Danish ferry and logistics powerhouse DFDS completed its $200 million takeover of FRS Iberia Maroc in January 2024. However, FRS Iberia Maroc’s owner had initially planned to forge a strategic partnership with another ferry operator rather than selling the brand that has been operating on the Strait of Gibraltar since 2000.
“It was a very transparent and public process with a mergers and acquisitions boutique,” says Ronny Moriana Glindemann, managing director of FRS Iberia Maroc / DFDS. “However, as the candidates were big names, a partnership was no longer the way forward for our German owners who instead opted to sell their Gibraltar Strait activities.”
With Stena Line having recently taken a 49 per cent stake in Africa Morocco Link (AML), a competitor of FRS Iberia Maroc / DFDS, the obvious question is whether the company also made a bid for FRS Iberia Maroc. Moriana Glindemann keeps his cards close to his chest: “All I can say is that DFDS was not the sole big ferry operator that showed interest.”
So, why did FRS Group want to sell a profitable business that operates in a busy market that keeps growing on the back of nearshoring?
“In the wake of Covid-19, the obstruction [container ship] Ever Given caused in the Suez Canal and the Red Sea shipping crisis, production has moved to Morocco, closer to Europe,” says Moriana Glindemann. “While cargo volumes spike on account of the nearshoring phenomenon, the Gibraltar Strait passenger market remains rather stable with 60 per cent of the passengers carried during the three summer months. As is evidenced in other parts of the world, FRS Group first and foremost specialises in passenger-oriented, high-speed ferry operations. This has proved to be a profitable model and, while the freight element is not part of FRS Group’s core business, it has been growing significantly in the Strait of Gibraltar. Under the wings of DFDS, our ferry operations have become part of the logistics chain and we can now offer door-to-door services from Agadir, Morocco, in the south to Gothenburg, Sweden, in the north.”
While the FRS Iberia Maroc brand name will ultimately be jettisoned, DFDS continues to market its three Gibraltar Strait routes as FRS Iberia Maroc / DFDS. However, several of its ferries have re-emerged from drydocks sporting full DFDS livery rather than FRS Iberia Maroc’s signature red hull and dolphin insignia.
“We have deliberately chosen a phased rebranding approach so that our clients know what they are buying,” explains Moriana Glindemann, elucidating the rationale behind the current dual brand approach. “We have a loyal following with many of our clients making only one return trip per year during the summer months. These are typically people with Moroccan origins who live in Europe. Having travelled with us for the past two decades or so, they are familiar with the FRS brand but understandably less accustomed to the DFDS brand. We will keep the dual brand names until our clients are fully aware that DFDS’s Gibraltar Strait operations are built on the FRS heritage.”
Moriana Glindemann explains that FRS Iberia Maroc’s red dolphin logo was iconic for many passengers. “When FRS set up shop here in 2000, the red dolphin logo became synonymous with quality and reliability as Tarifa-Tangier Ville was the fastest cross-Gibraltar Strait route, revolutionising the way of sailing between Spain and Morocco,” he says. “This made our logo a reference for many of our passengers, especially those speaking Arabic only. Twenty-four years on and it still remains a symbol for those who remember how we changed the ferry market in the Strait of Gibraltar. There are people in Morocco who have mixed feelings about the name change and the disappearance of the dolphin logo.”
FRS Iberia Maroc / DFDS is the only ferry company to serve all three main Gibraltar Strait corridors between Spain and Morocco: Algeciras-Tangier Med; Tarifa-Tangier Ville – FRS’s pioneering route which is operated by high-speed craft only; and Algeciras-Ceuta – a so-called cabotage line as Ceuta is a Spanish exclave. In addition, FRS Iberia Maroc / DFDS also calls at Gibraltar every second week.
