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Rail Baltica draws additional EU investment

July 1, 2023
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The project will link Baltic states to Western Europe, opening access to foreign business opportunities, including for Wisconsin exporters.

Calling the project a “geopolitical necessity,” the European Union is nearly doubling its funding for Rail Baltica—a major transportation project that will connect the Baltic states into Western Europe’s rail system—to $1.2 billion.

Rail Baltica will build more than 500 miles of railroad track, with at least three multimodal terminals, seven passenger stations, and proposed air and sea links. The 10-year, $6 billion project will provide high-speed rail from Poland to Lithuania, Latvia, and Estonia, aligning the track with the gauge used in Western Europe rather than their current gauge that ties them into Russian infrastructure. A sea connection will bring Finland into the project.

Passenger trains will run at 155 miles an hour and freight trains at 75 miles an hour. The route is expected to transport up to 4.7 million passengers and 15 million tons of goods each year, according to a 2017 feasibility study.

In addition to about 13,000 jobs involved during construction, about 800 permanent positions will be created to manage operations and infrastructure.

The project is expected to provide an economic boost to the Baltic states with stronger ties to Western Europe, cooperation among the countries involved, and a decrease in greenhouse gas emissions.

Proponents say it will open the door to both domestic and foreign investment for projects such as developing commercial properties, creating new businesses, fostering technology transfer and innovation, and promoting tourism.

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