Price of new Helsinki region trams rises by over 60 million euros

The cost of acquiring 63 new trams for the Helsinki capital region has risen by 61 million euros, public transport operator Kaupunkiliikenne announced on Friday, Yle reports.

The increase breaks down to 30 city trams becoming 44 million euros more expensive — a 41.5 percent rise from the 2021 price level — while the price of 33 light-rail trams is going up by nearly 17 million euros, to a total of 180 million euros. The combined procurement budget now stands at 332 million euros, up from 271 million euros.

Kaupunkiliikenne attributes the hike to persistent cost increases driven by Russia’s war in Ukraine, which disrupted raw material markets, supply chains and energy prices. The budget overrun requires approval from municipal politicians.

The purchase is urgent because the capital region faces a shortage of trams as new lines open and existing fleet ages. Swiss manufacturer Stadler won the contract after competitor Škoda Transtech was disqualified for failing to meet 10 of 1,570 technical requirements. Škoda has challenged the decision in court and is now appealing to the Supreme Administrative Court, seeking an injunction to halt the signing and implementation of the contract.

Kaupunkiliikenne’s asset management director Antti Nousiainen said the same cost pressures would have applied regardless of which supplier was chosen, and that he would not have run the tender differently. Board chair Eetu Kinnunen said the reasons for the price rise are acceptable.