The fairway leading into the Port of Gothenburg needs to be deepened by around four metres if the port is to be able to receive the new generation of freight vessels that seem to be constantly growing in stature. In just ten years, the average container vessel has doubled in size. According to a new report from the Swedish Transport Administration, deepening would allow industry to access the benefits of direct deep-sea services. The investment cost is estimated to be in the region of four billion kronor.
The Swedish Transport Administration has analysed the socioeconomic benefit of the investment. What is termed the benefit-cost ratio is 3.04. This means that the benefit of the measures taken would far exceed the cost. Every invested krona would give society four in return, resulting in a net yield of three kronor.
Magnus Kårestedt, Gothenburg Port Authority Chief Executive, said: “This is a record-breaking figure and makes the deepening of the fairway one of the most profitable projects for the future in Sweden.”
Magnus Kårestedt explained: “The fairway is a bottleneck. The largest vessels can only take on 50 per cent of their capacity and certain vessels are unable to call at Gothenburg and are thus forced to bypass Sweden completely.”
The Swedish Transport Administration’s calculations show that Swedish import and export companies could reduce their transport costs substantially if there was greater opportunity to ship their freight directly to and from markets throughout the world.