Rail Baltica delay could cool Estonia’s construction market

Delaying the completion of the Rail Baltica railway project by four years could cool Estonia’s construction market, ERR reported. Infrastructure Minister Kuldar Leis said plans for the entire route would be reviewed if the government decides to slow construction. Elron hopes the Tallinn to Parnu section would be prioritised.

Construction along the route is continuing on the assumption that trains will be running there by 2030. The prospect of a delay has disappointed TREV-2 chief executive Sven Pertens.

“From a builder’s perspective, it is of course very sad, because builders have created their resources on the assumption that the market will remain more or less stable. If there is no work, we simply cannot keep people on the payroll while waiting for work to perhaps become available years later,” Pertens said.

About 10 kilometres away, Verston has cut the railway route through more than 10 metres of limestone and is preparing to cross a swamp. Verston Group chief executive Veiko Veskimae said additional time could lead to more favourable solutions when building the railway across difficult terrain.

Rail Baltic Estonia estimates that extending the deadlines could cool the construction market and allow greater use of European Union funding. “A longer construction period would certainly ease the situation, making it possible to build the kilometres at a more reasonable price,” board member Lauri Ulm said.

The delay would also affect the purchase of trains. Elron is preparing a new procurement after its first tender failed. Chief executive Lauri Betlem said he hoped the new trains would begin operating at least within Estonia in 2030.

“I think we could stick to the announced deadline, primarily because the entire project becomes increasingly expensive with every year,” Betlem said.

Although the pace of construction in Latvia makes it unlikely that trains will travel beyond Ikla by 2030, the Tallinn to Parnu section could be completed by the end of the decade. “The Tallinn to Parnu section is the most mature for us. Construction is essentially under way along its entire length,” Ulm said.

Leis said the government was considering slowing construction across the entire route, including both the Tallinn to Parnu and Parnu to Ikla sections. He said this could generate significant savings by allowing Estonia to make greater use of European Union support intended for such investments.