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Setting Up a Business in Greenland

Setting Up a Business in Greenland

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A practical guide to setting up a business in Greenland, with in-depth information on the country
A practical guide to setting up a business in Greenland, with in-depth information on the country

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Published by: Fuzzy_Wood_Person on Apr 25, 2013
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Setting up a business in Greenland

A guide for investors

This publication was prepared by the Ministry of Industry, Labour and Mineral Recourses in cooperation with NIRAS Greenland A/S

Disclaimer The Information and data contained in this publication, including, without any limitation, any conclusions or recommendations by the authors, represent the authors' professional judgement in light of the knowledge and information available to them at the time that this publication was prepared. The authors accept no responsibility and deny any liability whatsoever to parties who may make use of the information contained herein, including any injury, loss or damages suffered by such parties arising from their use of, reliance upon, or decisions or actions based on this publication or any of the information that it contains.

For further information, contact: The Ministry of Industry, Labour and Mineral Recourses P.O. Box 1601 3900 Nuuk Greenland Phone: Fax: +299 34 5000 +299 32 5600

Publisher: The Ministry of Industry, Labour and Mineral Recourses Nuuk, Greenland, 2010

Edited by: NIRAS Greenland A/S Photos: Må indføres når lay out er færdigt

Setting up a business in Greenland

Table of contents
1. 2. GREENLAND’S POLITICAL SYSTEM AND INTERNATIONAL RELATIONS . . . . . . 1.1 Self-government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Inatsisartut – the parliament . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Naalakkersuisut – the government . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 International relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GREENLAND’S ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Macroeconomic issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Standard of living and income distribution . . . . . . . . . . . . . . . . . . . 2.3 Major industries and businesses . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Political stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 6 7 8

11 11 13 15 16 18 18 20 21 22 23 24 27 28 28 31 32 32 33 34 35 35 36 37 40 40 41 41 42 42 42

3. GREENLAND’S INFRASTRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Geography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Administrative districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Towns and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.1 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.2 Sewage and waste disposal . . . . . . . . . . . . . . . . . . . . . . . 3.3.3 Harbours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.4 Airports and heliports . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Sea traffic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.1 Cargo transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.2 Domestic passenger service . . . . . . . . . . . . . . . . . . . . . . 3.5 Air traffic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5.1 International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5.2 Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5.3 Cargo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5.4 Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 Petroleum products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 Overnight accommodation . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. ESTABLISHING A BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Types of businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Establishment procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Corporate taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4 Personal taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 Indirect taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 Business customs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. 6.

LABOUR MARKET CHARACTERISTICS . . . . . . . . . . . . . . . . . . . . . . . 5.1 Employers’ associations: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Labour unions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Foreign employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 Employing trainees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6 Education levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 Unemployment and availability . . . . . . . . . . . . . . . . . . . . . . . . . 5.8 Working environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LOCAL PRIVATE COMPANIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 Consulting engineers and architects . . . . . . . . . . . . . . . . . . . . . . 6.3 Lawyers and chartered accountants . . . . . . . . . . . . . . . . . . . . . . 6.4 Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 Insurance companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44 44 44 45 46 47 47 48 49 50 50 50 50 51 51 52 52 52 52 53 54 54 54 55 55 56 56 57 57 57 57 59 60

7. HOUSING, OFFICES AND INDUSTRIAL FACILITIES . . . . . . . . . . . . . . . . 7.1 Building new facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1.1 Title of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1.2 Building administrative case handling . . . . . . . . . . . . . . . . . . 7.1.3 Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 Leasing of facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2.1 Accommodation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2.2 Offices and other buildings . . . . . . . . . . . . . . . . . . . . . . . 8. FAMILY LIFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 Cost of living . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 Educational institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2.1 Pre-School . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2.2 Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2.3 Universities – tertiary education . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3 Cultural and leisure facilities . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3.1 Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3.2 Sport facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4 Healthcare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. CONSTRUCTION AND OPERATING COSTS . . . . . . . . . . . . . . . . . . . . . 9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2 Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2.1 Skilled and unskilled workers . . . . . . . . . . . . . . . . . . . . . . 9.2.2 Salaried employees . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3 Building materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.4 Petroleum products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.5 Cost of construction projects . . . . . . . . . . . . . . . . . . . . . . . . . . 9.6 Operationalal costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.6.1 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.6.2 Cargo freight charges . . . . . . . . . . . . . . . . . . . . . . . . . . 9.6.3 Air fares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.7 Import duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.8 Building codes and standards . . . . . . . . . . . . . . . . . . . . . . . . . . 9.8.1 Greenland Building Code . . . . . . . . . . . . . . . . . . . . . . . . 9.8.2 Eurocodes and Greenlandic annexes . . . . . . . . . . . . . . . . . . 9.8.3 Working environment . . . . . . . . . . . . . . . . . . . . . . . . . . 9.8.4 Other regulations and recommendations . . . . . . . . . . . . . . . .

62 62 62 62 62 63 64 65 66 66 67 68 69 69 69 69 70 70

A. Composition of the parliament and the government . . . . . . . . . . . . . . . . . . . 71 B. Conference hotels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 C. Construction and operation costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Setting up a business in Greenland – A Guide for Investors 5


Greenland's political system and international relations

From as early as 1857, Greenlanders have been involved in the decisionmaking process, and the Statute of 1908 introduced municipal and provincial councils with democratically elected representatives. In 1953, Greenland's status as a Danish colony was terminated and the country became an integral part of the Kingdom of Denmark. At the same time, the Danish constitution was amended to encompass Greenland, and two Greenlanders were elected to the Danish parliament (Folketinget). In 1979, Home Rule was introduced, comprising the parliament (Landstinget), the government (Landsstyret) and the administration. In accordance with Home Rule, Greenland gained extensive powers of selfgovernment while remaining under the Danish Crown. The Danish parliament has transferred most legislative duties to the parliament of Greenland, but still retains control over foreign affairs, administration of justice and several other areas.


In June 2009, Greenland's Home Rule was extended to include autonomy, which gives Greenland the right to decide when to take over the remaining areas of jurisdiction. The government of Greenlandic is called Naalakkersuisut and the parliament is referred to as Inatsisartut. A general election to the parliament is held at intervals of no more than four years.


Inatsisartut – the parliament
Inatsisartut comprises 31 representatives and is headed by a chairman who is elected by this legislative chamber. The parliament is responsible for all legislation with the exception of jurisdictions remaining under the control of the Danish parliament. The parliament holds two to three sessions every year, each lasting approximately two months. The composition of the parliament is shown in Appendix A.


Naalakkersuisut – the government
The government is led by the premier and a number of ministers. The present composition of the government is shown in Appendix A.

6 Greenland's economy Setting up a business in Greenland – Greenland’s political system and international relations 1


The parliament is Greenland’s legislative body and its powers are defined by the Act on Self-Government. In addition, Greenland is covered by the constitution of the Kingdom of Denmark as the Danish constitution applies to all parts of the Danish kingdom. A number of administrative areas are under Greenlandic control and the parliament adopts laws required to govern the areas in question. These laws are referred to as acts of parliament (landstingslove). In addition, a range of administrative regulations are generally issued under the provisions of the acts of parliament. These are referred to as executive orders (bekendtgørelser) and are issued by the government. Areas that have not yet been taken over by Greenland are under the jurisdiction of the Danish state. According to the Act on Self-Government, bills proposed by the Danish government that either encompass Greenland or would come into force in Greenland shall be submitted to the government of Greenlandic for comment before being presented to the Danish parliament. The Danish government shall wait for the comments of the government of Greenlandic before proposing a bill to parliament that contains provisions that either exclusively apply to Greenland or are of particular significance to Greenland. Similar consultation procedures apply to administrative regulations (executive orders). The government of Greenland shall comment on conditions specific to Greenland that may apply to the area in question, e.g., whether it would be relevant to implement the legislation in Greenland at all. A list of Greenland’s acts, executive orders and regulations adopted by the parliament from 1979 to date is available at: www.lovgivning.gl There is a complete list of acts and executive orders applicable to Greenland in Greenland’s Table of Statutes 2008. Amendments to Greenland’s legislation since 2008 may have resulted in changes to the validity of the registered acts etc.

Acts of parliament

Rules shall be laid down in an act of parliament when the government of Greenland takes over an additional area of responsibility from Denmark, and the government of Greenland shall cover all costs related to the handling of that area (self-funding). If an act of parliament or a parliamentary regulation contains a provision stipulating that the government shall define rules governing citizens’ legal status, imposing duties on citizens or conferring rights in relation to public authorities, these rules shall be defined in an executive order. Such executive orders are referred to as “self-government executive orders”. As a general rule, an executive order should only contain provisions directed towards citizens. Rules of an official nature, which are purely binding for authorities, and comments of a purely advisory nature, should not to be included in an executive order. Official regulations should be noted in a circular. Information of an advisory nature should be included in a set of guidelines.

Executive orders


Setting up a business in Greenland – Greenland’s political system and international relations 7 Setting up a business in Greenland

The parliament of Greenland. Photo Circulars The “circular” format is used for general directives, i.e., binding regulations purely aimed at authorities. Thus, a circular shall be used when it is necessary to specify that a regulation is binding for the recipient authority. A circular may not contain provisions governing the legal status of citizens. The circular should only contain information of an advisory nature if the scope of said information is limited such that it may not reasonably be expected to constitute a separate set of guidelines. Guidelines The “guideline” format is used for the publication of information that is not binding. Thus, the guideline format shall be used to provide information on the content and background of rules when conveying information about the interpretation and administration of rules. Guidelines may also provide instructions on ways in which to comply with rules such as a specific binding regulation.


International relations
Greenland’s representation in Denmark acts as an embassy and plays an important role in the significant number of activities related to the commonwealth with Denmark. The representation was established in 1981 when several areas of responsibility were taken over from the Danish state. One of its responsibilities is to maintain contact with authorities and decision-makers in Denmark. Relations between Greenland and the United States date back to the Second World War when American forces assumed responsibility for the defence of Greenland. During the war, a number of air force bases were established in Greenland, two of which are still used as airports, i.e., Kangerlussuaq and Narsarsuaq. These are now under Greenland’s civil aviation authority. After the war, the Thule Air Force Base in Pituffik was established and still serves as a US military installation.


8 Greenland's economy Setting up a business in Greenland – Greenland’s political system and international relations 3

Recently, a new partnership between Greenland and the United States was established and recorded in the Dundas Memorandum of Understanding in 2003 and the Igaliku Agreements in 2004. These agreements resulted in the establishment of the Joint Committee and, in 2006, a memorandum of understanding was signed concerning energy and scientific cooperation between Greenland, the United States and Denmark. This collaboration covers areas such as trade and tourism, environmental surveys and climate change, education and English language programs, telemedicine, culture and energy. European Union Greenland is not included in Denmark’s membership of the EU, although there is close collaboration with the EU via the commonwealth with Denmark. Greenland’s representation in Brussels was established in 1992 in collaboration with the Danish Foreign Ministry. In order to enhance the potential for collaboration on projects and for the exchange of knowledge across borders in Europe, the EU has set up a series of support programmes to strengthen regional collaboration relating to commercial development, education, innovation, environmental issues, research etc. Due to its OCT status (Overseas Countries and Territories), Greenland has access to these EU programmes, and Greenlandic businesses and institutions can apply for grants on an equal footing with businesses and institutions in the EU countries. Greenland also participates independently in the Northern Periphery Programme (NPP), which is an EU programme relating to issues common to sparsely populated regions in the Arctic and North Atlantic in connection with commercial and industrial development, innovation, transport, tourism, sustainable development, research, education etc. Greenland is also participating in a large EU project on climate change. Nordic council Greenland is a full member of the Nordic Council. The West Nordic Council was formed in 1985 and includes Iceland, the Faroe Islands and Greenland. The main objective of the West Nordic Council is to cooperate on common problems and collaborate with both the Nordic Council and other organisations on West Nordic and North Atlantic issues. The Ottawa Declaration of 1996 formally established the Arctic Council as a high-level intergovernmental forum. The aim was to provide a means for promoting cooperation, coordination and interaction among the Arctic states, with the involvement of indigenous communities and other inhabitants of the region, on common issues (in particular, issues relating to sustainable development and environmental protection in the Arctic). The member states of the Arctic Council are Canada, Denmark (including Greenland and the Faroe Islands), Finland, Iceland, Norway, the Russian Federation, Sweden and the United States of America.

Arctic Council


Setting up a business in Greenland – Greenland’s political system and international relations 9 Setting up a business in Greenland

The Parliament building. Photo: H. Mai, 2004 ICC Greenland cooperates with the Inuit peoples of Canada, Alaska and Russia. The Inuit Circumpolar Conference (ICC) has the status of an NGO observer at the United Nations and is a permanent member of the Arctic Council. Since 1992, the parliament of Greenland has provided two members of the Danish delegation to the United Nations General Assembly. Greenland and Denmark also work actively on the United Nations Human Rights Council to establish a permanent forum for indigenous peoples. The following countries have consulates or honorary consulates in Greenland: Norway, Iceland, Finland, Sweden, Italy, Germany, France, Holland, Belgium and Canada. Passport and visa regulations are generally the same as those for individuals applying to travel or stay in Denmark. Greenland is a party to the Schengen Agreement. Visitors from a country requiring a visa to enter Denmark also require a visa for Greenland. A visa that is valid for Denmark is not automatically valid for Greenland. Therefore, a separate visa application is required for Greenland. Visas can be applied for at Danish embassies and agencies. Residence permits Languages Residence permits are required if you are staying in Greenland for over three months. Permits can be obtained from the local police. Both Greenlandic and Danish are used in public administration. Administrative cases cannot be expected to be handled in English. All Nordic citizens have the right to have cases handled in their own language.

United Nations


Passport and visas

Setting up a business in Greenland – Greenland’s political system and international relations 10 Greenland's economy 5


Greenland's economy

Greenland’s economy differs from other Western economies due to its geography, climatic conditions and low population density. The domestic market is relatively limited and highly dispersed.


Macroeconomic issues
The fishing industry is the leading sector with derived effects on the rest of the economy. This makes Greenland highly dependent on developments in prawn and fish stocks as well as the world market price of fish and fishery products. Developments within the fishing industry have thus contributed to the relatively large cyclical fluctuations experienced by Greenland, cf. Figure 2-1.

Figure 2-1 Annual real GNP growth, 1995-2006

Source: Statistics Greenland, National Accounts

The dependency on fishing is also reflected in the fact that fishing and fishery products make up almost 90 percent of Greenland’s exports, cf. Figure 2-2. In addition to fishing, the economy is dependent upon subsidies from Denmark, known as the "block grant," which amounts to approx. DKK 3.4 billion a year. Above and beyond that the Danish Government also finances other administrative areas, such as fisheries inspections, the police and the judicial system, arctic research and meteorology. These expenses total approx. DKK 700 million a year, bringing the total annual subsidies from the Danish Government to a little more than DKK 4 billion. Block grants and other government subsidies have, on the whole, remained constant in real terms since the late 1980s.

