Rail Baltica: Lithuania’s High-Speed Rail Expansion & Contracts

Rail Baltica Project Receives €235 Million Boost with New Construction Contracts

Lithuania’s ambitious Rail Baltica project, a pivotal element in the Baltic region’s integration into the European rail network, has secured a significant financial injection. LTG Infra, the infrastructure arm of LTG Group responsible for the Lithuanian segment, has finalized three construction contracts totaling EUR 235 million. These contracts will drive forward the development of this vital high-speed rail link, enhancing connectivity, bolstering infrastructure, and unlocking economic opportunities. The announcement, made on August 5, 2025, highlights the ongoing commitment to the project’s acceleration. This article delves into the specifics of these new contracts, their implications for Lithuania’s rail infrastructure, and the broader impact on the region’s development. The investment is aimed at speeding up rail installations and construction for future expansion to Panevezys and beyond.

Strategic Track Laying: The Sveicarija to Zeimiai Connection

A key component of these new agreements involves the installation of approximately 10 kilometers of standard-gauge railway track between Sveicarija and Zeimiai. This vital track-laying work will be completed by a joint venture comprising Leonhard Weiss International of Germany, a firm known for its experience in large-scale infrastructure projects, and Leonhard Weiss OÜ of Estonia. The project is designed to integrate with the European standard gauge (1435 mm) for seamless connectivity. According to Eugenijus Sabutis, the Lithuanian Minister of Transport and Communications, this “step forward” demonstrates the commitment to boosting the economy through enhanced rail infrastructure. The track-laying phase itself is crucial as it allows a much faster pace of project implementation compared to embankment construction. The procurement of essential materials such as rails, sleepers, and ballast is already underway to avoid potential supply chain disruptions, a proactive measure that underlines the project’s management efficiency.

Embankment Construction: Laying the Groundwork from Kaunas to Sveicarija

The second major area of investment focuses on an 18.9-kilometer embankment, a crucial element for supporting the high-speed railway line. The contract for the embankment section from Kaunas (Palemonas) to Sveicarija has been divided into two parts. AB HISK will undertake construction of an 8.5-kilometer section of embankment, along with related structures, for a value of EUR 97.8 million, with completion expected in early 2028. HISK’s selection reflects the trust in its ability to deliver large-scale infrastructure projects. The second portion, spanning 10.4 kilometers, has been awarded to a joint venture between UAB Fegda and UAB Tilsta for a value of EUR 123.5 million, also scheduled for completion in early 2028. The embankment’s construction is vital; it prepares the terrain for the subsequent laying of tracks and ensures the structural integrity needed for high-speed rail operations. The work between Kaunas-Sveicarija section is continuous following completion of the Sveicarija-Zeimiai section. This approach allows for the reuse of experience and equipment.

Superstructure and Material Procurement: Preparing for Completion

The third contract of EUR 13.9 million covers the construction of the railway superstructure. This includes track laying along an 8.8-kilometer section. Completion is expected by the end of 2025, with the remaining works scheduled to finish in the first quarter of 2027. LTG Infra’s proactive procurement of essential materials, such as rail, sleepers, and ballast, demonstrates its strategic approach to risk management and supply chain efficiency. The early procurement minimizes potential project delays due to material shortages, which may be caused by fluctuating prices or logistical constraints. This forward-thinking approach underscores LTG Infra’s dedication to meeting deadlines and efficiently managing the project’s extensive scope.

Industry Partnerships and Project Goals: The Key to Success

The project’s success hinges on strong collaboration between LTG Infra and its partners. Alexander Schneider of Leonhard Weiss International emphasized the importance of their contribution to such a strategically significant project. The company’s experience in handling complex infrastructure projects is vital for maintaining high-quality execution. This involves efficient processes and smooth collaboration with other partners to meet deadlines, supporting the development of a sophisticated railway infrastructure in the region. The emphasis on fast-paced, high-quality work, along with the use of advanced technologies, is expected to further improve project efficiency and reduce project risk.

Conclusion

The recent awarding of EUR 235 million in construction contracts represents a significant milestone in the progress of the Rail Baltica project in Lithuania. The completion of the project promises to transform Lithuania’s transportation network, offering enhanced connectivity, improved security, and economic opportunities for the entire region. As the project accelerates, these investments demonstrate Lithuania’s dedication to developing a modern, sustainable, and competitive railway system. The successful execution of these contracts, including the track installation, embankment construction, and infrastructure development, reflects the collaborative efforts of LTG Infra and its international partners. Furthermore, the implementation strategy, with its focus on timely material procurement, efficient supply chain management, and streamlined construction phases, will contribute to the project’s completion within the specified timeline. The ongoing progress highlights the benefits of strategic investments in rail infrastructure, aligning with the broader development goals of the Baltic region and the European Union, and signaling a bright future for the modernization of Lithuania’s transport landscape.

Company Summary

LTG Group is the Lithuanian state-owned railway infrastructure company responsible for managing and developing the country’s railway network. LTG Infra, a subsidiary of LTG Group, specifically oversees the Rail Baltica project within Lithuania. The Rail Baltica project is a major infrastructure undertaking with the goal of linking the Baltic states with each other and the rest of Europe. The company’s key focus is to build an advanced, sustainable, and efficient railway network.

Leonhard Weiss International is a German construction company with extensive experience in major infrastructure projects. The company is a key partner of the Rail Baltica project in Lithuania.

AB HISK is a construction company involved in various infrastructure projects in the Baltic region.

UAB Fegda and UAB Tilsta are Lithuanian construction companies specializing in infrastructure projects, including roads and railways.