The Fjarðabyggð municipal council approved an infrastructure analysis for Mjóeyrarhöfn. Council chairman Ragnar Sigurðsson said the area has substantial undeveloped land that needs proper planning.
"We own about 80,000 square meters of vacant plots there and see growing interest in them. We want to approach the development correctly and assess future needs," Sigurðsson said in a statement.
The council recently finalized agreements with engineering firm Eflu for the project. Mjóeyrarhöfn serves as Iceland's second-largest commercial port to Europe by volume.
Sigurðsson noted the port's strategic importance amid increased discussions about security and defense matters. The first phase includes the existing port infrastructure.
Authorities have already expanded areas through land reclamation. They plan additional expansions and harbor edge extensions. Construction permits for the second phase were issued last year.
Local governments across Iceland increasingly focus on developing port infrastructure. This reflects both economic ambitions and security considerations in the North Atlantic region.
The Mjóeyrarhöfn development represents a practical approach to balancing commercial needs with strategic planning. Municipal leaders appear focused on maximizing long-term value from public assets.