Greenland's infrastructure

Setting up a business in Greenland – Greenland’s economy 11 7

Figure 2-2 Exports distributed on goods, 2006

Source: Statistics Greenland, Foreign trade, 2007:3

Greenland also receives subsidies from the EU amounting to a little more than DKK 300 million a year. About half of this constitutes payment for the fishing quota, enabling foreign vessels to fish in Greenland waters, whereas the other half is budgetary support. These subsidies mean that Greenland’s gross disposable national income (disposable GNI) is significantly larger than its total production (GDP). From a growth perspective, the fact that the subsidies constitute such a large part of the total economy and have remained constant in real terms illustrates their importance as a stabilising factor in the economy. Although exports of fish and fishery products are large, imports are even larger, and Greenland has seen a deficit in the balance of goods and services of between 20 and 30 percent of GNP during the period 2000 to 2005. A surplus in connection with subsidies (in particular the block grant) totals approx. 40 percent of GNP, meaning that the surplus on the balance of payments has been 5-15 percent of GNP, however, this figure is showing a downward trend, cf. Figure 2-3. In contrast to other small economies that depend on exports of fish products and/or raw materials, inflation has been moderate for a number of years, although it has increased recently. For long periods it has been below the rate of inflation in Denmark, cf. Figure 2-4.


Setting up a business in Greenland – Greenland’s 12 Setting up a business in economy Greenland

Figure 2-3 Balance of payments in percent of the GNP, 2000-2005.
Source: Statistics Greenland, Balance of Payments 2005

Figure 2-4 Inflation in Greenland and Denmark

Source: Statistics Greenland and Statistics Denmark


Standard of living and income distribution
The total income per inhabitant is only a little lower than in the other Nordic countries, cf. Figure 2-5. However, prices are relatively high, which results in a lower purchasing power for Greenland than indicated in the graphic.

Greenland's infrastructure

Setting up a business in Greenland – Greenland’s economy 13 9

Figure 2-5 GNI per inhabitant for selected countries, 2003
Source: Statistics Greenland, Statistical Yearbook 2007

The fact that income per inhabitant is at a relatively high level does not mean 1 that everyone in Greenland is well off. The Gini coefficient shows that the 2 income distribution is somewhat more uneven than in the Nordic as well as Western European countries, cf. Figure 2-6.

Figure 2-6 The Gini coefficient for selected countries 2003
Source: Statistics Greenland, Statistical Yearbook 2007

There are also differences within Greenland's borders, cf. table 1. For instance, the average income is far greater in the East-west district where Nuuk is the main town than in the other large districts, and it is considerably higher in the towns than in the settlements. This reflects the fact that throughout many years growth has been concentrated in the four largest towns (Nuuk, Sisimiut, Ilulissat and Qaqortoq).


The Gini coefficient is a measurement of the degree of income inequality. It has the value 0 if everyone has the same income and the value 1 if one person has all the income. There are methodical problems attached to this type of comparison. It must, for example, be presumed that many persons in the remote districts with low income live partly from hunting and fishing for their own consumption. Furthermore, the public sector in Greenland provides a large number of services (such as education, medical or dental treatment) for free.



Setting up a business in Greenland – Greenland’s 14 Setting up a business in economy Greenland

Area Whole country South (Qaqortoq) East-west (Nuuk) Mid (Sisimiut) North (Ilulissat) All towns All villages

No. of persons liable to pay tax 41,580 5,860 14,787 7,158 13,398 34,467 6,461

Average income 169,000 142,000 208,000 165,000 133,000 177,000 111,000

Gini coefficient 0.47 0.45 0.48 0.44 0.43 0.46 0.44

Table 2-1

Average income in the future large municipalities 2006
Source: Statistics Greenland, income statistics 2006, income 2008:1


Major industries and business
Figure 2-7 shows that the public sector and block grants etc. make up approx. half of the total income. The fishing industry is the largest single sector. Apart from that the building and construction sector and other land-based activities play an important role.

Abbildung 1 Figure 2-7 Distribution of total income

Source: Grønlandsbanken, Annual Report 2007

In recent years, there has been a great deal of focus on oil and mineral exploitation, with many promising projects. So far, however, raw material extraction does not constitute a major sector of the economy.

Greenland's infrastructure

Setting up a business in Greenland – Greenland’s economy 11 15

The role of tourism is modest, measured in relation to the total economy. However, it is very important locally. The government of Greenland is the (co-)owner of a number of enterprises that would normally be privately owned in other countries, cf. Table 2. The large public sector can be explained by historical factors and is partly due to the fact that many Greenlandic enterprises play a key domestic role, for instance, aviation, shipping and telecommunications, which are natural monopolies.
Company Royal Greenland A/S Royal Arctic Line A/S Air Greenland A/S Tele Greenland A/S KNI A/S (retail etc.) Government of Greenland ownership share 100 100 37.5 100 100 Net turnover in 2007, DKK million 5,096 793 1,075 668 2,068

Table 2-2 The largest government-owned companies
Source: Government of Greenland (2008): Proposal for the Parliament Finance Act 2009


Political stability
Since the introduction of Home Rule in 1979, Greenland has made itself steadily less dependent on external subsidies, as the economy has been growing in real terms and subsidies from Denmark have been virtually constant cf. Figure 2-8.

Figure 2-8 Subsidies from Denmark in percent of GNP
Source: Statistics Greenland data bank.

Thus the economy has gradually become more self-sustaining, and income generated in Greenland makes up a steadily increasing share of the country's total revenues.


Setting up a business in Greenland – Greenland’s 16 Setting up a business in economy Greenland

On the whole, Greenland can be described as a stable country, both politically and economically. Since the introduction of Home Rule, the government coalition has consisted of different parties, and all parties represented in the parliament (Inatsisartut) have, to varying degrees, been part of the ruling coalition, cf. Chapter 1. The great interest in and focus on self-government has contributed to more responsible economic policies in Greenland, and over the course of the last ten years a number of structural policy initiatives have been implemented that focus on a more self-sustaining economy.

Greenland's infrastructure

Setting up a business in Greenland – Greenland’s economy 13 17


Greenland's infrastructure


Though geographically and ethnically an arctic island nation associated with the continent of North America, Greenland has close political and historical ties to Europe, specifically Iceland, Norway and Denmark.

Figure 3-1 Greenland's Geography. Google © 2008 Population Greenland has a population of 56,194 (January, 2009), 84 % of which lives in the towns.

Business establishment

Setting up a business in Greenland – Greenland’s infrastructure 15 18

Most towns and settlements are situated along the West Coast, with a few small towns to the east and northwest. The most populated area is the West Coast south of 70° latitude. The country is divided into four administrative districts (called kommuner in Danish). The capital is Nuuk with 15,105 inhabitants (January, 2009). The other towns have between 500 and 6,000 inhabitants. The municipalities include a large number of settlements with between 20 and 500 inhabitants. These settlements are called "nunaqarfiit" in Greenlandic and "bygder" in Danish. Smaller populated locations include farms, especially in the South, and hunting and weather stations. Geography Greenland is the largest island in the world with a total area of 2 2,415,100 km , one-fourth the size of the USA or more than six times the area of Japan. The Greenland ice cap covers more than 85 percent of the island. 2 The adjacent offshore shelf has an area of approx 825,000 km . The coast is characterized by archipelagos and small rocky islands with a large number of deep fjords. Many of the towns and settlements are located on islands or close to fjords where natural harbours are found. Climate As a whole, the climate is arctic with a mean temperature in the warmest month below 10°C, however, the climate is subarctic deep within protected fjords in the South. The mean annual temperature on the West Coast varies from 2.4 °C in the South to -2.6°C in Ilulissat on Disco Bay (69°13' N). Farther north and on the East Coast the mean annual temperature is about -5 °C. In coastal areas there is only minimal variation between summer and winter temperatures; in Nuuk 7.7 °C in July and -7.9 °C in December. This variation increases further inland, e.g., at Kangerlussuaq international airport, where temperatures vary between 10.7 °C in July and -17.8 °C in December. Wherever the mean annual temperature is below -2 to -4°C, permafrost may occur. North of Paamiut sporadic permafrost may be found at sea level, and in Sisimiut and to the north continuous permafrost prevails. Continuous permafrost is found farther inland, at high altitudes and north of Disco Bay at sea level. Annual precipitation varies between 2,000 mm in the South to 100 mm in the far North. Precipitation decreases with increasing distance from the coast, e.g., Kangerlussuaq is an arctic desert with only 150 mm precipitation per year. On the West Coast the highest amount of precipitation falls in August while the highest level of precipitation on the East Coast is during the winter. The seas around Greenland The waters around Greenland are dominated by sea ice in the winter and by icebergs in the summer. In the early summer, June and July, the cold Irminger Current on the East Coast carries multi-year ice and icebergs from the Arctic Ocean to the South. South Greenland's waters is dominated by this drift ice and pack ice, which floats with the current around Cap Farewell and then up along the West Coast. On the West Coast the sea ice stretches down to Sisimiut in the winter, and in the summer the waters north of Sisimiut are dominated by icebergs. [A][B][C][D] In General, the harbours north of Sisimiut are closed in winter due to ice, and harbours to the south, i.e. Qaqortoq and Narsaq, may be closed for periods in June-July due to drift ice. On the West Coast the maximum tidal range varies from 3.5 m in the South to 5.1 m in Nuuk. The tide decreases farther north. [E].


Setting up a business in Setting Greenland – Greenland’s infrastructure 19 up a business in Greenland

For more information about ice monitoring and navigation of the harbours cf. Section 3.3.3. Traffic structure There are no roads connecting any two towns or settlements, and transportation of cargo and passengers is dependent upon sea routes, cf. Section 3.4.2, and domestic air traffic, cf. Section 3.5.2. The Arctic Circle passes through Greenland just south of Sisimiut (66°32' N). Midnight sun and polar night can be experienced north of the Arctic Circle. The winter darkness sets limits on aircraft operations, cf. Section 0.

Midnight sun


Administrative districts
Greenland is divided into four administrative districts: Kujalleq, Sermersooq, Qeqqata and Qaasuitsup. The north-eastern part of the country does not belong to any district, but constitutes the Northeast Greenland National Park, the largest in the world.


Kujalleq district covers the southernmost region with three towns, eleven settlements and 7,632 inhabitants (January, 2009). Unlike the rest of the country, towns and settlements in South Greenland are all close to each other making it easy to get around by boat or helicopter. The administrative centre is Qaqortoq with 3,200 inhabitants. Kujalleq district is Greenland's farming district, focusing mainly on sheep farming. Greenland's agricultural research station is based near Qaqortoq. Crops like potatoes, turnips and hay are harvested. Fishing is still the main industry, but new businesses are starting up in the mining sector.


Sermersooq district covers a large area, from the West across the ice cap to the towns on the East Coast. Greenland's capital Nuuk is the administrative centre of this district. With approx. 15,000 inhabitants, Nuuk is by far the biggest town in the country and an important centre for education, hospital services and home to some of the biggest industries in the country. The district has two towns and three settlements on the West Coast and two towns and five settlements on the East Coast, with a total of 20,954 inhabitants. In East Greenland the main industry is fishing and traditional hunting, but tourism is gaining in importance thanks to flight connections to Iceland, and many tourists visit the region every year.


Qeqqata district covers the area around the Arctic Circle on the West Coast and includes two towns, Sisimiut and Maniitsoq, and five settlements with a total of 9,686 inhabitants. The ports are free of ice all year round, which makes it easy to supply the region via sea routes. Fishing is the main industry in the region – primarily prawns, crabs and cod. Hunting for musk ox, reindeer and seal are also important for the local economy.

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Setting up a business in Greenland – Greenland’s infrastructure 17 20

The town of Maniitsoq. Photo: H. Mai, 2009 The settlement of Kangerlussuaq, a former U.S. Air Force base, now serves as the largest airport and traffic hub in the entire country, cf. Section 3.5. Kangerlussuaq is very different from other Greenlandic settlements in that it only includes the airport and related areas, such as conference and tourist facilities. It also has also developed a well functioning service sector that provides support to military and scientific operations. Qaasuitsup Qaasuitsup district covers the northernmost regions on the West Coast. The district includes eight towns from Aasiaat in the South to Qaanaaq in the North and 31 settlements with a total of 17,679 inhabitants. The area is known for summer nights with midnight sun, winter days with dog sledding and traditional Inuit culture mixed with modern daily life. The administrative centre is in Ilulissat, known throughout the world for its amazing ice fjord, which was declared a UNESCO World Heritage Site in 2004. The fjord attracts thousands of visitors from abroad and has made Ilulissat one of Greenland's leading tourist destinations. Fishing and hunting is the main industry, and many towns have fishing industries. The main products are prawns and Greenland halibut.


Towns and settlements
There are a total of 18 towns and about 50 settlements with more than 20 inhabitants along the Greenlandic coast. All towns and settlements are "islands" of civilisation in the country, often separated by deep fjords and glaciers. They are only accessible by sea or by air and all centres of population depend on their own facilities and utilities. Most modern facilities can be found in the major towns, including shops for consumer goods, clothes, furniture, building materials, as well as hospitals, schools etc. There are local companies providing services for building maintenance, construction, repairs and so on.


Setting up a business in Setting Greenland – Greenland’s infrastructure 21 up a business in Greenland

Smaller towns and most of the settlements have grocery stores run by the public supply company, Pilersuisoq, and health care stations with nurses or social workers and periodic visits by doctors. 3.3.1

Nukissiorfiit (Greenland's energy provider) is responsible for supplying electrical power and water to all towns and settlements, and district heating in some towns. Nukissiorfiit is a government-owned company.


Due to the remoteness of most communities, it is generally not possible to supply power via a large transmission grid, so most towns and settlements have their own power plants. Each town and settlement traditionally has its own diesel-generator stations, which supply the necessary electricity for the area. Owing to the isolated nature of Greenlandic communities, each power plant has back-up generators for the largest units.

Kangerluarsunnguaq Hydropower Station near Nuuk. Installed capacity: 45 MW in three units. Photo: Nukissiorfiit 2003

In the early 1990s, after 20 years of preliminary studies, Greenland began to develop hydropower. As of 2010, five towns have been designated to be supplied with hydropower: Nuuk (1993), Tasiilaq (2004), Narsaq and Qaqortoq (2007) and Sisimiut (2010). Additional hydropower schemes are planned. The hydropower plants supply electricity for heating as well, either directly to electrical radiators (in Nuuk only) or to electrical boilers with oil burners as a back-up. In any case, a full capacity back-up is necessary in each town. Power distribution within the towns is at 60 kV, 10 kV or 6 kV levels. The voltage for individual consumers is 400/230 V, 50 Hz. Distribution lines are either buried or laid in steel sleeves at ground level.


