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Samskip says it is "extremely pleased" to be adding the LNG-fuelled general cargo ships Kvitnos and Kvitbjorn to its fleet as a result of its acquisition of Nor Lines AS.

On Tuesday, Samskip confirmed that it had agreed with DSD Group to acquire the activities of Nor Lines, which generates an average annual turnover of EUR 110 million.

With its head office in Stavanger, Norway, Nor Lines is a diversified logistics business offering domestic and international services. The transaction covers terminal activities nationwide, warehousing and haulage services, while five out of seven multi-purpose vessels will be transferred under a time charter arrangement to Samskip. It also includes 170 employees, based in 14 locations throughout Norway.

Post-acquisition, Samskip says activities will continue operate under the Nor Lines brand name.

The sister vessels Kvitbjorn (which translates as 'white bear') and Kvitnos ('white-beaked dolphin' in English), were built by Tsuji Heavy Industries in China and based on Roll-Royce's Environship concept, which claims to reduce CO2 emissions by up to 40 percent compared with diesel-powered vessels. Both LNG-powered cargo ships were delivered in 2015, replacing old vessels in Nor Lines' fleet.

Commenting on the Nor Lines acquisition, Asbjorn Gislason, chief executive officer of Samskip Logistics, said: "The Nor Lines takeover represents a major opportunity for Samskip. It is a natural but significant extension of our shipping and logistics activities in Norway which will further broaden our customer offerings. Nor Lines' financial performance has been disappointing in recent years, but we are confident that by combining our respective strengths and refocusing the business we will create synergies, improve efficiency and provide customers with enhanced services."

Samskip's presence in Norway has been strengthened over the past years through internal growth and several acquisitions. Samskip now transports around 90,000 TEU a year between Norway and Northern Europe - a volume it aims to further increase through the Nor Lines acquisition. The frigoCare (fully owned by Samskip) cold store and terminal in Aalesund is a key hub in both Samskip's container system and Nor Lines' vessel system. Samskip also owns a 50 percent share in Bergen-based Silver Sea AS, which operates a fleet of 14 reefer vessels.

Samskip says its combined annual turnover after the Nor Lines takeover will make it "a major player in the market".

"We are pleased to complete our divestment of Nor Lines and entrust the business to Samskip, in a strategic solution for a specialized business that needs to be part of a larger structure to develop and thrive. We believe that Samskip will be a good home for Nor Lines, and a good solution for our employees and customers," said Ingvald Loyning, chief executive of DSD.

Image: The LNG-fuelled general cargo ships Kvitnos and Kvitbjorn.