The Port of Luleå

Luleå quadruples port with alternative financing

Luleå The Port of Luleå will quadruple its capacity and become Sweden's second largest port.

To make this possible, the Port of Luleå is now looking for an operator and external funding.

"We want to find an established player who wants to finance, build, operate and maintain the logistics hub for the green industrial revolution in northern Sweden," says Anders Dahl, CEO, Luleå Hamn (Port of Luleå).

The expansion of the Port of Luleå, the Malmporten project, continues. During the course of the project, plans for new industrial operations adjacent to the port have been added. These include major industrial projects such as the new H2 Green Steel plant, LKAB's ReeMAP, SSAB's new fossil-free steel plant, Talga's planned battery anode plant and Grupo Fertiberia's fertilizer production facility.

The port will have all-weather terminals where arriving ships can be unloaded and loaded under cover, temperature-controlled storage facilities for steel coils, known as coil-houses, and rail connections.

The Port of Luleå is now exploring a financing model with external operators to build, operate, maintain and finance the constructions.

"We will still own and have control over the public port, it is important to make that clear. We want to find experienced operators who want to invest with us. This is a common procedure for major infrastructure projects," says Anders Dahl.

The arrangement could make the new port possible and create greater financial security for the municipality of Luleå.

"We are inviting the business community to invest in New Luleå Port. Through the proposed business model, we minimize the municipality's financial risks. But, as I said, we will still own land and be the port authority. Those who step in as financiers will of course get agreements that provide the conditions for a long-term sustainable solution."

What is needed is investment funds of SEK 10 billion. The other financiers are the municipality of Luleå with SEK 2.5 billion and the Swedish Maritime Administration (Sjöfartsverket) with SEK 2.5 billion.

Luleå Hamn is now issuing a so-called RFI, Request for Information. It is addressing an international market.

"It is an international market and there are already interested parties who are curious. There are consortia that specialise in large, complex port projects, where, for example, an established port operator cooperates with one or more financial institutions. In a future tender, we will be very careful in the selection process to ensure that the best players are considered. In addition, we want to ensure that the solution is stable and long-term," says Anders Dahl.