Government decision: Passenger train services to continue in their current scope in the 2030s

On 16 June 2025, the Ministerial Committee on Economic Policy decided that the central government would continue its preparations for the competitive tendering of publicly funded passenger rail services. The current contract with VR Group is due to expire at the end of 2030, with a new contract period of about ten years scheduled to start on 1 January 2031.

The State currently procures passenger rail services for routes that are not profitable on market terms. At the moment, the procured services include night trains, railbus traffic on unelectrified rail sections, InterCity traffic supplementing market-based traffic, and regional trains in Southern Finland.

The Ministerial Committee on Economic Policy decided that the package of procured passenger rail services to begin in the 2030s would be as extensive as it is at present. The aim is for passengers to be able to travel as extensively as they do now.

Municipalities can also procure new commuter train services

The competitive tendering for passenger rail services also provides the option to procure new commuter train services. For example, additional transport services could be procured for urban areas and areas where people commonly travel for work, which would be financed by the municipalities in the area. Municipalities will have to decide the procurement of commuter train services by early 2026.

The State as the owner will continue to be responsible for financing transport infrastructure networks even in the event that a decision is made to procure new commuter rail services. With a separate agreement, central government transport infrastructure projects can also be implemented jointly with municipalities and other actors when the benefits of the project would be limited to certain regions or actors.

Passenger rail transport costs set to increase

The costs of state-subsidised passenger rail transport will increase significantly in the future compared to the current level. The increase in costs is mainly due to ageing rolling stock. The State is committed to covering the necessary investments in rolling stock so that the volume of procured transport services can remain at the current level in the 2030s.

The Government already decided in summer 2024 that a rolling stock company would be established to support competitive tendering for transport services. The objective of establishing the company was originally put forth in the Programme of Prime Minister Petteri Orpo’s Government. In line with the decision, the rolling stock currently used for rail transport procured by the State will be transferred to the rolling stock company. As Finland’s track gauge differs from that of the rest of Europe, foreign rail operators do not have suitable rolling stock for use in Finland. The company will make it possible to rent rolling stock, which will lower the threshold for entering the market.

The rolling stock company has been established as a subsidiary of VR Group, but the aim is to separate it from VR during 2025. The company is launching more detailed preparations to implement its rolling stick investments.

What’s next?

The preparations for the competitive tendering of rail transport services for the 2030s and the necessary investments will continue based on the policies outlined by the Ministerial Committee on Economic Policy on 16 June 2025.

The Ministry of Transport and Communications will organise a briefing on the Government’s decision for regional authorities in August. After this, the Ministry of Transport and Communications will launch regional negotiations on possible municipal contributions to the financing of additional transport services.

The negotiations will focus on the service level of additional traffic and the necessary investments in rolling stock and infrastructure, among other things. The aim is to have a clear picture of all rail services to be procured by the central government in the 2030s, including any new commuter train services, by the beginning of 2026.

The State ad municipalities may also decide on additional rail services at a later date, but in that case, they will be put out to tender separately and the services will not begin until after 1 January 2031.

Inquiries: Elina Immonen, Director of Unit, elina.immonen(at)gov.fi, tel. +358 295 342 159, 
Tiia Orjasniemi, Ministerial Adviser, tiia.orjasniemi(at)gov.fi, tel. +358 295 342 068 and 
Emmi Nykänen, Senior Ministerial Adviser, emmi.nykanen(at)gov.fi, tel. +358 295 342 114, Ministry of Transport and Communications

The email addresses of the Finnish Government are in the format [email protected].