Press Releases 2005

August 26, 2005
Bilfinger Berger and Hochtief carry out Public Private Partnership: Herren Tunnel in Lübeck begins operations

With the opening of the Herren Tunnel on August 26, 2005, kilometer-long traffic jams between the city center in Lübeck and the Baltic Sea Port of Travemünde are now a thing of the past. The privately-financed tunnel under the Trave River allows for road and ship traffic without any intersections. The 2,125 meters of tunnel, which includes two 780-meter-long tunnel tubes, replaces a bascule bridge over the river that had caused significant traffic congestion in the past.

The new Herren Tunnel was designed, financed and built in 46 months by a joint project company from Bilfinger Berger and Hochtief. The consortium now has the responsibility for the operation of the toll tunnel for a period of 30 years. The total investment is €176 million, of which the German State contributes €90 million. This is the same amount the State would have had to invest for the construction and maintenance of a new bridge. The difference to the tunnel solution is financed by investors and will be paid back through a usage fee for the tunnel. The toll, when charged electronically, is 75 cents each time a vehicle passes through.

The Herren Tunnel is one of the first traffic projects in Germany carried out through a Public Private Partnership (PPP). "This example clearly shows how traffic bottle-necks can be removed through the use of privately-financed concession models", stressed Herbert Bodner, Chief Executive Officer of Bilfinger Berger. "Unfortunately, the opportunities offered by user-financed investments are not being used to full advantage for the German highway system, although traffic conditions are becoming less and less tolerable."

The need for infrastructure investment is enormous. Public Private Partnerships can not only accelerate solutions, but independent studies show that costs can often be decreased significantly over the life-time of the project.