Hutchison Ports has signed a formal agreement with Ports of Stockholm to operate the container terminal under construction at Stockholm Norvik Port.

The new port, which is near Nynäshamn 60km south of the Swedish capital, will have better access, deeper water and greater capacity than the city-centre facilities it will replace.

Speaking after the signing, Clemence Cheng, Managing Director Hutchison Ports Europe, said: We are delighted to complete the formal agreement to operate at Stockholm Norvik Port. The new facility will be the nearest container terminal to the Greater Stockholm area which generates 45% of Swedish GDP. As the only deep-water container facility on the East Coast of Sweden, Norvik Port will deliver both economic and environmental benefits by reducing overland transport, bringing ships and cargo closer to the country's largest market.

Johan Castwall, Ports of Stockholm Managing Director, added: Our cooperation with Hutchison Ports, the world's leading container terminal operator, is a very important step to make sure that Stockholm Norvik Port will be one of the leading container ports in the Baltic. Together we are creating the best sustainable conditions for transportation of goods to and from the region.

The new container terminal will boast 450 metres of quay with a depth of 16.5 metres alongside when it opens in 2020. Future expansion will lift capacity at the port to 450,000 TEUs per annum.

Hutchison Ports has operated Container Terminal Frihamnen in central Stockholm since 2009. The existing terminal will be redeveloped by Ports of Stockholm for residential and amenity purposes once the new facility opens.