Finnlines, the Finnish shipping company, has announced it is currently in the process of selecting a shipbuilder to construct its new environmentally friendly roll-on/roll-off passenger (RoPax) fleet.
The company recently launched a tender to identify a shipbuilder for three new ferries, which will serve the Helsinki (Finland) – Travemünde (Germany) route.
“Our goal is to finalize the orders by the end of 2024 or early 2025,” said Tom Pippingsköld, President and CEO of Finnlines.
“Despite an unpredictable economic outlook and ongoing geopolitical challenges, Finnlines continues to move forward. We are financially strong, and our fleet is both operationally and environmentally sound. This will only improve with the addition of new green-fueled vessels, which will help us and our customers to reduce emissions further,” he added.
Earlier this year, Finnlines announced it was considering a €400–500 million green investment program for the Finland–Germany route. The company had recently completed its first €500 million green newbuilding program, consisting of two hybrid RoPax and three hybrid RoRo units.
Since January 2024, shipping has been included in the EU Emissions Trading Scheme (ETS), and the upcoming Fuel EU Maritime regulation, effective next year, will further shape the industry’s future.
In response to these regulations, Finnlines has been phasing out older, less energy-efficient vessels that do not meet new emission standards. To comply with environmental regulations and reduce CO2 emissions, Finnlines has invested over half a billion euros in advanced vessels equipped with large battery banks and other technologies designed to cut emissions.
Finnlines Reports Strong Results Despite Geopolitical Challenges
In the first three quarters of this year, Finnlines recorded earnings before interest, taxes, depreciation, and amortization (EBITDA) of €140.8 million, up from €131.7 million in the same period last year. Revenue for January to September 2024 reached €547.2 million, an increase from €513.2 million in 2023.
“The beginning of 2024 was challenging, with high-interest rates, inflation, and slower economic growth. However, several key metrics improved by the end of Q3,” Pippingsköld noted.
During January to September, Finnlines transported approximately 595,000 cargo units, 63,000 cars (excluding passenger cars), and 962,000 tons of unmeasured freight. Additionally, Finnlines transported around 764,000 private and commercial passengers.
Passenger numbers grew significantly during the summer season across all four RoPax lines, with private passenger numbers more than doubling on the route between mainland Finland, Åland, and Sweden. Notably, passenger growth on the Naantali–Långnäs–Kapellskär route increased by 122% year-on-year from January to September.
In September 2024, Finnlines introduced a new freight service between Finland and the United Kingdom. This service is part of the company’s strategy to enhance route network sustainability and expand service offerings, operated by three hybrid RoRo vessels.
