Channel Tunnel - Regional Impact

Regional Impact

A 1996 report from the European Commission predicted that Kent and Nord-Pas de Calais had to face increased traffic volumes due to general growth of cross-Channel traffic and traffic attracted by the tunnel. In Kent, a high-speed rail line to London would transfer traffic from road to rail. Kent's regional development would benefit from the tunnel, but being so close to London restricts the benefits. Gains are in the traditional industries and are largely dependent on the development of Ashford International passenger station, without which Kent would be totally dependent on London's expansion. Nord-Pas-de-Calais enjoys a strong internal symbolic effect of the Tunnel which results in significant gains in manufacturing.

The removal of a bottleneck by means like the Channel Tunnel does not necessarily induce economic gains in all adjacent regions. The image of a region being connected to the European high-speed transport and active political response are more important for regional economic development. Some small-medium enterprises located in the immediate vicinity of the terminal have used the opportunity to re-brand the profile of their business with positive effect, such as The New Inn at Etchinghill which was able to commercially exploit its unique selling point as being 'the closest pub to the Channel Tunnel'. Tunnel-induced regional development is small compared to general economic growth. The South East of England is likely to benefit developmentally and socially from faster and cheaper transport to continental Europe, but the benefits are unlikely to be equally distributed throughout the region. The overall environmental impact is almost certainly negative.

Since the opening of the tunnel, small positive impacts on the wider economy have been felt, but it is difficult to identify major economic successes directly attributed to the tunnel. The Eurotunnel does operate profitably, offering an alternative transportation mode unaffected by poor weather. High costs of construction did delay profitability, however, and companies involved in the Channel Tunnel's construction and operation early in operation relied on government aid to deal with debts amounted. Eurotunnel has been described as being in a serious situation.