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Port of Runavík Sees Throughput Rise |
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Written by B. Tyril
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As offshore services supplement fishing and aquaculture industries, business development at the Port of Runavík takes a wider perspective with the reorganization of the port authority.
MAY 2009 (North Atlantic News). Together with record landings of wild-caught whitefish for local processing, and growing exports of farmed fish, a new focus on services for offshore oil and gas exploration is shaping business development for the Port of Runavík.
To manage expected growth in shipping activities in spite of the current economic downturn, the Municipal Council of Runavík, led by mayor Magnus Rasmussen, has decided to reorganize the local port authority and make it part of a new Board of Commerce and Industry. According to the Board’s chairman, Klćmint Österö, future harbor development and management will be taking place in the wider context of local business.
Mr. Österö says that the reorganization of the port authority is happening against the backdrop of newly acquired local experience in the offshore industry coinciding with growing tonnages of fish passing through the Beta fish landing station and the Lynfrost processing plant, both facilities now owned by Faroe Seafood, the Faroe Islands’ largest exporter of seafood. At Glyvrar, a few hundred meters up the fjord, another contributing factor to the growth of traffic is the Bakkafrost aquaculture business, the country’s largest exporter of farmed salmon products.
According to information from the port authority, landings of saithe and other wild-caught fish are set to reach unprecedented levels for 2009, while the local aquaculture enterprise reported record profits for 2008.
Awaiting fixed link: The bulk of the 13 communities of Runavík are located along the Skálafjörđur — the Faroe Islands’ longest fjord and an unbeatable natural harbor.
When offshore oil and gas exploration began in the Faroes almost a decade ago, the participating industry players chose Runavík as their domestic supply base, a move which has clearly influenced local development. To cater to needs of the oil industry a new terminal was built, and over time several local companies have become involved in the offshore industry.
“So far seven wells have been explored on the Faroese continental shelf and more are sure to follow,” Mr. Österö points out.
“This has resulted in valuable learning experiences for companies that offer goods and services to drilling rigs and support vessels. In the course of these years, several local companies have earned the respect and loyalty of oil and gas industry clients. This is now having a visible impact on the business scene, and is part of the reason why we’re looking to refocus some of the development and outreach efforts.”
A highly noteworthy development project, of massive proportions and profound significance for the Skálafjörđur area and well beyond, has been in the pipeline for a few years — an undersea tunnel to link both arms of the fjord to the capital of Tórshavn. Although construction details have been laid out and financing committed independently, progress of the development has slowed with final approval from national authorities on prolonged hold.
“This whole initiative came from the local communities here who spent resources to create a fantastic project on a private basis. But years after we submitted the application for a concession to build and operate the tunnel, we were told that the project was to be nationalized. The project was going to be carried out in the near future but the idea of central planners taking charge wasn’t going down very well here; we felt this could bring unnecessary delays.”
Indeed the mammoth project became a matter of drawn-out political debate. Since the current government took office amid economic decline on the horizon, however, it has appeared increasingly uncertain whether the nationalization option will be utilized. According to sources, the Interior Ministry — where the concession application now awaits final decision — is expected to deliver its decision shortly after a new expert assessment.
“The sooner earthworks can begin the better,” Mr. Österö adds.
“I think most people know this is a viable project both economically and environmentally.”
Estimates suggest that hundreds of commuters working in Tórshavn would each spend an average 40 hours less per month on the road, if they were to take the proposed tunnel instead.
Meanwhile the new Board of Commerce and Industry is planning to open a permanent secretariat that will offer information to foreign inquirers seeking advice on locally available services as well as helping local businesses coordinate their export efforts. In addition to the fishing, aquaculture and offshore industries, emphasis will be placed on cruise tourism, which has seen modest but steady growth over recent years.
Link to pdf presentation...
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