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Sweden’s government bodies back Gothenburg project

Skandia Gateway, a project aimed at deepening the channel leading into the Port of Gothenburg, will be fully financed by the Swedish Transport Administration and the Gothenburg City Council.

The city council passed a resolution on 10 September to grant more than US$140 million for the project, while the Swedish Transport Administration will match the sum as part of the national infrastructure plan.

Skandia Gateway is a joint project being run by the Gothenburg Port Authority, the Swedish Maritime Administration, and the Swedish Transport Administration. With funding now in place, the three organisations can move forward and enter into an implementation agreement.

Elvir Dzanic, Gothenburg Port Authority chief executive, describes Skandia Gateway as “the most important port project in Sweden this century,” as it will help Gothenburg to retain the role of the logistics capital of Scandinavia.

As ships continue to grow in size and require a deeper draught, development of the fairway is crucial, according to the announcement. The expansion project will support the port to receive the largest ships fully loaded, while at the moment giant vessels can only call at Gothenburg half loaded.

“This is a race where we need to keep up if we are to maintain our position as a major international port here in Sweden,” said Dzanic. “Without the largest ships the port will be marginalised, forcing many Swedish companies into using inefficient alternatives that are damaging to the environment and with a resulting loss of competitiveness.”

Updated estimations say the cost of deepening the fairway to accommodate ships with a draught of 17.5m would be around US$285.5 million.

The Swedish Transport Administration believes Skandia Gateway will also provide socioeconomic benefits, estimating that each krona invested will produce four krona in return, with a payback period of just 15 years.

Fact file: Skandia Gateway

Planned deepening: From 13.5 to 17.5m maximum draught
Model vessel: Length 430m, beam 65m, and a maximum draught of 17.5m
Cost: US$285.5 million
Funding: Government (Swedish Transport Administration): US$140 million / Local authority (City of Gothenburg): up to US$140 million
Socioeconomic benefit: One krona invested will produce four kronor in return (according to the National Infrastructure Plan for 2018-2029)
Dredging requirements: Approximately 12 million cubic metres
Construction process: Commencement of quay reinforcement – 2022. Dredging – 2024. Joint completion with deeper quays – 2026.

 





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