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Setting up a business in Greenland – Greenland’s infrastructure 19 22

In 2007 the total consumption of electricity in the towns was 185 GWh. [B][F] Water Almost all towns and settlements have a water supply based on surface water. Only very few places have access to ground water or spring water. At some locations, where there are no alternatives, reverse osmosis is used to produce drinking water from seawater. The water is treated to meet Greenlandic drinking water standards [G], which are comparable to the EU standards. The water is distributed in insulated, heat traced pipelines or, in smaller settlements, available from tap houses. In 2007 the total production of water in public waterworks was 6,146,000 m [B].

District heating plant, Sisimiut. Photo: H. Mai 2007

Public heating

Apartment blocks have central heating plants or are supplied by district heating from oil or hydropower heating plants and waste heat from diesel generator stations and waste incinerator plants. 13 out of 18 towns have district heating utilizing waste heat or heat from hydropower. Five of these towns also use waste heat from incinerator plants. Most private houses are heated with oil burners, except in Nuuk, where direct electrical heating from hydropower is available. In 2007 Nukissiorfiit's total production for public heating was 221,938 MWh [B].


Sewage and waste disposal
The municipalities are responsible for the disposal of wastewater and solid waste.


Setting up a business in Setting Greenland – Greenland’s infrastructure 23 up a business in Greenland


Most areas in towns have insulated sewers, which convey untreated wastewater to the sea. These sewers have electrical trace heating, and are either buried or laid on the surface. There are ongoing discussions on wastewater treatment in sensitive areas, but so far no treatment facilities have been established.

Nuuk’s incinerator plant. Photo: H. Mai 2009 Solid waste There are various solutions used in towns and settlements for household and industrial waste: • • • Disposal at dumps, where the waste is sometimes burned in the open Burning in incinerator plants Baling of waste and transport to other towns for burning

Waste is collected by the municipality or by private contractors. Scrap metal and hazardous and toxic waste is collected and shipped to Denmark for safe treatment and disposal. The Action Plan for Waste Treatment 2009-2012 covers controlled, environmentally safe waste disposal, incinerator plants in towns and settlements, source separation and receiving facilities for problematic waste. 3.3.3 Harbour data Harbour authority

All towns have commercial harbours of various sizes, see Table 3-1. Nearly all harbours are owned by the government, of which 13 major ports are 4 operated by Royal Arctic Line A/S (RAL), which also acts as the harbour authority on behalf of the government.


Royal Arctic Line A/S (RAL) is a 100 percent government-owned public limited company, www.royalarcticline.com

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Setting up a business in Greenland – Greenland’s infrastructure 21 24

Town Nanortalik Qaqortoq Narsaq
1 1 1

Inhabitants 3 2009 2,259 3,496 2,000 1,877 15,721

Water depth at M.L.W.S [m] 7.3 6.6 8.3 8.6 10.0 8.0 7.8 3.2 7.8 8.0 6.9 6.9 4.2 4.2 8.7 -

Mean spring range [m] 3.0 2.8 3.0 3.8 4.4 4.2 3.8 2.9 2.6 2.8 2.8 2.4 2.0 2.0 3.0 3.8 2.0

Container Terminal Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes No No No No Yes No

Annual cargo [m³] 13,100 42,200 18,500 20,800 382,200 42,300 108,800 3,100 151,900 16,200 52,800 9,300 16,600 17,300 5,300 15,200 3,600
4 4 4


Paamiut Nuuk

Maniitsoq Sisimiut

3,451 6,176

Kangaatsiaq Aasiaat

1,387 3,044

Qasigiannguit Ilulissat

1,201 5,037

Qeqertarsuaq Uummannaq Upernavik Qaanaaq Tasiilaq
1 2 1 1


1,020 2,412 2,935 831 3,043



Table 3-1

Harbour data for major towns [B][H][I] 1) Operated by RAL 2) Operated by KNI 3) Town incl. settlements 4) The harbour serves as container terminal for other towns

Nuuk's ”Atlantic Port” and container terminal. Photo: RAL 2001


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Harbour fees

All commercial ships pay a fee for docking at government-owned harbours. This fee is based on the ship's gross tonnage [J]. Cruise ships pay a harbour usage fee of DKK 525 per passenger at their first port of call in Greenland – regardless of how many ports are visited.


With the exception of port facilities in the towns of Paamiut, Nuuk, Maniitsoq and Sisimiut, Greenlandic harbours are only navigable part of the year due to sea ice and drift ice, cf. Section 3.1 and Figure 3-2.
Jan. Nanortalik Qaqortoq Paamiut Nuuk Maniitsoq Sisimiut Aasiaat Qasigiannguit Ilulissat Qeqertarsuaq Uummannaq Upernavik Qaanaaq Tasiilaq Ittoqqortoormiit Navigation not possible Navigation only with Ice Class 1A Super Navigation only with Ice Class 1A Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Figure 3-2 Navigation of harbours due to ice [E]. In recent years, ice conditions have posed fewer constraints due to the warmer climate. Sisimiut is usually navigable all year round. Narsaq is not included in this source material, but navigation conditions are similar to Qaqortoq Most years Narsaq and Qaqortoq are only navigable with Ice Class 1A Super vessels in early summer due to heavy pack ice, but in some periods it is not at all possible to access the harbours. The East Coast is navigable to Tasiilaq and Ittoqqortoormiit during the summer. To the north of Ittoqqortoormiit the coast is navigable most years up to about 76° north, and farther north icebreaker assistance is necessary. It is recommended that you obtain further information from RAL . The ice situation in Greenlandic waters is monitored by the Ice Patrol, which 6 is run by the Danish Meteorological Institute . The Ice Patrol operates out of Narsarsuaq in South Greenland. A general ice map for all of the waters surrounding Greenlandic is issued once a week. During the drift ice season a detailed map of the waters around Cap Farewell is issued three to five times a week. The ice maps are based on satellite images and observations made from the Ice Patrol's own helicopter.
5 6


www.royalarcticline.com www.dmi.dk. Contact: mailto:isc@greennet.gl or phone +299 66 5244

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Setting up a business in Greenland – Greenland’s infrastructure 23 26

Water depth for the deepest quay and the tidal range are given in Table 3-1. Further information and the actual tide table can be obtained from The Dan7 ish Maritime Safety Association . 3.3.4

Airports and heliports
Most major towns have airports with runways of various lengths. Other towns and major settlements are serviced by helicopter, see Table 3-2. The airports and heliports are operated by Mittarfeqarfiit , Greenland's airport administration, which is a government-owned company. The airports accommodate IFR/VFR traffic and are normally open Monday through Saturday during the daytime. Outside normal operating hours, airports can be opened for an extra fee. Heliports only permit VFR traffic during the daylight or during civil twilight, in other words, the time between the moment of sunset, when the sun’s apparent upper edge is just at the horizon, until the centre of the sun is 6° directly below the horizon. In northern areas, helicopter traffic is limited to a few hours of twilight in the winter, e.g., four hours in Ilulissat at mid winter.

Nuuk Airport features a 950 m asphalt paved runway. The airport is the main hub for Air Greenland's administrative and maintenance facilities.
Photo: H. Mai, 2008

7 8

http://frv.dk www.glv.gl


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Town Nanortalik Qaqortoq Narsaq Paamiut Nuuk Maniitsoq Sisimiut Kangerlussuaq Aasiaat Qasigiannguit Ilulissat Qeqertarsuaq Uummannaq Upernavik Qaanaaq Tasiilaq Ittoqqortoormiit

Type of facility Heliport Heliport Heliport Airport Airport Airport Airport Airport Airport Heliport Airport Heliport Heliport Airport Airport Heliport Heliport

Nearest airport Narsarsuaq Narsarsuaq Narsarsuaq Ilulissat Ilulissat Qaarsut Kulusuk Nerlerit Inaat

Runway length [m] 1830 1830 1830 799 950 799 799 2810 799 845 845 845 900 799 900 1199 1000

Runway surface Concrete Concrete Concrete Asphalt Asphalt Asphalt Asphalt Asphalt Asphalt Asphalt Asphalt Asphalt Gravel Asphalt Gravel Gravel Gravel

Table 3-2

Airports and major heliports. Towns without airports have helicopter service to the nearest airport. Kangerlussuaq is rated as a settlement but is the main gateway to Greenland.


Sea traffic
Sea traffic is of the utmost importance for isolated towns and settlements throughout the country. Although some harbours are closed during the winter, sea traffic is the principle means of supplying goods to Greenlandic communities. Domestic passenger traffic is mainly by air but supplemented by passenger liner services in certain areas. There are no international sea connections for passengers.


Cargo transport
All commercial transport of cargo to, from and within Greenland must be conducted by licence from the government [K]. Excluded from this regulation is transport related to activities covered by the Mineral Resources Act and transport to other destinations other than those for which an exclusive licence has been granted. Furthermore, transport of petroleum products and bulk is exempt. The government has granted an exclusive licence to Royal Arctic Line A/S for the transport of cargo by sea between 16 destinations in Greenland, see Table 3-3, and between these destinations and Aalborg (Denmark) and Reykjavik (Iceland). Furthermore, this licence covers transport of cargo in transit

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Setting up a business in Greenland – Greenland’s infrastructure 25 28

via Reykjavik and Aalborg to/from a number of overseas destinations in North America and Europe. Excluded from this licence are: 1. Oil transport in tankers 2. Transport of own cargo on own vessels related to other business sectors than transport 3. Transport of homogeneous or unusual shipments which for technical or economical reasons require other means of transport. Regarding project cargo as mentioned in bullet point 3 above, RAL has the "right of first refusal". This means that RAL must be offered an opportunity to effect the transport at, to a significant degree, the same terms as can be obtained from other shipping companies.

Figure 3-3 Main shipping routes by Royal Arctic Line. International liner services Nuuk, Sisimiut and Aasiaat are the main import/export harbours. Some of the international routes also include Narsaq, Qaqortoq and Nanortalik. Connections to other towns are by feeder routes or by international routes as shown in Table 3-3. In cooperation with the Icelandic shipping company Eimskip, Greenland has connections to Argentina, Everett/Boston, Richmond and Halifax once a month in May, June and July. All international liner services are containerized. Domestic feeder services The other towns on the West Coast up to Ilulissat are served by a feeder route on a weekly basis during the navigational season. These feeder services are also containerized.


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The other towns and major settlements north of Ilulissat, incl. Qeqertarsuaq, are serviced by a general cargo route on a biweekly basis during the summer season. Settlements Royal Arctic Bygdeservice A/S, a subsidiary of RAL, services the settlements on a weekly or biweekly basis from the nearest town, often in connection with passenger services.

Town Nanortalik Qaqortoq

Services Int. container Int. container Feeder

Season -¹ -¹ -¹ -¹ Apr.-Dec.² Apr.-Dec.² Apr.-Dec.² May-Nov. May-Nov. Jul.-Aug. Jun.-Sep. Jul.-Oct. Jul.-Aug.

Schedule³ 2-3 weeks Biweekly Weekly Biweekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Twice a year 2-3 times a year Every three weeks Twice a year


Int. container Feeder

Paamiut Nuuk Maniitsoq Sisimiut Aasiaat Qasigiannguit Ilulissat Uummannaq Upernavik Qaanaaq Kangerlussuaq Airport Tasiilaq Ittoqqortoormiit

Feeder Int. container Feeder Int. container Int. container Feeder Feeder General cargo General cargo General cargo Container and general cargo Int. container General cargo

Table 3-3

Royal Arctic Line liner service for major ports 1)Harbours may be closed due to ice in May-July 2) Harbours are accessible in Jan.-March. ice conditions permitting 3) Schedules vary according to the season

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M/V Mary Arctica, the newest ship in RAL's fleet. Photo: J.K. Jensen, RAL.gl Royal Arctic Line's fleet RAL operates a number of ships, both ocean-going and for local traffic. The ocean-going fleet consists of five modern ice-class vessels built specially for operations in Arctic waters in winter conditions. During the peak season RAL also uses chartered vessels.
Name Nuka Arctica Naja Arctica Mary Arctica Arina Arctica Irena Arctica Pajuttaat Capacity Draft [m] 8.00 7.00 6.24 6.50 3.71 Crane capacity¹ [tonnes] 70 70 60 70 25 Cruise speed [knots] 16.5 15.3 14.5 14.5 13.0

782 TEU 558 TEU 283 TEU 424 TEU 26 TEU 1349 m³

Table 3-4

Major vessels in RAL's fleet
1) Twin lift

3.4.2 Coastal service

Domestic passenger service
Arctic Umiaq Line operates a coastal passenger service between Narsaq and Ilulissat on a weekly basis from April to December with the M/S Sarfaq Ittuk. The vessel's capacity is 246 passengers including 104 cabins with private bathrooms. It has a cruising speed of 11.5 knots.




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M/S Sarfaq Ittuk, Arctic Umiaq Line's coastal service.
Photo: Arctic Umiaq Line, 2007

All towns and two major settlements en route are serviced when the ship is northbound and southbound. Disco Bay area Disco Line has scheduled passenger traffic between Ilulissat, Qasigiannguit, Aasiaat, Qeqertarsuaq and some settlements in the Disco Bay area. The company operates several small vessels with a capacity of 36-60 passengers. Royal Arctic Line has scheduled services between towns and settlements on the West Coast between Qaqortoq and Sisimiut, and in the Tasiilaq district on the East Coast. The services are carried out by combined cargo and passenger ships on a one- to two-week basis, depending on the season and the destination. The capacity of the ships is 12 passengers. In 2006 the total number of passengers was 41,536 between towns and 1,912 between towns and settlements.



Air traffic
The main scheduled route is from Copenhagen Airport to Kangerlussuaq. The 11 national airline, Air Greenland A/S , operates the route with an Airbus 330 four times a week year round and up to nine times a week during the summer peak season. A secondary scheduled route is from Copenhagen to Narsarsuaq. In 2007 there were a total of 74,237 international passengers.

10 11

http://diskoline.gl www.airgreenland.com

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Figure 3-4 Scheduled international air routes. Red routes are operated by Air Greenland and yellow routes are operated by Air Iceland only during the summer season. Air Iceland has (2009) five scheduled routes from Reykjavik (Keflavik) with Dash-8 airplanes. The connection to Kulusuk and Nerlerit Inaat is year round, while the other routes are only during the summer season: Nuuk three times a week from May to September, Narsarsuaq twice a week from July to September, and Ilulissat twice a week in July and August. The scheduled routes by Air Iceland may vary from year to year. 3.5.2

Air Greenland uses Dash-7 airplanes to operate a network of scheduled flights between all towns with airports. Towns with no airport are serviced by Air Greenland helicopters: in South Greenland out of Narsarsuaq with Sikorsky S-61s, and in the Disco Bay out of Ilulissat with Bell 222s. In 2007 the total number of air passengers was 74,237 with airplanes and 91,599 with helicopters. The frequency depends on the destination and season, and varies from 8 times a day between Nuuk and Kangerlussuaq during the peak season to twice a week for the most remote destinations.




