The Ministry of Transport (MoT) has prepared and submitted for approval an information report "On the Development of the Latvian Railway Network in the 2021-2027 EU Multiannual Budget Period". The document sets out proposals for the further integrated development of the existing rail network and the Rail Baltica project, ensuring the establishment of competitive passenger rail transport in Latvia. The financing of the measures will be ensured through the revision and streamlining of the €534.12 million EU Cohesion Policy Programme 2021-2027 and the Recovery and Resilience Facility (RRF) for the railway sector, which are under the responsibility of the MoT.
The Government meeting on 11 June adopted a conceptual framework for the integration of the infrastructure management of the Rail Baltica project into the overall Latvian railway system. This reverses the previous approach of separating the development, including management of the existing 1520 mm rail network and the Rail Baltica 1435 mm rail network.
The rail transport market in Latvia has undergone structural changes in recent years, with passenger transport increasingly dominating rail network usage. Considering the expected growth of the passenger transport market, the railway network will continue to be primarily used for passenger transport in the future. However, it will also play a significant role in military, domestic, and transit freight transport. With the implementation of the Rail Baltica project, which is creating new railway infrastructure with the European gauge of 1435 mm, and the preliminary assessment indicating that replacing the entire existing 1520 mm rail network with 1435 mm is neither economically viable nor feasible, at least in the coming decades, Latvia's railway network will consist of both 1435 mm and 1520 mm lines. This will further strengthen the railway as the backbone of Latvia's transportation system.
In collaboration with Latvijas dzelzceļš (Latvian Railways, LDz) and the Rail Baltica project implementing organizations—RB Rail AS and SIA Eiropas Dzelzceļa līnijas—the Ministry of Transport has prepared development proposals for Latvia’s unified railway network for the 2021–2027 European Union multiannual budget period.
The proposed solution includes establishing a 1520 mm rail connection from Riga Central Passenger Station (RCS) to Riga International Airport (RIX) and completing construction at both Rail Baltica international passenger stations to enable the earliest possible use of these stations for 1520 mm passenger trains, ahead of the completion of the first phase of the Rail Baltica project. Simultaneously, improvements to the 1520 mm railway infrastructure are planned, including the modernization of passenger stops along the RCS–Daugavkrasti (Salaspils) line, as well as upgrades to passenger service infrastructure at other Latvijas dzelzceļš (LDz) stations and platforms.
According to industry experts, timely development of both gauge lines (1435 mm and 1520 mm) as an integrated and unified system will ensure an optimally cost-effective yet user-friendly connection between the initial Rail Baltica infrastructure and key railway hubs in Riga. In parallel, available funding will continue to support investments in the modernization of the existing 1520 mm infrastructure for passenger needs, electrification, and IT system upgrades.
To implement the development of railway infrastructure, the MoT has prepared proposals for reviewing and optimizing investment under the EU Cohesion Policy Program for 2021–2027, as well as proposals for revising investments in the Recovery and Resilience Facility (RRF) plan to minimize the risk of unused funds and to promote the development of critical investment projects in the sector.
In reallocating RRF funding, the MoT proposes directing €114.63 million toward activities related to the Rail Baltica project in the southern part of Riga Central Station (RCS), enabling the station’s use for passenger transport without waiting for the full completion of the Rail Baltica project. This funding is intended to support the establishment of railway infrastructure, including tracks, signaling systems, the contact network, and access to platforms. This amount includes €74.4 million initially planned for an emission-free railway infrastructure development project and €40.23 million originally allocated for the Metrobus project, both of which cannot be implemented under RRF funding conditions.
In reallocating EU Cohesion Fund resources, the Ministry’s proposal allocates €419.49 million for the construction of the Rail Baltica section in Riga and for projects to modernize railway passenger infrastructure. The proposed changes also include discontinuing several previously planned railway development projects, including the acquisition of emission-free (battery) trains.
In reallocating EU fund financing, the MoT’s proposal envisions directing €419.49 million toward the construction of the Rail Baltica section in Riga and railway passenger infrastructure modernization projects. The proposed amendments also include canceling the implementation of several previously planned railway development projects, including the acquisition of emission-free (battery-powered) trains.
The document explains the decision to abandon the acquisition of emission-free (BEMU) trains, made due to the infeasibility of adapting railway infrastructure for BEMU operation within the scope of the RFR program. There is insufficient production capacity to manufacture essential components, such as power supply substations, within the specified timeframe. The BEMU procurement process identified only one bidder, making it impossible to compare the offered price with other market players and ensure prudent use of available funds. Upon reassessing the BEMU program, the Ministry of Transport concluded that, without significant additional investment in electrification infrastructure, the proposed solutions are suboptimal for organizing long-distance routes (to Daugavpils, Rēzekne, Zilupe, and Liepāja).
At the same time, to determine the best approach for ensuring passenger transport on regional rail routes, particularly in connection with the domestic rail market’s opening to competition, the Ministry will evaluate scenarios for market liberalization and models for securing railway rolling stock.
