On Thursday, EQT Infrastructure—the infrastructure arm of Swedish private equity firm EQT—announced that it is buying Molslinjen, which operates Denmark’s beloved domestic ferry fleet. Molslinjen, which connects the major population centers of Copenhagen and Aarhus, is a critical part of Denmark’s domestic transport network
In a company statement, EQT Infrastructure said that the acquisition will support Molslinjen’s continued sustainability agenda through investments in the decarbonization of its ferry fleet, and acceleration of its ongoing transition to renewable fuel sources and electrification.
Molslinjen, headquartered in Denmark’s second largest urban area, Aarhus, was established in 1963 as a single route operator between the Jutland Peninsula and the island of Zealand, where Copenhagen is located.
Since that time, Molslinjen has grown to become Denmark’s largest passenger ferry operator, with over 700 employees and 15 vessels serving over eight million people each year across nine routes, including connections to Sweden and Germany. The company generated revenues of around DKK 1.9 billion (about $309 million) in 2019.
As Denmark itself spans 70 populated islands (many of which are sparsely populated), Molslinjen’s ferry operation is a critical element of the Danish national transportation infrastructure. Its routes constitute a network of “floating bridges” that link Denmark’s major population centers and connect several important islands with the mainland.
EQT notes that Molslinjen’s long-term development is supported by strong secular trends, including steady population growth, greater urbanization, climate consciousness, and increasing domestic travel. Molslinjen is well-positioned to capitalize on these shifts with its state-of-the-art ferry fleet, which serves the country’s key travel corridors. As an enabler of movement of passengers and goods, Molslinjen contributes to Denmark’s local and regional economic activity and social development.
Over the past decade, Molslinjen has reduced its CO2 emissions per transported kg by over 60 percent. In the coming years, the Company will continue to invest in decarbonizing its ferry fleet and reducing fossil fuel dependence.
Coming Soon: Electrification
EQT Infrastructure affirmed its commitment to supporting Molslinjen’s transition to electrified ferries on selected routes and introduction of renewable fuel sources for larger vessels. Additionally, EQT Infrastructure will focus on customer service improvements, such as refitting of the vessel layout, increased departure frequency and higher passenger capacity on popular routes.
“We have followed Molslinjen closely for years and are tremendously impressed with its transformation into an indispensable element of the Danish transport infrastructure,” said Daniel Pérez, of EQT Partners, in an official statement. “The next development phase of Molslinjen will be defined by the Company’s ambitious sustainability agenda and continued investments in electrification and renewable fuel sources.
“In parallel, we also believe that there is scope to further build on Molslinjen’s successful inorganic growth strategy. Taken together, these investments will further future-proof the Company, and we look forward to embarking on this journey together with Carsten and the management team.”
Molslinjen CEO Carsten Jensen also commented, “We are excited to team up with EQT Infrastructure, they are a highly strategic partner who will bring both the industry expertise and financial muscles to support Molslinjen’s green development plans. We now look forward to setting sail towards the next chapter in our growth journey together with EQT.”
