Intelligent Rail Summit ‘24: Rail Baltica secures €1.4bn in EU funds
With just five days to go until RailTech’s Intelligent Rail Summit ‘24 in Tallinn, a big cash injection into the Rail Baltica megaproject will add another twist to our conference. The joint venture company RB Rail AS, in charge of the ambitious Baltic rail programme, has secured 1.394 billion euros in funding from the EU, an investment that will “greatly accelerate” the high-speed programme. Co-financed by the three Baltic states, the two funding deals mark “one of the most substantial amounts” granted for any comparable EU infrastructure project, with the money to go towards advancing the Rail Baltica mainline. So how is the cash going to be broken down between the three countries?
Like with any major infrastructure project, the vision is there for Rail Baltica, but one of the main issues for the megaproject has been securing long-term financing. The multi-billion euro programme is set to see the Rail Baltica mainline run from the northern tip of the Baltics in Tallinn through to Latvia and its capital Riga, all the way down to Vilnius in Lithuania and on to the Polish border. But insecure funding has pushed back, and in some cases, significantly altered some of the original plans.
For example, last week, Latvia said it would likely have to scale back its initial plans for a double-track line from the Lithuanian border to Estonia, prioritising instead the use of a single track. When asked about faltering progress on construction, Latvian Transport Minister Kaspars Briškens said at the time: “We should probably ask our diplomatic service or the Ministry of Finance what our expectations are for these multiannual budget negotiations with the European Union.”
Ask and help will come…
It appears that ahead of those negotiations, the EU has come through for the project in a significant way. The new funding deal provides 1.394 billion euros, including about 1.163 billion euros from the EU’s Connecting Europe Facility (CEF) and 231 million euros in co-financing from the three Baltic states, marking what Rail Baltica called “the largest funding awarded in this financial period.”
Marko Kivila, interim CEO at RB Rail AS, said that EU support was crucial to “transforming Rail Baltica from an ambitious vision into a tangible reality,” but this particular round was special: “it’s an investment in a more connected, resilient, and unified Europe,” he said. “The project is now preparing to apply for the final funding call for proposals within the current financial period (2021-2027) and will work closely with national partners across the Baltic region to secure a strong position in the upcoming EU budget negotiations.”
Where is the Rail Baltica money going in Estonia?
At the northern tip of the planned cross-border rail project in Estonia, the funding is being allocated for mainline construction, mainly around the capital of Tallinn, where IRS ‘24 will be meeting next week. That includes substructure works on sections including Soodevahe to Kangru, Kangru to Saku, the Harjumaa area, and Hagudi to Alu. Additional work is planned for the Saku to Harju/Rapla border and Alu to Kärpla and Kärpla to Selja sections. Estonia has received financing for approximately 58 kilometres of the mainline, with around 352 million euros from the CEF and 88 million euros from national sources, totalling about 440 million euros.
On another note, Rail Baltic Estonia has launched a 57 million euro construction tender for the Ülemiste Linda International Passenger Terminal. Designed by the globally renowned architecture firm Zaha Hadid Architects, the terminal, Ral Baltica says, will be “one of the most modern and environmentally sustainable transport hubs in the region.” It will connect international rail traffic with local transport networks, including trams and buses, playing a key role in the megaproject to link Estonia and the Baltic states.
How about Latvia?
In Latvia, the main priority is the construction of the core route from Misa to the Latvian-Lithuanian border, with additional funding granted for a segment approximately 27 kilometres long. Funding has also been allocated for construction supervision, the establishment of a high-voltage connection point in Iecava in southern Latvia, and an infrastructure maintenance facility in Skulte, which will serve as a construction logistics base for the development of the core route towards Estonia.
Funds are also earmarked for property acquisition in the Skulte section and the relocation of the natural gas pipeline along the Vangaži-Misa section. Under the CEF funding agreement, Latvia was given approximately 337.6 million euros from the CEF and 59.5 million euros in national co-financing, amounting to 397 million euros.
And Lithuania?
In Lithuania, funding is directed at 36.7 kilometres of substructure works on the Ramygala to Berčiūnai and Berčiūnai to Joniškelis sections along the Lithuanian and Latvian border, including high-voltage connection points at Panevėžys, Išorai, and Liudvinavas Rail Baltica substations. The money will also go towards 69 kilometres of track laying in the Kaunas – Panevėžys – state border section. Lithuania has received about 450 million euros from the CEF and 79 million euros in national contributions, totalling roughly 529 million euros for these construction activities.
Additionally, the EU funding is being allocated for the design of Rail Baltica’s electrification subsystems and various Railway System Generic Designs. Current activities also partly include supervision services and assessments of construction works, focusing on areas such as Notified Body (NoBo) and Assessment Body (AsBo) reviews, system engineering, risk management, progress reporting, and project management. For the global project activities, a total of approximately 28.8 million euros has been allocated, including 24.5 million euros from CEF and 4.3 million euros in national contributions.
Rail Baltica at Intelligent Rail Summit ‘24
Altogether, it’s a massive investment and boon in the Baltic megaproject, but also a much needed one. Rail Baltica is going to be at the forefront of expanding European rail. That includes integrating technologies like AI, big data, and machine learning into its far-spanning systems, as well as streamlining them across the various nations’ borders. It’s a massive part of the construction process and will be central to operations once the trains hit the tracks.
🚆Join us in in Tallinn 🇪🇪 for #IntelligentRailSummit as we discuss the future of rail, including topics like predictive maintenance, AI integration, & cybersecurity.
❕ Use the code IRS24RB25 to receive a 25% discount on your registration. pic.twitter.com/B0yQIyTVaF
— RailBalticaOfficial (@RailBaltica) October 24, 2024
But still in their relative infancy, how exactly should these technological advancements be used to truly transform rail operations and efficiency, while simultaneously maintaining safety? And with all this increased processing power, how can we ensure such progress remains green and secure from cyber threats? Never mind how all these considerations should be applied when working with so many different national and international bodies.
From the real-life application of AI to the twists and turns of the continent’s most ambitious infrastructure project, top rail specialists all the way from Rail Baltica management team to Estonia’s Infrastructure Minister will be exploring these issues at RailTech’s Intelligent Rail Summit ‘24 in Tallinn between the 12 and 13 November 2024. Essentially, if you want to help shape the future of Europe’s rail industry, Tallinn is the place to be this November. Register now and find out more about the exciting programme here.
