After examining existing plans and new research, consultants from the giant Scandinavian engineering company NCC and the Norwegian engineering firm Multiconsult have concluded that a tunnel between mainland Iceland and the Westman Islands is a realistic option in both financial and geological terms for greatly improving transportation between the two areas. The consultants say there is no reason why a tunnel cannot be built for ISK 16 billion (USD 0.26 billion) or even less.
The project was carried out for a campaigning group for the tunnel, who say that a tunnel is by far the best option for transportation between the two places. The group says that tunnel construction would cost the same as 30 years of running the boat Herjólfur between Thórlakshöfn and the Westman Islands, but a tunnel is permanent whereas a ferry service is very expensive when considered over a long time period. The other option under consideration is the construction and operation of a new ferry terminal at Bakkafjörður, which would cost ISK 15 billion over a 30 year period, but the group says that not many Westman Island residents are in favor of that option.