Region Zealand to gain over DKK 1 bn. annually from the Fehmarn Belt Fixed Link

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In 2029, the Fehmarn Belt Fixed Link will be completed. The link consists of a newly constructed tunnel for road and rail traffic between Rødby (Denmark) and Fehmarn (Germany), and an upgraded railway connection between Rødby and Copenhagen. The link will cut the train travel time between Copenhagen and Hamburg down to 2.5 hours, from the current 4.5 hours. With the tunnel, a car ride over the Fehmarn Belt will take 10 minutes, compared to today’s 45 minutes with the ferry (excluding the waiting time for the ferry and queuing to get on and off the ferry).

In this report, HBS Economics analyses the expected socio-economic benefits for Region Zealand, arising from the reduced travel time for business travelers and commuters, with the Fehmarn Belt Fixed Link.

We find that the benefits to Region Zealand amount to around DKK 1 billion per year, from travel time reductions and broader macroeconomic impacts. In addition to these effects, increased tourism, gains to freight transport and an increased investment attractiveness will add further benefits to the Zealandic economy.

The travel time reductions will generate approximately DKK 700 million in annual savings for business travelers and commuters to Region Zealand’s municipalities. The largest gains will accrue to travelers to Køge, Slagelse and Næstved, that have the largest travel flows between Denmark and Germany.

The macroeconomic impacts – increased agglomeration where businesses and workers become more closely integrate and clustered, increased competitiveness for businesses from lower travel costs, and increased labour supply from the reduced travel times – will generate approximately DKK 300 million in increased gross value added per year in Region Zealand. This corresponds to a productivity increase of 0,3% for Region Zealand as a whole, and 0.45-0.65% in the southernmost municipalities (Lolland, Guldborgsund, Vordingborg and Næstved).

The Link will also open for increased opportunities for citizens in Region Zealand to access work opportunities, internship positions and educational institutions in Schleswig-Holstein. New and increased business opportunities will arise business on both sides of the Belt, especially within five central sectors:

  • Bioproduction
  • Circular economy
  • Food and beverages
  • Construction
  • Knowledge-intensive services

The study is commissioned by Region Zealand.

Learn more about the study

HBS Economics (2021): "Langsigtede potentialer for Region Sjælland af den færdige Femern Bælt-forbindelse"

 

 

Contact

ERIK DAHLBERG

ERIK DAHLBERG

SENIOR CONSULTANT, M.SC. (ECONOMICS)