The leading dry bulk cargo company in the Baltic Sea region
ESL Shipping is the leading shipping services provider in the Northern Baltic Sea in its core segments. The company’s core is to provide reliable shipping services for its industrial partners. To meet that purpose ESL Shipping’s active operating region extends to South-Western Europe.
To provide flexible and reliable services, a sufficiently large and interchangeable fleet is required. At the end of 2023, ESL Shipping had 43 vessels in use, all 1A ice classed. Out of the vessel fleet 24 are 100%-owned, 2 minority owned and 17 are time-chartered. ESL Shipping’s total fleet has a deadweight tonnage of more than 443 000.
PARTNERSHIP AS BUSINESS MODEL
The company aims to build long-term relationships with its selected partner clients. Seven out of the top ten ESL Shipping’s customers have a longer than 10-year contractual relationship with ESL Shipping. This is an outcome of high customer advocacy that has been reached through in-depth understanding of clients’ service needs and delivery of high-quality services.
ESL Shipping builds a competitive edge through its ability to provide highly reliable transportation services year-round, despite sometimes harsh and challenging weather conditions.
STRONG FINANCIAL RESULTS DESPITE CHALLENGING ENVIRONMENT IN 2023
Despite the challenging business environment, ESL Shipping delivered solid financial performance in 2023. The partnership-based strategy proved its strength within this adverse business environment.
STRATEGY BUILT ON GREEN GROWTH
The green transition drives substantial boost for sustainable shipping needs in the Northern Baltic Sea. ESL Shipping has ordered twelve highly energy-efficient Coaster-sized electric hybrid vessels and the delivery of the first vessel took place at the end of 2023. The company is preparing the next wave of green vessel investments and ESL Shipping has reinforced its capabilities and capacity in renewable energy and project shipments.
In addition, ESL Shipping is taking an active part in future fuel development and is well positioned to play a leading role in the provision of CO2 free shipments.
ADDITIONAL EQUITY TO ACCELERATE GREEN GROWTH
ESL’s green transition demands substantial investments. To secure fast progress of green shipping investments, additional financing muscle is needed. In line with that purpose Aspo entered in November 2023 into agreement with OP Finland Infrastructure where OP Finland Infrastructure injects additional equity of EUR 30 million to ESL Shipping and becomes a minority shareholder in the company. In February 2024, Varma joined the arrangement with its own co-investment of EUR 15 million.