The Stad Ship Tunnel is a massive engineering undertaking designed to address the navigational hazards of the Stad Peninsula on Norway’s west coast. The tunnel will cut 1.7 kilometres through the rock, linking Kjødepollen in the Vanylvsfjorden with Moldefjorden near Selje. Its dimensions are substantial, measuring 50 metres in height and 36 metres in width, allowing it to accommodate vessels up to 16 metres wide with a draft of up to 12 metres. By replacing a stretch of open sea with a protected passage through solid rock, the project aims to provide a safer and more predictable route for ships navigating one of the most weather-exposed and challenging stretches of the Norwegian coastline.
The contract award follows a competitive procurement process that concluded with three bidders in the final negotiation stage. Director General Einar Vik Arset of the NCA stated that AF Gruppen submitted the “best overall bid” after a thorough evaluation. The design-build contract places full responsibility for detailed engineering and construction on AF Gruppen. The scope of work extends beyond the tunnel excavation itself; it includes the construction of approach and navigation structures, commercial developments at both portals, the installation of fender systems and technical equipment, and the transportation and disposal of the estimated 3 million cubic metres of excavated rock. Dredging works in the Saltasundet shipping channel near Selje are also part of the contract.
Preparatory works have already commenced, distinct from the main tunnel contract. The NCA announced on October 1 that it had contracted AF Decom to demolish 18 buildings at and around the construction sites, a process scheduled to run from mid-October to the end of the year. Additionally, Telemark Seaworx has been awarded a separate contract to install approximately 12 kilometres of subsea pipelines to supply water to the tunnel portal areas. These pipelines will link Åheim with the Kjøde portal and Moldestad in Moldefjorden with the southern portal at Eidsstranda. Beyond serving the construction, these lines offer the municipalities of Stad and Vanylven the option to connect areas currently without municipal water supply. Project manager Jarle Strand noted that the NCA plans to extend the pipeline through the completed tunnel to create a backup system, allowing the two municipalities’ water supplies to serve as redundancy for one another.
The project’s progression has not been without financial scrutiny. In October of the previous year, the Norwegian Government proposed halting further work, citing significant cost increases that it argued “could no longer be justified.” However, the government reversed this stance, allocating NOK 150 million ($16 million) in its revised national budget to launch the construction phase. This initial funding enabled the NCA to sign contracts and proceed under an overall cost framework of NOK 8.588 billion, which was approved by the Norwegian Parliament on June 19.
As the collaboration phase begins in August, AF Gruppen and the NCA will focus on detailed design, construction planning, and resolving technical challenges. Preparatory works in late 2026 will include establishing site offices, upgrading roads, and constructing temporary access routes. For the maritime industry, the tunnel represents a structural shift in how coastal navigation is approached in high-risk zones, potentially serving as a model for future infrastructure that prioritizes safety over traditional open-sea routing.
