Faroese port project faces cost overrun and delays

The construction of a new ferry terminal and Smyril Line’s headquarters in Tórshavn will cost more than expected and is behind schedule, according to a statement from the mayor’s office reported by Faroese broadcaster KVF.

Former mayor Heðin Mortensen had previously stated that Tórshavn Port would not pay more than the original 140 million krona agreed in a 2024 deal with Smyril Line. However, the municipality has now received an additional bill of 10.6 million krona due to rising costs, part of which the port authority must cover.

The issue was due to be resolved at a city council meeting on 18 June but was removed from the agenda. The finance committee discussed the matter the same day, according to meeting minutes. A majority in the committee supported a proposal from the municipal manager and port director to refer the decision to the city council.

Mortensen, now chair of the port committee, had originally insisted the terminal would not exceed 140 million krona but has since recommended that the council approve the price increase. KVF reported it has attempted to contact Mortensen for comment but has not received a response.