Ferry and logistics company DFDS Ferries has announced a substantial expansion of its Mediterranean operations with the acquisition of FRS Iberia/Maroc, a division of German company FRS GmbH & Co. KG.
FRS Iberia/Maroc (2000-founded) groups three independent ferry companies (operating under a single/Maroc brand) and currently manages three short routes (via Gibraltar Strait) interlinking Spain with Morocco. The routes include Tarifa-Tangier, Algeciras-Ceuta, and Algeciras-Tangier/Tanger Med (introduced in July 2023). The routes are currently served by 7 vessels (built between 1996-2015). The passenger ferries are fast-speed and with catamaran-design hulls.
This strategic acquisition will notably broaden DFDS' Mediterranean route network, which currently encompasses ferry services connecting Europe with Turkey and Tunisia. DFDS anticipates sustained organic market growth in the Mediterranean region, outpacing that of northern Europe.
Projections indicate annual growth rates of 5-10% for passengers, cars, and freight over the next three years. A significant driver of this growth is the trend of businesses nearshoring their manufacturing supply chains closer to European end markets. Notably, Europe already serves as Morocco's largest export destination, accounting for 23% of the nation's total exports, with Spain as a prominent recipient.
As of the present, FRS Iberia/Maroc commands a 28-30% market share in the Gibraltar Strait ferry crossings, depending on the specific traffic considered. Key competitors include Balearia, Naviera Armas, Intershipping, and Africa Morocco Link (Attica Group).
Torben Carlsen (DFDS' CEO) expressed enthusiasm about the acquisition, underlining the significant growth potential in one of Europe's vital ferry markets, particularly driven by the ongoing trend of supply chain nearshoring to Europe.
Mathieu Girardin, Head of DFDS' Ferry Division and EVP, emphasized the opportunity to leverage DFDS' expertise in both tourism and trade to enhance the Strait of Gibraltar ferry infrastructure while supporting regional tourism and commerce.
The acquisition, pending regulatory approval, will encompass FRS Iberia/Maroc's Algeciras – Tanger Med, Algeciras – Ceuta, and Tarifa – Tanger Ville routes. In 2023, FRS Iberia/Maroc is expected to transport a total of 2.3 million freight lane meters, 1.9 million passengers, and 370,000 cars. The Algeciras and Tangier Med route stands as the busiest, with a revenue split evenly between passenger and freight traffic. Similar to DFDS' Dover to Calais route, this link is served by three vessels with a crossing duration of 90 minutes. FRS Iberia/Maroc owns two of these ferries, the TANGER EXPRESS and KATTEGAT, while a third RoRo vessel, MIRAMAR EXPRESS, is chartered from another entity within the FRS group.
Furthermore, FRS Iberia/Maroc operates five fast ferries, including CUETA JET, ALGECIRAS JET, TARIFA JET, LEVANTE JET, and the recently acquired PONIENTE JET. The Algeciras – Ceuta and Tarifa – Tanger Ville routes are typically serviced by two catamarans each, with crossing times of 60 minutes.
DFDS intends to finance this acquisition through a combination of loan financing and the utilization of existing cash reserves.