EU Backs Albania’s Railway Revival with €90 Million Package
Albania’s railway renaissance just got a powerful boost. With a €90.5 million financial package signed and sealed, the long-overdue upgrade of the 34 km railway line between Durrës and Rrogozhina is officially on track.
This vital link, running through the heart of Albania, forms a key segment of Pan-European Corridor VIII, a strategic axis connecting the Adriatic coast to the Black Sea via Albania, North Macedonia and Bulgaria.
This modernisation effort isn’t just about laying down new tracks. It’s about accelerating regional integration, easing cross-border trade, reducing carbon emissions, and breathing new life into a transport corridor that’s as economically essential as it is geopolitically significant.
A Strategic Investment for Growth
The funding, a mix of a €60.5 million grant under the Western Balkans Investment Framework (WBIF) and a €30 million loan from EIB Global, was signed off during an official ceremony in Tirana. In attendance were European Commission Vice-President and High Representative for Foreign Affairs Kaja Kallas, Albanian Prime Minister Edi Rama, and EIB Global Director Lionel Rapaille.
“The signature of the European Investment Bank loan for the construction of the Durrës – Rrogozhina railway track as part of Corridor VIII, co-funded by the EU, is an important milestone,” said Kallas. “This project will create new jobs, enhance trade and improve connectivity by bringing Albania closer to its neighbours and close to the European Union.”
For Albania, a country whose railway infrastructure has been ageing and underfunded for decades, this investment is a chance to reposition itself as a critical transport hub in Southeast Europe. With a total project cost of €121 million, an additional €30 million will be co-financed by the European Bank for Reconstruction and Development (EBRD).
Boosting the EU’s Economic and Security Objectives
Beyond improving passenger and freight transport, the project is also a cornerstone in the EU’s broader Economic and Investment Plan for the Western Balkans. It extends the Trans-European Transport Network (TEN-T) into Albania, marking a critical step in harmonising the region’s infrastructure with EU standards.
There’s also a geopolitical angle: “It will also serve as a critical route between Member States and NATO for military mobility in Southeast Europe, which is extremely important in the current security environments,” Kallas emphasised.
This dual-purpose infrastructure underscores the EU’s commitment to not just economic growth, but also strategic resilience. With rising global tensions, connectivity between allies is more than a convenience – it’s a necessity.
Team Europe in Action
For the European Investment Bank, this initiative is a tangible example of “Team Europe” in full swing. “We are delighted to be part of this significant Team Europe effort, which underscores our shared commitment to developing safer, smarter and greener transportation links in the Western Balkans,” said EIB Vice-President Robert de Groot.
“As a key segment of Corridor VIII, this project will enhance Albania’s socioeconomic development by improving accessibility and facilitating trade and economic connections within the region and with the European Union.” De Groot also highlighted the bank’s continued support through the New Growth Plan, which aligns investment with Albania’s EU accession ambitions.
A Vision for Railway Revival
Albania’s Prime Minister Edi Rama framed the investment as part of a much broader national strategy. “The signing that took place is part of a massive investment program in railway infrastructure,” he declared. “This is why the five-year period that separates us from the end of this decade will also be a period where railways return to Albania.”
It’s a bold statement, but one rooted in realistic ambition. The re-emergence of rail is seen as a sustainable alternative to road congestion and heavy freight reliance. Albania’s strategic position along Corridor VIII makes it an indispensable link in a pan-European network that, when fully upgraded, could rival more established corridors in efficiency and utility.
Broader EIB Commitments in Albania
EIB Global isn’t stopping with the Durrës – Rrogozhina line. It’s also backing a range of other rail projects, including a loan for the Vorë to Hani i Hotit railway line, connecting Albania with Montenegro. On top of that, technical assistance under the EIB’s Economic Resilience Initiative supports the second phase of Corridor VIII, reinforcing the region’s logistical backbone.
Through the JASPERS advisory programme, EIB has been instrumental in crafting an action plan to strengthen the operational management of Albania’s railway infrastructure. This kind of hands-on involvement isn’t just about funding; it’s about ensuring long-term sustainability and strategic alignment with EU frameworks.
Powering International Partnerships
The European Investment Bank, through its EIB Global arm, plays a pivotal role in external EU engagement. EIB Global was created to drive partnerships and finance projects that promote development and geopolitical stability beyond the bloc’s borders.
Their mission? To support €100 billion of investment by 2027 as part of the EU’s Global Gateway initiative. The Durrës – Rrogozhina project slots neatly into that vision. It’s a scalable, high-impact infrastructure upgrade that strengthens regional cohesion and fosters resilience, exactly the kind of initiative EIB Global was designed to support.
A Turning Point for the Region
This railway upgrade isn’t just about connecting two Albanian cities. It’s about knitting together a fragmented regional transport network, creating economic opportunities, and accelerating Albania’s integration into the European fold.
The Western Balkans have long suffered from underinvestment and outdated infrastructure. But with projects like this, supported by major EU institutions and a clear strategic vision, that tide is beginning to turn.
“Thanks to this relationship, we are able today to carry out a series of investments that would otherwise be impossible for us,” Rama said, capturing the essence of why this investment matters.
Albania is at a turning point. With the political will, institutional backing and financial muscle now firmly behind it, the tracks to a more connected, prosperous future are being laid – quite literally.
Building the Tracks to Tomorrow
As the dust settles on this landmark agreement, what becomes clear is that this isn’t merely a transport project. It’s a statement of intent. The European Union and its partners are showing that meaningful investment, strategic vision, and international collaboration can rewire not only railways but entire economies.
For Albania, this is more than just steel and sleepers. It’s a fast-track ticket to European integration, sustainable development, and geopolitical relevance.
