Danish roro ship operator DFDS secured a contract from Swedish paper producer Stora Enso to transport 700,000 tons of paper products annually on a new route between Gothenburg and Zeebrugge.
The contract is for a minimum period of five years and Stora Enso has an option to extend the agreement for another three years.
The new route will be operated by three freight ferries. DFDS will acquire two ferries, Slingeborg and Schieborg, for DKK270m ($40.5m) and transfer one ferry from its existing route between Gothenburg and Ghent.
“We are very pleased to expand our cooperation with Stora Enso and look forward to supporting their growth through an efficient and flexible route operation. We likewise look forward to offer the transport market additional capacity and services between Sweden and Belgium,” said Peder Gellert Pedersen, executive vice president of DFDS Group.
DFDS expects to commence operations of the new route in June and reach revenues in excess of DKK300m ($45m) by 2020.