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Home›Business development›BREAKING NEWS: AF Gruppen wins $565M contract to build Stad Ship Tunnel
Business development

June 29, 2026 · about 3 months ago

BREAKING NEWS: AF Gruppen wins $565M contract to build Stad Ship Tunnel

AF Gruppen has won a contract to build the Stad Ship Tunnel. The project is valued at approximately NOK 5.6 billion (over $565 million), excluding VAT, and is scheduled to be signed in August. According to Norwegian Coastal Administration, this is a design-build contract under which the contractor w

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BREAKING NEWS: AF Gruppen wins $565M contract to build Stad Ship Tunnel
photo courtesy of kystverket.no

AF Gruppen has won a contract to build the Stad Ship Tunnel. The project is valued at approximately NOK 5.6 billion (over $565 million), excluding VAT, and is scheduled to be signed in August.

According to Norwegian Coastal Administration, this is a design-build contract under which the contractor will be responsible for both the detailed design and construction of the Stad Ship Tunnel.

The scope of the contract includes the construction of a 1,700-meter ship tunnel through the Stad Peninsula, connecting Kjødepollen in Vanylvsfjorden with Moldefjorden near Selje. The tunnel will be 50 meters high and 36 meters wide.

Also, the project includes the construction of approach and guiding structures, development of commercial areas at both tunnel portals, transport of excavated rock to external disposal sites, rock support, fender systems and technical installations inside the tunnel, as well as dredging of the shipping channel in Saltasundet near Selje.

Construction is planned to begin in early 2027.

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