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Sweden's largest infrastructure project with €80 billion to be invested over the next 10 years

07/03/2023

Press release - Sweden's largest infrastructure project - First trains on Ostlänken in 2033


The eastern link between Södertälje and Linköping is to be completed in 2035. In the northern part, traffic can start a couple of years earlier. But first, Sweden's largest infrastructure project must overcome challenges such as a lack of entrepreneurs and competence within the country.

Ostlänken will be a 16-mile double-track railway for traffic at 250 km/h between Södertälje and Linköping. The project is in an intensive phase. In parallel, work is now underway with railway plans, design and some construction.

The goal is for the entire new line to be ready by 2035. By then, direct trains should be able to offer a journey time of 42 minutes between Linköping and Södertälje. The new railway will also contribute to a long-awaited increase in capacity on the strained railway network in eastern Sweden.

Sweden's largest infrastructure project

Ostlänken is Sweden's currently ongoing largest infrastructure project with a budget of €10 billion. The project faces a number of difficult challenges. These include complicated passages and the construction of new travel centers in central parts of cities such as Norrköping and Linköping. 24 kilometers of the track will go in tunnels, 150 bridges need to be built.

Such a gigantic project swallows enormous resources that can be difficult to obtain in a hot Swedish construction market. The need for archaeological investigations alone requires more archaeologists than are available in the country.

The entire track is to be opened in 2035

Ostlänken's project manager Alexander Santos was full of confidence when he gave a progress report on the project at a seminar at the Forum for Nordic Railway Cooperation (NJS) on 14 December.

"The goal is for the entire track to be opened to traffic in 2035. It is a tough challenge. We have many milestones that must be met, but it is 2035 that applies and nothing else. We are working to keep that goal," he said.

Alexander Santos told us that there are ambitions to open the northern parts to traffic a couple of years earlier.

"We want to deliver benefits as quickly as possible. We are looking at opening the track in stages. We are trying to find opportunities to open the northern parts to Nyköping–Skavsta for traffic in 2033.”

Station construction in Nyköping

The work on Ostlänken's new stations has come the furthest in Nyköping. About a hundred meters east of today's station building, preparatory ground work has started for the travel center that will begin construction here after the summer of 2023.

"We are building a new travel center with a bus station for connections in Nyköping. We have a co-financing agreement with the municipality and a good collaboration. This will be an incredible boost for Nyköping, today's travel center has major shortcomings," says Alexander Santos.

Ostlänken will have a bypass through central Nyköping, the main line will be built with a station at Skavsta Airport outside Nyköping.

In total, the project has 13 railway plans, three of which have gained legal force. Two railway plans at Södertälje and Trosa are important milestones. The project plans to start construction on the northern part of Ostlänken with a connection to the Western main line during 2024–2025.

Station on a bridge in Norrköping

In Norrköping, the construction of a new freight railway yard is underway, which will free up space for Ostlänken. The passage outside and through Norrköping is one of the most complicated parts of the project. An eight kilometer long tunnel is to be built under Kolmården, another tunnel is needed for the passage south out of Norrköping. In Norrköping, the Swedish Transport Administration and the municipality have now concluded a financing agreement that the new station will be built in an elevated position on a bridge. The station solution, which is estimated to cost three billion kroner, provides opportunities for exploitation of the land next to the station.

"It will be incredibly complex to move the main line and build Ostlänken in the middle of Norrköping", says Alexander Santos.

Lack of contractors

A critical factor will be finding enough skills and machinery to handle the construction of Sweden's largest infrastructure project. Alexander Santos says that a project of this size would normally have been divided into 26 contracts. But now the project wants to focus on fewer and larger contracts. In this way, they hope to attract entrepreneurs from abroad to establish themselves with their own resources for several years in Sweden.

Large and long contracts

"The supplier market is strained in Sweden, there are big risks that we will not get enough resources and competence supply. Therefore, we are trying to break new ground and invest in eleven large contracts of up to €1 billion per contract, where the contracts can last for up to eight years."

"We want a new business model with an early dialogue with the companies on the market, so that we get their expertise early in the project. We expect to start a dialogue with the market at the beginning of next year, and start procurement at the end of 2023 or the beginning of 2024".

Ostlänken has an estimated budget €10 billion. But the project also has a mission to try to reduce costs by €1 billion. Alexander Santos wants a business model with incentives that spur consultants and contractors to focus on meeting schedules and budgets.

The Swedish Transport Administration wants to broaden the supplier market and bring more international suppliers to Sweden - €80 billion to be invested over the next 10 years.

The Swedish Transport Administration wants to broaden the supplier market and bring more international suppliers to Sweden. Therefore, since 2011, they have actively worked to communicate with markets outside of Sweden.

 This is a way to meet large volume increases in our infrastructure investments that they have had for many years. In the national plan for 2022-2033, €80 billion is set aside for investments in infrastructure. This is an increase of €18 billion in relation to the previous plan.

 Trafikverket also wants to increase competition and bring more players into the market. It is particularly important in areas where the number of national potential bidders is low. And, The Swedish Transport Administration is also keen to learn about new methods, techniques and knowledge. It is a way to bring about renewal in Sweden’s construction industry.

In order to increase our attractiveness as a client and broaden our supplier base, the Swedish Transport Administration is now embarking on a long-term process of change. The goal is to become the choice that suppliers choose in the first place and which goes under the slogan “The Swedish Transport Administration – supplier’s first choice”.

About Nordisk Tillväxt

Nordisk Tillväxt is a strategic planning and pre-construction consultancy, operating across the Nordics. To find out more please visit their website https://www.ntstockholm.com/ 



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