Danish ferry operator DFDS is expanding its footprint in the Mediterranean with the acquisition of a ferry company that operates between Spain and Morocco.
The company said it has agreed to acquire FRS Iberia/Maroc, a division of the German short-sea ferry company FRS GmbH & Co KG.
FRS Iberia/Maroc operates three short-sea ferry routes across the Strait of Gibraltar using a fleet of seven vessels with an average age of 23 years.
Headquartered in Tarifa, Spain, the company operates on routes between Algeciras-Tanger Med, Algeciras-Ceuta and Tarifa-Tanger Ville.
In 2023, a total of 2.3m freight lane metres, 1.9m passengers, and 370k cars are expected to be transported, according to DFDS.
“We are excited to expand our network to one of Europe’s significant ferry markets that we expect will continue to show high growth underpinned by the ongoing nearshoring of supply chains to Europe”, says DFDS chief executive Torben Carlsen.
DFDS described the acquisition as a “great opportunity” to scale its business model applying its capabilities and experience, not least from the Channel short-sea market, to further develop the Strait of Gibraltar ferry infrastructure while supporting regional tourism and trade.
DFDS said the acquisition is aligned with its strategy to develop and expand the transport network focused on moving goods in trailers by ferry, road and rail as well as moving passengers.
The acquisition expands DFDS’ Mediterranean route network that today connects Europe with Türkiye and Tunisia, respectively.
“The region’s organic market growth is expected to continue to exceed growth levels in northern Europe underpinned by nearshoring of manufacturing supply chains closer to end markets in Europe,” DFDS said.
The ferry company said the integration of FRS Iberia/Maroc is expected to bring operating benefits, including tonnage allocation.
The largest route Algeciras-Tanger Med connects the largest industrial ports of Spain and Morocco with revenue split equally between freight and passengers.
The route, which has a crossing time of 90 minutes, deploys two owned combined freight and passenger ferries and one chartered/shared freight ferry.
The route between the ports of Tarifa and Tanger Ville is focused on tourism and transports foot and car passengers with a crossing time of 60 min. The route deploys two catamaran ferries (HSC), all owned.
The Algeciras-Ceuta route, with a crossing time of 60 minutes, predominantly transports foot and car passengers as well as accompanied freight trailers. The route deploys two catamaran ferries, one owned and one chartered.
The total Strait of Gibraltar freight market is expected in 2023 to grow to around 475,000 units, while the total passenger market is expected to increase to around 6m passengers.
FRS Iberia’s market share is 28-30% depending on segment with all three segments expected to grow 5-10% annually for the next three years, according to DFDS.
