Published on •Updated
After years of delays, construction on the 870-kilometre railway line through Lithuania, Latvia and Estonia is now gathering momentum. The Rail Baltica project is building one of the most modern high-speed lines in Europe. With the Russian war of aggression against Ukraine, using the new NATO-standard line for military purposes is becoming increasingly important.
Europe is growing together—and so is its cross-border transport infrastructure. Nine EU main transport corridors are to be completed by 2030 according to the European Commission’s plan. The Baltic states are important for connecting the North Sea to the Baltic Sea, but also for the north-south corridors to the Black Sea and the Mediterranean.
In Lithuania, Latvia and Estonia, tracks still have the old Russian broad gauge. The new line will have the European standard gauge. There are also geopolitical reasons for this change of gauge. In the event of a Russian attack, Rail Baltica should be able to transport troops and heavy military equipment from west to east. But the main goal of the new line is to improve the connection between the Baltic cities and the European single market: fast travel for tourists, business people and freight.
The problem? The costs have quadrupled, from six to an estimated 24 billion euros. According to the European Commission, it’s too expensive. Baltic auditors have also issued a warning. According to the joint three-country audit, there is a funding gap of eleven billion euros.
For the time being, there will therefore be a pared-down “economy route”, where instead of a double track throughout, it will mostly have a single track. Fewer noise barriers will be erected, the track bed will be built somewhat lower than originally planned, and branch lines will initially keep the existing broad gauge. This will save several billion euros.
The European Union is funding up to 85 percent of Rail Baltica from its Connecting Europe Facility funding pot. This is the EU’s budget line for promoting cross-border transport infrastructure. Lithuania, Latvia and Estonia are paying for the rest.
A fierce financial battle is raging behind the scenes. At the beginning of the year, ten EU heads of government sent a letter to the EU Commission requesting more money for cross-border transport networks—and fewer requirements. This was followed just a few weeks later by a second letter along the same lines, this time signed by the heads of government of the three Baltic states.
Rail Baltica was actually meant to be finished this year. But there is at least a five-year delay! Now there is talk of it being finished in 2030. What are the reasons for the slow pace and exploding costs? In background discussions, the problems of the past are clear:
- Conflicting national interests
- Chaotic financial planning by governments
- Mismanagement of some ministries
Things are now going better because the European Commission is putting pressure on the project. Where construction is underway, for example on Neris Bridge in Lithuania, work is progressing. In the Lithuanian capital Vilnius, I met Marius Narmontas, one of the top managers of the three-country joint venture Rail Baltica. How does he explain the several-year delays? “Planning and designing the route took longer than expected”, said Narmontas, “because we have never had such a large project before.” A lot depends on the European Commission and how they will negotiate the next financing period”, he continued.
In the Latvian capital Riga, Guntis Āboltiņš-Āboliņš, director of the construction company Bererix, warned of a potential security risk: “From a military point of view, tanks could be loaded onto the railway in Russia and be in Riga in a few hours! That’s why I think we should approach this strategically.” Āboltiņš-Āboliņš believes it would be wise to quickly convert the entire rail network from Russian broad gauge to European standard gauge.
Catherine Trautmann coordinates the North Sea-Baltic transport corridor for the EU. She emphasised that the main connection, “the backbone of Rail Baltica”, should be built as quickly as possible. Trautmann is optimistic: “Rail Baltica is a project that justifies European funding. We have a meeting with the European Investment Bank in autumn, because a loan could also be a solution.” Will the trains run in 2030, yes or no? Trautmann’s answer is clear: “Yes!”
Read the full article here