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Cost Benefit Analysis of Brønnøysundet

Authors: Knut Sandberg Eriksen
Report nr: 1025/1996
Language: Norwegian
Attachments Hele notatet

The decision to deepen and improve the fairway through Brønnøysundet will lead to shorter transport time for the coastal shipping by shifting to a shorter route and reducing of waiting time by passing of other ships. The number of accidents is also expected to be reduced, thereby reducing accident costs and oil-spillings. This cost-benefit analysis is aiming to calculate this benefits compared to the investment costs. Depending on the assumptions as to reduction of accidents and shifting of fairway, the cost-benefit ratio varies from 1.24 to 1.96, showing that these improvements most likely are socially profitable.


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