Finnish shipping company Finnlines revealed it is in the process of shipbuilder selection after which the construction of a new green fueled roll-on/roll-off passenger (RoPax) fleet will proceed.
As disclosed, Finnlines recently launched a tender to select a shipbuilder that will build the company’s three new ferries intended for the Helsinki (Finland) -Travemünde (Germany) route.
“The target is to sign the orders at the end of 2024 or at the beginning of 2025,” Tom Pippingsköld , President and CEO, said.
“In spite of somewhat unpredictable economic outlook and geopolitical challenges, Finnlines steams ahead. We are financially strong, we also have operationally and environmentally sound fleet, which will be further improved by new green-fuelled vessels, which will benefit Finnlines and also our customers when we both are reducing our emissions further,” he added.
Earlier this year, Finnlines said it was evaluating another €400–500 million green investment program on the Finland–Germany route. In late 2023, the company wrapped up its first €500 million green newbuilding program comprising two hybrid RoPax and three hybrid RoRo units.
Since the beginning of 2024, shipping has been included in the Emissions Trading Scheme (EU ETS). Starting next year, the Fuel EU Maritime regulation will also come into effect, shaping the future of shipping further.
To align with these enhanced environmental standards, Finnlines has been selling older vessels which were not energy-efficient or did not comply with the new regulations and emission requirements. To comply with the new environmental regulations and to reach lower CO2 emissions, Finnlines has invested over half a billion euros in advanced vessels currently available with huge battery banks and other advanced technology to reduce emissions.
Finnlines reports “strong” results despite geopolitical challenges
In the first three quarters of this year, Finnlines’ earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to €140.8 million, up from €131.7 million seen in the corresponding period last year.
Revenue in January–September 2024 amounted to €547.2 million, rising from €513.2 million recorded in 2023.
”The beginning of 2024 was difficult with high interest rates, inflation, and a slowdown in economic growth. Yet many of the key figures showed an upturn when the Q3 report was completed,” Pippingsköld explained.
The cargo volumes transported during January–September totalled approximately 595,000 cargo units, 63,000 cars (not including passengers’ cars) and 962,000 tons of freight not possible to measure in units. In addition, some 764,000 private and commercial passengers were transported.
As anticipated, passenger travel increased considerably on Finnlines’ vessels during the summer season. All the four RoPax lines performed well and the number of private passengers more than doubled on the route between mainland Finland, Åland and Sweden. The growth on our Naantali–Långnäs–Kapellskär route during January–September was 122% compared to the previous year.
In September 2024, Finnlines opened a new freight service between Finland and the United Kingdom. The freight service is said to be part of the company’s strategy to improve service sustainability and route network. It is operated with three hybrid RoRo vessels.