Construction, Estonia, EU – Baltic States, Financial Services, Transport
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Wednesday, 08.05.2024, 16:43
Tallinn-Helsinki tunnel to cost around EUR 16 bln
The tunnel project could be economically feasible by using a public-private
partnership (PPP) model where the private sector finances the building of the
tunnel and an EU grant would be needed to cover 40 percent of the costs. After
becoming operational, the ticket revenues from the trains and tunnel fees would
cover the annual operational and maintenance costs of the tunnel. In addition,
the train operation requires subsidies. The subsidy from Finland and Estonia
would be 280 million euros per year for 40 years, it can be seen from the results
of the study.
Results of the study show that the direct profit from the tunnel for the
region would be more than five billion euros. This mainly consists of the time
saved calculated into money. In addition, indirect effects would bring in seven
billion euros to the region. The projected cost of the project includes, for
instance, tunnel construction, two artificial islands, planning costs,
stations, terminals and depots, but excluding the costs for rolling stock.
According to the FinEst Link feasibility study, the railway tunnel would
help create a metropolitan twin city region of three million inhabitants in the
future where people, goods and services could move around easily. The expanding
labor market would create economic growth, open new possibilities for
businesses and improve the quality of life. The Helsinki-Tallinn tunnel with a
travel time of only 30 minutes would enable daily commuting across the Gulf of
Finland and connect the rail network from Central Europe via Finland to the
Arctic.
"From the viewpoint of deeper twin city integration and regional
development there could be major benefits from the tunnel. Geographically
Finland resembles an island and the tunnel would offer a connection to the
Central European rail network," FinEst Link project director Kari Ruohonen said.
FinEst Link is a research project funded by the European Union, which
focuses on studying the feasibility of an undersea railway tunnel between
Tallinn and Helsinki. The total budget of the project is 1.3 million euros
and it is co-financed from the Interreg Central Baltic program.
The project is led by the Helsinki-Uusimaa Regional Council in partnership
with the cities of Helsinki and Tallinn, the Harju County government, the
Finnish Transport Agency and the Estonian Ministry of Economic Affairs and
Communications.