Construction costs for the Rail Baltica railway are significantly lower in Estonia than in Latvia, with a kilometer of track costing roughly the same in Estonia as the substructure alone in Latvia.
Rail Baltica Costs Diverge Between Estonia and Latvia
Latvian Transport Minister Atis Švinka stated this week that the 45-kilometer stretch of railway from Misa to the Lithuanian border will exceed €520 million, equating to approximately €11.57 million per kilometer. This figure excludes expenses related to electrification, signaling, materials, and project supervision.
Rail Baltic Estonia (RBE) reports that the substructure alone costs around €7–8 million per kilometer. Including all necessary work, such as electrification and control systems – contracts for which are still pending – the total estimated cost in Estonia is €11–12 million per kilometer, according to RBE spokesperson Silvia Pärmann.
Construction is currently underway in every Estonian county along the planned route, with work progressing on earthworks, traffic junctions, overpasses, and bridges. The project aims to launch rail service between Tallinn and Warsaw by 2030.
Latvia, however, is experiencing budgetary challenges. A Transport Ministry report indicates the current budget only covers 52.7 kilometers of the main embankment, sufficient for the southern section from near Riga to the Lithuanian border.
Prime Minister Kristen Michal recently stated that Estonia is urging Riga to maintain the project’s schedule, emphasizing that completing the railway is essential. “This has to be done,” he said.
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