Last Updated: Oct 13, 2025
Home » Transport » Norway Withdraws from Funding of the World’s First Ship Tunnel Project

Norway Withdraws from Funding of the World’s First Ship Tunnel Project

Home » Transport » Norway Withdraws from Funding of the World’s First Ship Tunnel Project

Norway has reached a decision which states that the construction of the World’s Fist Ship Tunnel would be too expensive to be practical. Despite receiving construction bids from various firms, the government will tell its parliament (Storting) that it reached a decision to shelve the project due to cost. leaving its future uncertain.

Prime Minister Jonas Gahr Støre spoke to Norwegian broadcaster NRK and stated, “It will be so expensive. Therefore, we consider it irresponsible to proceed with the project.” Outlining the plans for the coming budget, he said stated that they would not be committing any further funding to the world’s first ship tunnel. This is because there are higher priorities with defense, health, and municipal finances.

Norwegian government withdrawing from the tunnel project represents a change in position by the government from statements highlighted during Norway’s recent elections. The ruling party had emphasized the safety concerns. Therefore, it referred to the tunnel as a critical project. Furthermore, the coming new budget is likely to prompt a heated debate in the Storting. According to Norwegian media reports that were released last month, 450 companies sent a letter to parliament demanding that the world’s first ship tunnel project to proceed. However, Hurtigruten has said it did not intend to use the tunnel. It highlighted that weather conditions in the area rarely delayed its trips.

Norway has withdrawn from funding the world’s first ship tunnel project
Norway has withdrawn from funding the world’s first ship tunnel project

Additionally, Norwegian Coastal Authority, which was overseeing the project received bids from three construction partnerships in June for the project and had said it expected to complete a construction contract this year. Construction works on the world’s first ship tunnel was expected to commence in 2026. The tunnel would take approximately five years to complete.

In another similar development, Norway is pursuing the development of the Rogfast Tunnel which will become world’s longest undersea tunnel. The project is expected to cost $46 billion. These tunnel developments in Norway will make the country’s maritime sector improve and improve logistics in the country.

Reported on May 26, 2024

Construction of the world’s first ship tunnel is taking shape as the project selects Cowi as the project’s technical advisor. The project in Norway is the first of its kind in the world and is one that is highly anticipated. Cowi has been handed a $21M contract to act as the technical advisor on the project. It is to be constructed in the Stad Peninsula in Norway. Costed at $315M in 2021, the Stad Ship Tunnel will be the first full-scale tunnel built specifically for ships.

It will also be the only tunnel in which ships can traverse safely. The client company tasked with the handling, implementation, and delivery of the project is the Norwegian Coastal Administration. The 1.7 km-long Stad Ship Tunnel will cut through the mountainous, inland end of the long Stad Peninsula on Norway’s west coast. This is being done so that ships can avoid having to go around it through the rough Stadhavet Sea.

The Significance of the World’s First Ship Tunnel in Norway

The construction of the world’s first ship tunnel is significant in Norway as it will facilitate cutting the travel length of ships. Once completed, ships will avoid having to go around the rough Stadhavet Sea. First proposed in the 19th century, the project is now taking shape, and construction pressing ahead. The Stad Ship Tunnel project aims to improve the navigability and safety of maritime transport around Stad. This is because it is likely the most weather-exposed and dangerous stretch of sea along the Norwegian coast. Being the first of its kind, projects that are the longest, largest, or first of their kind are usually exciting. Norway Is pleased to be part of the project and expects that it will manifest as expected. The world’s first ship tunnel will also be a major tourist attraction site in Norway, being one of its kind in the world.

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The Scope of Construction on the Stad Ship Tunnel

The world’s first ship tunnel is planned to be built at the narrowest point of the Stad Peninsula. This is between the Moldefjord and Kjødepollen, in the Vanylvsfjord. The tunnel will be 1.7km long (2.2km including entrance areas), 50m high, and will have a width of 36m. It is also It is designed to be 26.5m wide, with 33m headroom.  Furthermore, once completed, it will be able to accommodate 70 to 120 ships a day. Materials will be transported by sea because the roads are not large enough for construction vehicles. Meanwhile, the tunnel itself will be created using a drill and blast method through the gneiss metamorphic rock. However, the tunnel’s construction poses challenges as the tunnel itself needs to be 50m high and 26.5m wide. This is to allow ships to pass through safely.World's first ship tunnel

The Developers/Contractors Involved in the Construction of the Stad Tunnel.

The contract signed with Cowi is a framework agreement for the firm to provide technical consulting services for the world’s first ship tunnel project. The consensus between Cowi and the Norwegian Coastal Administration was agreed upon following a tender process. The Norwegian Coastal Administration noted that Cowi will assist the project with engineering work and consulting in all necessary technical disciplines. Disciplines that the Norwegian Coastal Administration considers especially prevalent for this project include geotechnics, geology, and structures. It also entails technical installations, corrosion, and sustainability/environment. Furthermore, with Cowi being conversant in health, safety, and the environment in tunnel construction, it is a plus for them.

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