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Germany invests billions to expand the Kiel Canal for larger ships

A lifeline for German trade gets a €2 billion facelift. Discover how the Kiel Canal’s expansion will reshape shipping—and why it’s more urgent than ever.

In this image there are few ships in the water, few houses, trees, poles, cables and the sky.
In this image there are few ships in the water, few houses, trees, poles, cables and the sky.

Expansion of the East Branch of the Kiel Canal - Germany invests billions to expand the Kiel Canal for larger ships

The Kiel Canal, a vital waterway for German shipping, has seen significant investment. The federal government spends over €200 million annually on maintenance and expansion, with recent openings and upgrades totaling over €2 billion.

On 15 December, the first section of the eastern route between Großkönigsförde and Schinkel was inaugurated by Federal Transport Minister Patrick Schnieder, Schleswig-Holstein’s Minister-President Daniel Günther, and Anke Leue, President of the General Directorate for Waterways and Shipping. This initial phase involved widening the canal bed to 70 meters and optimizing a bend near Groß Nordsee, at a cost of €220 million. The average gross tonnage of ships using the canal has risen from 5,476 to 5,688, highlighting the need for expansion.

Further investment is planned. The German federal government intends to spend 500 million euros on expanding the Kiel Canal section between Kiel and Holtenau, including new small locks starting in 2023. Additionally, around 1.262 billion euros have been allocated for the construction of the new fifth lock chamber in Brunsbüttel, following cost increases from the originally planned 1.2 billion euros. These projects aim to accommodate larger vessels and ease congestion along the heavily trafficked waterway.

The Kiel Canal's expansion is crucial for Germany's shipping industry. With over €2 billion already spent and more to follow, these investments ensure the canal remains a vital shortcut for vessels, bypassing Denmark’s Skagen and facilitating trade. Despite a slight decrease in cargo volume in 2024, the canal's importance is undiminished, and progress continues on widening bottlenecks to maintain its efficiency.

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