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The Øresund Bridge

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Matteo Rodolfo

on 5 November 2013

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Transcript of The Øresund Bridge

An investigation of the European connection between Scandinavia and the continent
Construction and Functioning
and Effects
The Øresund Bridge
Creation of a natural monopoly for commuting and goods transport
92.5% of crossings are by car
Monthly costs for everyday commuting is 36% of ferries
One-way trip is 2.66% less expensive
Improvement of competition in the transport sector (previously only ferries)
The bridge now owns 76% market share
Competition was actually endorsed as the bridge is price competitive only in specific fields
Choice for travellers has been widened and people are free to choose depending on how much they value their time
Hardly competitive for non-car transport or sporadic trips:
On foot price in 429% that of ferry
A weekend trip with return BY CAR is 21% more expensive than with ferry (this becomes 83% when the trip spans over only one day)
Increased efficiency in the transport of goods and people
Endorsed integration, both cultural and economic, of the Øresund region across national borders
First European connection to directly access Scandinavia from the continent, without ever leaving the EU
2009 - First year of profits (due to lower interest repayment and low inflation) = €9.784 million
Future profits will be used to provide funds for a second construction over the Øresund Strait as outlined in the original agreement
Øresund strait is one of the three Danish straits and one of the busiest waterways in the world, as it connects the Atlantic Ocean to the Baltic Sea. It separates the Swedish province of Scania from the Danish island of Zealand
Very complex environment
Salinity varies between 30 PSU (oceanic) and 3-7 (Baltic)
Streams vary in direction, though mostly northbound
Sea depth varies between 7 and 15 metres
52 known species in Baltic Sea, whilst more than 1500 in the North Sea - Øresund counts up to 600
Only became international waterway in 1857 - previously Sound dues would be the main source of income of the Danish crown and the region was thus subject to confrontations between Denmark and Sweden
Plans to link the Øresund region had been around for centuries but had previously been opposed
20th century plans opposed by:
- nationalists in both countries
- more recently the environmentalists are concerned what impacts construction will have on wildlife surrounding the Øresund region.
late 1980s and early 1990s:
clear need to develop and stimulate growth in Southern Scania and Copenhagen emerged

Malmö was experiencing high unemployment following the closure of several major industrial companies

In Denmark, a large part of the country’s economic development was centred in Jutland whereas building in Copenhagen was stagnating.
main reason for building the Øresund Bridge

create one region around Øresund and
create stronger commercial ties and promote commuting and cultural exchange between Copenhagen and Malmö

Until 2000, relations between the two cities had been at a low level although the distance between the two city centres is only 30 km.
Construction of the Øresund Bridge took place between 1995 and the beginning of 2000
Reasons of construction of the bridge
Governments of both Sweden and Denmark felt that by linking Malmo and Copenhagen they would be creating a region with increased cultural, educational and economic links.
in recent years the rate of unemployment has been higher in Malmo than in Copenhagan.
With the construction of this link it is now possible to work in one country and live in the other.
As housing is cheaper in Malmo than Copenhagen people are now able to purchase houses in a cheaper area and commute across the bridge to work.
With Europe becoming increasingly borderless the governments of Sweden and Denmark see the Oresund region as a model of integration and cross border cooperation for the rest of Europe
Consequences of the construction of the bridge
The opening of the Øresund Bridge has resulted in a very strong increase in traffic across the region.
In the 1990s, between 2 and 3 million cars crossed Øresund each year.
In 2007, 35.5 million travellers crossed Øresund by car, train or by ferry
High costs

By the end of 2007, Øresundsbro Konsortiet’s net liabilities totalled DKK 19.2 billion.

In order to generate the revenue to pay for itself the bridge has a toll and is expected to pay for itself within the next 20 to 30 years.
An obstacle to further integration is the fact that both countries are outside the eurozone and retain their own currencies.
Some shops in Sweden accept Danish currency, and vice versa, But not many
Øresundsbro Konsortiet is a Danish­Swedish company established on the basis of the agreement of March 23, 1991 between the governments of Denmark and Sweden
Øresundsbro Konsortiet is jointly owned by the Danish and Swedish states through two companies: the Danish A/S Øresund and the Swedish Svensk­ Danska Broförbindelsen SVEDAB AB.

