Finance, traffic and financing
How many cars and trains are expected to drive across the fixed link per day?
When the link opens, an average of 8,000 vehicles are expected per day in the first year. Five years after the opening, the number is expected to be in the region of 10,800 vehicles per day followed by annual traffic growth of 1.7 per cent for the road link. For the rail link, a significant increase in the number of freight trains is expected, with an estimated 40 passenger trains and 78 freight trains per day five years after the opening.
Do the traffic forecasts take account of whether the ferry services between Rødby-Puttgarden will continue or not?
The traffic forecasts do not assume the ferry operations between Rødby and Puttgarden to continue following the opening of the fixed link. It is up to the ferry companies to decide whether to continue operations in the future. Experiences from Great Belt and Øresund show that the ferries ceased sailing soon after the opening of the fixed link.
What will the fixed link cost?
Prior to the implementation of the EIA (Environmental Impact Assessment), construction costs for an immersed tunnel were estimated to be in the region of EUR 5.5 billion. For the Danish landworks, construction costs are estimated at approx. EUR 1.1 – 1.2 billion. The construction costs are calculated in 2008 prices and can be subject to change in the further planning process.
Costs for the German landworks will be paid by Germany. Construction costs are estimated to be a total of EUR 840 million (2003 prices).
Are the costs reliable? All other construction works exceed the estimates.
Yes, the cost estimate is reliable. Femern A/S believes that the estimated construction costs for the coast-to-coast project from November 2010 (updated June 2011) are realistic. It should, however, be pointed out that additional costs may arise as a result of the requirements stemming from the authorities' environmental assessment and approval of the project. In addition, the contractors' tenders for the construction works will reflect the current market situation in the construction industry.
Who will pay for the fixed link across the Fehmarnbelt?
Users of the link, not the tax payers, will pay for both the coast-to-coast link and the Danish landworks. The fixed link across the Fehmarnbelt will be financed by loans guaranteed by the Danish state as well as subsidies from the EU. The loans will be repaid from user payments, as is the case on the links across Great Belt and Øresund.
How long will it take to pay back the costs of the fixed link and the Danish landworks?
The repayment period for the coast-to-coast section of the link is 33 years for an immersed tunnel. If the Danish landworks are included, the repayment period is 39 years for a tunnel solution.
How will it affect the repayment time if the assumptions for the calculations fail to hold good?
All assumptions are determined on the basis of a cautious estimate, i.e. that there is a strong probability that the repayment period can be shortened as a result of lower interest rate levels, higher EU subsidies or higher traffic revenue.
Will the fixed link receive subsidies from the EU?
The EU has decided to support the Fehmarnbelt Fixed Link through the TEN-T programme (Trans-European Network) and award funding in the amount of approx. 267 million EUR for the period 2007-2013. An additional approx.12 million EUR were accorded for feasibility studies for the Danish landworks. The Fehmarnbelt Fixed Link will be an important Northern European traffic corridor. Therefore, EU subsidies from the TEN-T programme are also expected in the next budget period between 2014 and 2020, where subsidies will be directly related to the construction phase.
Why did the EU reduce subsidies to the fixed link across Fehmarnbelt in 2010?
In the course of its Midterm Review in 2010, the European Commission has evaluated all EU subsidy projects that are part of the TEN-T programme. Due to less construction activities in the period from 2007 to 2013 than earlier expected, the Midterm Review proposed a reduction of the subsidy to the Fehmarnbelt Fixed Link by about EUR 72 million. As a consequence, financial support would be reduced from 339 million EUR to 267 million EUR. It is expected that these funds will be recovered in the next funding period from 2014 to 2020, where the construction activities will take place. The strong EU support for the Fehmarnbelt Fixed Link thus remains intact and unaffected by the reduction of support in the current program period.
What will it cost to drive across the Fehmarnbelt link?
The prices have not yet been determined, but it is anticipated in the financial calculations that the price will be on a par with the Rødbyhavn-Puttgarden ferry service's prices in 2007 adjusted for ordinary price trends. In 2007, the cost of the crossing by ferry was EUR 56 for a passenger car.
