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New Baltic railway will run on standard gauge

Wednesday, August 2, 2017

Subject

The Rail Baltica transport project.

Significance

Rail Baltica will connect Warsaw with Kaunas, Riga and Tallinn. The 870-kilometre high-speed project is to cost 5.8 billion euros (6.8 billion dollars), with co-funding of up to 85% from the EU’s Connecting Europe Facility (CEF), and become fully operational in 2025. It is part of the EU’s North Sea-Baltic core network corridor that intersects in Warsaw with the Baltic-Adriatic corridor.

Impacts

  • Industry’s tailored products, just-in-time supply chains and lower operating margins will require more efficient rail transport.
  • New trains will deliver cargo from Tallinn to Poland in two days instead of four.
  • Every euro invested from national budgets is estimated to yield a six-fold return, the total economic benefit being put at 16 billion euros.
  • Rail Baltica could compete with the existing rail freight route between Latvia and central Russia.
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