Proposed new Port of Gothenburg structure to be submitted to the City Council

The Board of the Port of Gothenburg decided today to submit a proposal for a new operating structure to the owner, the City of Gothenburg. The proposal will be submitted to the City Council for a final decision.

"I'm pleased that today we were able to hand over the basis for a decision as commissioned by the City Council. This process of change is a natural and necessary step in developing the Port of Gothenburg into a modern, attractive facility. The new organisation will not only benefit the port and our employees but also the region and Swedish industry as a whole," says Sven Hulterström, Chairman of the Port of Gothenburg.

In the light of port development internationally, the Gothenburg City Executive Board reached a directional decision in spring 2009 to divide the Port of Gothenburg into a municipal Port Authority and three terminal companies, which would be run by external operators. A project group then examined port operations and formulated a basis for a decision to divide current operations into separate entities.

The proposal states how, on both an overall and a fundamental level, the operational division will take place, complete with a definition of the Port Authority's duties, the company and capital structure, the principles for concession agreements and port tariffs and a time schedule. The proposal also lays down that all employees will retain their terms and conditions of employment and that current employment contracts, periods of employment and collective agreements will continue to apply in the new companies.

"The proposed division is good for the Port of Gothenburg as we will gain access to external expertise and at the same time the port can focus on its strategy and develop as a freight hub for the whole of Scandinavia," says Sven Hulterström.

He continues:

"It is important to bear in mind that it is not the Port of Gothenburg that is being sold but the freight handling operations. What will happen is that external operators will purchase the right to use the quays and terminals at the port. The Port of Gothenburg will still own the land and the infrastructure, thus retaining control of the port and its future development."

The City Council is expected to take up the matter at the beginning of November.

For further information, please contact Sven Hulterström, Chairman, Port of Gothenburg, tel. +46 (0)70-553 62 40.