Investments totaling hundreds of millions of dollars will be needed over years to come in order to ensure the new strategy for Royal Arctic Line and the sailing to and from Greenland, according to an internal brief to employees.
Politicians in Greenland will this week assess whether the entire maritime political area can be brought back to Greenland instead of falling under the Danish Maritime Authority. The idea falls in line with Royal Arctic Line's plans to flag more of the carrier's vessels locally.
The carrier will "be rooted in the fact that it's a Greenlandic business," and as such, a bigger part of the carrier's fleet will be flagged in Greenland going forward, says CEO Verner Hammeken in an interview with ShippingWatch.
Fewer employees on board the vessels and better educational opportunities in Greenland are some of the consequences of the partnership with Icelandic Eimskip and the upgrade of the cabotage fleet, writes Royal Arctic Line in a statement.
The chairman of carrier Royal Arctic is ready to open talks with its owner, the Greenlandic Government, and discuss breaking from its current monopoly on Greenlandic salings. The historical concession is expensive for Greenland, chairman Kuno Fencker tells ShippingWatch.
Royal Arctic Line's monopoly on seafreight to and from Greenland is at play when the carrier begins its new partnership with Iceland's Eimskip. "One might ask if it's necessary to have a concession," Royal Arctic Line CEO Verner Hammeken tells ShippingWatch.