Paltamo launches more than 30 million euros in infrastructure projects

The municipality of Paltamo, which has about 3,000 residents, is preparing for industrial growth with more than 30 million euros in construction and infrastructure investments in the coming years, Yle reports.

The projects include an expansion of a raw timber terminal, improvements to a railway yard and tracks, a cycle path and the replacement of road and railway bridges. The investments are intended to prepare for larger industrial projects and increased traffic by rail and road.

“These are just the beginning,” Paltamo municipal manager Pasi Ahoniemi said. He said the projects could create a snowball effect as major industrial developments and related electricity network investments are considered.

Google announced this week major data centre investments in the neighbouring municipalities of Kajaani and Vaala, as well as in Muhos. Paltamo is not relying on those projects alone, Ahoniemi said.

Bioproduct plant plans have been under preparation near Paltamo’s main urban area for several years. A solar power plant is also awaiting completion.

The importance of Kontiomäki, Paltamo’s other urban area, is growing. A 10 million euro expansion of the raw timber terminal near Kontiomäki railway station is under way. The existing 4.5 hectare terminal area will be expanded by another 1.5 hectares, according to Vesa Pakarinen, a project manager at the Finnish Transport Infrastructure Agency.

The track will be extended into the terminal area, and road connections will be improved. Once completed, trains will be able to leave directly from the new track with electric locomotives towards Oulu or other destinations.

The expansion is expected to be operational in 2028. It will increase both rail traffic and lorry traffic to and from Kontiomäki. The terminal operates around the clock, Pakarinen said.

Kontiomäki is currently a junction for five railway lines. Tracks run via Kajaani towards the capital region and Oulu, while timber also arrives from the direction of Suomussalmi. The railway also runs towards Finland’s eastern border and Vartius. Before the border was closed, goods were transported from Russia as well.

Plans also include improving the railway between Iisalmi and Kontiomäki, as well as developing the line between Kontiomäki and Vuokatti. The connection is intended to eventually continue towards Nurmes and Joensuu.

Ahoniemi said Kontiomäki could develop into a logistics hub where five railway lines and two roads meet. A cycle and pedestrian route is also planned from Kontiomäki towards the south.

Paltamo has two railway stations. In addition to Kontiomäki, trains stop at Paltamo station near the shores of Lake Oulujärvi. The railway carries both passengers and freight.

The railway and National Road 22, which runs alongside it near Paltamo, will both be upgraded. The Finnish Transport Infrastructure Agency has published a project to replace the railway bridge over the Kiehimäenjoki River, and planning is under way. Planning for the replacement of the adjacent road bridge is also beginning.

Both bridges will be expanded as part of the work. Traffic volumes are expected to increase on both the road and railway.