Rail Baltica is one of the most significant investments in enhancing mobility and sustainable travel opportunities in the Baltic region. It fosters business, trade, tourism, and goods exchange, making it the largest railroad infrastructure project in the Baltic countries in the last century. Additionally, Rail Baltica plays a crucial role in improving military mobility, bolstering the region’s strategic transportation capabilities.
Rail Baltica’s economic impact is surpassing its financial performance during the project’s lifecycle
The project has evolved significantly since its 2017 cost-benefit analysis due to various factors. The first phase, aiming to establish an operational Rail Baltica line across the Baltic states connecting to Poland by 2030, is estimated to cost 15.3 billion EUR. According to Cost-Benefit Analysis (2024) Rail Baltica’s economic benefits, both direct and induced, are expected to surpass costs and amount in total to 48 billion EUR for the Baltic states.
Currently Available Project Funding
Up to date project has secured 2.7 billion EUR, with 85% from EU funds and up to 15% from state budgets. Separate infrastructure elements of Rail Baltica are also financed by CEF Military Mobility funding, managed independently by each state.
Financial contributions from CEF Transport (bn EUR), June 2024
| In Total | 2,686 |
| Estonia | 0,682 |
| Latvia | 0,961 |
| Lithuania | 1,042 |
National and EU Contribution
The implementation of the Rail Baltica project is financed by the national states — Estonia, Latvia and Lithuania — and co-funding from the European Union up to 85% of the total eligible costs, in particular in the framework of the Connecting Europe Facility (CEF) funding instrument.
Diversifying Financing Options
The project’s investment needs prompt a search for extra financing, previously reliant on EU funds and national budgets. RB Rail AS, together with the project parties, is exploring alternative funding strategies and sources. We plan to kick off market sounding soon to engage with potential investors.
Question of the section – what is CEF?
CEF is a key EU funding instrument to promote growth, jobs and competitiveness through targeted infrastructure investment at European level. It supports the development of high performing, sustainable and efficiently interconnected trans-European networks in the fields of transport, energy and digital services.