The two companies are also responsible for the ownership and operation of the landworks on their respective sides of the Øresund Bridge.
Øresundsbro Konsortiet’s main objective is to provide fast, safe and reliable passage across Øresund at competitive prices.

Øresundsbro Konsortiet manages the rail infrastructure while the rail operators are responsible for traffic on the line.
Liza is a douche
In 2007, car traffic across the Øresund Bridge rose by 17 per cent to an average of 18,500 vehicles per day. In 2017, the figure is expected to be 39,000 vehicles a day.
environmental requirements were one of the pre­conditions for the establishment of the Øresund Bridge
Øresundsbro Konsortiet’s studies show that natural flora and fauna in the waters have been affected by the extensive dredging work during the construction phase
The Øresund Bridge is primarily a regional connection that links Copenhagen and Malmö and their hinterlands. 73 per cent of passenger traffic across the bridge begins or ends within the Øresund Region.
The Øresund Bridge is subject to the environmental legislation of two countries, and a decision was taken from the start to comply with the most stringent regulations
Rail traffic is experiencing a similar development as, in 2007, the number of rail travellers increased by 25 per cent and a total of 25 million people crossed the Øresund Bridge by train or car.
The Øresund Bridge has resulted in a strong reduction in the emission of greenhouse gases from traffic across Øresund as compared to the ferry services before the link was established
Commuter traffic accounts for the fastest growth:
17,600 people, including 2,500 students, commute across the bridge everyday
Danes have relocated to Sweden because of lower housing and living costs
Swedes who have joined the Danish labour market owing to a shortage of jobs, higher wages and the larger and more diverse labour market in Copenhagen.
886 - 954
The Øresund Region's History
Opened to traffic on the 1rst of July 2000
The Daneslaw
The Kalmar Union
1397 - 1523
Fixed link across Øresund comprises a four km immersed tunnel, an artificial island, Peberholm, which is four km long, and an eight km cable stayed bridge
The high bridge is a cable stayed bridge whose pylons are 204 m high

(A cable-stayed bridge has one or more towers or pylons, from which cables support the bridge deck.)
cable-stayed bridges carry a much more direct load path through the cables to the pylons, stiffening the bridge further.
This extra stiffness is especially useful as the bridge is carrying rail traffic
1658 - Treaty of Roskilde
All Danish lands to the East of the Øresund Strait became ownership of the Swedish Crown
Prefabrication was used for the construction of bridge
Advantages of using prefabrication
1320s - Family affairs create turmoil in the kingdom of Christopher II

Christopher II will die in 1332 as a "King without a country", as his brother will pawn Denmrk piece by piece
There are not always a large selection of Contractors with the resources and skills to carry out insitu construction on this scale.

By planning to have as much of the bridge fabricated on shore as possible there were suddenly many other concrete Contractors that were able to tender for parts of the bridge.

