The passenger rail services will remain unchanged for the next PSO contract
The Ministerial Committee on Economic Policy has decided that the passenger rail services under the current agreement will form the basis for the preparations for the competitive tendering for the next central government contract. The current contract with VR Group, expiring at the end of 2030, includes night trains, traffic on unelectrified rail sections, intercity traffic supplementing market-based traffic, and regional trains in Southern Finland.
Supplementary regional services can be added to the next PSO contract, if municipalities decide to fund them. Such decisions will have to be made by early 2026.
The State will continue in the role of the infrastructure manager, with financial responsibility even in cases of new infrastructure needs in the event of new municipality-funded passenger rail services. Infrastructure projects can also be implemented jointly with municipalities or other parties with separate agreements.
The contracting authority of passenger rail services is set to transfer from the Ministry of Transport and Communications to the Finnish Transport and Communications Agency Traficom on 1 January 2026, with the exception of the Helsinki region, where the authority will stay at the Helsinki Regional Transport (HSL). The purpose is to streamline the purchases of public transport services of different modes under Traficom.
The State is developing a rolling stock company and is committed to invest in replacement of ageing rolling stock
The State has acknowledged that due to aged rolling stock, the costs of providing the current passenger rail level of service will increase in the 2030s. The State is committed to covering the necessary investments in rolling stock.
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, this practice is seen necessary to foster competition for the PSO tendering.
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 stock investments.
Next steps
The Ministry and the Agency will continue the preparations for the competitive tendering of rail transport services for the 2030s. The Ministry of Transport and Communications will negotiate with municipalities about possible additions to services and their funding, including rolling stock and possible infrastructure improvements.
The aim is to have a comprehensive picture by the beginning of 2026 of all rail services to be procured by the central government in the 2030s, including any new commuter train services.
Links to the press releases:
Government proposes possibility for municipalities and regions to arrange passenger train services