The world’s first ship tunnel is about to become reality

A project once dismissed as too costly and too ambitious is moving forward, as Norway commits billions to cutting a passage for ships through the notorious Stad peninsula.

After years of cost overruns and political uncertainty, Norway has approved the construction of the world’s first ship tunnel. The revised budget of NOK 8.6 billion has been given the green light, with an additional NOK 150 million set aside for start-up costs, according to Iradar.

The tunnel will guide vessels through the Stad peninsula, allowing ships to avoid one of the most treacherous stretches of the Norwegian coastline, where extreme weather and waves pose significant risks to shipping.

– This is about safety for seafarers and cargo, better reliability for businesses and strengthened emergency preparedness along the coast, says Erling Sande, parliamentary deputy leader of the Centre Party.

The project has faced sharp criticism over its escalating costs. The previously approved budget stood at NOK 5.4 billion in 2021 prices, with higher costs for steel, concrete and fuel – as well as significantly increased establishment and operating expenses – driving up the price.

Three contractors remain in contention for the construction contract: Skanska together with Vassbakk & Stol, AF Gruppen and Eiffage. No decision has been announced.

• Mer läsning: Norway’s Stad ship tunnel still billions over budget