DFDS to Sell Norway-Denmark Route Service to Gotlandsbolaget

11th June 2024

Jehan Ashmore

DFDS is to sell its routes linking Norway and Denmark to Swedish operator Gotlandsbolaget in a deal that includes two cruise ships, Crown Seaways (built in 1994) and Pearl Seaways (built in 1989). The routes across Skagerrak and Kattegat involve around 800 employees at sea and on land. AFLOAT adds that DFDS has an Irish operation through the ferry route connecting Rosslare Europort and Dunkirk, France. Credit: DFDS

Ferry and logistics operator DFDS will sell the mini-cruise route Oslo-Frederikshavn-Copenhagen, linking Norway and Denmark, to the shipping company Gotlandsbolaget.

The decision will ensure that the Oslo, Frederikshavn, and Copenhagen (OFC) route to be sold to the Swedish company receives the future focus and investments needed to further develop, while the Danish owned DFDS strengthens the focus on its core business within freight, passenger transport, and logistics. The sale price is around DKK 400m.

The sale includes the two cruise-ferries deployed on the route, port agreements, and terminal equipment. As part of the sale, approximately 800 employees in route operations and support functions will also move to Gotlandsbolaget.

“The route is a part of our history and heritage, and it is with a heavy heart that we have found a new home for the route and will be saying goodbye to a lot of valued colleagues. We have determined this to be the best way forward for all. We have grown and developed significantly over the years, and the route deserves to be in the hands of an owner with cruise experience as a core part of their strategy going forward. We are happy to have found that with Gotlandsbolaget,” says Torben Carlsen, CEO of DFDS.

The OFC route is first and foremost a cruise experience route, carrying more than 700,000 passengers between Norway and Denmark every year. The route fits well with Gotlandsbolaget’s strategic focus.

"We see great potential in this business. The route is performing well today, and together with our new colleagues, we will both work to ensure continuity and develop the product. This is yet another step in our strategic direction to expand passenger shipping", says Håkan Johansson, CEO of Gotlandsbolaget.

Enabling strategic focus on core business

The sale of the OFC route reflects DFDS’ strategic focus on providing transport and logistics services using combinations of ferry, road, and rail transport.

DFDS’ ferry transport network hereafter consists of freight-only routes in the Mediterranean and on the North Sea and combined freight and passenger routes on the Baltic Sea, between the Netherlands and the UK, and the English Channel.

In addition Afloat highlights DFDS operations between Ireland and France (Rosslare Europort-Dunkirk) and its acquisition of a Strait of Gibraltar operator linking Spain and Morrocco, Africa.

The ferry transport network is complemented by DFDS’s European wide road and rail transport network and logistics services.

“The decision to sell the OFC route has been difficult. We believe it is the right decision and right timing for both the route and DFDS. Going forward, we will focus on our core business activities within freight, logistics, and transport passengers as we continue to execute on our Moving Together Towards 2030 strategy, unlocking the potential of our transportation network,” says Torben Carlsen.

The two cruise-ferries– Crown Seaways and Pearl Seaways - will not be reflagged in connection with the transaction, and no layoffs are planned as part of the transfer of the route.

When the transaction is finalised, DFDS will have 21 Danish-flagged vessels employing around 1,100 seafarers. In addition, DFDS employs over 1,000 people across more than 10 land-based offices, terminals, and logistics sites in Denmark. After the transaction, DFDS in total employs 13,200 people.

The sale price is around DKK 400m and the agreement, which also includes a potential earn-out payment, is expected to be closed in October 2024.

The completion of the transaction is subject to customary closing conditions, while no regulatory approval conditions apply.

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About The Author

Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals.

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