Hurtigruten - Coastal line slims down, thinking about selling ships to stay afloat

**Ally** · 05-16-2008, 09:06 AM

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Norway's venerable coastal voyage line known as "Hurtigruten" is considering selling off all its fast ferries, busses and other ferries in an effort to stay afloat.

The troubled passenger and cargo shipping line has logged losses of more than NOK 600 million (about USD 120 million) over the past three years and suffers from heavy debt. The costs of massive investment in new cruiseship-like vessels operating in a high-cost environment are taking their toll.

Various restructuring programs haven't helped much so far. Some analysts have called Hurtigruten a prime takeover target, if the state would allow it.

Managing director Olav Fjell, a former boss of state oil company Statoil, said this week that the line must improve operations and reduce debt.

"We must get more people on board, and get them to spend more money," Fjell told news bureau NTB. "Costs are too high. That's the reason we're looking at the possibility of selling off businesses outside our core operations."

Hurtigruten runs coastal voyages from Bergen north to Kirkenes and back again, leaving every day of the year and stopping at tiny towns and hamlets along the way.

Once a major lifeline for the remote coastal communities, it since has evolved into a cruise operation of sorts popular with foreign tourists. Hurtigruten also has expanded into far-flung cruises in the Antarctic, the Mediterranean and around Europe, redeploying vessels in line with seasonal business in Norway.

Coastal line slims down - Aftenposten.no

**Ally** · 05-20-2008, 07:13 AM

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20.5.2008: Hurtigruten considers major shift of focus to stop losses

Hurtigruten, the Norwegian company best known for its daily service between Bergen and Kirkenes plus destinational cruises, is planning a drastic revision of its business to stem continued losses. A shareholders meeting on 15 May discussed options for the company, whose net losses deepened to NOK167 million last year from NOK136 million in 2006. The company may sell its coach and local ferry operations and focus on the shipping business that comprises 11 vessels of about 10,000 to 12,000 gross tons each. Hurtigruten was formed through the merger of Ofotens og Vesteraalens DS and Troms Fylkes DS in 2005 in a move to boost the efficience of the business. However, despite various efforts by the management to put an end to the losses, this has not happened.

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