The port authority and the property company have signed a letter of intent to create a 50/50 business tasked with the development of the Halvorsäng area into a logistics hub.

The partnership aims to facilitate planning, development, and construction at Halvorsäng, an approximately 270k m2-big plot, with 155k m2 reserved for building space.

The area lies north of the Port of Gothenburg's container terminal and the adjacent oil depot, next to the Hisingsleden bypass.

The parties expect to kick off construction works this autumn, with commissioning planned after four years.

Castellum's initial investment will involve acquiring a 50% interest in the land at an estimated cost of around SEK400-450m (about €39.5-44.5m), with a further development investment of SEK550m (€54.3m).

"We have arrived at an ideal solution for all concerned, but with the land remaining at the disposal of the Gothenburg Port Authority. The plan is to share costs and risks with a partner that has the requisite knowledge and expertise in the development of logistics facilities that will benefit the port as a whole," Elvir Dzanic, Gothenburg Port Authority's Chief Executive, underlined.

Henrik Saxborn, Castellum's CEO, added, "We are currently awaiting a decision from the City Council that will facilitate long-term collaboration, ultimately leading to the development of logistics facilities that will help fulfil the goals of the partners and create new job opportunities throughout the region."

"Although we are still in the early stages we are firmly committed to the successful development of Halvorsäng. With direct links to the port and major highways, Halvorsäng will become an amazing focal point for the logistics of the future," Mariette Hilmersson, Chief Exec of Castellum Region West, also commented.

Photo: Gothenburg Port Authority