1. Optimising Port Productivity Investments in Ports
Gísli Gíslason
Port Director
Associated Icelandic Ports

2. Economic tubulance
Economic crunch experienced in many parts of the world.
Diminished interest to invest in port installations.
Strong infrastructure in transport never more important than in difficult times.
Long term vision.

3. Icelandic harbours young compared to ports in Europe.
Contract with the king of Norway in 1262 – Insufficient transport resulted in loss of independance.
First permanent harbour installations in Iceland completed some 100 years ago.
Construction of the Old Harbour in Reykjavík began in 1913.

4. Harbours in Iceland
Harbours play key role in Iceland as the nation as icelanders rely on marine catches and import and export by sea.
Now a more clear cut difference between fishing, transport and industrial harbours.
Ports mainly owned by municipalities.
Financial support by the state.

5. Main harbours in Iceland
Ísafjörður
Akureyri
Snæfellsbær
Grundarfjörður
Fjarðabyggð
Hornafjörður
Faxaports
Hafnarfjörður
Total number of harbours in Iceland 43.
Total income 27.7 m Euros
Assoiated Icelandic Ports 50%
Annual investment about 14.0 m. Euros
State funding about 6.0 m Euros
Helguvík
Grindavík
Vestmannaeyjar

6. Grundartangi
Borgarnes
Reykjavík
Akranes
Owners: 5 municipalities.
Reykjavík ownes 75%.
Specialisation of individual ports.
Areal view – Associated Icelandic Ports

7. Associated Icelandic Ports
Annual handling of 5 million tonnes.
Containers 2008: TEU
Fish tonns.
Industrial cargo 1.3 million tonnes.
Landlord port –that ownes 1000 hectars of land.
85 cuise ship calls and increasing.
passangers.
Marine
catches
2001
2002
2003
2004
2005
2006
2007
2008
Reykjavík
83.415
98.938
83.322
83.959
94.392
88.168
99.193
Akranes
47.958
41.220
61.205
27.574
Tonn

8. The Old Harbour in Reykjavík
Brought in to use in 1917
Main import and export harbour in Iceland for 50 years.
Fishing and sevice port.
Investment in a concert and conference hall.
Oil terminal.
Different land use development.

9. Sundahöfn – cargo harbour
Sundahöfn – containers and cruise ships.
190 hectares
Main import and export harbour in Iceland.
TEU
On going project to maximise land use.

10. Grundartangi – industrial harbour
Grundartangi area he.
Industrial site 141,9 he.
Key site for industrial development in the capital area.
Various investment possibilities.

11. Harbour of Akranes
Fishing port supporting dynamic fresh fish market. Fresh fish auction facilities projected in harbour area. New fishmarket house.
Pelagic species: Important in this location. Groundfish/Demersal species: About tonnes.
Smaler scale freight transport already handled in this port (Cement, fertilizers etc.)
Future landfills

12. Main harbour projects in Iceland
Húsavík -
Grundartangi – aluminium and ferrosilicon factories
Fjarðabyggð
Aluminium smelter
Sundahöfn – Reykjavík – cruise ships.
Hafnarfjörður – aluminium smelter
Total production capacity in aluminium tonnes.
Export possibilities:
Water
Oil
Northern Sea Route
Helguvík – aluminium smelter
Bakkafjara - ferry

13. Hydro- and geothermal power
Investments in ports in Iceland have and will be connected with investment in hydro – and geothermal power stations.
Environmental considerations.
Utilization of resources will affect investments in port installations.
Energy – production - transport.

14. What makes your port attractive to outside investors?
Traditional port installations.
Unrelated structures – such as residential areas.
What very clearly makes a port attractive to investors may be presented as follows. 
Good and safe mooring possibilities.
Good backland area and an area for long time development.
Safe and quick service when loading and offloading goods.
Secure and speedy communications on land to and from the port area.
Closeness to the market.
Closeness to safe power station structures.
Economic growth.

15. Associated Icelandic Ports offer a total pier lengt of 8.3 km.
Water depth from 9 – 14 metres.
Backland area – 250 hectares of unused land.
Short notice planning away from residential areas.
Speed in loading and offloading vessels.
Accessability and road connections.
Secure access to sources of energy.

16. Investing in port infrastructure and meeting investors´expectations.
Two kinds of investment in Icelandic ports:
Piers, sites, streets abd backland areas.
Company investment in buildings, wearhouses and machinery.
New situation after the economic collapse.
A very low rate of exchange in the Icelandic krona arouses interest from foreign investors.
Good experience in port centered activities.
Safe and secure facilities.

17. Availability of private equity
Considerable change in the last few months with equity not beeing readily available.
A small stock market in Iceland.
Economic life based on excessive foreign loan capital.
Strong domestic pension funds.
Icelandic ports owned by local municipalities.
Private ports not a feasible option in Iceland.
Stevedoring in the hands of the shipping companies.
Investors hesitant.
Harbour investments more interesting than other. Investments.

18. Conclusion
Despite international recession harbour areas will continue to be of interest to investors.
Port area will continue to be the most valuable city areas.
With world economy improving there will be ample opportunities.
Port areas are at the heart of economic progress.

19. Borgarnes
Akranes
Grundartangi
Old harbour
Sundahöfn
Thank you.