First works start on world’s first full-scale ship tunnel

Scrapped in October, revived in June, now under way. Demolition work for Norway’s Stad Ship Tunnel begins this month, marking the first physical step toward the world’s first full-scale ship tunnel.

Few infrastructure projects have had as dramatic a journey as Norway’s Stad Ship Tunnel. In October 2025, Prime Minister Jonas Gahr Støre scrapped the project after costs ballooned from NOK 5 billion to NOK 9.4 billion. Eight months later, the coalition parties reversed course and gave it the green light again, this time with a reduced budget of NOK 8.6 billion.

Now the first visible signs of progress are emerging. Demolition of 18 buildings across three sites near the tunnel’s planned route begins in mid-October and will continue through the end of the year. AF Decom is carrying out the work.

“This will be one of the first visible construction activities in the area. The demolition is necessary to prepare the sites before the main work on the Stad Ship Tunnel begins,” says project manager Jarle Strand.

AF Gruppen is the main contractor for the tunnel itself. Construction is set to start in January 2027. Once complete, the tunnel will be the world’s first full-scale ship tunnel, allowing vessels to pass safely through the Stad peninsula rather than navigating one of Norway’s most exposed stretches of coastline.

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