The Swedish Transport Administration matched the sum as part of the national infrastructure plan, and now the project is fully funded. The three parties now have a firm basis for entering into an implementation agreement.

This is the most important port project in Sweden this century. Gothenburg has been the logistics capital of Scandinavia for 400 years and following this decision it is set to consolidate and build on that position for the next 400 years,

...said Elvir Dzanic, Gothenburg Port Authority chief executive.

The development of the fairway is crucial, as at present, the largest ships can only call at the Port of Gothenburg half loaded, and the ships that are required to keep pace with global maritime expansion are becoming bigger by the year.

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. 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,

...said Elvir Dzanic.

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 for this much sought-after project.

According to previous estimates, the cost of deepening the fairway to accommodate ships with a draught of 16.5 metres would be around 4 billion kronor. More detailed calculations now reveal the cost to be around 2.5 billion kronor and achieving a draught of 17.5 metres.

The difference can be attributed to the application of more modern construction solutions that emerged during the early stages of the project, coupled with meticulous fairway design optimisation.

After a number of simulations, we have optimised the layout of the fairway and the dredging requirements. By doing so we have ensured that government funding is being used responsibly,

...said Joel Smith, Head of the Swedish Maritime Administration Infrastructure Department.

Deepening the fairway will also be beneficial from a socioeconomic point of view. According to Swedish Transport Administration estimates, each krona invested will produce four kronor in return, with a payback period of just 15 years.