Koralm Tunnel Receives Financial BackingThe 32,800 m Koralm rail tunnel on the Graz-Klagenfurt high speed line in Austria moved ahead in December, when a financing agreement was signed and work began on pilot bores. The federal lands of Carinthia and Styria agreed to finance the construction of the tunnel up to EUR280 million, which represents around 20% of the EUR1.5 billion construction cost. Vice chancellor and minister for transport Hubert Gorbach, minister of finance Karl-Heinz Grasser and the OEBB board of directors signed on 15th December, 2004 an agreement with Joerg Haider and Waltraud Klasnic, respectively Carinthia's and Styria's governors. To date, Austria's state railway (OEBB) questioned the feasibility of the project as it expects a basic lack of demand for the link. The political decision to support the project with public funds now puts pressure on the OEBB to pay for the rest of the project and build the track with the tunnel. A series of test bores has been undertaken last year to assess the geology along the route of the tunnel. The next step covers construction of two investigation shafts and related sections of access and running tunnels totalling 11 km. Subject to the results of the detailed investigation and final funding approvals, the client Eisenbahn-Hochleistungsstrecken (HL) expects to start construction of the new line in 2007-08, for opening around 2015-16. The line will leave Graz to the south and turn west through Styria province before tunnelling under the Alps to reach Carinthia. The Koralm tunnel will pass under several villages with only shallow overburden, including several sensitive residential districts and a touristic region. The environment impact assessment procedures were completed in 2003. The tunnel will be a twin bore of 2 x 82 sq m as excavated section for a finished cross section of 2 x 51 sq m.The existing southern railway provides only a poor service to the south of Austria and particularly Graz, Austria's second largest city. HL has been developing plans for the 130 km Koralm line since 1995, and a preferred route was decided in 2003. The line will ease freight traffic and create new local and regional transport services. Journey time between the two cities would be reduced from 2.4 hours to just one. Total cost of the line is estimated at EUR2.7billion. The tunnel will boost the economy of Carinthia adding EUR170 million and attract new businesses to east Styria. 45,000 to 50,000 jobs will be created according to estimates. Click at/42. Visit www.hl-ag.at 03/05.