Hafnarfjörður, officially Hafnarfjarðarkaupstaður, is a port town and municipality in Iceland, located about 10 km south of Reykjavík. The …Hafnarfjörður, officially Hafnarfjarðarkaupstaður, is a port town and municipality in Iceland, located about 10 km south of Reykjavík. The municipality consists of two non-contiguous areas in the Capital Region, on the southwest coast of the country. At about 30,000 inhabitants, Hafnarfjörður is the third-most populous city in Iceland after Reykjavík and Kópavogur. It has established local industry and a variety of urban activities, with annual festival events.