Norway Awards Contract for World's First Ship Tunnel, Construction to Begin in 2027
The 1.7-kilometer Stad Ship Tunnel will allow freight and passenger vessels to bypass one of Norway's most dangerous stretches of coastline.
Norway has awarded the construction contract for the Stad Ship Tunnel, a landmark infrastructure project that will become the world’s first full-scale tunnel built specifically for maritime traffic.
The Norwegian Coastal Administration selected AF Gruppen to design and construct the project under a turnkey contract worth approximately NOK 5.6 billion ($565 million). The contract is expected to be signed in August following the mandatory standstill period, with construction scheduled to begin in early 2027.
The Stad Ship Tunnel will cut through the Stad Peninsula on Norway’s western coast, creating a protected passage between Kjødepollen in Vanylvsfjorden and Moldefjorden near Selje. Once completed, the tunnel will allow freight and passenger vessels to bypass one of the country’s most hazardous stretches of coastline while remaining within sheltered fjord waters.
A Historic Maritime Engineering Project
Measuring 1.7 kilometers in length, the tunnel will be approximately 50 meters high and 36 meters wide, making its cross-section roughly 20 times larger than a typical road tunnel. It is designed to accommodate ships with a draft of up to 12 meters, allowing freight and passenger vessels to travel safely year-round between the Norwegian Sea and the North Sea.
The tunnel will pass beneath a 645-meter mountain, eliminating the need for ships traveling between Bergen and Ålesund to navigate the notoriously rough waters surrounding Stadlandet, an area long considered one of Norway’s most dangerous coastal passages.
AF Gruppen, working alongside engineering consultant Norconsult, developed the final proposal in cooperation with the Norwegian Coastal Administration during the tender process.
“It is rare for us, as a design and build contractor, to have the opportunity to take on such a unique infrastructure project, attracting significant local, national, and international interest,” said AF Gruppen CEO Amund Tøftum.
Construction will begin with a collaborative planning phase between AF Gruppen and the Norwegian Coastal Administration. During this period, the two organizations will spend several months finalizing engineering designs, construction procedures, and technical solutions before excavation begins.
Preparatory work during late 2026 will include upgrading roads, establishing temporary access routes, building project offices and worker accommodation, and relocating existing infrastructure. Separate contracts covering water pipeline diversions and demolition work are also expected to be awarded later this year.
Beyond excavating the tunnel itself, the project includes the construction of navigation structures, approach channels, commercial facilities at both tunnel entrances, permanent rock stabilization, dredging operations, fender systems, and all technical installations required for maritime traffic.
Construction is expected to take approximately five years.
More Than a Century in the Making
The idea of constructing a ship tunnel through the Stad Peninsula dates back more than 150 years, first appearing in Norwegian newspapers in 1874.
The concept gained political momentum in 2013 when it was incorporated into Norway’s National Transport Plan. The government formally announced plans for the tunnel in 2017, while the Norwegian Parliament approved state funding in 2021.
After several revisions to the project’s budget and schedule, Parliament approved a revised NOK 8.588 billion (approximately $867 million) cost framework in June 2026, allowing the Norwegian Coastal Administration to proceed with construction.
Once completed, the Stad Ship Tunnel will become the world’s first full-scale ship tunnel, marking a historic milestone in maritime engineering while providing a year-round safe passage through one of Norway’s most dangerous coastal waters.