Swedish transport agency cuts costs by €600m but warns of further strain

The Swedish Transport Administration has saved nearly €600 million through efficiency measures while increasing infrastructure output, but now warns the government that deeper cuts will force reductions in service, according to a new report presented Friday.

Infrastructure Minister Andreas Carlson (Christian Democrats) and agency director-general Roberto Maiorana unveiled the findings, which show the administration has boosted road maintenance by 45% and raised rail punctuality to 88.6%—its highest level since 2022—while slashing consultancy costs by €33 million and streamlining internal processes.

The government has demanded an additional €27 million in annual savings, bringing the total target to €83 million per year. Over the 2026–2037 planning period, this would amount to roughly €1 billion in cuts. The agency’s report cautions that meeting these targets will require hiring freezes, lowered ambitions, and the depletion of its “measure bank”—a reserve of planned but unfunded projects.

“Adaptations so far have maintained core deliveries, but further cuts will increase challenges and risks,” the report states. Carlson, however, framed the agency’s work as a model for other government bodies, urging them to “learn from the Transport Administration’s efforts to safeguard taxpayer funds.”