The Road and Coastal Administration ( ) is a state run institution in
Iceland
Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...
whose purpose is to construct and maintain roads and infrastructure (land and sea) in rural areas and between urban areas. Formerly belonging to the
Ministry of the Interior
An interior ministry or ministry of the interior (also called ministry of home affairs or ministry of internal affairs) is a government department that is responsible for domestic policy, public security and law enforcement.
In some states, the ...
, it is now part of the Ministry of Infrastructure (until November 2021 named ''
Ministry of Transport and Local Government''). Vegagerðin is the legal owner of the roads and has the authority to execute construction of infrastructures on demand from the ministry.
History
Until the 20th century
Until the 18th century there were no official roads in Iceland, only paths and barely visible tracks which people followed with the help of
cairn
A cairn is a human-made pile (or stack) of stones raised for a purpose, usually as a marker or as a burial mound. The word ''cairn'' comes from the (plural ).
Cairns have been and are used for a broad variety of purposes. In prehistory, t ...
s for a few kilometers in either direction. In the 19th century, when
fishing village
A fishing village is a village, usually located near a fishing ground, with an economy based on catching fish and harvesting seafood. The continents and islands around the world have coastlines totalling around 356,000 kilometres (221,000 ...
s began to spring up on shores and sandbanks,
infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and pri ...
between farms and villages began to improve. As fishermen's camps became villages, with homes and
workshop
Beginning with the Industrial Revolution era, a workshop may be a room, rooms or building which provides both the area and tools (or machinery) that may be required for the manufacture or repair of manufactured goods. Workshops were the only ...
s, they also became important
trading post
A trading post, trading station, or trading house, also known as a factory in European and colonial contexts, is an establishment or settlement where goods and services could be traded.
Typically a trading post allows people from one geogr ...
s for the farms around them. Farmers traveled to the villages with their raw materials and traded these for imported goods, mostly
Danes
Danes (, ), or Danish people, are an ethnic group and nationality native to Denmark and a modern nation identified with the country of Denmark. This connection may be ancestral, legal, historical, or cultural.
History
Early history
Denmark ...
. This was, of course, not a new thing in Iceland. These places had long been sites for Danish
tradesmen
A tradesperson or tradesman/tradeswoman is a skilled worker that specialises in a particular trade. Tradespeople (tradesmen/women) usually gain their skills through work experience, on-the-job training, an apprenticeship program or formal educat ...
but as these trading posts became villages, communication and infrastructure were bound to improve due to increased traffic. In the 19th century, horse carriages became more common among farmers and by the beginning of the 20th century carriage trail tracks had formed from every village in the countryside.
Early 20th century – 1960
In the early 20th century a few automobiles had come to Iceland and streets had been formed in the largest towns. But roads were needed to connect settlements, and the government called for the old horse tracks to be upgraded to
gravel road
A gravel road is a type of unpaved road surfaced with gravel that has been brought to the site from a quarry or stream bed. Gravel roads are common in less-developed nations, and also in the rural areas of developed nations such as Canada and ...
s. In 1918 the
Icelandic government established the offices of ''Vegamálastjóri'' (Director of Roads) and ''Vitamálastjóri'' (Director of Lighthouses). The latter was an officer overseeing
lighthouse
A lighthouse is a tower, building, or other type of physical structure designed to emit light from a system of lamps and lens (optics), lenses and to serve as a beacon for navigational aid for maritime pilots at sea or on inland waterways.
Ligh ...
s and sea transportation and the office of ''Vegamálastjóri'' was the predecessor of the ''Vegagerð Ríkisins'' institution which was formed a few years later and is now called ''Vegagerðin''. The history of
road construction
A road is a thoroughfare used primarily for movement of traffic. Roads differ from streets, whose primary use is local access. They also differ from stroads, which combine the features of streets and roads. Most modern roads are paved.
The ...
in Iceland can be divided into two eras: pre-1960 and post-1960. Before 1960 the main concern of the government was to provide road access to all populated areas and to all farms. This was a great task and there was a modest
budget
A budget is a calculation plan, usually but not always financial plan, financial, for a defined accounting period, period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including tim ...