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Figure 3-5 Domestic scheduled routes with Air Greenland Dash-7 3.5.3

Transportation of cargo by air is possible to all towns and to settlements with heliports. The capacity from Copenhagen to Kangerlussuaq is very high with the Airbus 330-200, which has a payload of approx. 36 metric tonnes. On domestic routes, some of the DHC-7 aircraft have a wide cargo door, which makes it possible to transport large units. The payload without passengers is approx. 7 metric tonnes. For towns serviced by helicopters, the payload is limited to approx. 2.5 tonnes with a S-61 and approx. 1.8 tonnes with a Bell 212 without passengers.

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Air Greenland has a fleet of aircraft for charter .
Passengers Helicopter Airplane Number of seats 50 7
x x x x x


Cruise speed [km/h] 450 480 290 220 185 240 234



Number in fleet 6 1 2 2 7 4 13

DHC-7 Super King Air Twin Otter Sikorsky S-61N Bell 212 Bell 220U AS 350

x x x x x x x

x x x x x x x


18 25 9 8


Table 3-5

Air Greenland's charter fleet

Air Iceland's charter fleet includes Fokker 50s, Dash-8s and Twin Otters.


Petroleum products
Petroleum products are supplied by Polaroil , a division of KNI A/S, which is a 100 percent government-owned public limited company.

Supply obligations

Polaroil is by agreement with the government under obligation to supply arctic grade gasoil (diesel and fuel), petrol (gasoline), kerosene and Jet-A1 from their tank farms in most towns and settlements. This service agreement does not include bunkering of cruise ships, cargo ships in international trade and offshore trawlers, as well as construction sites outside populated areas, mines, and airport facilities.

Nuuk tank farm. Photo: U.R. Petersen, 2008

13 14

www.airgreenland.com/charter www.kni.gl


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The service agreement does not include an exclusive right to import petroleum products. Petroleum products covered by the service agreement are delivered to consumers at a fixed price for the whole country. Sales to other consumers are on a commercial basis. Storage facilities and products Each town has its own storage facilities for petroleum products, which are in turn used for distribution to settlements using small tankers. All products delivered by Polaroil are non-standard, but produced to specifications in accordance with low temperatures. The gasoil (diesel) is lowsulphur and gasoline is unleaded. Heavy fuel oil and other petroleum products not mentioned above are not available.

Exclusive rights

The government holds the exclusive right to provide telecom services in, to and from Greenland and to establish and operate a telecommunications infrastructure in Greenland which facilitates electronic communications between network termination points in or between towns and settlements and to foreign countries. This exclusive right does not apply to installations which are used solely within the boundaries of a property or between properties having the same owner, provided that they are situated in the same town [L].

Figure 3-6 International telecom connections; the Greenland Connect is in black. © Tele Greenland Tele Greenland Tele Greenland A/S , a 100 percent government-owned public limited company, is granted an exclusive concession in accordance with the rights mentioned above. Tele Greenland is responsible for telecommunications, postal services and coastal radio services. Telecommunications to and from Greenland consist of a number of satellite links to Copenhagen Teleport and the "Greenland Connect" submarine cable to Canada and Iceland, commissioned in March 2009.


International connections


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Domestic infrastructure

The basic infrastructure consists of a digital radio link from Nanortalik in the South to Uummannaq in the North and satellite connections which ensure the coverage of the rest of North Greenland and the East Coast. The 1,500 km long radio link supplies approx. 80 percent of the population with telephony, ADSL, radio and television. Mobile phone telephony is available in all settlements with more than 70 inhabitants. All in all, more than 98 percent of the population is offered digital telecom services of a high international standard.

Satellite connections

Tele Greenland provides small and mobile satellite communication solutions: VSAT, BGAN and Iridium for telephony and data transmission. For larger requirements Tele Greenland can offer tailor-made satellite solutions.


Overnight accommodation
There is a wide variety of accommodation available throughout Greenland. Hotels are found in most towns and major settlements. Other types of accommodation include hostels, B&Bs, guesthouses, and huts and cabins, especially in the tourist areas around Disco Bay and in South Greenland. In major cities you may also find apartments and seamen's hostels.


Some of the hotels are rated according to the Danish Hotel Association (HORESTA) classification system, with five stars as the best rating. The country's four-star hotels are Hotel Arctic in Ilulissat, Hotel Qaqortoq and Hotel Hans Egede in Nuuk. Major hotels have conference and meeting facilities. A list is shown in Appendix B.

Hotel Icefjord, Ilulissat. Photo: H. Mai, 2008

Seamen's hostels

There are four seamen's hostels in the country. They were originally used as cheap and basic overnight accommodation primarily for sailors, but in recent years have been modernised and today meet hotel standards. All seamen's hostels have a cafeteria where you can enjoy the dish of the day or a cup of coffee and a piece of homemade cake. If you stay overnight, breakfast is always included in the price.


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Nuuk***: 41 rooms – conference rooms for 20 persons and for 10 persons. Sisimiut***: 30 rooms – conference room for 30 persons. Aasiaat: 36 rooms – conference room for 25 persons. www.soemandshjem.gl Bed and Breakfasts In the major towns the tourist office can arrange a B&B, where you live with a Greenlandic family and gain excellent insights into everyday life in Greenland. Often, for a small additional charge, you will be able to eat with the family and taste some homemade Greenlandic specialities. In South Greenland several sheep farmers offer basic overnight accommodation.
Seamen's hostels Hostels Apartments Other x x x x x x x x *** x x x x x **** x x x x x x x x x x x x x x x x x x x x Hotel B&B


Nanortalik Qaqortoq Narsaq Narsarsuaq Paamiut Nuuk Maniitsoq Sisimiut Kangerlussuaq Kangaatsiaq Aasiaat Qasigiannguit Ilulissat Qeqertarsuaq Uummannaq Upernavik Qaanaaq Tasiilaq Ittoqqortoormiit

*** **** x ** x **** *** *** *** *** x


x x


x x x


Table 3-6

Overview of accommodation in towns. For a complete list of accommodation, see www.greenland.com

Business establishment

Setting up a business in Greenland – Greenland’s infrastructure 35 38

A B C D E F G H I J K L Topographical Atlas of Greenland (in Danish: Topografisk Atlas Grønland ). Det kongelige Danske Geografiske Selskab, Copenhagen 2000. Statistical Yearbook 2008 (in Danish: Statistisk Årbog 2008). Grønlands Statistik, Nuuk 2009. Greenland in figures 2009. Statistics Greenland, Nuuk 2009 The observed climate of Greenland, 1958-99 – with Climatological Standard Normals, 1961-90. Danish Meteorological Institute Technical Report 00-18, Copenhagen 2001 Sailing Directions, West Greenland (in Danish: Den Grønlandske Lods I, Vestgrønland ). Det kongelige søkort-arkiv, Copenhagen 1966 NIRAS Greenland: Energy Master Plan 2020 (in Danish: Energiplan 2020). Department of Industry, Nuuk 2005 (unpublished) Greenland Government Executive Order No. 7, of March 17, 2008 on water quality and inspection of water supply plants bkg_nr_07-2008 NIRAS Greenland: Development Plan for Harbours in Greenland (in Danish: Udbygningsplan for Grønlandske Havne). Dep. of Infrastructure. Nuuk 2002 Sailing Directions for Harbours (in Danish: Den grønlandske havnelods). National Survey and Cadastre. 1990 Greenland Government Executive Order no. 5 of March 7, 2003 on harbour and cruise ship charges bkg_nr_05-2003 Greenland Act of Parliamentary no. 16 of October 30, 1992 on sea transport of cargo to, from and in Greenland with amendments of June 6, 1997 and November 12, 2001 ltf_nr_16-1992 Greenland Act of Parliament no. 17 of November 20, 2006 on telecommunications and telecom services ltf_nr_17-2006


Setting up a business in Setting Greenland – Greenland’s infrastructure 39 up a business in Greenland


Establishing a business

If you want to gain better access to Greenland’s resources and the Greenlandic market, you will have to set up a company in Greenland or at least establish solid contacts with the Greenlandic business community. The Greenlandic business community is also open for joint ventures with foreign companies. The following chapter offers a brief description that covers different types of businesses and establishment procedures, but it is also strongly recommended that you retain the services of a legal consultant. Companies considering a possible business venture in Greenland should be aware that very little official information is available in English, so many problems can be avoided by having a Danish or Greenlandic-speaking person on the team.


Types of businesses
Companies may be operated under any of the following legal forms: a public limited company (in Danish aktieselskab or A/S), a private limited company (in Danish Anpartsselskab or ApS), or as a sole proprietorship. Other possibilities include cooperatives and partnerships. The Public Limited Companies Act (2002) and the Private Limited Companies Act (2002) lay down specific conditions, but generally there is a high degree of freedom in the choice of the legal form under which your business shall be conducted. A foreign corporation may establish a company in Greenland as a subsidiary corporation, a registered branch office, a representative office or a joint venture. There are special rules for business requirements under the Mineral Resources Act.

Public limited companies

An A/S may be founded by a resident of Greenland, a legal entity in Greenland or as a subsidiary of a foreign company. In each case, the manager of the company must be a resident of Greenland. The share capital of an A/S must be no less than DKK 500,000, and the company may hold up to 10 percent of its own shares. The same rules apply to an ApS, except that the share capital must be no less than DKK 125,000. An ApS cannot hold any of its own shares. Foreign companies may under certain conditions establish a branch office. Permission is normally only granted to parent companies registered in the EU, the Nordic countries, the US or Canada. The manager of the branch office must be a resident in Greenland, but exceptions may be granted.

Private limited companies Branch offices

Labour market characteristics

Setting up a business in Greenland – Establishing a business 40


Establishment procedure
Before establishing a business a memorandum of association must be prepared and signed by the founders. The memorandum must contain a draft of the articles of association.

Articles of association

The draft of the articles of association must include information about the name of the company, the location of the registered office, the objectives of the company, the share capital, the board of directors, general meetings, the chartered accountant and the company’s fiscal year. The articles can be amended subsequently, if desired, but the shareholders must authorize the amendments at a general meeting. The formal decision to found the company is made at the first general meeting of the shareholders. When the foundation has been adopted, the shareholders adopt the articles of association and elect the members of the board of directors and the chartered accountant.


Public limited companies, private limited companies and branch offices of foreign corporations must apply for registration with the Danish Central 16 Business Register (CVR) within six months (two months in the case of an ApS) from the date on which the memorandum of association was signed. All companies established in Greenland must also register with the Greenland 17 Business Register (In Danish Grønlands Erhvervsregister or GER)

Residency requirements

In order to trade and conduct business within Greenland, a trading licence must be obtained from the government administration. The Greenland Trade Act (2001) states that persons who wish to obtain a trading licence must possess Danish citizenship or have a work permit for Greenland and be a resident of Greenland, unless an international agreement valid for Greenland states otherwise or the Greenland Government grants a waiver. Citizens of Denmark and other Nordic countries do not need a work permit and a residence permit. Companies and branch offices can obtain a trading licence if they are registered in Greenland and if the management resides in Greenland. For public and private limited companies, half of the company’s actual management must reside in Greenland.

Further information may be obtained from Greenland Tourism & Business Council18 or the Ministry of Industry,Labour and Mineral Recourses19.


Corporate taxation
Corporate tax is generally levied at a flat rate of 31.8 percent, but there are a few exemptions. Private companies and a registered branch office of a foreign company are also subject to taxation.


Buildings and related installations are depreciable by 5 percent per year. Aircraft and vessels are depreciable by a maximum 10 percent per year. All
16 17 18 19

http://www.cvr.dk http://www.ger.gl/ or mailto:ger@ger.gl http://www.inussuk.gl or mailto:info@inussuk.gl mailto:ip@gh.gl


Setting up a business in Greenland – business Establishing a business 41 Setting up a in Greenland

other items are depreciable by a maximum of 30 percent per year by the pooled declining balance method. If a taxable gain is achieved on the sale of buildings, vessels or aircraft, the tax-payer may enter a special amortization/depreciation to help offset the calculated gain. Dividends Dividends are deductible from the taxable income. The dividend tax rate is from 42 to 44 percent, depending on the recipient's district of residence, and 37 percent if paid by a company under the Mineral Resources Act. Retained earnings are not subject to taxation. A tax loss may be carried forward for five years and offset against taxable income. Payments made from Greenland to other countries under inter-company agreements, such as interest, royalties etc. are tax deductible in Greenland provided that the payments are consistent with the arm’s length principle. This is also applicable for subsidiary and parent companies in Greenland; i.e., all trading between companies with mutual interests.

Tax losses Payment to other countries


Personal taxation
Individuals are subject to a flat income tax rate that consists of state and municipal taxes. Each tax payer is granted a personal and basic allowance of DKK 58,000 (2007). The tax rate is approximately 43 percent, but varies slightly from district to district. Individuals pay tax according to the district where they are registered. Persons regarded as residents in Greenland are fully liable to pay tax to Greenland on their global income. Non-residents are in general subject to unlimited Greenlandic taxation if they stay in Greenland for a consecutive period of six months or more. The taxation is due from the first day of the stay. For non-residents working in the country there is limited personal tax liability to Greenland on the salaried income from the first day of work. However, this is not the case if this person’s stay in Greenland does not exceed 14 20 consecutive days , and the work is performed for, and paid by, the usual employer. The rules of taxation can be complicated and it is recommended that you retain the services of a professional consultant.


Indirect taxes
No VAT, energy taxes or similar taxes are applicable in Greenland. Import duties are paid on various products, e.g., cigarettes, alcohol, coffee, meat and vehicles, cf. section 9.7.


Business customs
Business life in Greenland is very informal and influenced by the country’s small communities. People tend to know each other. You will often encounter the same people as managers and board members in several different companies.

187 days within 12 months.

Labour market characteristics

Setting up a business in Greenland – Establishing a business 42

With the exception of the large government-owned public limited companies, most firms are rather small and locally oriented, although some have branch offices in other towns. Most people work Most people work 35-40 hours per week, often from 8:00/9:00 a.m. to 4:00/5:00 p.m., five days a week. Lunch breaks normally last half an hour and in private companies the time used for breaks is not paid for by employers. However, the working hours are often influenced by the seasons. In winter it is not unusual to work Saturdays, which is compensated for by taking long weekends during the summer for hunting, fishing and camping trips to the surrounding area. Many residents take long holidays in the period from midJune to mid-August. In the construction sector, it is not unusual to work long hours in the summer season, often up to 60 hours per week. This is most common among expatriates. In the mineral sector and at remote construction works, it is normal to work intensively for a period of three to six weeks, interrupted by two to four weeks leave, when employees travel to their hometown or abroad.


Setting up a businessSetting in Greenland – business Establishing a business 43 up a in Greenland


Labour market characteristics

The Greenlandic and Danish labour markets have very similar characteristics with regard to legislation and regulations established through agreements between the employers and the employees' unions. The main differences arise from the greater influence of the public sector and government-owned enterprises as well as the longer distances between towns.


