Port of Gothenburg ready to enter into joint venture with Castellum

The Gothenburg Port Authority has signed a letter of intent with the property company Castellum to develop the Halvorsäng area into one of the foremost logistics hubs in Sweden. A joint venture company will be established in which both parties will have equal shares.

The aim of the partnership is to facilitate planning, development, and construction at Halvorsäng, with a view to owning, managing, and leasing the completed facilities. The land area is approximately 270,000 square metres, including 155,000 square metres of building space. Construction is due to commence during 2021 and will take four years to complete.

“We have arrived at an ideal solution for all concerned, but with the land remaining at the disposal of the Gothenburg Port Authority. The plan is to share costs and risks with a partner that has the requisite knowledge and expertise in the development of logistics facilities that will benefit the port as a whole,” said Elvir Dzanic, Gothenburg Port Authority chief executive.

The project was given the go ahead by the City Executive Board last week although the setting up of a joint venture company will be subject to approval by the City Council.

“We are currently awaiting a decision from the City Council that will facilitate long-term collaboration, ultimately leading to the development of logistics facilities that will help fulfil the goals of the partners and create new job opportunities throughout the region,” said Henrik Saxborn, Castellum AB chief executive.

Castellum’s initial investment will involve acquiring a 50% interest in the land, at an estimated cost of around SEK 400-450 million, and with a further investment of SEK 550 million in development. Castellum was chosen as the port’s partner following a selection process at the end of last year. The Port Authority reviewed a number of bids in which financial and environmental considerations were key factors.

A letter of intent has been signed by both parties with the aim of putting a system in place to deal with customer enquiries and ensure construction can get under way towards the end of this year. The original timetable for the project has been adhered to, with working groups focusing on the different parts of a future shareholders’ agreement. If everything goes to plan, the project can commence in the autumn.

“Although we are still in the early stages we are firmly committed to the successful development of Halvorsäng. With direct links to the port and major highways, Halvorsäng will become an amazing focal point for the logistics of the future,” said Mariette Hilmersson, Castellum Region West chief executive.

Located directly north of the port’s terminals, immediately beside the Hisingsleden bypass, Halvorsäng is ideally situated to handle incoming freight for onward transport throughout Sweden and Scandinavia by road or rail.