Transportation

The domestic transportation network consists of roads, air transportation and coastal shipping. Private motor vehicle ownership is widespread. In 2007, Iceland had 665 passenger cars per 1,000 inhabitants. The road system totals 13,000 km, 4,300 km of which are primary roads. Some 4,800 km of the road network are paved, and nearly 30 km of tunnels have been built, with a further 11 km scheduled for completion in 2009. Seven international airlines operate in Iceland, all privately owned. Two of them offer direct passenger services to and from Iceland. Both serve a number of cities in Europe, and one has several gateways in the US as well. The other airlines operate charter and air cargo services worldwide. Iceland has numerous harbours large enough to handle international ship traffic, which are without exception free of ice throughout the year. The two main shipping lines operate regular liner services to the major ports of Europe and the US. Both have been building transport networks on land and sea in Europe and North America by investing in foreign subsidiaries and other transport companies. A weekly ferry connection for passengers, cars and cargo operates between East Iceland and two Nordic countries.

Economy of Iceland,Central Bank of Iceland