“We provide the only direct Gibraltar-Tangier Med service,” says Moriana Glindemann. “It’s a kind of public service dedicated to the Moroccan community working in Gibraltar, with Moroccans sailing home for the weekend on Fridays and then back to Gibraltar on Sundays. It’s not a business case as we feel it’s our duty to provide this service given the close ties we keep with Moroccan society. We are part of the country’s maritime cluster as half of our employees are Moroccan. Our Moroccan crews are very skilled and service-minded. About 85 to 90 per cent of our passengers have Moroccan roots so they feel at home from the moment they step aboard.”
Tanger Express carries more than 900 passengers and 344 vehicles on the Algeciras to Tangier Med route and now features DFDS livery
Gibraltar Strait ferry operations are heavily regulated by the Moroccan authorities. A bilateral agreement between Morocco and Europe states that 50 per cent of the fleet should be Moroccan controlled, albeit not necessarily flagged. “All available tonnage shall be equally divided between Moroccan and European interests,” says Moriana Glindemann. “To guarantee a balance between Moroccan and European-controlled tonnage, Morocco issues licences. This warrants that there is enough capacity during the Operación Paso del Estrecho (or Operation Crossing the Strait), which is probably the world’s biggest ‘migration transit’ within a span of just three months.”
Algeciras-Tangier Med is the main route with four ferry companies – FRS Iberia Maroc / DFDS, AML, Baleària, and Armas Trasmediterránea – collectively operating a total of 12 ferries. Up to 40 departures are offered in either direction on peak summer days but when the ports get congested, authorities implement an interchangeable ticket system so passengers and their cars can board the next available sailing on a first-come, first-served basis.
“Although only applicable for five days per year or so, it’s something truly unique to make sure that despite the congestions in and around the ports, ferries can still operate smoothly,” says Moriana Glindemann. “Moroccan authorities are heavily involved and engaged as it concerns their people. In close cooperation with all involved authorities in Spain and Morocco, our main concern during those peak days is to guarantee a safe and comfortable passage.”
Although all four cross-Gibraltar Strait ferry operators advertise fixed timetables, sailing times can vary as immigration formalities for southbound passengers are completed onboard. “Passengers get their entry stamp onboard with unloading starting only after all passengers have gone through the process,” explains Moriana Glindemann. “Upon disembarkation all passengers will be subject to inspection of their passports before disembarkation which slows down discharge operations.”
This autumn, the European Union will implement its own entry/exit system, which is reminiscent of the USA’s Electronic System for Travel Authorization. Moriana Glindemann doesn’t expect major disruptions as most of the passengers already have visa formalities in place.
With FRS Iberia Maroc now fully in the hands of DFDS, what’s next for the company? Are there any fleet renewal plans now that the company’s conventional ferries are getting older? And how about hybrid-electric operations given the fairly short distances its ferries cover?
“The primary focus is to become fully integrated, getting all of DFDS’s IT systems up and running,” says Moriana Glindemann. “DFDS is committed to adopting new green technologies, including battery electric or hybrid solutions, but as it stands now, there are no concrete fleet renewal or retrofit plans as we also depend on the availability of onshore power supply (OPS) infrastructure. OPS facilities are currently not in place yet, although both the ports of Algeciras and Tarifa will invest in OPS for the hotel load of our ships while at berth.”
FRS Iberia Maroc / DFDS is also preparing to host the 48th Annual Interferry Conference in Marrakesh, Morocco, from 26-30 October, marking the first time the event has been held on the African continent. It will join Interferry, a trade association representing the global ferry industry, to welcome stakeholders across the supply chain for conference sessions focused on topics such as zero-emissions solutions, vessel projects, regulatory updates and safety. Participants will also board FRS Iberia Maroc / DFDS’s Tarifa Jet and sail from Tangier to Tarifa, touring the vessel as well as both port terminals.
“Thanks to our close relation with authorities we have huge support from the Moroccan government,” says Moriana Glindemann, who is president of Interferry. “The Transportation Ministry is really supportive and quite involved with high officials from Morocco joining Interferry2024.”
This article was first published in the Autumn/Winter 2024 issue of Cruise & Ferry Review. All information was correct at the time of printing, but may since have changed. Subscribe for FREE to get the next issue delivered directly to your inbox.