Creating permanent value from infrastructure investments

The Fehmarnbelt Fixed Link:

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Location of the Fehmarnbelt

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Femern A/S

A private organisation, 100 % owned by the Danish state

Until 2013 Femern A/S is responsible for Economy, planning and approval of the project

2014 – 2020 responsible for construction of the fixed link From 2020 responsible for operation and maintenance

Main office in Copenhagen, 70 employees (2011)

Experience from the Great Belt Bridge and Øresund Fixed Link

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User finansed

Estimated construction cost: 5,5 bn Euro (2008 prices)

Financed by loans on the international capital market, backed by a state guarantee. Low financing costs

Loans to be repaid by user fees from road and rail

Estimated pay-back period 36 years (coast-coast)

EU estimated contribution: 31 per cent (TEN-project)

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The technical solution:

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Fehmarnbelt Tunnel

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Fehmarnbelt Tunnel

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Year Ferry Vehicles in total

1999: 2.9 mil. vehicles

2001: 5.3 mil. vehicles

2009: 9.3 mil. vehicles

5.2 mil. travelers

14.0 mil. travelers

26.4 mil. travelers

Travelers in total

Why we are building the Fehmarnbelt Fixed LinkOur experience from the Øresund Fixed Link:

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Experience from the Great Belt: 30 % new traffic

Structural development behind the traffic numbers

The traffic is not a goal as such – the increased traffic rather indicates that the industries thrive on the new opportunities.

The traffic numbers show what happens, when you remove the barriers that restrain the business communities.

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Case

”The Great Belt Bridge has created an increased flexibility for the transport sector . . . The Danish

Supermarket Ltd will also in the future analyse the opportunities for optimising the logistics.”

- Poul Hørslev, logistics manager, The Danish Supermarket Ltd, a

major Danish corporation with several chains of stores

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Fortune favours the brave…

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Lessons learned from regional integration

The Great Belt Bridge: Almost no lasting development of business communities close to the construction sites

However, the bridge has created new growth in general

The Øresund Link: it took a while but 10 years later, there is a fully integrated metropolis region with a highly flexible workforce

= In order to create the local structural changes that will last, we need to support the business communities during all stages of the process

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Creating jobs during construction

Direct employment effect of 25.000 – 30.000 man years

This corresponds to 3.500 to 4,200 jobs per annum

Peak 2015-2019 up to 7.500 jobs per annum

Requested competences: everything from unskilled labour and craft to consulting and counselling

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… and after construction

The region is geared to new and permanent business clusters:

Industries present in all regions:Life science/healthFood industryInformation technology and mediaLogisticsGreen technologyTourism

Industries present in some regions:Financial servicesCultural sectorNanotechnologyMaritime industry

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What is the status of the project?

Currently: working hard on finalising our Environmental Impact Assessment report.

2012: Construction work put out to tender

2013: Construction Act draft is expected to be presented to the Danish parliament

2014: Construction begins

Construction period, incl. preparation of manufacturing plant in Rødbyhavn (approx. 6½ years)

The aim is for the fixed link across Fehmarnbelt to open to traffic in 2020

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http://blog.femern.com/

www.femern.com