Harbour expansion benefits whole country

The land approach for ships to the Port of Gävle is under development, with the Municipality of Gävle investing in new quays, larger port areas and a new entrance fairway at the port. Improved rail connection is also part of the investment programme, which NIB is financing with a SEK 500 million (EUR 54 million) loan.

“The Port of Gävle is one of Sweden’s ten biggest import and export harbours. The harbour is of great importance for the region, and three connecting railway lines and many important roads secure well-developed connections to the port on the ground,” says Karin Skjold, Director of Economy at the the Port of Gävle.

The volume of cargo passing through the port is growing, and a prerequisite for continuous growth is improved infrastructure to and from the harbour. The expansion project will increase the port’s transport capacity by 40%.

“New electric railways to the harbour will increase the railway efficiency because it will no longer be necessary to change to diesel-run locomotives for the final stretch to the harbour,” explains Ms Skjold, and adds that this also has the positive environmental effect of decreased CO2 emissions.

Strengthening competitiveness for its member countries is part of NIB’s mission. The infrastructure expansion that NIB is financing in the Port of Gävle is important for the competitiveness of companies both in the region and throughout the country.

“The Port of Gävle is owned by the Municipality of Gävle,” Ms Skjold explains, “but only a small share of the volumes of cargo that pass through the harbour have Gävle as their final destination.”

“The Port of Gävle is the harbour for the whole region of central Sweden,” she continues.

“Local industry and the private sector take advantage of the short distance to the harbour as well as its ability to handle different types of goods, such as container cargo, oil, chemicals and bulk products. Local industry can secure both its demand for import goods and its dependence on export of its own goods, via our harbour.”

Ulf Westergård, Senior Originator at NIB, emphasises the Bank’s role in financing municipal investments in infrastructure.

“Transport, logistics and communications are important sectors to NIB. The Bank has a strong interest in financing infrastructure projects, as it has a positive impact on the competitiveness of industry as well as the member country’s regions. In addition, infrastructure projects benefit from the long-term funds which NIB can provide. We therefore look forward to being even more active in these kinds of projects in Sweden,” Mr Westergård says.

Improved infrastructure for ships also strengthens the competitiveness of cargo shipping compared to other alternatives to freight transport, which may have a more negative impact on the environment.

NIB’s role as a long-term lender is especially significant in infrastructure projects, which are usually long-term in nature. The expansion of the Port of Gävle has been in the pipeline for 10 years and is expected to be completed by 2015.

“Just as many other municipalities, we are relying on borrowing from the municipality financer, the Swedish Kommuninvest. This loan from NIB is important to us as we aim to broaden our source of financing from various banks. Another important aspect in which NIB plays a role is in securing our need for long-term financing, which feels particularly important in the current financial environment. NIB’s good brand as a lender to environmental and infrastructure projects also strengthens the Port of Gävle’s brand,” Ms Skjold concludes.