German port-operator Bremenports has teamed up with two Icelandic municipalities Langanesbyggð and Vopnafjarðarhreppur, as well as engineering firm Efla to build a port at Finnafjord in northeast Iceland.

To oversee the development of a deep vessel port on the fringe of the Arctic Circle, a firm named Finnafjord Port Development Company has also been set up by the concerned parties.

Bremenports will own 66% of the shares in the port development company, while Efla will hold a 26% stake and the remaining 8% share will be co-owned by two Icelandic municipalities.

As per the MoU, Bremenports and its partners will solicit investors to develop the port under build-operate-transfer concession agreements.

Successful bidders will be required to design, build, finance and operate the Finnafjord port.

The consortium is looking to get investors onboard and commence construction work in 2021, with operations scheduled to start in 2023.

Winning parties will be given the concessions of the port until 2040.

“It creates conditions for the sustainable development of the Arctic and helps to make developing new shipping routes safer.”

The Senator for Economics, Labour and Ports Martin Günthner said: “The harbour project in Iceland offers a concrete long-term perspective for a development that will certainly go on for several decades.

“It creates conditions for the sustainable development of the Arctic and helps to make developing new shipping routes safer.

“The project offers great development opportunities for a structurally weak region. It is an honour that bremenports can take part in this project at the request of Iceland. “

The parties believe that the entire port development work will take more than 40 years to complete due to its size.