Annual Economic Benefit to Nation of NOK Equivalent to EUR 570 Million Each Year
Annual Economic, Indirect, and Climate Benefits of Kiel Canal Top €1 Billion for Germany and Europe
A recent study by the Kiel Institute for the World Economy reveals that the Kiel Canal, a critical transport artery, generates approximately €570 million in annual revenue for Germany and a staggering €1 billion for the entire continent. The waterway's benefits extend beyond direct revenues to include indirect effects on the economy and significant contributions to climate protection.
The study shows that the Kiel Canal, by providing a direct and short route between the North Sea and the Baltic Sea, contributes to trade efficiency and cost savings for shipping companies through reduced fuel, charter, and crew costs. Additionally, it strengthens Germany's role as a logistics hub, stimulating regional economic growth and inducing investment in the region.
The canal's efficiency also boosts international connectivity, underpinning Europe's supply chains and reinforcing Germany’s central position in the continent’s logistics network. Indirectly, the canal supports jobs, contributes to regional development, and enhances supply chain resilience.
In terms of climate protection, the Kiel Canal saves around 783,000 tonnes of CO2 equivalents annually by reducing emissions from marine transport compared to alternative, longer routes. The canal's modernization projects often incorporate sustainability features, promoting green innovation and supporting European and global climate targets.
IFW President Gabriel Felbermayr advocates for continuous modernization and expansion of the canal, as well as flexible toll adjustments to accommodate fluctuating fuel prices. These measures will help reduce diverted traffic via Skagen and secure the canal's competitiveness in the long run.
Regional governments may find the results of this study insightful as they strategize long-term development plans for infrastructure investments along the canal. The Kiel Canal will continue to play a vital role in shaping Europe's economy and logistics landscape, underlining the importance of ongoing investments and adaptive policies to maintain its competitiveness.
The detailed study is now available for download on the Kiel Institute for the World Economy's website.
Read the full KN article here
[Source: Kieler Nachrichten, 09.06.2021, Author: Ulrich Metschies]
- The Kiel Canal, a critical transport artery, not only generates substantial revenue for Europe but also contributes to climate protection by saving around 783,000 tonnes of CO2 equivalents annually.
- The study highlights the importance of ongoing investments and adaptive policies to maintain the canal's competitiveness, as it strengthens Germany's role as a logistics hub, boosts international connectivity, and supports European and global climate targets.
- In environmental science, the Kiel Canal's modernization projects, which incorporate sustainability features, can be seen as a significant contribution to the finance sector, supporting green innovation and contributing to Europe's energy transition goals.
