Karelian railway upgrade could create jobs for 1,000 people

Finland’s government has proposed €149 million in spending authority and €17 million in additional funding to upgrade the railway between Kouvola and Nurmes, Yle reports. Transport and Communications Minister Lulu Ranne said the project could employ about 1,000 people, with construction potentially starting next year.

The Karelian railway upgrade is one of the largest transport projects in the government’s proposed budget for next year. The government had already decided in the spring to increase the project’s spending authority from €90 million to €149 million.

Spending authority allows the government to sign contracts and make decisions whose costs are spread over several years. Funding will therefore also be needed in future budgets.

Ranne said the project was important to the government because it would strengthen the railway network and create jobs.

“Broadly speaking, one hundred million euros can employ 1,000 people,” she said.

Ranne said planning had progressed far enough for work to begin as early as next year in the best-case scenario.

Funding proposed for other transport projects

The government has also proposed €46 million in spending authority and €500,000 in funding to plan European-gauge railway connections. The goal is to connect Finland’s railway network with Sweden and Norway.

Other significant proposals include €49 million in spending authority to improve Highway 9 at Ylämylly in Liperi, and €19 million in spending authority and €1 million in funding to widen Highway 8 between Bäckliden and Brännbacken.

The government has proposed €8 million to improve Highway 2 near Humppila, €14.5 million in spending authority and €1 million in funding for Highway 13 between Savitaipale and Lemi, and €6 million to improve the Teppo junction and Penttilä Bridge on Highway 19.

It has also proposed €7.3 million for junction arrangements on Highway 9 near the centre of Suonenjoki, €4 million for junction arrangements and an underpass beneath the railway at Muhos on Highway 22, and €4.8 million for the Rantala to Lajunlahti project on Highway 23 in Heinävesi.

Other proposals include €6 million for the Kela junction project on Regional Road 51, €1 million to improve Regional Road 506 at the Karjalankatu junction in Juuka, and €6 million in spending authority and €900,000 in funding for the Kupittaa public transport deck project.

The government has proposed €14.3 million in spending authority and €8 million in funding for renovations at railway and metro stations in Helsinki, €18 million in spending authority and €6 million in funding to deepen the Loviisa sea channel, and €7.04 million for planning military mobility projects.

It has also proposed €3.6 million for a bypass road around the Norvajärvi emergency landing strip.

Regional council calls for further improvements

Jarno Turunen, director of external relations at the Regional Council of North Karelia, said the Karelian railway project would do little to improve the problematic railway between Joensuu and Imatra.

One double-track passing section will be built between Joensuu and Imatra, although five are needed, he said.

“There should be more capacity on the railway for both freight and passenger trains. One new passing section will not solve the problem. Many issues will be left for the next government to decide,” Turunen said.

Turunen said the €49 million spending authority for improving Highway 9 near Ylämylly was important for North Karelia. However, the project has not been allocated funding for next year, meaning work cannot begin yet, he said.

The Karelian railway currently ends in Nurmes. North of the town, only freight trains operate towards Kontiomäki. Nurmes Mayor Pasi Parkkinen told Yle in June 2026 that he hoped passenger services would eventually continue north from Nurmes.