This in turn drives the price down and leads to a cheaper form of construction.
Opponents to the construction of this bridge were critical of the impact it may have on the surrounding wildlife.
By prefabricating bridge components the risk of polluting the water during construction was greatly reduced along with the amount of time spent at the bridge line.
King Magnus IV takes advantage of the situation and purchases Scania to become part of the Swedish dominion
The region is conquered back by the Danish crown in 1360 as part of an expansionist campaign
The Kalmar Union came to an end after a bloody civil war in the Norwegian provinces of Denmark
Once the bridge elements had been fabricated onshore they were transported to the bridge line using a heavy lifting vessel
The main span of the bridge was constructed in four sections, supported on temporary piers
Needed to provide a split-level for road and rail traffic.
If these could be placed on the same level an altogether different approach could have been adopted in both the design and construction ofthis bridge.
Prosperous harbour city in continuous expansion
Always the Capital of Denmark
Industrial pole during the Revolutions
Only two main wars since Kalmar Union (War of the Second Coalition and WWII)
One of the first private airports in 1925
EEC in 1973
1990s - Sovereign debt crisis of Nordic countries
1992 - C. Metro begun
1993 - Ørestadt, completely new quarter of the city opened
Overall irrelevant town until the modern harbour was built in the late 18th century
First city to industrialise in Scandinavia
1840 - Kockums shipyard built, will become one of the largest in the world
Shipbuilding ceased in 1986 as part of economic restructuring
Lost 27000 jobs in 1990s sovereign debt crisis
Joins EU in 1995
Currently third-largest city in Sweden
The Oresund Bridge, as with a lot of new bridges,was designed for a 100-year life span.
Commuting across the bridge
41 per cent of commuters travel by car across the bridge while the rest take the train
Despite falling house prices in Copenhagen, 4,500 Zealanders moved to Sweden in 2007.
In total, the region covers an area of 21,203 sq. km, equating to half of Denmark.
Covering an area of 11,369 sq. km, Scania accounts for the largest part of the Øresund Region, i.e. 54%
The Øresund Region has a combined populationof 3.6 million with its two largest cities, the Danish capital Copenhagen and Sweden’s third largest city Malmö, on each side of Øresund and linked by the Øresund Bridge. A total of 2.6 million inhabitants live in the urban areas around Copenhagen and Malmö.This makes Copenhagen – Malmö Scandinavia’slargest conurbation.
The opening of the Øresund Bridge cut travellingtime across Øresund from one hour to ten minutes.
In the Baltic Region, only Hamburg, Berlin,St Petersburg, Warsaw, Katowice, and Copenhagen/Malmö have more than 2.5 million inhabitants (Øresund Region = 3 583 842 people in 2012)
75 per cent of the population of Zealand have come across Swedes who work in Danish shops or in Danish companies. 70 per cent know someone who has moved to Sweden, 20 per cent have Swedish colleagues and one out of three knows a Swede who lives in Denmark.
68 per cent know a Dane who has moved to Scania while 40 per cent know a Swede who has moved to Denmark.
37 per cent of car commuters have benefited from further education while the corresponding figure for rail commuters is 42 per cent.
63 per cent of all car commuters have a Danish background. In the case of the rail commuters, the figure is 36 per cent.
70 per cent of car commuters are men while 55 per cent of rail commuters are men.
Labour Market
Housing Market and Residential Integration
The number of Swedes who got their first job in Denmark totalled 6,667 last year. This is an 85 per cent increase compared to 2006.
June 2007 = 800 Swedes were employed by Danish companies for summer jobs
SkatØresund is a joint tax office which enables workers to move across the borders of the two countries and become employed without having to go through bureaucratic efforts
Higher wages and salaries and better job opportuni­ ties in Copenhagen are among the key reasons why Swedes go job­hunting in Denmark.
On the downside, easy transport across the strait has highlighted clear fields that need further integration such as the two countries different social security and contribution systems
Further costs for commuters arise from the toll of the bridge, the roaming for telecommunication and the lack of integration of the banking systems
Language differences and similar social provision systems are further disincentive for people to commute
In 2007 the number of Danish arrivals set a new record – 4,500. This is 6 per cent above 2006.
Many Danes, however, also used falling house prices as an opportunity to return to Denmark. The number of persons who moved from Scania to Zealand in 2007 increased by 39 per cent on 2006.
The net influx from Zealand to Scania, however, remainsat a high level – 2,400.
A survey from 2005 showed that Danes moveto Scania to improve their financial situation and housing conditions.
Lower car prices and generally lower living costs provide a strong financial incentive for Danesto settle in Scania and commute to their jobsin Denmark.
A buyer is still able to save around DKK 900,000 (€120,600) by buying a 140 sq. m. house in Malmö rather than in Copenhagen.
By far the majority – 86 per cent – of the Zealanders who moved to Scania in 2007 formerly lived in Greater Copenhagen. Young people below the age of 35, in particular, decide to settle on the other side of Øresund.
The registration fee is 105 per cent of the valueup to DKK 74,000 and 180 per cent of the value over DKK 74,000. In addition, VAT of 25 per centis payable on the total the value of the car, including registration fee.

