At least EUR 400 million, in the worst case up to EUR 4.3 billion: these are the losses expected by the economic analysts from KRAKA Advisory in relation to the Fehmarnbelt Fixed Link for the Kingdom of Denmark
Ferry operator Scandlines asked KRAKA Advisory to examine the financial stability of the plans for the fixed link between Denmark and Germany from the perspective of the state treasury.
The main reason for the losses is the far too optimistic traffic forecasts by the planning company Femern A / S, which have not been significantly updated since 2002. A realistic assumption would also extend the repayment period for the project to more than 50 years. KRAKA Advisory therefore calls for the current planning to be stopped in order to put the project on an economically more stable footing.
“What should be scary for Danish taxpayers is, for us, a question of corporate future planning,” says Søren Poulsgaard Jensen, CEO Scandlines.
“The perspective of a state, tax-financed competitor does not frighten us. But if this is deficient, national and international competition watchdogs have to look very carefully in order to guarantee fair competition – for us and for all other private companies in traffic between Germany and Scandinavia.”