As global warming creates shipping routes that can cut across the northern tip of the planet, a new port is being built on the fringe of the Arctic circle.

Germany’s Bremenports GmbH has entered a deal to develop a deep vessel port together with Icelandic partners, according to a statement on Thursday. Bremenports will initially own two-thirds of the joint venture, while Icelandic engineering firm Efla will control about a quarter. The rest will be co-owned by two Icelandic municipalities.

Ships stopping at the new Icelandic port on the island’s northern tip stand to reduce their travel time considerably. “If the northeast passage between Asia and the U.S. becomes navigable all year round, the journey times between these continents will be reduced by more than two weeks,” Bremenports said.

The port also envisages becoming a hub for Greenlandic commodities exports, as well as Icelandic hydrogen.

The development phase will take 3 to 5 years. The partnership, called Finnafjord Port Development Co., is also in talks with a fund for investments later this year.