Ownership of a cultural landmark: The case of Gotha Canal

Gotha Canal is perhaps the most gigantic construction work ever undertaken in Sweden. It is a seaway through Sweden that connects the Baltic Sea with the Atlantic Ocean. It is nowadays considered to be one of the most famous cultural landmarks in Sweden from the time it opened for traffic the canal was in 1832 until 1978 the canal was privately owned. Since then, it has been owned by the state. Such a long time of private ownership of transportation link is remarkable. This paper analyses why the change from private to state ownership finally took place and also looks at the implication of this ownership change for profit maximising behaviour and maintenance of the canal. A discussion of how ownership of a cultural landmark like Gotha Canal can be structured is also provided.