kollafjörður harbor, the home base of the companys Faroe Islands operations. Here, a new 20,000-square meter container storage area is being readied at the end of the fjord for the companys use later this year (2008), dwarfing the 3,500m2 hitherto dedicated to the same purpose. Meanwhile the Kollafjörður terminal currently used by Samskip for cargo services including client access to the companys cold storage facility there has been expanded and enhanced with the infilling and alignment of existing quay sections, to now offer 540m of continuous, deepwater quay. That alone has considerably helped ease the pressure of growing customer demand, says Samskip Faroe Islands managing director Joel undir Leitinum.
The additional deepwater berthage now available by the cold store has enabled us to improve customer service dramatically, he says. Whereas earlier we could have a maximum two relatively large ships docked at the same time in this harbor, were now able to have several. In terms of time efficiency, this is a tremendous difference as the ships dont have to wait any more before they can berth. It means more effective operations on the whole and because of that we can provide quicker and better service.
Nonetheless, much of the business earned by Samskip should, according to Mr undir Leitinum, be attributed to a professional, quick, and hasslefree service. And whereas an increased share of the domestic import and export market may explain part of the companys rising stature here, other contributing factors weigh in as well.
The Faroes is a key location in the North Atlantic, at almost equally short distance from the UK, Norway, and Iceland, undir Leitinum says. Were right on the way for liners going between Iceland and the European Continent. This place is of interest because of Faroese seafood exports as well as Eastern European and other international vessels discharging fish here. This is a growth market and a crucial part of our success story in the Faroes.
Close to the capital of Tórshavn and the Airport at Vágar, and not far from the industrial areas of Eysturoy and Klaksvík, Kollafjörður has lately become the object of increased traffic and industrial activities. This trend picked up steam a few years ago after the construction of the road tunnels that link Kollafjörður to Tórshavn and Vágar, respectively. Adding to the momentum was the incorporation of Kollafjörður into the municipality of the capital and the subsequent development of the harbor under the umbrella of the Port of Tórshavn. The entry of Samskip at the harbor and the companys success in the marketplace is obviously playing a part.
In 2005, the company purchased a 7,000-tonne capacity cold store located at the harbor, as part of a larger international deal between it and Kloosterboer, involving a number of reefer centers acquired in Europe. That year saw Samskip acquire several companies, including Geest North Sea Line and Seawheel. Previously, Samskip had acquired Van Dieren Maritime and a share in Silver Sea. And only a few months ago, Samskip announced the acquisition of Icepak, a leading global reefer logistics company with offices in Europe, North America, and Australia.
In Kollafjörður, the new container storage area now underway scheduled for completion by the end of 2008 is set to mark a milestone for Samskips progress in the Faroe Islands. It will include a 150m quayside with a 12m water depth alongside.
This new container terminal will dramatically increase our capacity here, Mr undir Leitinum says. Not only will it free up a lot of space at the main harbor area and generally make operations smoother and quicker; it will increase our ability to do much more for many more customers.
Founded in 1990, Samskip has grown to become an international actor in transport and related services by land, sea and air. The company today employs about 1,400 people in more than 20 countries and is one of the largest container transport companies in Europe. It comprises two divisions: Samskip Multimodal Container Logistics, and Samskip Reefer Logistics & International Forwarding.
With weekly departures from the UK, the European mainland and Scandinavia, Samskip offers a liner service to Iceland and the Faroe Islands.
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