Business Opportunities in Infrastructure Industry in Northern Norway by Export Finland.

1. Business Opportunities in Infrastructure
Industry in Northern Norway
Finpro Norway
Antti Mäkikyrö, Saara Annola

2. Introduction (1) - Business opportunities in
Northern Norway
• In recent years, the northern Norwegian economy has grown faster than the rest of the country - a
development that is expected to continue in the coming years. Norway's future welfare depends on growth
in the north.
– The government’s national budget includes investments of NOK 3,15 billion in the northern Norway for
2015. The focus areas will be: international cooperation, business, education, Infrastructure and the
environment, and security.
– Unemployment will remain low and the continued growth means that the region needs more expertise.
• It is estimated that there will be total investments of NOK 300 billion in Northern Norway during 2014-
2022. From these investments, there will be:
– Private investments: NOK 211 billion
– Public investments: NOK 89 billion
• At the moment, the situation in Northern Norway is:
– Ongoing investments: NOK 32 billion
– Financed investments: NOK 57 billion
– Planned investments: NOK 210 billion
(Source: The Norwegian Labour and Welfare Administration (NAV), www.kbnn.no, Government’s National budget 2015)
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3. Introduction (2) - Business opportunities in
Northern Norway
• In Northern Norway, the estimated investments of almost NOK 300 billion are divided by following sectors
(during 2014-2022):
– Housing Construction (NOK 100,715 billion)
– Offshore (NOK 65,418 billion)
– Infrastructure (NOK 38,953 billion)
– Energy (NOK 36,547 billion)
– Public Construction (NOK 21,328 billion)
– Food & Nourishment (NOK 13,613 billion)
– Health (NOK 13,461 billion)
– Manufacturing (NOK 5,147 billion)
– Maritime infrastructure (NOK 4,171 billion)
– Seafood industry (NOK 2,337 billion)
(Source: www.kbnn.no)
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4. Introduction (3) -
Business opportunities in Northern Norway
• Estimated investments during the years 2014-2022 in Northern Norway by areas:
– East-Finnmark: NOK 17,4 billion
– West-Finnmark: NOK 37,5 billion
– Tromsø, Mid-Troms, North-Troms: NOK 72,8 billion
– Hålogaland region: NOK 33,4 billion
– Bodø region: NOK 45,0 billion
– Helgeland: NOK 27,5 billion
– In addition, NOK 60,0 billion in offshore (continental shelf)
(Source: www.kbnn.no)
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5. Infrastructure Industry -
Market Demand (1)
• The Norwegian government will spend
NOK 508 billion (EUR 63.5 billion) on
transport over the next ten years – the
financial allocations have never been
higher.
• The focuse will be on following issues:
– road development
– reorganizing the railway sector
– adding and increasing competition
– considering new ways to plan and
fund
– building up an infrastructure fund
(NOK 100 billion)
– renewing the maritime transport and
civil aviation.
(Sources: Norwegian government: Nasjonal Transport Plan 2014-2023)
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311.6
9.23
167.8
19.4
In accordance with National
Transport plan 2014-2023. Total
spenditure of NOK 508 billion:
Roads
Reward scheme
Railways
Ports and harbours

6. Infrastructure Industry – Market Demand (3)
Allocation of government funds. Annual average. NOK million
(2013).
National Transport
Plan 2010–2013
Budget 2013 National Transport
Plan 2014–2033
Roads* 19 148
(EUR 2 394)
20 936
(EUR 2 617)
31 155
(EUR 3 894)
Railways 9 872
(EUR 1 234)
11 275
(EUR 1 409)
16 781
(EUR 2 098)
Ports/harbours
and navigation
1 108
(EUR 139)
1 251
(EUR 156)
1 940
(EUR 243)
Total 30 128
(EUR 3 766)
33 462
(EUR 4 183)
49 876
(EUR 6 235)
Reward scheme 673
(EUR 84)
923
(EUR 115)
Total government
funds
30 128
(EUR 3 766)
34 135
(EUR 4 267)
50 799
(EUR 6 350)
Other funding
(estimate)
7 056
(EUR 882)
9 525
(EUR 1 191)
9 800
(EUR 1 225)
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7. Infrastructure Industry -
Market Demand (2)
• The government aims to boost infrastructure significantly, and make infrastructure a competitive
advantage for Norway. In order to achieve this, the transport sector will be modernized.
– Norway has an ambitious goal of achieving zero greenhouse gas emissions from land transportation
by 2040. The transport sector is seen as having most potential in these reduction plans.
• According to The Confederation of Norwegian Enterprises (NHO), until the year 2040 there is a need for
investments of NOK 1100 billion in roads, rails and public transport. This would mean an average yearly
increase of 45 percent compared to current situation.
(Sources: Nasjonal Transport Plan 2014-2023, The Confederation of Norwegian Enterprises (NHO), Norwegian Ministry of Transport and
Communications)
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8. Infrastructure Industry -
Market Demand (4)
• In Northern Norway, the estimated investments in infrastructure are NOK 38,953 billion (during 2014-
2022). For example:
– Fauske/Sørfold: NOK 4,2 billion (road E6)
– Gimsøy: NOK 2 billion (Avinor: a new airport)
– Alta: NOK 1,3 billion (road E6)
– Tromsø: NOK 0,25 billion (Port of Tromsø)
– Narvik: NOK 1,2 billion (Kai: Northland Resources), NOK 2,5 billion (Hålogalandsbroen), NOK 0,6
billion (Fagernes terminal)
– Fauske-Nordkjosbotn: NOK 0,574 billion
– Helgeland: NOK 2 billion (Avinor: a new airport)
– Nordkjosbotn-Kirkenes: NOK 1 billion
– Indre Nordnes-Skardalen: NOK 0,5 billion
(Sources: Nasjonal transport plan 2014-2023, www.kbnn.no)
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9. Contact information
Finpro Norway, Finland Trade Center
Antti Mäkikyrö
Head of Trade Center
+358 29 4695 380
antti.makikyro@finpro.fi
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10. Thank You!
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