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Updated Cost Estimate for the Stad Ship Tunnel is Submitted

Fjelllandskap med innsjø, skip som går inn i en stor tunnel i åssiden. Liten landsby og skogkledde åser i bakgrunnen.

The Norwegian Coastal Administration has today submitted an updated decision and cost basis for the Stad Ship Tunnel to the Ministry of Trade, Industry and Fisheries (NFD) in accordance with the Norwegian Parliament’s request. An important part of the assignment has been to optimize the project with the purpose of reducing costs.

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This submission follows the Ministry’s request after a parliamentary decision on 14 October 2025.

 A Clearer Picture of Costs

In recent months, the Norwegian Coastal Administration has worked together with the bidders on initiatives to improve the project and reduce costs.

– The project organization for the Stad Ship Tunnel has worked thoroughly. Three contractors are competing for the assignment, and through dialogue with them, we have gained an updated picture of the cost level, which is lower than the initial estimate from last year. The Norwegian Coastal Administration has now submitted the updated decision and cost basis to NFD, says Director General Einar Vik Arset.

Project Manager for the Stad Ship Tunnel, Harald Inge Johnsen, explains that there are several reasons why costs have been reduced since the first tender round.

– Firstly, we see that the competition is working. We have three committed bidders who are making every effort to secure the contract to build the world’s first ship tunnel. Secondly, we have made a number of changes to the requirements and execution. These include changes to the entrance structures, fender solutions, and more cost-effective solutions for the portal areas, says Johnsen.

The Road Ahead

The revised budget basis was submitted to NFD as requested on Friday, 6 March 2026. Details are normally not made public by the Norwegian Coastal Administration at this stage in a budget process.

Provided that the necessary financing is in place, the Norwegian Coastal Administration plans to award the contract to the most suitable bidder before the summer, with contract signing after the summer and possible construction start around the turn of the year 2026/2027.

About the Stad ship tunnel

The Norwegian Coastal Administration (Kystverket) has been tasked with building the Stad Ship Tunnel, the world's first full-scale ship tunnel. The construction project will be carried out by a main contractor through a turnkey contract. It is scheduled to be announced in 2024, with construction potentially commencing in 2025.

The objective of the Stad Ship Tunnel project is to improve the navigability and safety of maritime transport around Stad, likely the most weather-exposed and dangerous stretch of sea along the Norwegian coast. Additionally, the project is to be optimized to extract other benefits.

The ship tunnel will be constructed at the narrowest point of the Stad Peninsula, between the Moldefjord and Kjødepollen, in the Vanylvsfjord. The tunnel will be 1.7 kilometers long (2.2 km including entrance areas), 50 meters high, and with a width of 36 meters. This means that vessels up to the size of the Coastal Route/Hurtigruten will be able to safely navigate past Stadlandet.

The Norwegian Coastal Administration is a transport agency under the Ministry of Trade, Industry, and Fisheries. Our vision is to develop the coast and ocean areas into the world's safest and cleanest. The Stad Ship Tunnel is a part of this effort.

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