Sweden istead only charges 25% VAT on car acquisitions
Top ranking cars bought by Danes in Scania are Audi, Mercedes, Volkswagen and BMW. They spend lower amounts than the average Dane, however they tend to buy more expensive cars.
The main idea behind the project of the Øresund Bridge was connect two major nordic cities into a single greater core, through the establishment of fast transport networks between them.
Also relocate this core on the border between the two countries, to futher diminish real and formal barriers between Sweden and Denmark
Commuters' experience in the health services
If they live in a country and are employed in the other, Øresund commuters may choose between Swedish and Danish health services
Øresund Bridge Survey:
Most people continue to use health services at home despite working abroad
Many people who do the opposite (38% Swedish residents who use Danish services) have experienced problems (1/5 has either refused or was rejected treatment because they live abroad)
Second problem was that many commuters have been faced with demand for payment in an otherwise free Danish system
Both are examples of a bilateral ignorance around commuters' rights
Regional cross-border cooperation
Øresund Science Region
Triple-helix organisation founded on the cooperation between public, private and academic sectors
Includes Medicon Valley Academy, Ø. Food Network, Ø. IT Academy, Ø. Environment Ac. and Ø. Logistics
Øresund University = Partnership between 12 academic organisations in the region
Europe's leading trans-national university
150 000 students
14 000 researchers and teachers
International Investments
Denmark ranked first in the EIU's survey = World's best country for start-ups, investment and doing business
Economic stability
Labour market flexibility
Transport and communication infrastructure
Financing opportunities
Educated workforce (82% in tertiary education)
Corporate taxation (2nd lowest EU after UK)
Sweden was ranked 11th - Copenhagen has an advantage on Stockholm for FDI:
Strategic location between Germany, Nordic and Baltic countries (natural logistics hub)
Incorporates both Swedish and Danish markets within a 10 minutes distance (both Malmö and Copenhagen are the financial capitals of their countries)
Within the Øresund region, Copenhagen is the dominating core:
77 of 174 investment projects between 2004 and 2006
Copenhagen has 57% of FDI to Denmark, whereas Scania only has 11% of those to Sweden
Currently, German and Danish firms tend to outsource production and logistics to Scania (52% of activity together), whereas sales and head offices are converging into Copenhagen (53% together), the main investor being USA (30% in Copenhagen, 19% in Scania)
Copenhagen boasts a greater variety of sources of investment, and both Zealand and Scania are predominantly invested into by European businesses
Businesses' experience
The population's attitude
Expectations have been met (2006 survey):
75% of firms confirm positive feedback on getting involved on the other side of the strait
More than 80% when considering pharma- and biotech, media and communications, public and semi-public
Øresund connection has also improved business possibilities:
55% of companies which expanded across Øresund have reported positive impact on the bottom line
70% of Swedish companies and 60% of Danish that have established themselves on the other side of the Strait have seen an improvement to their chances of success as a result of their move across Øresund
15% of companies have established subsidiaries on the opposite side of the Strait
Locals have welcome the border region
Multiculturalism has spread (Limhamn-Bunkeflo in Malmö is 4% Danish)
Schools have introduced "Øresund Classes", where children of both nationalities are taught in both languages the history and the culture of both Denmark and Sweden
New district of Ørestad is the source of employment for many Swedes
In a 2007 survey, 54% of Swedes and 40% of Danes believed that the Øresund Region was already a reality
Also, 84% of all people surveyed have answered that it is "good" or "very good" for people to move across the Strait to have employment, study or cultural experiences
90% of the region's decision-makers believe that Øresund has the potential of becoming a "Northern European powerhouse", from a survey of 265 among CEOs, politicians, journalists, professors, civil servants and other interested parties
Emphasis was put on the improved and improving infrastructure and international specialisation as determining factors
Yet, decision-makers have pointed out that there are still many field where integration has to be carried out and believe that with joint efforts, it will all be achieved within the next decade
Outlined issues to be faced with when aiming at further integration between the two countries
Created new opportunities for all people, for students, to general employees, to large business, and improve their chances of realising their potential
Provides an example for the whole EU of how an action as "simple" as building a bridge across a strait can set off a very extensive range of positive externalities
The number of Swedes who found work in Denmark for the first time set a new record in 2007, i.e. 6,000.
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