Norwegian coastal operator Havila Kystruten has put planned investments for the next coastal service contract period on hold.
The company is responding to a Norwegian Government proposal to shorten Bergen–Kirkenes contracts after 2030 from 10 years to four to five years. The suspended work includes vessel modifications that would allow the carriage of private cars at every port on the route.
The proposed framework is set out in the government's 2027 budget proposition, and parliament is due to decide on it in December.
Havila Kystruten said it has received signals that the next competition will be announced in the first half of 2027.
"A ship is built to sail for several decades.” said Havila Kystruten Chief Executive Bent Martini. “A contract of four–five years does not provide a basis for investing in new ships or major technological advances. We therefore have to put some investments on hold and reconsider others pending clarification."
The company argued that contracts of four to five years would in practice limit competition to existing operators and their available fleets.
It also said the oldest vessel on the route would be more than 50 years old when the next contract expires.
"Short contracts normally become more expensive because investments have to be recouped over a shorter period," Martini remarked.
The company added that its ships were built for alternative uses and that it has other markets in Norway and abroad.
Havila Kystruten aims to make its fleet “climate-neutral” using biogas by 2028 and to operate “emissions-free” from 2030. Its four ships use hybrid LNG-battery propulsion and can run for up to four hours on battery power alone.
Under the current 2021–2030 agreements, which include a one-year extension option, Havila Kystruten operates four routes and Hurtigruten operates seven.
