Rail Baltica reaches development phase in Estonia

The construction procurement for the mainline of Rail Baltica’s Estonian section has reached a significant milestone. Image: Rail Baltica

The agreements mark the largest infrastructure investment in Estonian history, project officials said.

The first contract, valued at $446 million, was awarded to a consortium led by Finnish contractor GRK Suomi and includes infrastructure arm GRK Eesti, Estonia-based construction firm Merko Ehitus Eesti, France-based NGE Contracting, Sweco Finland, Sweco Sverige (Sweden), and French rail infrastructure specialist TSO.

Rail Baltica names winners of main line construction in Estonia Two international consortia have been named successful

This group will carry out superstructure works for the Ülemiste–Pärnu section and both substructure and superstructure works from Tootsi to Pärnu.

A second consortium, led by France-based Bouygues Travaux Publics, will design and build the Pärnu–Ikla section under a contract worth $376 million. Other members of the consortium include Polish constructors Budimex, France-based engineering consultants Ingerop Conseil et Ingenierie, Estonian firm KMG Infra, and professional services firm WSP Finland.

Details on works for Rail Baltica Estonia project

An underground animal culvert on the Rail Baltica railway between Šveicarija and Žeimiai in Lithuania has been completed. Image: Rail Baltica

Together, the work aims to link the Baltic capitals of Estonia, Latvia, and Lithuania with Warsaw, Poland, by 2030.

A development phase of approximately one year is now underway. During this time, the consortia will prepare detailed work plans, finalise technical designs, secure strategic materials, and coordinate logistics.

The estimated maximum value of the contracts – including rails, switches, ballast, and other materials – could reach beyond $1 billion.

“This is by far the greatest construction project in Estonia,” said Tiit Roben, CEO of GRK Eesti. “We look forward to starting the project together with the client in an alliance and successfully construct the railway that provides sustainable transportation within Estonia and from Estonia to Europe.”

Bertrand Burtschell, CEO of Bouygues Travaux Publics, called it a “landmark project for both today’s and tomorrow’s Europe,” adding that the Rail Baltica programme reflects the firm’s ambition to deliver infrastructure with long-term value.

The Estonian state will finance the contracts, with partial support from the EU’s greenhouse gas emissions allowance trading scheme.

Construction of the international passenger terminal in Ülemiste – a key northern terminus designed by UK-based Zaha Hadid Architects – was also recently awarded and is expected to be completed by October 2028.

Once active construction begins, Estonia will become the first of the three Baltic states to have its full mainline route under physical development.