Competition for EU funding has tightened – Finnish transport projects received EUR 39.11 million

The European Commission awarded EUR 39.11 million in funding under the Connecting Europe Facility (CEF) to 11 projects in Finland. Five central government projects received a total of EUR 20.16 million and six private sector projects a total of EUR 18.96 million in funding.

The CEF Transport Committee made the project grant decisions on 16 July 2024. In the end, it awarded EUR 7.01 billion in grants to 134 projects, having received more than 400 applications requesting funding for more than EUR 22 billion. The European Commission aims to fund projects with a high degree of readiness for planning and implementation.

“Competition for EU funding is fierce. It is therefore important for Finland to invest in EU funding applications, develop its application processes, and analyse the results after each call for proposals. Based on these results, it appears that the EU has confidence in the Finnish Transport Infrastructure Agency's infrastructure projects and in their funding. We should also note that the EU's priorities have changed, with an increased focus on security. This seems to have affected the allocation of funds,” says Minister of Transport and Communications Lulu Ranne.

Finnish applicants submitted proposals for 21 projects amounting to EUR 325.13 million in requested grants. The projects that did not succeed in this call for proposals included West Railway and Airport Rail. West Railway Ltd applied for EUR 176.28 million for developing the western rail connection between Helsinki and Turku, and Airport Rail Ltd applied for EUR 4.7 million for planning the rail links connecting Helsinki Airport. 

“Finland has been very successful in applying for funding for military mobility, and we will continue to focus our efforts on this area. However, we must get better at applying for grants for the more traditional projects. The construction of the east-west and north-south connections and a controlled transition to a European rail gauge are strategic choices that will strengthen our security and economy. We must put more effort into pursuing these choices also when applying for EU funding,” says Minister Ranne.

The CEF for Transport awards grants to the Trans-European Transport Network (TEN-T) projects. TEN-T links railways, inland waterways, roads, sea and air traffic nodes, terminals and urban nodes into a single transport network. Both Core and Comprehensive TEN-T projects received funding in Finland. CEF Transport funds the implementation of TEN-T under the CEF Regulation and the TEN-T Regulation.

Central government received EU funding for railways and smart mobility

Central government projects were awarded EUR 20.16 million in CEF funding. The following projects received grants:

1. Planning the Riihimäki–Tampere rail line 

EUR 1.75 million was awarded for planning the Riihimäki–Tampere railway line. The project will draw up track and construction plans for six train meeting places, which will improve the traffic flows and improve the section's resilience

2. Planning the Karelian rail line between Imatra and Joensuu 

EUR 3.00 million was awarded for planning the Karelian rail line between Imatra and Joensuu. The project will cover the drawing up of six track plans. The project aims to design cost-effective measures to improve the speed, capacity, service level, safety and resilience of the section.

3. Planning an increase in the speed and capacity of the Savo rail line

EUR 2.25 million was awarded for planning the speed and capacity increase of the Savo rail line. The project covers the plans for increasing the speed and capacity of the Kouvola–Kuopio and Iisalmi–Kontiomäki sections.

4. Digirail 1 – equipping with the European Rail Traffic Management System 

Digirail 1 received EUR 12.83 million in funding. The project objective is to deploy the European Rail Traffic Management System (ERTMS) in the Tampere–Pori section. It is part of the national Digirail project for deploying ERTMS in the Finnish rail network between 2024 and 2040. ERTMS makes it possible to increase the capacity of rail traffic while improving punctuality and service levels. The project is required in order to deploy ERTMS and digitalise rail traffic in Finland.

5. C-Roads Extended, Finland's section 

Finland's section of C-Roads Extended received EUR 331,500 in funding. This joint project involving several countries continues to define the methods for realising Cooperative Intelligent Transport Systems (C-ITS). The project will ensure that wireless technologies using the radio communications network will continue to be included as an alternative to WiFi technology in smart mobility applications for transport.

Funding for ports and for facilitation of shipping

Private sector operators received EUR 18.96 million in CEF grants for the following projects:

1. Construction of shore-side electricity and a solar power facility at Port of Pori

Port of Pori received EUR 1.89 million for constructing shore-side electricity and a solar power facility for the port. The project will promote emissions reductions in shipping and develop the port infrastructure and safety.

2. Construction of shore-side electricity at Port of Kemi

Port of Kemi received EUR 1.34 million for constructing shore-side electricity for the port. The project will promote emissions reductions in shipping.

3. Improvements to the infrastructure at Port of Raahe for the needs of offshore wind power

Port of Raahe received EUR 7.99 million for improving the port infrastructure to meet the needs of offshore wind power. The project will involve the building of a new heavy lift quay with a draught of 12 metres for the berth, and improvements to the port yard near the quay. 

4. Development projects at the ports of Helsinki and Tallinn

Port of Helsinki received EUR 5.2 million. Port of Helsinki and Port of Tallinn funding for development projects in Vuosaari Harbour in Helsinki and Muuga Harbour in Tallinn. The grants were awarded for shore-side electricity projects.

5. European Maritime Single Window environment (EMSWe) 

Fintraffic VTS received EUR 424,900 in funding for implementing the European Maritime Single Window environment (EMSWe). This joint project involving several countries promotes the deployment of the new environment and supports the adaptation of national information systems to meet the EU requirements. 

6. Expanding electronic freight transport information to speed up freight and transport data exchange

Kouvola Innovation, Vediafi and Ahola Group received EUR 2.12 million for expanding electronic freight transport information to speed up freight and transport data exchange This joint project involving several countries project promotes the wider deployment of electronic freight transport information (eFTI).

Some Finnish projects did not receive funding

Despite good evaluations, some Finnish projects did not receive funding. In relation to the available budget, the Commission attracted a large number of proposals, 408 in total. 

Of the projects funded by the central government, those not awarded grants were: the 2nd phase of the construction of Tampere passenger railway yard, construction of Espoo Rail Line, improvement of the main rail line between Hyvinkää and Riihimäki, planning of the 2nd phase of the Tampere–Jyväskylä rail line, a joint European Intelligent Transport Services project involving several countries, intelligent fairway services for maritime transport, development of West Railway Ltd's western rail link between Helsinki and Turku, and Airport Rail Ltd's planning of the rail links connecting Helsinki Airport.

What’s next?

The European Commission will sign grant agreements with each applicant by November. The Commission will open the 2024 CEF call for proposals at the end of September 2024.

Inquiries:

Maaria Wallin, Special Adviser to the Minister, tel. +358 295 342 236, [email protected] 

Marjukka Vihavainen-Pitkänen, Senior Ministerial Adviser, tel. +358 40 825 1255, [email protected]