The Gothenburg Port Authority has signed a letter of intent with the property company Castellum to develop the Halvors\u00e4ng area into one of the foremost logistics hubs in Sweden. A joint venture company will be established in which both parties will have equal shares, according to the company's release.\r\nThe aim of the partnership is to facilitate planning, development, and construction at Halvors\u00e4ng, with a view to owning, managing, and leasing the completed facilities. The land area is approximately 270,000 square metres, including 155,000 square metres of building space. Construction is due to commence during 2021 and will take four years to complete.\r\nThe project was given the go-ahead by the City Executive Board last week although the setting up of a joint venture company will be subject to approval by the City Council.\r\nCastellum\u2019s initial investment will involve acquiring a 50% interest in the land, at an estimated cost of around SEK 400-450 million, and with a further investment of SEK 550 million in development. Castellum was chosen as the port\u2019s partner following a selection process at the end of last year. The Port Authority reviewed a number of bids in which financial and environmental considerations were key factors.\r\nA letter of intent has been signed by both parties with the aim of putting a system in place to deal with customer inquiries and ensure construction can get underway towards the end of this year. The original timetable for the project has been adhered to, with working groups focusing on the different parts of a future shareholders\u2019 agreement. If everything goes to plan, the project can commence in the autumn\r\nLocated directly north of the port\u2019s terminals, immediately beside the Hisingsleden bypass, Halvors\u00e4ng is ideally situated to handle incoming freight for onward transport throughout Sweden and Scandinavia by road or rail.