Employers’ associations:
The Employers' Association of Greenland (in Danish Grønlands arbejdsgiverforening or GA) is the oldest and biggest employers’ association in Greenland today. It has approximately 400 member enterprises employing around 5,500 workers within all trades that consolidate a central position in the labour market. GA provides daily legal and financial counselling to its member companies and compiles statistical information based on lines of business and guidelines for relevant legislation. As an employers’ association the GA contributes to ensuring decent conditions on the labour market. This is done through a basic agreement and five collective agreements with the SIK labour union. The collective agreements cover the sector of building trades and the like, the commercial and clerical sector, the production sector, and the transport and service sector. Similar collective and basic agreements exist with Atorfillit Kattuffiat (AK) and the Financial Services’ Union in Denmark (Finansforbundet) – www.ga.gl


NUSUKA is a service organisation for Greenlandic businesses. NUSUKA was established as a unified organisation to represent and promote the views and interests of employers. A broad representation at all levels places NUSUKA in a strong position as the voice of Greenlandic business – www.nusuka.com


Labour unions
From a private enterprise perspective, the main Greenland labour unions are: The blue-collar workers’ union SIK is the flagship of the labour unions with a strong emphasis on the development of the entire country for the benefit of the Greenlandic people – www.sik.gl (in Greenlandic only) The Academics' Society of Greenland (in Danish Akademikernes Sammenslutning i Grønland ; in Greenlandic Ilinniagartuut Kattuffiat) is a cooperation between Danish unions for people employed in Greenland. ASG represents The Danish Confederation of Professional Associations (AC) in Greenland – www.asg.gl AK is a white-collar workers’ union representing civil servants in the government, and government-owned and private enterprises – www.ak.gl


Atorfillit Kattuffiat

Local private companies

Setting up a business in Greenland – Labour market characteristics 41 44


Finansforbundet is the Danish union for employees in the financial sector. The Greenland financial market is part of the Danish market and is regulated by the same rules and regulations – www.finansforbundet.dk IMAK – teachers’ union – www.imak.gl PK – nurses’ union – www.pk.gl PIP – youth teachers’ union – www.pip.gl

Other labour unions


Employee benefits
The labour market is generally regulated via collective agreements between the employers' associations and employees' unions. This provides great flexibility in how the agreements are drawn up and in the benefits to which the employees are entitled. Greenland has no salaried employees act as in Denmark, but most agreements 21 and employment contracts refer to the Danish Act . White-collar employees under the Danish Salaried Employees Act have the right to payment during sick leave and the term of notice varies between three and six months, depending on the length of employment. Blue-collar workers have no right to payment during sick leave, but most agreements include conditions for sickness pay. Terms of notice vary according to the agreements made. For members of SIK it varies from one to six weeks, depending of the length of employment. Most agreements include provisions for leave payments in connection with the first day of a child’s sickness and serious illnesses among close relatives, as well as funerals. Such leaves of absence often last up to five days due to the extended travelling times required between Greenlandic towns. Maternity and paternity leave – All citizens have the right by law to maternity leave two weeks before and 19 weeks after delivery. However, most agreements have up to eight months maternity leave. Paternity leave is three weeks. After the maternity leave the two parents share six weeks of parental leave.


According to Greenlandic law, all employees in the private and public sectors have the right to five weeks’ holiday and holiday bonuses or salary during 22 holidays per year. Employees have the right to hold three consecutive st weeks of holiday during the holiday season from February 1 to Septemth ber30 . White-collar employees with monthly salary payments receive their salaries during holidays and a holiday bonus of 1.5 percent of the total income. Blue-collar workers receive a holiday bonus of 12 percent. Agreements can specify a higher bonus, cf. Section 9.2.


Consolidation Act no. 81 of 3 February 2009 on legal matters between employers and salaried employees Act of Parliament no.10 of 12 November 2001 on holidays



Setting up a business in Greenland – Labour market characteristics 45 Setting up a business in Greenland


All residents of Greenland may apply for a state pension from the age of 65. Furthermore, agreements may include provisions for employer-paid pension savings: SIK: 6.7 percent AK: 10 percent employer + 5 percent employee

Photo: Lars Svankjaer, 2005

Visas and working permits

Foreign employment
As Greenland is part of the Kingdom of Denmark, albeit not an EU member, it adheres to Danish visa rules and regulations. However, Greenland also has its own rules, so there are two sets of rules that regulate entry into the Greenlandic labour market. Some of the main points are: Foreigners who require a visa to enter Denmark also require a special visa to enter Greenland. Likewise, they must have a special residence permit in order to stay for a longer period in Greenland. Neither the visa nor the residence permit for Greenland grants the holder the right to reside outside of Greenland, including Denmark. Foreigners who are not Nordic citizens must have residence and work permits for Greenland. Applications for residence permits in Greenland can be made to a Danish representation in another country. If the applicant is residing legally in Denmark, the application can be made with the nearest municipality service centre, or if the applicant is residing in the Greater Copenhagen area, with the Danish Immigration Service. In Greenland applications can be filed with the police, who will send them on to the Danish Immigration Service. The following sites provide further information on Greenlandic and Danish regulations: www.greenland.com, www.nyidanmark.dk (Visa), www.nyidanmark.dk (Work permit)

Local private companies

Setting up a business in Greenland – Labour market characteristics 43 46

To ensure local participation in projects in Greenland, the government requires mandatory municipal approval for hiring foreigners for the following 23 types of employment : • • • • Unskilled labour Labour with basic vocational education or apprenticeship Social workers Jobs demanding higher maritime education

These laws do not distinguish between the nationalities of the employing companies. If the workplace is within Greenland's borders, a permit is mandatory. It is the employer’s responsibility to obtain a permit from the municipality. If the employer does not get a negative answer within two weeks of submitting the application, it can be assumed that a permit has been granted. If a permit is granted, the employer shall, within eight days of the beginning of the term of employment for the foreign worker, serve notice to the municipality.


Employing trainees
Trainees are employed by companies, which in return receive public funding to help cover the costs. The first year is ‘free’ for the companies, but in return they pledge to pay the salary for the remainder of the trainee period. However, they do receive public funding for part of the salary. The maximum costs per month per trainee for the employer are:
1 year DKK 0




3 year DKK 8,400


4 year DKK 9,200


5 year DKK 10,300


DKK 6,500

Table 5-1

Maximum cost per month per trainee

A company has to be approved to be able to hire trainees. This is done by filling out the application form from the local vocational training centre, Piareersarfik – http://dk.nanoq.gl, which can also help to recruit trainees and others.


Education levels24
For many years, efforts have been made to bring the education level of the population up to European standards. Currently the aim is to ensure that in 2020 two-thirds of the workforce have educational qualifications, compared with about one-third today.

23 Act of Parliament no.27 of 30 October 1992. 24 Greenland in figures from Statistics Greenland shows several relevant figures about education levels and the labour market.


Setting up a business in Greenland – Labour market characteristics 47 Setting up a business in Greenland

Education level Basic training Short tertiary Long tertiary Other Total

Men 126 37 21 2 186

Women 152 76 33 1 262

Total 278 113 54 3 448

Table 5-2: Average number of completed educations 2004-2008 per year As shown on Table 5-2; ‘basic training’ constitutes the majority of the completed educations. An average of 448 completed educations per year corresponds to two-thirds of a given class gaining an educational qualification.

Labour force

Unemployment and availability
The Greenlandic population of working age individuals between ages 15 and 62 totals 38,700 out of a total population of 56,200 (2009). Approximately 11 percent of the population is born outside Greenland. The potential labour force is defined as people between 15 and 62 years of age, born in Greenland and living in towns. In 2007 it was estimated at 27,800 people, the remainder being people pursuing an education (2,500), people on early retirement pension (2,800) and people living outside urban areas (5,600). The main sectors of employment are public administration and social services (44.7 percent.), trade and repair (16.6 percent), transportation (8.7 percent), construction (7.3 percent) and fishing (4.9 percent).


In 2007 approximately 1,500 people were unemployed on average each month. A total of 2,200 were influenced by unemployment of which more than 85 percent are without any formal education. The distribution across towns is very uneven with the three ‘high-growth’ towns – Nuuk, Ilulissat and Sisimiut –increasingly experiencing a clear shortage of qualified workers including unskilled ones. Unemployment varies considerably throughout the year, with approx. 1,000 unemployed in the summer season, July to September, and reaches a peak with 2,300 in January. This is mainly due to variation in the construction sector but is also influenced by the fishing industry.

Relocation support

To help overcome the distance barrier, the government has introduced a mobility act which allows municipalities to apply for relocation support for workers and their families wishing to take advantage of job opportunities in other communities. The following has to be satisfied: • • • The job is located outside of the hometown The position is a permanent one There are no local workers able to fulfil the job requirements.

Local private companies

Setting up a business in Greenland – Labour market characteristics 45 48

If granted, the recipients' transport and relocation costs will be covered by the government. Further information is available from the Ministry of Industry, Labour and Mineral Recourses. Availability The presence of a large number of foreign workers underscores the fact that there are not enough of local qualified workers to meet the demands of enterprises and government services. The available workforce reserve is mainly unskilled workers who often have to move to another location to fill a job opening.


Working environment
Greenlandic laws and regulations regarding the working environment are inspired by Danish legislation, with exceptions that pertain to the smallerscale and lesser regulated Greenlandic labour system. The objective of the Greenlandic Labour Act is to create and safeguarding a safe and healthy working environment, which shall at all times remain in accordance with the technical and social development of society. The Act creates the basis for enterprises to solve questions relating to health and safety under the guidance of the employers' and workers' organisations, and under the guidance and supervision of the Working Environment Authority. The Act lays down the framework conditions for internal safety organisation, working environment education, workplace assessments, the duties of the employer and the enterprise management, young workers below 18 years of age, minimum conditions for work breaks and medical examinations.


The Greenland Working Environment Act No. 1048 of 26 October 2005


Setting up a business in Greenland – Labour market characteristics 49 Setting up a business in Greenland


Local private companies


Small and medium-size contracting companies, entrepreneurs and craftsmen are well established in most towns. Contractors and craftsmen build all construction projects such as housing, factories, roads and other infrastructure. For larger construction projects, some of the local companies collaborate with large construction companies in Denmark. Most of the construction companies and craftsmen are organised in the Su26 lisitsisut employers' associations, cf. section 5.1.


Consulting engineers and architects
Local engineering companies are available in some of the larger towns, i.e., Nuuk, Sisimiut, Ilulissat, Maniitsoq and Qaqortoq. Branch offices and local engineers may be found in other towns. Some of the engineering companies are subsidiaries of large Danish engineering companies; others have established collaborations with Danish companies. The local engineering companies can provide all services related to the construction sector, either alone or in established co-operations. About six local architectural companies are located mainly in Nuuk and Ilulissat, but with branch offices in most of the larger towns. They can provide all services related to the design of houses and factories. For larger projects they often collaborate with larger Danish companies. Most engineering and architectural companies are organised in the Association of Technical Consultants in Greenland (TSP).


Lawyers and chartered accountants
Various law firms and private lawyers are available in Greenland. Some of the law firms have international connections. Most of the lawyers are located in Nuuk. Two companies with international relations are located in Nuuk. Furthermore, there are small accounting and bookkeeping firms in Nuuk and other major towns.

Chartered accountants



Housing, offices and industrial facilities

Setting up a business in Greenland – Local private companies 50

Grønlandsbanken. Photo: H. Mai, 2009

The Bank of Greenland

Two banks operate in Greenland: The Bank of Greenland (Grønlandsbanken A/S) is a Greenlandic private limited company, privately owned with a 13.7 percent stake owned by the government of Greenland. The bank has its headquarters in Nuuk and branch offices in Sisimiut, Ilulissat Qaqortoq and Maniitsoq. Banking business is carried out in other towns in cooperation with Post Greenland. www.banken.gl


Sparbank A/S is a Danish limited company with branch offices in Nuuk, Sisimiut and Ilulissat. www.sparbank.dk

Kalaallit Insurance

Insurance companies
Three insurance companies are present in Greenland. Kalaallit Insurance (Kalaallit Forsikring Agentur A/S) is a Greenlandic limited company, which operates as an agent for a Danish insurance company. Kalaallit Insurance offers all kinds of private and business insurances, including marine insurance. The company has branch offices or representatives in all major towns. www.forsikring.gl Other Danish insurance companies are Tryg, www.tryg.gl, and Codan, www.codan.dk Both companies have brach offices in major towns.

Tryg Insurance


Setting up a business in Greenland privatein companies 51 Setting up – aLocal business Greenland


Housing, offices and industrial facilities


Building new facilities
Title of land
In Greenland there is no private ownership of land. In essence, all land belongs to the public, and before any specific area can be put to use, you have to apply for a permit in the form of an area allotment. The area allotment is granted to a specific person and only grants the right to use the area for a specific purpose. Consequently, you are required to apply for a new area allotment if you take over an existing building/construction or want to change the use of an existing building/construction, or if you want to erect a new building/construction.


Applications for area allotments must be submitted to the district administration. An area allotment can only be granted if the application is within the scope of the legislation on spatial planning and land use and the urban/rural planning of the district. The spatial planning and area allotments are regulated by the Spatial Planning and Land Use Act no. 11 of 5 December 2008, and the Spatial Planning and Land Use Executive Order no. 7 of 5 February 2009. If there are any discrepancies between the application and the existing urban/rural planning, the time required for processing the application may be extended. If the discrepancy is minor it may be possible to grant an exception after two weeks consultation with neighboring property owners and other stakeholders, while major discrepancies require the provision of a new district plan. According to Sections 15 and 20 of the Land Use Act, this includes a public hearing with at least six weeks' notice. Depending on the subject of the application, the authorities may require that additional material be submitted. Typically the administrative set of rules found in the town plans requires a layout, a sectional view and a front view of the project, generally drawn to a scale of 1:100. A set of environmental or constructive regulations may be issued, and payment for the land development of the construction site may be required. The area allotment application form can be obtained from the municipality or from: www.dk.nanoq.gl Information on the urban/rural planning of the municipality can be obtained from the municipality or from www.nunagis.gl.

Handling of cases


Building administrative case handling
Before any building or construction projects can be launched, a building permit must be obtained from the municipality. The application must be followed by a preliminary design that can be used to evaluate the building project with regard to the Greenland Building Code. The time for case handling

Family life

Setting up a business in Greenland – Housing, offices and industrial facilities 49 52

may vary from two weeks to several weeks, depending on the size and complexity of the project. For certain construction projects an environmental impact assessment may be required. After completion of the construction work, a commissioning permit must be obtained from the municipality before you can start using the facilities. 7.1.3 Co-operative housing

As of 1 January 1990 it has been possible to build subsidized co-operative housing. The government and the municipality each provide housing cooperatives with grants amounting to 25 percent of the total building costs, i.e., a total of 50 percent. The grants are interest-free and non-repayable. The individual members of the co-operative each pay 5 percent of the building costs, while the remaining 45 percent is financed by loans raised by the cooperative on market terms. In order to make it more attractive for private individuals to invest in their own homes, the government launched a new financing programme in 1999 called 10/40/50, which was renamed 20/20/60 in 2007. The arrangement allows private persons to apply for a loan of 40 percent of the total amount required for building private single-family homes. The loan may be granted jointly or separately by the government and the municipality. The remaining 60 percent is available as a mortgage credit loan or bank loan. For the first 20 years no interest or instalment payments are paid on the public loan, while the mortgage loan is repaid. Mortgage credit is only available in the five largest towns. After this period the public loan is repaid over a period of 15 years.

