Budimex Forging a New Rail Link for Estonia’s Rail Baltica Project
Budimex SA, one of Central Europe’s infrastructure giants, has secured a major milestone in the Baltic States’ most transformative infrastructure development: Rail Baltica. On 16 May in Tallinn, a significant contract was signed between OÜ Rail Baltic Estonia and a consortium led by Bouygues Travaux Publics, KMG Infra OÜ, and Poland’s Budimex SA, marking the official start of the design and construction of the Estonian section of Rail Baltica.
Valued at a hefty €332 million (around PLN 1.4 billion), the deal covers the Pärnu to Latvian border segment. Budimex will play a pivotal role, holding a 40 per cent stake in the construction works, estimated at €313.7 million (PLN 1.33 billion). The entire venture is part of a sweeping vision to better connect the Baltics to the heart of Europe.
Connecting the Baltics to Europe
Rail Baltica isn’t just another railway project — it’s an ambitious transnational corridor designed to stitch together the capitals of five countries: Warsaw, Kaunas, Riga, Tallinn, and Helsinki. Once operational, it will form a high-speed, standard-gauge railway line that integrates the Baltic region with the European rail network.
Estonia’s section is particularly crucial. The contract signed in May pertains to one of the two planned rail segments in the country, covering over 58 kilometres of track on the Pärnu-Ikla route. Alongside the rail line itself, the project includes a suite of supporting infrastructure such as bridges, culverts, access roads, and environmental protections.
The design aspect of the project will be managed by Ingerop Conseil et Ingénierie and WSP Finland Oy, both recognised as leading players in engineering and transport design.
Collaboration at Its Core
What sets this project apart is the strategic use of the ‘Alliance’ contract model. This innovative formula requires the client and all contractors to work in close partnership, sharing both risks and rewards throughout the entire process.
This approach encourages transparency, efficient problem-solving, and shared accountability — a particularly valuable strategy in complex cross-border infrastructure schemes where delays and overruns can otherwise be common.
Artur Popko, President of the Management Board of Budimex SA, captured the importance of the venture: “Estonia is one of the most rapidly developing Baltic markets in terms of infrastructure. The construction of the Rail Baltica line is intended not only to modernise local rail transport, but above all to build a bridge between the Baltic countries and the central and western parts of Europe. Important not only for mobility or trade, but above all for safety.”
He went on to stress the significance for Budimex itself: “The signing of the contract is the first milestone. We have an intensive period of works ahead of us, which, in accordance with the contract formula, we will be carrying out ‘side by side’ with the Investor. It will be a long-term and technically complex project. For us as a company, this is first and foremost an excellent opportunity to gain confidence in the next Baltic market and the experience in the implementation of high-speed rail, which we hope to use soon in Poland.”
Project Timeline and Milestones
With the paperwork inked, the next steps involve planning and preparatory works. The consortium will first define a detailed schedule that will shape the next phases of the project. Early activities include soil surveys, environmental assessments, and coordination with local authorities.
Construction work is expected to conclude by the end of 2030. It may seem a long road ahead, but considering the complexity and cross-border nature of the project, the timeline is ambitious and signals the urgency with which the EU and Baltic states are pushing for better regional connectivity.
Budimex in Latvia and Beyond
Budimex SA is no stranger to the Rail Baltica project. As part of the E.R.B. Rail consortium, the company is already hard at work on the Latvian segment of the line. This includes 230 kilometres of track, 175 engineering structures, and 11 wildlife crossings. Construction work is already underway in Iecava, where the team broke ground late last year.
The Estonian contract further cements Budimex’s growing influence in the Baltic region. In fact, its activities now extend well beyond Poland. The company is actively involved in projects across Germany, Slovakia, and the Czech Republic. As of the close of 2024, Budimex’s foreign project order book had reached an impressive PLN 1.2 billion.
European Investment with Strategic Impact
Rail Baltica is not just an infrastructure project, but a strategic initiative backed by the European Union. With total planned investments across the corridor expected to top €5.8 billion, the project is seen as critical for improving mobility, boosting trade, enhancing military logistics, and strengthening energy resilience in the region.
For Estonia, the benefits are particularly compelling:
- Enhanced cross-border transport efficiency
- Shorter travel times and improved passenger experience
- Significant job creation during and after construction
- Strengthened EU connectivity and economic cohesion
It also supports the shift toward sustainable transport modes by reducing the carbon footprint of freight and passenger movement.
Unlocking New Opportunities in the Baltics
With both the Estonian and Latvian Rail Baltica segments now in Budimex’s hands, the company is clearly positioning itself as a long-term partner in the region’s transport transformation. Its growing international portfolio and expertise in high-speed rail add weight to its ambition.
As Budimex continues to expand its geographic reach, its emphasis on partnership, local engagement, and sustainable construction methods will likely serve it well. The Alliance model deployed in Estonia may even become a blueprint for future major infrastructure builds across Europe.
Full Steam Ahead
The signing of the Rail Baltica Estonia contract isn’t just a corporate win — it’s a signal that a long-imagined European rail dream is moving from blueprint to reality.
With companies like Budimex at the helm, and cooperative contract models driving the effort, the Baltic region is on track for a rail-led renaissance that could reshape not just transport, but the economy and environmental footprint of Northern Europe.
