Sweden Awards $570M Dredging Deal to Deepen Arctic Port

Sweden has awarded a 570 million dollar dredging contract to Boskalis and Van Oord to deepen the Port of Luleå, a regional gateway to the Scandinavian Arctic on the Gulf of Bothnia. The Malmporten project will remove around 14 million cubic metres of material between 2027 and 2030, allowing the port to accommodate vessels with cargo capacities of up to 85,000 tons, nearly double the current limit. The Swedish Maritime Administration says the expansion will strengthen northern Sweden's competitiveness and support the region's green industrial transition, including its shift toward fossil-free steel production.

 

Scope of the Dredging Contract

 

The Swedish Maritime Administration awarded the 500 million euro contract, equivalent to about 570 million dollars, to two Benelux-based vessel owners. Boskalis and Van Oord jointly secured the work, with revenues expected to be split equally between them. The contract forms the core of the Malmporten project, described as Sweden's largest-ever dredging undertaking. Around 14 million cubic metres of material will be removed from the seabed over the project's duration. This work is scheduled to take place between 2027 and 2030.

The physical scope of the project is substantial and technically demanding. Several dredgers supported by tugs will operate during the ice-free seasons, with activities expected to conclude before mid-August 2030. The work involves deepening the port's 40-kilometre fairway and harbour basin. A range of specialised equipment will be deployed, including trailing suction hopper dredgers, backhoe dredgers, grab dredgers and drill and blast platforms. These vessels will remove sand, silt, clay, moraine soils, boulders and rock from the seabed.

 

Capacity Expansion and Commercial Impact

 

The dredging will significantly increase the size of vessels the port can handle. Once complete, the port will accommodate ships with a draught of up to 14.7 metres and a cargo capacity of up to 85,000 tons. This represents nearly double the current capacity of 45,000 tons. The expanded capacity is intended to open the port to new business and larger trade flows. It positions Luleå to serve a different class of vessel than it can today.

Port and administration leaders frame the expansion as essential for regional industry. The port's chief executive described the project as a decisive step in preparing for future demand. Increased capacity is considered vital for the mining industry, the steel sector and new industrial investments in northern Sweden. The upgrade also gives customers the long-term certainty needed to invest and grow. This assurance is seen as a key factor in attracting and retaining industrial activity in the region.

 

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Link to the Green Industrial Transition

 

The expansion is closely tied to a broader industrial transformation in northern Sweden. Luleå, the capital of Norrbotten province, is undergoing significant green industrial development. This is driven by investments in fossil-free steel and sustainable energy. The port upgrade is intended to support this transition by enabling the efficient movement of raw materials and products. It connects the port's physical capacity directly to the region's decarbonisation ambitions.

The project also carries environmental benefits in how cargo is transported. Expanding the port should improve operational efficiency and lower emissions per ton of cargo moved. Larger vessels with deeper draughts can carry more material per voyage, reducing the relative emissions burden. The expansion responds partly to demand from raw material exports across northern Sweden and Finland. It also reflects the growing needs of sustainable steel production and renewable fuel demand.

 

Environmental Safeguards and Preparatory Work

 

Environmental protection has been positioned as a central focus of the project. Boskalis has outlined a series of mitigation measures to limit the impact of the dredging. These include the use of silt screens, bubble curtains, environmental buckets and turbidity monitoring. Specific dredging techniques will also be applied to minimise disturbance to the surrounding environment. Part of the dredged material will be reused for land reclamation in the development of a new deepwater port area.

The current contract builds on preparatory work already carried out at the site. Boskalis and Van Oord completed initial dredging in Luleå during 2024. This early phase involved removing 1.5 million cubic metres of sediment, hard moraine soils and large boulders. This groundwork established the conditions for the larger project now moving into implementation. The completed preparatory phase reflects years of collaboration between the administration and the port.

 

Supporting Infrastructure for Year-Round Operations

 

The dredging project is accompanied by investment in vessels designed for Arctic conditions. A newbuild ice-breaking harbour tug was delivered in 2025 to support the anticipated larger ships. This vessel is intended to enable year-round operations at the port despite challenging winter conditions. The tug, named Victoria, was built by Damen's Song Cam Shipyard in Vietnam. It was constructed to Damen's ASD Tug 3413 ICE design for demanding cold-water service.

The tug's specifications reflect the requirements of operating in Arctic harbours. The 34-metre vessel has a beam of 13 metres, a maximum speed of 14 knots and a bollard pull of 73 tonnes ahead. It can maintain 8 knots through 1.1-metre thick floe ice, an important capability for winter operations. Positive feedback on Victoria's performance led to a further Damen contract from Alfons Håkans in May 2026. Together with the port's plans for a new larger icebreaker, these vessels are expected to strengthen capacity by the winter of 2030 and 2031.