Private housing

Modern residential housing in Nuuk. Photo: H.M. Skou


Setting up a business in Greenland – Housing, and industrial facilities 53 Settingoffices up a business in Greenland


Leasing of facilities
The development in the housing market in Greenland is primarily the result of political decisions. In recent years, the government has played an increasingly important role in financing new housing as a result of tight municipal budgets and stricter loan policies by mortgage and credit institutes.

INI housing company

In the autumn 1993 the Parliament decided to establish A/S Boligselskabet INI (The Greenland Housing Company Ltd.), which from 1 January 1995 was to ensure an efficient management of public housing. In order to gain access to housing via the INI housing agency, it is necessary to be placed in their waiting list. In major cities the waiting time for apartments 27 is very long, unless your employer can provide you with housing.

Iserit housing company

In January 2006 the municipality of Nuuk took over the administration of 28 city-owned housing by founding the Iserit A/S housing agency. Now Iserit also administers housing owned by the municipality in the towns of Paamiut, Tasiilaq and Ittoqqortoormiit. Private apartments and single-family homes may be available for hire or lease on market terms. But the supply may be limited in most towns or the rent may be very expensive.

Private housing


Offices and other buildings
Offices, buildings for storage, production, etc. may be available for hire or lease at market prices. Rent for office space is normally higher in areas close to the centre of town. Storage buildings and similar facilities are often available in designated industrial areas or in harbour areas. Real estate agents are available in larger towns for the purchase or leasing of properties.

27 28

www.ini.gl www.iserit.gl

Family life

Setting up a business in Greenland – Housing, offices and industrial facilities 51 54


Family life

Traditional food

Cost of living
Greenland has abundant resources of fish, seal, musk ox, reindeer and sheep, and these are available most of the year at local meat and fish markets. These local products are inexpensive when compared to European prices and are the main source of food for many Greenlanders.

The meat and fish market in Nuuk, where hunters and fishermen display the catch of the day. Fresh foodstuffs are available year round with seasonal variation, although larger towns generally have a wider selection.
Photo: H.M. Skou

Fruit and vegetables

Given the climate, few vegetables and fruits are part of the local diet, but throughout Greenland these are available in frozen form. Fresh vegetables and fruit are scarce and expensive, and only Nuuk and a few other major towns have a constant and diverse supply. Frozen varieties sell for prices that are comparable to what consumers pay in Denmark. This is also the case for dairy products. Generally only ultra-hightemperature processed products are available, but a few fresh dairy products can be purchased in major towns. The cost is around four to five times that of the UHT products. In Nuuk and a number of other major towns, most imported products are available, but there is a limited selection in smaller towns and settlements.

Dairy products

Other imported products

Construction and operation costs

Setting up a business in Greenland – Family life 53 55

Towns north of the Arctic Circle and on the East Coast in particular have few, if any, ships visiting during the period from October to May. This means that fresh goods are scarce and quite expensive since all produce and dairy products have to be shipped by airplane or helicopter. Import duties A small number of products are charged with duty, e.g. tobacco, sugar and alcohol, cf. Section 9.7. Taxes on these items are generally higher than the European level. Most of the apartments in Greenland are owned by government (national or local) agencies, and rental costs are regulated by law, cf. Chapter 0. Rents and especially the cost of heating are relatively high. Rents for private housing are about 1,5 to 2 times higher, but local market conditions have a huge influence on these figures.

Housing cost


Educational institutions
The Greenlandic system of youth institutions/schools is heavily influenced by the systems in other Nordic countries, and is organised along the same principles. So education is generally free and child care enjoys a high degree of public funding.

Schoolgirls in Nuuk. Photo: H. Mai, 2005


Kindergarten and preschool institutions are available in towns and larger settlements, and subsidised by local government. The cost is relatively small compared to European standards. Generally the cost for subsequent children is 50% of the first child in a family.


SettingSetting-up up a business Greenland – Family life 56 ain Business in Greenland


Primary schools are available in all towns and most settlements. Greenlandic is the main language, but some classes are thought in Danish. Nuuk Internationale Friskole is a private school where English, in addition to Greenlandic and Danish, is taught from the first grade, but Danish is the language of instruction for other subjects. The secondary school system provides both a general high school (GU), a technical (HTX) and trade-oriented (HHX) secondary schools. The GUs are located in Aasiaat, Nuuk and Qaqortoq. In Qaqortoq there is also the HHX whereas the HTX is located in Sisimiut. Most classes at these institutions are taught in Danish, and normally only language courses are not in Danish.


Universities – tertiary education
The University of Greenland – Ilisimatusarfik – is located in Nuuk and provides tertiary education in a wide spectrum of both profession-oriented and more general social science and humanities/arts-oriented courses of study. Over the last five years, efforts have been made to integrate all tertiary education in Nuuk within the university structure. This initiative has been completed today, allowing the university to further strengthen the tertiary education sector. Sanaartornermik Ilinniarfik , located in Sisimiut, offers education for building and construction workers as well as arctic engineering at bachelor level in cooperation with the Danish Technical University (DTU). The arctic engineering study focuses on building construction, environment, geology and mining. The first 1,5 years of the course of study takes place in Sisimiut and the remainder is held at the DTU.


Cultural and leisure facilities
Greenlanders are an open and warm people and families/persons moving to Greenland can quickly establish a network and get introduced to local customs. Outdoor activities are one of the main attractions in Greenland, and no one should miss the opportunity of experiencing Greenland’s pristine wilderness.

8.3.1 Culture facilities

Most cultural activities are in connection with the community centre, the sports hall or other public buildings. Only a few towns have a cultural centre with a cinema and concert hall. Local museums are found in most towns and galleries in the larger towns. Given the size of the towns the cultural offerings are adequate but compared to the larger European cities cultural events are few and far between. Nevertheless, most towns and settlements have choirs, a local handicrafts workshop, a football club and indoor sports. Greenlandic belongs to the Eskimo family of languages. It is a ‘polysynthetic’ language, which means that words are formed with a root, one or more affixes and a suffix. A Greenlandic word can thus be very long and can mean what corresponds to a whole sentence in other languages.

Greenlandic - An Arctic language in constant development

29 30

Nuuk International Private School, www.nif.gl/ Building Construction Centre, www.sanilin.gl

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Setting up a business in Greenland – Family life 55 57

The Greenlandic language is roughly divided into four dialects: South Greenlandic, West Greenlandic, East Greenlandic and the Thule dialect.

Katuaq, Nuuk culture centre with theatre, cinema, conference facilities and café. Photo: H.M. Skou, 2003 West Greenlandic is the official language which all children learn in addition to Danish and English. In small towns and settlements it is not unusual for only Greenlandic to be spoken and English may possibly be understood or spoken only to a very limited degree. Both Greenlandic and Danish are used in the public administration, but administrative cases cannot be expected to be handled in English. All Nordic citizens have the right to have cases handled in their own language. Traditional hunting society and the climate challenges Greenland no longer has a society based primarily on hunting, but hunting traditions are still maintained throughout the country, especially in the hunting districts in North and East Greenland. However, the hunters from North Greenland now say that climate change has already led to short periods with much thinner ice or no ice at all in the winter and generally more unstable weather. This may prove to be a major problem for the hunting culture in certain Greenlandic towns and settlements because the local population's culture and existence depend on the ice for hunting and capturing prey, as well as for transport. A 'kaffemik' is actually a Danish word for a Greenlandic social gathering over a cup of coffee. Although Greenlanders are particularly keen coffee drinkers, it is not the coffee itself that is the centre of attention, but instead the chance to get together and exchange news and indulge in small-talk about everything under the sun. At a Greenlandic kaffemik coffee is of course served, as well as tea and homemade cakes, and it is the perfect way to meet a Greenlandic family. There is always an excuse for a kaffemik, and these events usually mark children's birthdays, confirmations, weddings and other special occasions. Other

Kaffemik - A look into a Greenlandic home


SettingSetting-up up a business Greenland – Family life 58 ain Business in Greenland

more culturally determined rites of passage are also celebrated, such as the first day at school, and when a child has caught his first seal or reindeer, and in these cases the kaffemik will be a particularly memorable occasion.

Malik, Nuuk's swimming pool. Photo: H. Mai, 2003 8.3.2

Sport facilities
Outdoor activities – kayaking, hiking, hunting, skiing, angling, sailing and dog sledging – are among the great outdoor experiences that Greenland offers. With a huge countryside and many fjords, it is easy to leave “civilisation” behind and venture into the great Greenlandic outdoors. During the summer months ice is sparse and it is relatively easy to travel by boat.

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Setting up a business in Greenland – Family life 57 59

Modern kayaking in Ilulissat. Photo: H. M. Skou, 2007 Some of the more demanding sports events in the world take place in Greenland, including the Greenland Adventure Race, Arctic Circle Race, Arctic Palerfik, Polar Circle Marathon and Arctic Midnight Orienteering. So if you are into outdoor activities, Greenland provides the perfect setting to experience nature at is most beautiful and most demanding. An adventure to last a lifetime! During the winter months the gymnasium/sports hall provides the setting for different indoor sports like badminton, football, handball and gymnastics, and in Nuuk and Kangerlussuaq there is also a swimming pool.


Generally all health care for Greenlandic residents is provided and paid for by the government, including publicly-funded dentists. All towns have a general hospital, but most specialized treatment is performed at Dronning Ingrid's Hospital in Nuuk with 185 beds on the medical and psychiatric wards. Furthermore, most settlements have a permanent nurse and a visiting doctor for normal healthcare. In some cases where treatment is complicated, patients are transferred to a hospital in Copenhagen. The system is generally easily accessible and able to handle most issues locally. Publicly-funded dentists prioritize children and people with acute dental problems. This has given rise to a growing number of private dentists to service those would rather avoid long waiting lists. Non-residents and people working and on business travel in Greenland are not covered by publicly-funded medical care. It is strongly recommended that all individuals who are not fully liable for income tax in Greenland take out a private health insurance policy.


SettingSetting-up up a business Greenland – Family life 60 ain Business in Greenland

The district hospital in Ilulissat. Photo: H. M. Skou, 2007

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Construction and operational costs


The following information on costs and prices was obtained from various sources or calculated by the author based on experience in the Greenlandic construction sector. The figures are only guidelines, and more detailed information may be obtained from the sources cited.


Skilled and unskilled workers
The wages for skilled and unskilled workers are regulated by agreements between employer's associations and worker's unions. The present agreement between the Greenland Worker's Union, SIK, and the Employer's Association of Greenland, GA, covering hourly paid wages for construction workers, is valid from 1 April 2006 to 31 March 2010.

Social security contributions This agreement covers a basic wage and social security contributions in accordance with the law. The social security contributions and pay supplements include public holiday payments, insurance, government pensions and paid sick leave. Social security contributions total 10.9 percent of the basic wage. Holiday bonus Contractor's overhead According to the law, the holiday bonus is 12.5 percent of total wages. To calculate the total cost of employing workers, it is necessary to add the contractor's overhead. The overhead includes clerical and administrative staff, canteens and offices, insurance, depreciation, telecommunications, etc. and amounts to approx 26 percent on the total wages. Wages by agreement, social security contributions and overhead specifications are provided in Appendix A. Actual cost of labour However, the real cost of local labour is somewhat higher due to wage drift. A lack of skilled workers in some areas also tends to influence the cost of labour. No official statistics on wages are available, but experience shows that the actual wages may be up to 130 percent higher than the wages stipulated in the agreement. For non-resident seasonal workers, the cost may be higher as extra expenses for lodging and travel are often added. This contributes to the wage drift as explained above. 9.2.2 Private sector

Salaried employees
Wages for salaried employees in the private sector are governed by market forces. Wage levels for resident office workers are similar to Denmark, even though the cost of living is higher in Greenland. By contrast, income taxes are lower. The salaries of residents with extensive educational qualifications are on par with what similarly qualified individuals would earn in Denmark. However, the

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labour costs of non-residents and expatriates are higher due to pay supplements for lodging and travel. Examples of salaries are given in Appendix A. Public sector Office workers and resident employees with extensive educational qualifications earn wages that are in accordance with the agreement with the appropriate trade union. The central administration employs a number of expatriates, due to the lack of residents with extensive educational qualifications. The terms of employment often include a three-year contract with paid travel expenses for vacations abroad. Wages vary according to the agreements made with the trade union in the employee's home country, with supplements for additional professional qualifications.

Photo: H. Mai 2009

Apartment houses in Nuuk. Bearing construction of in-situ cast concrete and façade of timber/plywood


Building materials
The availability of building materials in Greenland is limited. One leading chain has shops in the larger towns, including Qaqortoq, Nuuk, Sisimiut, Aasiaat and Ilulissat, but there are also private contractors and other retailers in Greenlandic towns that sell hardware and building materials. Stocks in Greenland are limited, and materials must be ordered in advance for larger construction projects. The cost of building materials varies widely depending on whether they are bought locally, imported in small quantities by RAL liner service, or imported in large quantities as project cargo, cf. Section 9.6.2. Costs of typical building materials are given in Appendix C.


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Cement Cement in bulk is imported only to Nuuk by Betoncentralen ApS , a company specialised in the delivery of pre-mixed concrete and rock materials. In other towns cement is imported in 25 kg bags by retailers of building materials. Betoncentralen can also supply cement in 40 kg bags and ship them from Nuuk to other towns. It is possible to import your own cement either in bulk, in 1,500 kg big bags or in 25 kg bags. Different kinds of cement are available from Aalborg Port32 land , which is situated in the same town as the Greenland Harbour that RAL uses to ship all cargo to Greenland. Pre-mixed concrete and aggregates Pre-mixed concrete is only available in Nuuk from Betoncentralen. Aggregates for concrete and asphalt production are available in most towns or may be produced on site. Crushed rock aggregates are available from quarries. Natural deposits of fine aggregates may be difficult to find and often sea materials are used. Sandpump dredgers are available on the Southwest coast. If rock aggregates of sufficient quality for high quality concrete are not available, they can be supplied in big bags from Betoncentralen in Nuuk or from other sources. Asphalt Explosives RAL can transport bitumen in heated tank containers to all towns. Asphalt mixing plants and asphalt pavers are available in the largest towns. Importing and/or exporting explosives is only allowed upon approval by the Government [M]. The Government has granted Superbyg Kalaallit Nunaat A/S an exclusive concession for the sale of explosives. This concession covers all explosives for construction projects, with the exception of explosives for mining and explosives for construction projects that exceed 75 net tonnes of explosives per year per construction site. This license also stipulates that the company is responsible for the safe storage of explosives in urban areas. Explosives include solid and liquid products and mixtures of substances used for detonation, as well as other pyrotechnical products, detonators etc. Timber and wood products Timber, plywood and other wood products are all imported from Denmark or, in minor quantities, from Canada. Plaster boards and chipboards are often used instead of plywood. Timber and boards are available in small quantities from stocks in large towns. All construction steel and rebars are imported from Denmark. Small quantities of rebars may be available from stocks in large towns. Additional building supplies, electrical and plumbing supplies etc. may be available from local retailers in small quantities. But for most projects they are imported, mainly from Denmark. Electrical supplies in particular must be imported from Denmark to comply with Greenlandic standards, which are similar to Danish standards.

