A Transitional Era for DFDS

FSN: Five years after the arrival of the six RoRo vessels (Ephesus Seaways and sisters), is DFDS entering a new chapter?

MG: Absolutely. 2025 is a transitional year. We are focusing on three major areas:

1. Boosting Logistics – Our “Boost Projects” is targeting specific logistical bottlenecks in Northern and continental Europe, particularly in regions where efficiency improvements are needed. This initiative aims to streamline operations and enhance customer service.

2. Turning Around EKOL – The acquisition of EKOL is a long-term strategic move. It is as an opportunity to replicate our successful North Sea unaccompanied freight model in the Mediterranean. We have begun restructuring the company and for the rest of 2025, we will focus on turning around EKOL before fully integrating and realizing synergies. Additionally, we are exploring potential growth in North Africa, particularly Egypt, where we have already launched a ferry route.

3. Competing in the Mediterranean – Until mid-2024, the Turkey-Italy route enjoyed a balanced supply-demand situation. The entry of Grimaldi changed this dynamic, introducing significant additional capacity. We anticipated this shift and are now adapting our capacity and pricing strategies to remain competitive. Customer relationships are key, DFDS has been a longstanding partner to Turkish logistics companies on this market, and we continue working closely with our partners to navigate the new market landscape.

Long-Term Strategy and Sustainability

FSN: How does this transition align with DFDS’s 2030 strategy?

MG: Despite the immediate challenges, our long-term strategy remains unchanged. Key pillars include:

• Standardize and digitize our operations: Terminal efficiencies, Fuel Efficiencies, Passenger & Customer Service optimization – We are investing in our fleet and terminal operations to reduce bunker consumption and CO2 emissions, optimise turnaround times and improve the overall customer experience for our passengers and freight customers.
• Green Investments – Our new vessels from 2030 onwards will be low emission vessels, aligning with regulatory changes and industry expectations. The ambition of our Vessels of tomorrow program is to operate 6 new low emissions vessels in 2030.

Dover’s Sustainable Future

FSN: DFDS has ambitious plans for battery-electric vessels on the Dover Strait. How far along is this project?

MG: Our commitment to our climate targets is firm. We are working towards deploying six battery-electric vessels on the Channel between 2030 and 2035—three for Dover-Calais and

three for Dover-Dunkerque. Landside infrastructure is the main challenge. While the UK side has made progress on grid connectivity, and French ports benefit from nuclear power, the charging infrastructure still requires significant development.

Battery-electric propulsion is the most efficient system for these short crossings. We are closely monitoring battery advancements, as durability, cost, and energy density are improving. The final vessel design—whether single or double-ended—will prioritise efficiency and seamless integration into port operations.

Competing and Expanding in the Mediterranean and Beyond

FSN: DFDS is expanding in Gibraltar, Jersey, and North Africa. How do these developments fit into the bigger picture?

MG: Our recent expansions are strategically aligned with our broader vision:

• Strait of Gibraltar – This is a high-volume transport corridor, with significant seasonal travel and a growing RoPax freight market. We are seeing strong demand from truck drivers moving goods from Morocco to Northern Europe. The Algeciras-Tanger Med route also plays a role in the near-shoring trend, as European manufacturers seek to relocate production closer to home, reducing supply chain risks while maintaining efficiency.
• Jersey – Winning the Jersey contract was a major achievement. This is a lifeline service, crucial for freight transport and passenger connectivity. While the legal process delayed our contract, we are now in full preparation mode, with three routes and four vessels launching in March 2025.
• North Africa – Our investments in Morocco, Tunisia and Egypt are driven by nearshoring trends, where European companies are seeking stable, close-to-home supply chains. With geopolitical uncertainty impacting global trade flows, these regions are becoming increasingly attractive for industrial investments. Algeria, however, presents a different set of challenges. While the country has a strong demand for passenger transport and some industrial production, particularly in the automotive sector, the regulatory environment remains complex. For now, DFDS is keeping an eye on developments in Algeria, but our primary North African focus remains on Morocco, Tunisia and Egypt.

The Tarifa Tender Challenge

FSN: What is the current situation with the Tarifa tender?

MG: The Tarifa-Tangier Ville route is an important strategic link between Spain and Morocco, and DFDS participated in the recent tender process. Despite presenting a strong technical and operational proposal, the contract was awarded to a local competitor, largely based on traffic guarantees that we consider unrealistic. Additionally, their proposal included a commitment to operate fully electric vessels, despite the lack of sufficient charging infrastructure in Tangier Ville for at least the next two years.

We believe the decision raises concerns regarding feasibility and long-term sustainability, and we have taken legal steps to contest the outcome. The Spanish courts are currently reviewing the case, and depending on the outcome, we will determine our next steps. Regardless of the result, DFDS remains committed to the region and our broader strategic interests in the Western Mediterranean.

Facing Competition and Market Challenges

FSN: How does DFDS view competition from CLdN and the broader market landscape?

MG: CLdN is a significant competitor in the freight segment. Their model focuses on long-distance, high-capacity RoRo sailings with low-speed operations, and we have noted their recent newbuilding order for LOLO vessels. In general, North European markets are highly competitive, but that is nothing new. We are focused on executing our strategy and unlocking the value of our network to drive organic growth.

The Baltic Sea is still a challenging area, with lower demand due to the war in Ukraine and Sweden’s struggling construction sector. If peace is restored in Ukraine, we anticipate a surge in construction material demand, but for now, we are focusing on rationalising services to restore profitability.

Looking Ahead

DFDS is actively shaping its future, balancing immediate market pressures with long-term strategic investments. Whether through fleet modernisation, digital transformation, or geographical expansion, the company is positioning itself for continued leadership in