8th construction contract of Rail Baltic Estonia signed

Construction of Rail Baltic in Harju County near Tallinn. Photo: Madis Veltman

INF Infra OÜ, a subsidiary of the listed Estonian investment company Infortar Group, signed a contract with Rail Baltic Estonia OÜ on Nov. 11, 2024, to construct a section of the Rail Baltic main line between the small towns of Kangru and Saku in Harju County.

The contract is valued at 67.2 million euros, VAT is not included and the work is scheduled to last 40 months, with completion expected by March 2028. Payment for work will be made periodically in accordance with the volume of work completed.

«A major challenge will be constructing the railway embankment through the Männiku bog. As we aim to minimize environmental impact during construction, we plan to employ highly innovative solutions that have not yet been used in Estonia's infrastructure projects. These proposed embankment solutions are more environmentally friendly than traditional construction methods,» stated Robert Sinikas, member of the management board of INF Infra.

Rail Baltic Estonia's goal is to establish a modern high-speed rail connection by 2030, linking Estonia with Latvia, Lithuania, and the rest of Europe. The Rail Baltic project promotes regional cooperation, enhances passenger and freight transport options, and supports an environmentally friendly and sustainable transportation system across the Baltics.

The transaction is not considered as a transaction beyond everyday economic activities, nor it is regarded as a transaction with related persons, under the «Requirements for Issuers» section of the NASDAQ Tallinn Stock Exchange rules. The members of the supervisory board and the management board of Infortar have no personal interest in the transaction in any other way.

Infortar operates in seven countries, the company's main fields of activity are maritime transport, energy and real estate. Infortar owns a 68.47 percent stake in listed Estonian shipper Tallink Grupp, a 100 percent stake in energy company Eesti Gaas and a versatile and modern real estate portfolio of approximately 116,000 square meters. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, taxi business and other areas. A total of 105 companies belong to the Infortar group -- 96 subsidiaries, four affiliated companies and five subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 6,108 people.