Steel and rebars Other building supplies


Petroleum products
Polaroil supplies petroleum products incl. lubricants to all towns and settlements from their tank farms, cf. Section 3.6. These products include:
31 32

www.betoncentralen.gl www.aalborgportland.com

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• • • • • Arctic grade gasoil (AGO) for low temperatures (diesel and fuel) Unleaded petrol Kerosene Jet-A1 Propane

Heavy fuel is not available. Diesel and petrol can also be bought at petrol stations in the towns. The price for diesel and petrol is the same all over the country. Petroleum products can be imported directly for large projects. But it should be observed that AGO is a special product produced to Polaroil's specifications at European refineries, and it may not be readily available from stocks. The cost of AGO depends on the price of crude oil on the market. At present (2009) Polaroil buys crude oil according to a fixed price agreement and has it refined and transported to Greenland. There is no excise or duty on petroleum products. Prices of petroleum products available in Greenland are provided in Appendix C.


Cost of construction projects
The cost of different buildings and construction projects varies accordingly to location, standard, complexity, etc. It is not possible to give exact information on unit costs, but some examples are given in Appendix C. These costs include: • • • Site development: water supply, power supply, sewage, blasting, etc. Roads Buildings: offices, accommodation, industrial facilities, etc.


Operational costs
Electricity and water are available in all towns and settlements from Nukissiorfiit, cf. Section 3.3.1. District heating is also available in some towns. Prices vary from place to place and are lowest in large towns and highest in small settlements. These prices reflect production costs. There a no excise on electricity, water and heating. Prices for electricity and water are provided in Appendix C.


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Nuuk Container Terminal. Photo: H.M. Skou 9.6.2 By sea

Cargo freight charges
Almost all cargo to and from Greenland goes through Aalborg Port in northern Denmark. Royal Arctic Line (RAL) has a concession for this transport, cf. Section 3.5.1. All RAL cargo transport between Greenland and Denmark is containerized 33 34 (FCL ), but it is also possible to send general cargo (LCL ), which is stuffed in containers by RAL. The containers used by RAL are standard 20' and 40 ' dry containers (DC) and reefers (RF). Furthermore, RAL has a special mini-container (MC) with a volume of 5.46 m . It is mainly used for transport to towns without container service and settlements. Different special containers are available: flat racks (FR), platforms and open top containers (OT). Greenland's towns are divided into seven price categories: 1. 2. 3. 4. 5. 6. 7. Nanortalik, Qaqortoq, Narsaq, Paamiut Nuuk, Maniitsoq, Sisimiut Aasiaat, Qasigiannguit, Ilulissat Uummannaq, Upernavik Qaanaaq, Kangerlussuaq, Narsarsuaq Tasiilaq Ittoqqortoormiit


FCL: Full container load. The consignor pack and deliver a full, sealed container to the transporter LCL: Less than container load


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Price segments Type of cargo 1, 2, 3 and 6 Dry cargo Flat rack cargo Environmental cargo Temperature regulated Tank containers IMO cargo Vehicles and boats Oversize

4, 5 and 7 20'-MC 20' 20'-MC 20' 20' 20'-MC
3) 4)


20'-40'-MC 20'-40' 20'-40'-MC 20'-40' 20' 20'-40'-MC
3) 4)

Table 9-1

Types of cargo and container sizes for different price segments. 1) Limited capacity for 20' containers 2) Includes frozen cargo (-18°C), refrigerated cargo (+2-5°C) and frost susceptible cargo in winter season 3) Special rates apply to vehicles, construction equipment and boats according to size and weight 4) Cargo wider or longer than a 40' platform is calculated as per stand with an additional charge per weight

Freight charges include a handling fee at the harbour of departure, a sea freight fee and a handling fee at the destination harbour. The handling fees are calculated according to the region and cover all services including terminal handling and stevedoring. For LCL it also includes stuffing and stripping. Sea freight differs according to the route: Denmark-Greenland, GreenlandDenmark and Greenland-Greenland. Freight charges for cargo from Greenland to Denmark are considerably lower than for freight travelling the opposite direction. This is due to excess capacity from Greenland. In addition, domestic (i.e., internal) freight rates are lower than rates from Denmark to Greenland. The same freight rates for towns also apply to the settlements belonging to these towns. Additional charges for CAF/BAF justed every second month.

are added to the freight. The rate is ad-

Goods with final destinations outside RAL's ordinary master sailing route in Greenland will not be billed according to current tariff rates, but are individually calculated in relation to the specific circumstances, demands and expenses. Special freight rates are available for transport between harbours other than Aalborg and ports in Greenland, cf. Section 3.5. Examples of freight rates are given in Appendix C. By air All air cargo is transported by Air Greenland between Copenhagen Airport and destinations in Greenland.


Currency Adjustment Factor / Bunker Adjustment Factor


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All forms of general cargo can be shipped on Air Greenland routes, using both airplanes and helicopters. Furthermore, Air Greenland provides transport of frozen and cool storage, dangerous goods, live animals, etc. These shipments must be booked in advance. Air Greenland has a priority service between Greenland and Denmark, called "Greenpack". Greenpack is available to all towns and international airports in Greenland except Kangaatsiaq. Greenpack is sent on the first available flight with cargo capacity. Between all destinations in Greenland, the express service is called "Tuavi". Shipments are handed directly at the station and, if dispatched on time, will be sent to the destination on the same day, provided there is a flight available. Freight costs are calculated according to a base price, a charge per weight, a cargo price and an additional handling charge, fuel surcharge and security fee. For information on prices, see www.airgreenland.com/cargo/. Small parcel service up to 50 kg is available by post or by courier. For more information see www.post.gl.

Kangerlussuaq, the main gateway to Greenland. Photo: H.M. Skou, 2007 9.6.3

Air fares
The service by Air Greenland between Copenhagen Airport and the two international airports in Greenland, Kangerlussuaq and Narsarsuaq, has two classes, business and economy, each available with flexible fares and restrictive fares. No changes or refunds are possible with restrictive fares. For domestic flights with Air Greenland there is only one class, i.e., economy, with both restrictive and flexible fares. For further information and booking, see www.airgreenland.com. For other routes to and from Greenland during the summer season, see: www.airiceland.is.

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Duties are paid on imports of various articles such as sugar, coffee, tea, chocolate, alcoholic brewages, mineral water containing carbon dioxide, tobacco, meat and meat products, perfumes and cosmetics. Furthermore, duties are paid on vehicles, snowmobiles and ATVs, with the exception of construction equipment which is not intended for transportation of goods and passengers on public roads. Further information may be obtained from the Ministry of Finance, mailto:oedfu@gh.gl.


Building codes and standards
Greenland Building Code
All buildings, including residential homes, industrial facilities and institutions must comply with the Greenland Building Code, GBR2006. Some facilities are exempt from the code, including bridges and tunnels for traffic purposes, rock caverns, tunnels, etc. in relation to mining operations and hydropower, utilities, masts and transformer stations. The building code is based on Danish regulations for the design of buildings that are no longer valid in Denmark. At the end of 2009, these are to be replaced by Eurocodes with Greenlandic annexes. Additional information may be obtained from the Ministry of Housing, Infrastructure and Traffic, mailto:aan@gh.gl.


Eurocodes and Greenlandic annexes
Eurocodes with Greenlandic annexes are valid in Greenland. The Greenland annexes include additional regulations supplementary to the Eurocodes, which account for local conditions and regulations. These supplementary Greenlandic regulations do not necessarily follow the guidelines applicable for introducing Eurocodes in countries that are members of the European Union, but are generally dictated by the geographic and climatic conditions in Greenland. The Greenlandic annexes, all in Danish, include: 0. Basis of structural design 1. Actions on structures 2. Design of concrete structures 3. Design of steel structures 5. Design of timber structures 6. Design of masonry structures 7. Geotechnical design Special attention is drawn to the two annexes: • • Snow: DS/EN 1991-1-3:2007: Eurocode 1 - Actions on structures Part 1-3: General actions - Snow loads Wind: DS/EN 1991-1-4:2007: Eurocode 1: Actions on structures Part 1-4: General actions - Wind actions

The Greenlandic annexes are available at www.eurocodes.dk.


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Working environment
The Greenland Working Environmental Act [N] has been in force since January 2006. The objective of this act is to create and safeguarding a safe and healthy working environment, which shall at all times remain in accordance with the technical and social development of society.


Other regulations and recommendations
For electrical works and installations in particular, a number of regulations and recommendations must be observed.

M N Executive Order No. 16 of July 16, 2007 on explosives The Greenland Working Environment Act No. 1048 of 26 October 2005 (available in English from www.at.dk, July 2009)

Construction and operation costs

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Greenland’s infrastructure Construction and operation costs



Parties in the parliament
• • • • • Inuit Ataqatigiit (socialists) Demokratit (social liberals) Siumut (social democrats) Attasut (conservatives) Kattusseqatigiit

The parliament is led by the chairman, Josef Motzfeldt, Inuit Ataqatigiit.

Government members and ministries
After the election in 2009, a coalition was formed between Inuit Ataqatigiit, Demokratit and Kattusseqatigiit. Mr Kuupik Kleist, Inuit Ataqatigiit, is the premier and, together with eight ministers, will lead the country over the next four years. • Prime Minister o • The Prime Minister’s Office and Department of Foreign Affairs, mailto:govsec@gh.gl Ministry of Fisheries, Hunting and Agriculture, mailto:aapip@gh.gl Ministry of Finance, mailto:oedfu@gh.gl Department of Industry, Labour and Mineral Resources, mailto:isiin@gh.gl Bureau of Minerals and Petroleum, mailto:bmp@gh.gl Ministry of Housing, Infrastructure and Traffic, mailto:iap@gh.gl Ministry of Culture, Education, Research and The Church, mailto:kiiip@gh.gl Ministry of Social Affairs, mailto:in@gh.gl Ministry of Health, mailto:pn@gh.gl Ministry of the Interior, Nature and the Environment, mailto:nnpan@gh.gl Minister for Fisheries, Hunting and Agriculture o • Minister for Finance and Nordic Cooperation o • Minister for Industry, Labour and Mineral Resources o o •

Minister for Housing, Infrastructure and Traffic o Minister for Culture, Education, Research and the Church o Minister for Social Affairs o Minister for Health o Minister for the Interior, Nature and the Environment o

Setting up a business in Greenland – Appendix 71

Greenland's infrastructure


Hotel Qaqortoq**** 17 rooms, 2 junior suites Conference room for 30 persons. www.hotel-qaqortoq.gl Airport Hotel Narsarsuaq** 88 double rooms, 4 single rooms, 2 junior suites Conference room for 75 persons www.airporthotels.gl/Narsarsuaq Hotel Hans Egede****, Nuuk 24 budget rooms, 95 standard rooms, 17 Business class rooms, 1 junior suite, 4 suites Conference room**** for 120 persons www.hhe.gl Hotel Maniitsoq*** 21 double rooms. Conference room for 30 persons www.hotelmaniitsoq.gl Airport Hotel Kangerlussuaq*** 11 single rooms, 59 double rooms. Two conference centres: 272 and 100 persons. Conference room for 20 persons Three group rooms for 6 persons www.airporthotels.gl/Kangerlussuaq Hotel Sisimiut**** 20 single rooms, 14 double rooms, 4 suites. Three conference rooms***: 32, 24 and 15 persons. www.hotelsisimiut.com Hotel Arctic****, Ilulissat 32 standard rooms, 22 superior rooms, 32 superior plus rooms, 6 junior suites, 1 ambassador suite Conference-centre***** for 120 persons www.hotelarctic.com Hotel Icefjord***, Ilulissat 13 standard rooms, 14 standard plus rooms, 2 deluxe rooms Conference room*** for 60 persons www.hotelicefiord.gl

Setting up a business in Greenland – Appendix 72

Construction and operation costs LIST OF CONTENTS Construction and operation costs





2 5 7 8 10 13 14

Setting up a business in Greenland – Appendix 73

Construction and operation costs WAGES AND SALARIES
Construction and operation cost




Minimum wages according to agreement between the Greenland Workers' Union, SIK, and the Employers' Association of Greenland, GA, for workers above the age of 18, based on 40 working hours per week As per 1 April 2009 Basic wage, DKK per hour Overtime bonus, DKK per hour Public holiday payment, DKK per day Shift work bonus DKK per hour Evening Night Skilled 88.81 44.41 200 4.00 7.00 8.00

Valid from 1 April 2006 to 31 March 2010 Unskilled 75.26 37.63 200 4.00 7.00 7.00

Piece-rate deficiency payment DKK per hour

Bonuses and social security contributions Public holiday payment Employee disability insurance Employee life insurance Mandatory Public Pension Scheme (SISA) Leave due to children's or close relatives' sickness or death Total (on basic wage) Holliday bonus (on total payment)

Percent of wages 1.32 % 0.88 % 1.00 % 6.70 % 1.00 % 10.90 % 12.50 %

Contractor’s overhead excl. social security contributions and profit based on experience with projects in Greenland Clerical staff, salaries Administrative, technical staff, salaries HR – administration Employee canteen, salaries Offices, rent and maintenance Insurance expenses Depreciation Telephone, fax, postages, etc. Office supplies and equipment Employee canteen, expenses Total

Percent of total wages 3.50 % 4.00 % 1.20 % 1.00 % 2.00 % 3.20 % 5.00 % 1.00 % 2.00 % 3.00 % 25.90 %

Setting up a business in Greenland – Appendix 74

Construction and operation costs WAGES AND SALARIES BUILDING MATERIALS
Construction and operation costs


Example 1: Calculation of contractor's gross cost of labour for large construction projects Based on basic wages, bonuses, social security contributions and overhead Based on normal working hours, 40 hrs. per week Basic wage Piece-rate deficiency payment Social sec. contributions (of basic wage) Holiday bonus (of total wage) Net labour cost Contractor's overhead Contractor's profit Gross labour cost 25.90 % 10.00 % 10.90 % 12.50 % Skilled 88.81 8.00 9.68 12.10 118.60 32.72 11.86 161.17

DKK per hour Unskilled 75.26 7.00 8.21 10.28 100.75 26.09 10.07 136.92

Example 2: Calculation of contractor's gross cost of labour for large construction projects Based on basic wages, bonuses, social security contributions and overhead Based on working two shifts, 60 hours per week Basic wage Piece-rate deficiency payment Shift work, extra bonus (nights) Overtime¹ (of basic wage) Social charges (of basic wage) Holiday bonus (of total wage) Net labour cost Contractor's overhead Contractor's profit Gross labour cost 25.90 % 10.00 % 16.67 % 10.90 % 12.50 % Skilled 88.81 8.00 7.00 14.80 9.68 14.83 143.12 37.07 14.31 194.50

DKK per hour Unskilled 75.26 7.00 7.00 12.54 8.21 12.73 122.74 31.79 12.27 166.80

Note: 1) 40 hours normal wage + 20 hours overtime extra: (40+20×1.50)/60 = 1.1667

Note: Labour costs are theoretical according to the agreement. The cost may be considerable higher, up to 130% in certain areas due to wage drift and competitive conditions.

