In its annual report for 2022, Port of Oslo shows an operating income of NOK 448.6 million, an increase of 27.4% from 2021. Gross operating profit was NOK 96.7 million. The port will reserve operating profit for future investments. To achieve the goals in its strategic plan, Port of Oslo will make significant investments in the future: upgrading quay facilities, a new international ferry terminal, and measures to reduce harmful greenhouse gases and environmental emissions.
PROUD OF PERFORMANCE: - We are pleased that our core business, port operations, and development, are more profitable. Port of Oslo has traditionally kept its fees low. We are now gradually increasing prices to finance vital investments with income from our operations," says port director Ingvar M. Mathisen.
- We are very pleased that our core business, port operations, and development, are more profitable. Port of Oslo has traditionally kept its charges low but is now gradually increasing prices to finance vital investments with income from our operations. However, our price structure will remain competitive and support sustainability by encouraging carriers to shift cargo transport from road to sea. Our strategic plan exploits Port of Oslo's proximity to a growing marketplace. It is better for the environment when goods arrive at a port as close as possible to their final destination, says port director Ingvar M. Mathisen.
Strategy plan delivers results
Port of Oslo's board adopted the current strategic plan in June 2022. The plan outlines seven business lines, focusing on best commercial practices while operating within the framework of governing authorities, the owner, and the harbor board.
- We can already see the results of our new strategic plan. Port of Oslo has never had higher revenues. Accountability and focusing on business operations create opportunities to support maintenance and development needs. The plan also helps advance the shift to more environmentally friendly maritime transport," says port director Mathisen.
Record growth in container and vehicle imports
Approximately 75% of Port of Oslo's operating income comes from port-related activities: ship traffic, handling goods and passengers, and real estate development, including land and buildings.
The most significant growth is in the container market and car imports. Over the past five years, Port of Oslo has experienced a steady increase in container traffic measured in TEU/LO-LO. The record high was 299,000 TEU in 2022. Total cargo turnover was 5.9 million tonnes, almost the level before the pandemic. "In 2023, we expect further growth in revenue in the cargo and passenger segments," says commercial director Einar Marthinussen.
International ferries feed profit
Passenger traffic on international ferries reached 1.6 million, approaching the level before the pandemic. In 2022, there was also significant growth in cruise passengers. This increase is due primarily to the war in Ukraine. "Cruise ships, which previously sailed to St. Petersburg in Russia, arrived in Oslo instead," adds Marthinussen. The pandemic limited cruise traffic, which is now rebounding with passenger growth in 2022 compared to 2019.
Rental income
Income from sales and rental reached NOK 409 million in 2022, an increase of 9.2% from 2019. This growth is primarily a result of success over the past several years in renegotiating contract terms. The impact from this will have a significant positive effect on the port's results for 2023. The port expects revenues from sales and rentals to remain stable in 2023. There was a significant drop in income during the pandemic. The ferry company, Stena Line, ceased operations to and from Oslo and Joh. Johansson relocated from Kaffetårnet in Filipstad. Port of Oslo increased rental and parking charges to generate income.
Cost cutting is critical
Port of Oslo must cut costs to deliver value in a tightening national and international economy. Norway expects a recession in the first half of 2023. Economic conditions could lead to reduced consumer consumption, less demand for goods, and lower cargo traffic volumes.
- We must cut costs by 12% in 2023. Port of Oslo can withstand a recession by improving cash flows and more efficient use of its resources," says port director Mathisen.
Port of Oslo Cargoes 2022:
Total cargo turnover (tonnes)
Container traffic: Container volume in tonnes grew by 8.3% from 2019 to 2022. Growth in TEUs, the standard unit of measurement, was 16.4%. In 2022, approximately 299,000 TEU arrived in Oslo.
Containers LO/LO (TEU)
Cars and commercial vehicles: 59,960 cars imported through the port in 2022. An increase of 2,930 (5.4%) compared to 2021.
Other cargo (incl. ferry cargo): This segment accounted for 614,000 tonnes in 2022, up 19.6% from 2021 and 14% less than 2019. Ferry cargo volumes increased by 80,000 tonnes from 2021 but were still 85,000 tonnes less than 2019 volumes. The decrease is primarily a consequence of Stena Line shutting down service to Oslo. Side gate ships and bulk carriers transported 115,000 tonnes of road salt, construction products, and Refuse Derived Fuel (RDF) for combustion at the energy recovery plant at Klemetsrud.
Dry bulk: This segment, consisting of building materials such as cement, sand, crushed stone, and landfill materials, accounted for approximately 1.7 million tonnes in 2022, up 6.9% from 2021 and 80,000 tonnes less than 2019. Other dry bulk cargoes include agricultural products (115,800 tonnes) and iron and steel products (130,000 tonnes).
Liquid Goods: Imports reached 1.8 million tonnes in 2022, up 14.7% from 2021 and 215,000 tonnes less than in 2019. Jet fuel imports contributed to a significant proportion of the growth as passenger travel by air increased.
Domestic passenger traffic: In 2022, local ferries, island boats, and tour boats transported 3.8 million passengers—an increase of almost 50 % during the pandemic in 2021 but still 8% less than in 2019.
Domestic passenger traffic
International passenger traffic: Color Line, DFDS, and various cruise lines saw traffic increase 227% from 2021. However, that is still 26% less than in 2019. International ferries carried 1.6 million passengers, 188% more than in 2021 and 15% less than in 2019. This traffic drop may have resulted from Stena Line shutting down service to Oslo.
Total international passenger traffic
Cruises: 266,000 cruise passengers arrived in Port of Oslo in 2022 compared to 14,000 during the pandemic in 2021.