Rail Baltic Estonia OÜ has on selected GRK Eesti AS, GRK Finland Ltd, AS Merko Ehitus Eesti, NGE Contracting, TSO AS, Sweco Finland Oy and Sweco Sverige AB to design and construct the Rail Baltica main railway in Estonia. The project is being carried out using the alliance model. The initial value of the project for GRK is estimated to be around 158–216 million euros. The final value of the contract will be clarified later based on the development phase.
Rail Baltica is a joint transport project of the Baltic countries, which involves the construction of a new greenfield railway connection from Tallinn through the Baltic countries to Poland. A total of 213 kilometers of completely new European gauge 1435mm main track will be built in Estonia, which is expected to be completed by 2030.
In the tender competition, the design and construction of Estonia’s main track were divided into two geographical segments. The winner of the tender competition, an alliance group formed by GRK, NGE, TSO Merko, Sweco, has been assigned to implement the larger northern main track section between Tallinn Ülemiste and Pärnu. Rail Baltic Estonia OÜ announced the decision on March 12, 2025. The appeal period for the procurement decision is ongoing.
The value of the project concerning the main track between Tallinn Ülemiste and Pärnu is approximately on EUR 394–540 million. In the alliance, GRK acts as a constructor. GRK’s share of the project is 40 percent, so its value for GRK is estimated to be around EUR 158–216 million. The final value depends on the costs determined by the development phase and the scope of the contract.
Construction is expected to begin in 2026
The alliance project consists of two phases: the development phase and the implementation phase. According to the preliminary project schedule, the development phase will last until 2026, and the implementation phase will take place from 2026 to 2030. As is typical of alliance contracts, a separate decision and contract for the implementation phase will be made after the development phase. The Rail Baltica main track project will be added to GRK’s order backlog only when the contract for the implementation phase is signed.
“This is yet another great example of how GRK has succeeded in alliance project tenders, where the decision is influenced not only by price but also by qualitative criteria such as plans and project expertise. Recent successes include the Turku Tram and the eastern section of the Vantaa light rail alliance projects. These significant projects are still in the development phase. Therefore, they are not yet visible in our order backlog, which was EUR 845.6 million at the end of 2024”, says CEO Juha Toimela.
GRK, together with its alliance partners, will construct the superstructure of the track, including the subgrade and the actual track. The project also includes the substructure of the railway on the Tootsi-Pärnu section, which involves the construction of noise barriers, railway bridges, green bridges, tunnels, and access and maintenance roads near the railway
“We are selected to build a historically significant project on a European scale: a completely new main track that connects the Baltics to Europe. We have numerous railway projects underway in Estonia, thanks to which we have managed to increase our revenue and profitability in 2024. We are currently working on several Rail Baltica-related projects. Additionally, we are electrifying Estonia’s existing tracks,” says Tiit Roben, CEO of GRK Eesti AS, the Estonian subsidiary.
“Now, together with our alliance partners, we can begin the development phase, during which we will refine the project’s content and risks. At this stage, the target cost for the project will be specified, to which all parties will commit. In the implementation phase, cost risks and opportunities will be shared between the client and service providers on the principle of ‘everyone wins or everyone loses,’ with the builder’s maximum risk limited to the amount of the fee,” Roben explains the phases of the alliance contract.