Royal Arctic Line

Updated on Oct 26, 2023

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Industry Transport Key people Jens Andersen (CEO) Website ral.gl Revenue 897 million DKK Number of employees 787 Net income 73 million DKK		Area served Greenland Products Coastal freight Headquarters Nuuk Founded 1993 Type of business Aktieselskab Operating income 104 million DKK

Subsidiaries Royal Arctic Bygdeservice A/S Royal Arctic Logistics A/S Arctic Base Supply A/S (50%) Royal Arctic Tankers A/S (50%) Arctic Umiaq Line A/S (50%) Ejendomsselskabet Suliffik A/S (30.3%) Profiles Facebook

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Royal Arctic Line A/S (RAL) or Royal Arctic is a seabourne freight company in Greenland, wholly owned by the Greenland Home Rule Government. It was formed in 1993 and is headquartered in Nuuk.

History

Royal Arctic Line A/S was spun off as a company separate from the Greenlandic conglomerate KNI in 1993. Like many Greenlandic companies, its operations derive from and carry on the traditions of the earlier Royal Greenland Trading Department.

Operations

The company has a monopoly on all sea transport of cargo to, from, and within Greenland. Construction materials account for roughly a quarter of shipping to Greenland; fish makes up roughly half of shipping from Greenland; fish and beverages bottled at Nuuk (principally water and beer) account for most shipping within Greenland.

Royal Arctic operates cargo routes among the Greenland settlements and between Nuuk and Aalborg in Denmark and manages 13 harbors in Greenland as well as the Greenlandic base harbour in Aalborg, which serves as the source for all European shipping to the island. Seabourne traffic from North America goes to Reykjavík aboard Eimskip, whence it is carried to Greenland aboard Royal Arctic.

In 2011, government concessions accounted for 76% of the company's income. The Transport Committee newly formed by Greenland Home Rule issued a report stating that liberalisation of the shipping market offers no benefits and the current concession is reasonable. It also began planning with RAL and stakeholders to expand the harbors in Nuuk and Sisimiut.

Linietrafik

Royal Arctic Linietrafik operates the company's fleet, currently consisting of ten ships – six container ships and four "settlement ships" – with five more under construction.

The three largest ships – the Naja Arctica (782 TEU), Nuka Arctica (782 TEU), and Mary Arctica (588 TEU) – are principally used for the Aalborg route. The Irena Arctica (424 TEU), Arina Arctica (283 TEU), and Pajuttaat are used within Greenland and have equipment for unloading in cities without harbors. All these container ships are double-hauled and built with high freeboards and the highest ice ratings: the Mary Arctica has even been chartered for Antarctic service. The settlement ships Angaju Ittuk, Anguteq Ittuk, Aqqaluk Ittuk, and Johanna Kristina are all older and smaller (220–320 m³) and used for supplying the smaller ports. In 2011, the ships had an average on-time rate of 72%.

One of the new ships is considered Mary-class and will have a capacity of 606 TEU. Of the four others, two will have 108-TEU and two will have 360-TEU capacity.

Havneservice

Royal Arctic Havneservice operates the company's harbour operations and nearby lighthouses.

Aalborg (Denmark)

Aasiaat (April–December)

Ilulissat (April–December)

Maniitsoq

Nanortalik

Narsaq

Nuuk (home port of RAL)

Paamiut

Qaqortoq

Qasigiannguit (ultimo April–December)

Sisimiut

Tasiilaq (July–October)

Upernavik (June–November)

Uummannaq (June–November)

Some other towns such Qaanaaq, Ittoqqortoormiit, and Qeqertarsuaq in Greenland and Reykjavík in Iceland are served very infrequently.

Bygdeservice

Royal Arctic Bygdeservice A/S ("Settlement Service") is a wholly owned subsidiary based in Nuuk. It operates under contract from the Home Rule Government and provides fortnightly supplies to ice-free ports. It subcontracts its weekly passenger duties to Arctic Umiaq. In 2011, Royal Arctic Bygdeservice received a 20-year contract extension. Five new ships have been contracted from P+S Werften in Germany to provide the increased tonnage, financed via loans from a German bank.

Logistics

Royal Arctic Logistics A/S is a wholly owned subsidiary based in Aalborg. It operates the Aalborg harbour and the forwarding business between Greenland and Denmark. Its subsidiaries include the Aalborg Stevedore Company A/S (67%), Nordjysk Kombi Terminal A/S (50%), and Aalborg Toldoplag A/S (40%).

Tankers

Royal Arctic Tankers A/S is a wholly owned subsidiary based in Nuuk. It was formerly owned jointly with Herning Shipping A/S, but Herning's interest was bought out in January 2012. It operates the MV Pajuttaat.

Arctic Umiaq

Arctic Umiaq Line A/S is owned jointly (50% each) with Air Greenland and based in Nuuk. Its 2011 operating loss of DKK 8.1 million was made good via a loss guarantee from Greenland Home Rule, and the company has secured an agreement for further loss guarantees through 2016.

Arctic Base Supply

Arctic Base Supply A/S is owned jointly (50% each) with Danbor and based in Nuuk. It provides logistical support for offshore oil and gas exploration and, in 2011, assisted Cairn Energy in its work at Nuuk and Aasiaat. No activity is expected in 2012, however.