. The roads were built by a large human workforce and they were narrow and uneven. The terrain was challenging for the roadbuilders as it is often rough, and most places in the Eastern and
Westfjords
The Westfjords or West Fjords (, ) is a large peninsula in northwestern Iceland and an administrative region, the least populous in the country. It lies on the Denmark Strait, facing the east coast of Greenland. It is connected to the rest of I ...
are surrounded by dominating cliff mountains and headlands.
1960–present
Iceland became very wealthy after World War II via the
Marshall Plan
The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative enacted in 1948 to provide foreign aid to Western Europe. The United States transferred $13.3 billion (equivalent to $ in ) in economic recovery pr ...
, and in the 1950s and 1960s enormous progress was made in Icelandic infrastructure. In 1960 it was announced that the task of giving all populated areas road access was completed; the next step was to improve these wretched roads, to build bridges and tunnel and to improve road surfaces using
asphalt
Asphalt most often refers to:
* Bitumen, also known as "liquid asphalt cement" or simply "asphalt", a viscous form of petroleum mainly used as a binder in asphalt concrete
* Asphalt concrete, a mixture of bitumen with coarse and fine aggregates, u ...
. At the time, Vegagerðin was a very large organization in proportion to Iceland's population, with many workers and much equipment. In the 1980s and 1990s, when the huge wave of
privatisation
Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...
in Iceland and Western Europe,
independent contractor
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any oth ...
s became more common in road construction, both in urban and rural areas. Vegagerðin reduced its direct labour workforce and began to rely more and more on private contractors for building roads and other infrastructure.
Today Vegagerðin has no road building workforce or equipment: the work has been completely privatized. Thus Vegagerðin is the intermediary between the contractors and the government. Although the word ''vegagerðin'' means "the road-makers", it is now an administrative organisation which employs mainly office staff, doing measuring,
planning
Planning is the process of thinking regarding the activities required to achieve a desired goal. Planning is based on foresight, the fundamental capacity for mental time travel. Some researchers regard the evolution of forethought - the cap ...
and
tendering
An invitation to tender (ITT, also known as a call for bids or a request for tenders) is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activ ...
.
Until 2021, the headquarters of Vegagerðin were in
Reykjavík
Reykjavík is the Capital city, capital and largest city in Iceland. It is located in southwestern Iceland on the southern shore of Faxaflói, the Faxaflói Bay. With a latitude of 64°08′ N, the city is List of northernmost items, the worl ...
with other sites in
Kópavogur
Kópavogur () is a town in Iceland that is the country's second-largest municipality by population.
It lies immediately south of Reykjavík and is part of the Capital Region (Iceland), Capital Region. The name literally means ''seal pup inlet''. ...
and in
Hafnarfjörður
Hafnarfjörður, officially Hafnarfjarðarkaupstaður, is a port town and municipality in Iceland, located about south of Reykjavík. The municipality consists of two non-contiguous areas in the Capital Region (Iceland), Capital Region, on the s ...
. In August 2021, all administrative activities were relocated to the new headquarters in
Garðabær
Garðabær () is a town and municipality in the Capital Region of Iceland.
History
Garðabær is a growing town in the Capital Region. It is the fifth largest municipality in Iceland with a population of 20,116 (1 January 2025).
The site of Gar ...
.
Road administration areas

Vegagerðin has its headquarters in
Garðabær
Garðabær () is a town and municipality in the Capital Region of Iceland.
History
Garðabær is a growing town in the Capital Region. It is the fifth largest municipality in Iceland with a population of 20,116 (1 January 2025).
The site of Gar ...
near the capital,
Reykjavík
Reykjavík is the Capital city, capital and largest city in Iceland. It is located in southwestern Iceland on the southern shore of Faxaflói, the Faxaflói Bay. With a latitude of 64°08′ N, the city is List of northernmost items, the worl ...
, but its activity in the countryside is controlled from outposts in various towns and the country is divided into four administrative divisions. Those are South, Southwest, Northwest and Northeast. Each of these is subdivided into two service areas, except for the Southwest area which covers only a small area. That is because it includes the capital, and has a much denser road network than the other regions. The service area is where the maintenance department of each service facility (which are in various towns and villages) can maintain the road, signs, tunnels etc.
External links
Official websiteOfficial website
References
{{authority control
Road authorities
Road transport in Iceland
Government agencies of Iceland
Transport organizations based in Iceland