Author: Jens B. Knudsen

The Kiel Canal is the world’s busiest artificial sea waterway. Each year, around 30,000 vessels traverse its 98 kilometres which link the North Sea at Brunsbüttel to the Baltic Sea at Kiel – a significant number of which are cargo vessels that would otherwise have to navigate the far more hazardous and much lengthier Skagerrak route. For Germany and northern Europe alike, the Kiel Canal is not just a vital logistical artery, but the backbone of German sea trade with the Baltic region.

Back in 2021, the Kiel Institute for the World Economy (IfW Kiel) quantified the canal’s economic value: a fully operational Kiel Canal contributes roughly €570 million a year to the German economy, thanks to rapid transit times, low shipping costs, and thus efficient cargo flows. A functional canal, therefore, is a pivotal piece of national infrastructure, with far-reaching implications for industry, commerce, and employment.

Hamburg, Germany’s largest seaport, stands to benefit most. With 114,000 jobs on the ground, the port depends on an efficient and operational canal to maintain reliable, economically viable connections to the Baltic. Any delays or disruptions to the canal’s operation or expansion ripple immediately through the ports of northern Germany, threatening economic output.

"The Kiel Canal is
the world's busiest
artificial
waterway.“

Jens B. Knudsen
Chairman of the Kiel Canal Initiative

Yet this vital backbone is showing serious signs of wear and tear: ageing locks, deferred renovation projects, and delays in construction are creating bottlenecks. Progress on the full upgrading and expansion of the eastern section remains frustratingly slow. The result: longer transit times, unpredictable scheduling, and higher costs for shipowners and logistics operators.

Since mid-2023, a slow-speed regulation has also been in place due to unavoidable maintenance measures. This has led to significant cost increases, in particular for customers using pilots and canal transit services. To safeguard the Kiel Canal’s competitiveness in the medium and long term, it is vital that smaller vessels be allowed to resume travelling at higher speeds once construction work is complete. Only then can the canal regain its appeal and cut costs perceptibly for its users.

A landmark moment is expected in October 2025: the maritime sector eagerly awaits the opening of the first construction phase for the expansion of the eastern section. However, there is great concern that the start of the second construction phase will be delayed indefinitely by politicians. Signs are mounting that financing issues will remain unresolved or deliberately deferred. In times of tight budgets, this critical measure risks being sidelined due to misguided priorities – risking this vital capacity expansion being left stuck in limbo. For the Kiel Canal’s competitiveness, such a scenario would send a disastrous signal.

Meanwhile, the federal budget for 2025 reveals a glaring contradiction: the transport sector is slated to receive around €12 billion from the special fund, yet maritime infrastructure is effectively excluded. Neither the second phase of the eastern section expansion, the vital deepening of the canal, nor the upgrading of seaward access and hinterland connections for ports appears on the list of priorities. Policymakers are sidelining the entire maritime sector, even though it undoubtedly plays a vital, system-critical role in commerce, the security of supply, and industrial output. Billions flow into roads and rail, while the waterways risk becoming the structural losers when it comes to investments – with catastrophic consequences for Germany’s export economy.

The federal government’s personnel policy is to be equally criticised. The latest reports indicate that the Federal Waterways and Shipping Administration (WSV) will continue to see annual staff reductions. Particularly in operational areas – especially Waterways and Shipping Offices (WSA) – further cuts would be disastrous. Even today, there is a shortage of qualified nautical personnel, such as lockmasters.

As a result, the small locks at Brunsbüttel can no longer be staffed continuously. How cutting personnel here is meant to improve efficiency remains questionable. Rather, the real concern is that an increasingly thin staffing level – particularly in the Waterways and Shipping Offices – will further undermine the canal’s vital capabilities, directly affecting reliability and operational safety.

Only through consistent and targeted investment in the canal’s infrastructure – including the urgently needed deepening by an extra metre and the second phase of the eastern section expansion – can the Kiel Canal remain efficient and fit for future use. Customers need smooth, predictable transit in terms of both time and cost. Yet this predictability is under threat, with longer transit times, rising fees, and a noticeable drop in service quality. If canal transits continue to be plagued by delays and steep extra costs, shippers may permanently seek alternative routes, threatening Germany’s position as a trade hub. Targeted investments in capacity and reliability are essential to maintaining the Kiel Canal’s advantage over the Skagerrak alternative.

A modern, efficiently run, and high-performance Kiel Canal is not a luxury – it is a necessity. It safeguards supply, exports, tens of thousands of jobs, and the expansion of climate-friendly European freight transport. Any savings at the canal’s expense jeopardise one of Germany’s most critical economic engines.

The Initiative Kiel Canal

Formed in 2012, the Initiative Kiel Canal is a network of businesses, associations, industry groups, local authorities, and concerned citizens that advocate for the upkeep, operational efficiency, and continued advancement of the Kiel Canal with decision-makers, the authorities, and the public alike. The initiative aims to secure a resilient and reliable transit route, including lock overhauls, expansion of the eastern section, canal deepening, and curve optimisation, alongside commitments to adequate staffing and sustainable financing. Jens B. Knudsen heads Initiative Kiel Canal e.V.