Setting up a business in Greenland - A guide for Investors Setting up a business in Greenland – Appendix 75

Construction and operation cost


Example of salaries for engineers, architects and other university graduates within the private sector Based on wages, bonuses, social security contributions and overhead Seniority Specialists Seniors Experienced Graduates CAD operators etc. > 20 years > 15 years 5-15 years < 5 years -

(2009) (2009) DKK per hour 1,200 1,000 850 620 500

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Construction and operation costs BUILDING MATERIALS PUBLIC SERVICES
Construction and operation costs


Prices for cement from Aalborg Portland, FOB¹ Aalborg (Jan. 2009) Basis cement in bulk Basis cement in 1,500 kg big bags Rapid cement in bulk Rapid cement in 1,500 kg big bags
Note: Basic cement is CEM II/A-LL 52.5 R (IS/LA/<2) Rapid cement is CEM I 52.5 N (MS/LA/<2) 1) Free On board

DKK per tonne 670 837 690 927

Prices for cement from Betoncentralen, Nuuk, EXW¹ (Mar. 2009) Basis and rapid cement in 40 kg bags Basis and rapid cement in 25 kg bags
Note: Incl. 20% discount for delivery of full pallets (1500 kg) Ex Works

DKK per tonne 3,000 3,136

Prices for pre-mixed concrete from Betoncentralen at construction sites in Nuuk (Mar. 2009) DKK per m³ With 170 kg cement With 250 kg cement With 300 kg cement With 400 kg cement 1,431 1,657 1,798 2,081

Prices for aggregates in big bags from Betoncentralen, Nuuk, CFR¹ Greenland harbour (Mar. 2009) DKK/m³ Material Region incl. settlements² 1 1534 1706 1696 1756 2 1469 1641 1631 1691 3 1583 1755 1744 1805 4 1644 1836 1826 1886 5 1810 1982 1972 2032 6 1778 1950 1939 2000 7 1940 2112 2102 2165 Nuu k 333 504 494 554

Stone dust 0/4 mm Sand Quarry run 0/32, 8/24, 8/32, 32/64 mm Quarry run 4/8, 8/12, 8/16 mm
Note: 1) Cost and Freight 2) Regions: see Section 9.6.2

Setting up a business in Greenland - A guide for Investors Setting up a business in Greenland – Appendix 77

Construction and operation costs BUILDING MATERIALS PUBLIC SERVICES
Construction and operation cost


Prices for explosives FAS¹ Aalborg Greenland Port (RAL) Unit Cartridge explosives / Dynamite / Emulsion explosives Primer/booster, small size (25 g ea.) Detonating cord (40 g/m for contour blasting) AN in big bags Non-electric detonators LP, 0-500 ms Non-electric detonators LP, 600-2000 ms Non-electric detonators LP, 2400-6000 ms
Note: Based on large quantities 1) Free Alongside Ship

(2009) DKK 17.50 6.00 7.00 3.00 12.00 14.00 20.00

kg ea m kg ea ea ea

Cost of petroleum products Unleaded petrol at petrol stations Diesel fuel arctic at petrol stations Gasoil delivered in towns


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Construction and operation costs CONSTRUCTION COSTS CARGO RATES
Construction and operation costs


Cost of site development and preparation Unit Site development, water mains, power mains and sewage¹ District road, 7.0 m wide + 2 x 1.0 m shoulders Housing roads, 4.0 m wide + 2 x 0.5 m shoulders Blasting in quarries Asphalt paved Gravel paved Asphalt paved Gravel paved 50,000 m³ 10,000 m³ 5,000 m³ 10,000 m³ 5,000 m³ ha m m m m m³ m³ m³ m³ m³

(2009) DKK 1,300,000 14,100 11,700 8,500 7,100 85 105 115 185 220

Blasting in plane areas
Note: 1) Ex. roads

Cost of buildings etc. Unit Single and two-family homes Apartment blocks Office buildings Storage buildings Industrial buildings Prefabricated camps of high quality, accommodation Insulated Cold Simple Complex m² m² m² m² m² m² m² m²

(2009) DKK 16,000 14,800 13,800 7,200 6,400 8,800 11,000 13,100

Note: These prices are average costs and may vary accordingly to specific conditions on site. These prices are based on the theoretical labour costs mentioned in Appendix A. Actual costs may be up to 10% higher due to higher wages. All prices excluding the cost of design, supervision and owner administration.

Setting up a business in Greenland - A guide for Investors Setting up a business in Greenland – Appendix 79

Construction and operation costs PUBLIC SERVICE PUBLIC SERVICES
Construction and operation cost



As per 1 March 2009 Unit DKK 23.00 50.00 1.48 2.23 2.38 2.46 2.64 2.59 2.72 2.76 2.82 0.62 0.55

Subscription fee Electricity consumption¹

≤ 63 A >63 A Nuuk, Tasiilaq Sisimiut Ilulissat Maniitsoq Aasiaat Qeqertarsuaq Qaqortoq, Narsaq Paamiut Other towns and most settlements

month kWh

Electricity consumption for electrical radiators Electricity consumption for interruptible heating²

kWh kWh

Note: 1) Unit costs are lower for fishing industries 2) Interruptible heating means that the energy supply may be interrupted and the consumers must have back-up heating with oil burners


As per 1 March 2009 Unit DKK 23.00 50.00 17.78 12.71 11.83 30.29 34.42

Subscription fee Water consumption¹

≤ 10 m³/h >10 m³/h Nuuk Sisimiut Ilulissat, Paamiut Qaqortoq Other towns and most settlements

month m³

Note: 1) Unit costs are lower for fishing industries

District heating

As per March 1, 2009 Unit DKK 100.00 150.00 618.00 553.00

Subscription fee Heating consumption Interruptible heating¹

≤ 5 m³/h >5 m³/h

month MWh MWh

Note: 1) Interruptible heating means that the supply may be interrupted and the consumers must have own back-up heating with oil burners

Setting up a business in Greenland - A Guide for Investors Setting up a business in Greenland – Appendix 80

Construction and operation costs PUBLIC SERVICE PUBLIC SERVICES

Construction and operation costs

As per 1 June 2008 Unit DKK 150.00 0.44 0.99 0.99 1.84 2.04 2.79 2.04 2.79 75.00 0.99 2.79 2.79 2.79 0.00 75.00 595.00 995.00 0.42

ISDN and telephone Subscription fee Call fee¹ Domestic Domestic cellular Denmark Denmark cellular Europe Europe cellular USA/Canada USA/Canada cellular

Month Min.

Cellular phone Subscription fee Call fee¹ Domestic Denmark Europe USA/Canada 512/256 kbit/s 1024/256 kbit/s 2048/256 kbit/s incl. 2 GB traffic 4096/768 kbit/s incl. 6 GB traffic

Month Min.

ADSL Subscription fee


Traffic fee MPLS Available in different set-ups, cf. www.tele.gl/dk
Note: 1) The fee is lower during night (18.00-07.00) and weekends


Setting up a business in Greenland - A guide for Investors Setting up a business in Greenland – Appendix 81

Construction and operation costs CARGO RATES Fejl! Henvisningskilden blev ikke fundet.
Construction and operation cost

Page 10

Examples of freight rates from Aalborg to Greenlandic harbour with Royal Arctic Line


Low is region 2, high is region 7 or region 6 for 40' containers, cf. Section 9.6.2 General cargo and containers General cargo (<600 kg/m³) General cargo (>600 kg/m³)
2 2 3 3

DKK (2009) High 974 1.54 1,231 2.07 1,737 4,269 18,652 36,400 51,142 26,106 High 11,668 14,979 15,795 28,508 39,582 49,420 64,955 81,903 Cont.

Unit m³ kg m³ kg m³ ea ea ea ea ea lxwxhm 3.76 x 1.69 x 1.50 4.84 x 1.82 x 1.56 5.13 x 1.84 x 1.81 4.20 x 2.21 x 2.80 4.34 x 2.16 x 2.77 3.86 x 2.64 x 3.20 6.50 x 2.59 x 3.15 9.13 x 2.50 x 22.83 kg 1,075 1,810 1,650 2,510 9,480 14,776 13,500 14,800

Low 743 1.25 995 1.67 1,450 4,022 17,803 35,869 49,886 25,182 Low 10,814 14,125 14,941 27,227 35,312 43,015 58,977 75,498

Flat rack cargo (<600 kg/m³) Flat rack cargo (>600 kg/m³) Temperature regulated

Dry cargo mini-container Dry cargo 20' container Dry cargo 40' container Temperature regulated 40' reefer IMO cargo 20' container Vehicles and boats Small car Large car 4WD Toyota Hilux 4WD Backhoe loader Track loader without shovel Track-type tractor without blade Front loader Dump truck

Setting up a business in Greenland - A Guide for Investors Setting up a business in Greenland – Appendix 82

Construction and operation costs CARGO RATES AIR FARES
Construction and operation costs


Examples of freight rates from Aalborg to Greenlandic harbour with Royal Arctic Line

Low is region 2, high is region 7 or region 6 for 40' containers, cf. Section 9.6.2 Oversize cargo Freight is calculated per TEU + handling fee per item Four TEU Six TEU Eight TEU Pay supplement to all consignments: - Currency Adjustment Factor/Bunker Adjustment Factor (CAF/BAF) of the freight - Insurance according to value and type of cargo
Note: 1) 2) 3) 4)
7 6

DKK (2009) High


81,394 118,886 156,338

85,570 125,130 164,690

9.0 %

The same freight rates apply for transport to any settlement in Greenland Maximum size: l x w x h = 2.3 x 2.3 x 1.9 m. Larger items must be send as flat rack cargo Maximum size: l x w x h = 11.9 x 2.4 x 1.9 m. Larger items must be send as oversize cargo Includes frozen cargo (-18°C), refrigerated cargo (+2-5°C) and frost susceptible cargo during the winter season 5) Maximum size: l x w x h = 11.9 x 5.0 x 7.0 m. Larger items must be sent as oversize cargo 6) Twenty-foot Equivalent Unit 7) As per October 2009. The rate is adjusted every two month

Freight rates from Greenlandic harbours to Aalborg and between Greenlandic harbours with Royal Arctic Line Freight rates from Greenlandic harbours, approximately proportional to freight rates from Aalborg to Greenland Freight rates between Greenlandic harbours, approximately proportional to freight rates between Aalborg and Greenlandic harbours

DKK (2009) 40 % 45 %

Freight rates from Reykjavik to Greenlandic harbour with Royal Arctic Line Additional charge due to higher handling cost in Reykjavik General Cargo LCL Flat rack LCL Temperature regulated LCL Dry cargo mini-container Dry cargo 20' and 40' container Temperature regulated 40' reefer IMO cargo 20' container Vehicles and boats, extra per ton Oversize, extra per TEU For additional information on freight rates see www.royalarcticline.com Unit m³ m³ m³ ea ea ea ea Ton TEU

(2009) DKK 102 134 160 406 945 2,722 1,127 291 1,161

Setting up a business in Greenland - A guide for Investors Setting up a business in Greenland – Appendix 83

Construction and operation costs CARGO RATES Fejl! Henvisningskilden blev ikke fundet.
Freight rates from Canada/USA¹ to Greenlandic Harbours with Eimskip/Royal Arctic Line General cargo and containers General cargo LCL < 1 m³ General cargo LCL > 1 m³ Flat rack 40' FCL Dry cargo 20' container Dry cargo 40' container Temperature regulated 40' reefer Vehicles and boats: Inquire for freight at: kundeservice@ral.gl – rtq@eimskip.ca – lry@eimskipusa.com The above rates do not cover the following: - Royal Arctic Line's BAF/CAF - B/L fee of DKK 50 - Service charges in Canada or USA
Note: 1) Halifax, Argentia, Everett, Boston and Richmond

Construction and operation cost

Page 12

DKK (2009) Unit m³ m³ ea ea ea ea Low 600 735 41,482 17,670 35,355 50,081 High 600 861 41,839 18,476 35,658 50,797

Examples of air cargo freight rates from Copenhagen to Greenland with Air Greenland Destination Nuuk Nuuk Nuuk Kangerlussuaq Tasiilaq lxwxhm 0.60 x 1.00 x 0.50 1.00 x 1.20 x 0.50 1.00 x 1.20 x 1.00 1.00 x 1.20 x 0.50 1.00 x 1.20 x 0.50 Kg 60 120 240 120 120 Ordinary 3,000 5,520 10,460 3,282 7,398

DKK (2009) Greenpack 4,415 8,090 15,340 7,922 10,010

All prices include: handling fees, fuel and AWB fee. For further information: www.airgreenland.com

Setting up a business in Greenland - A Guide for Investors Setting up a business in Greenland – Appendix 84

Construction and operation costs AIR FARES AIR FARES
Construction and operation costs


Examples of air fares with Air Greenland Route Restricted Economy Copenhagen – Kangerlussuaq return Copenhagen – Nuuk return via Kangerlussuaq Copenhagen – Qaqortoq return via Narsarsuaq Nuuk – Ilulissat return 5,359 9,403 8,597 4,822 Business 8,159 11,193 11,397 …

DKK (September 2009) Flexible Economy 8,069 13,348 12,207 8,632 Business 10,869 16,148 15,007 …

Incl. taxes and airport fees One way is approx. half price Rates for senior citizens (+60) are half price for economy only Prices are a guideline only, as they may vary for different departures and depending on the season For further information: www.airgreenland.com

Setting up a business in Greenland - A guide for Investors Setting up a business in Greenland – Appendix 85

Construction and operation costs IMPORT DUTIES IMPORT DUTIES
Construction and operation cost


Examples of import duties Commodity Sugar, coffee and tea Chocolate etc. Beverage with alcohol Mineral water and soft drinks, carbonated Mutton, frozen Beef, fresh Beef, frozen Pork, frozen Cigarettes 1.2-3.1 %vol. 45.1-60.1 %vol. Unit kg kg litre litre litre kg kg kg kg ea

DKK (2009) Duty 6.00 29,00 3.50 495.00 7.50 25.00 10.00 6.75 3.25 2.23

Cars: DKK 50,000 + 100% of value between 50,000 and 150,000 + 125 % of value above 150,000 Vans less than 4 tonnes total weight: DKK 50.000 + 50 % of value about 50.000 Lorries, busses and vans more than 4 tonnes total weight: Snowmobiles Minor ATV For more details: http://dk.nanoq.gl or mailto:oedfu@gh.gl ea ea ea 50,000 22,000 5,000

Setting up a business in Greenland – Appendix 86 Setting up a business in Greenland - A Guide for Investors

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