From Hafnarfjordur / Frá Hafnarfirði Hafnarfjörður is a port town and municipality located on the southwest coast of Iceland, about 10 km (6 mi) south of Reykjavík. It is the third-most populous city in Iceland, after Reykjavík and Kópavogur. As the third largest city, Hafnarfjörður has established local industry and a variety of urban activities, with annual festival events.