The Economic Assessment of the Rail Baltica Project: Phase 1 Cost-Benefit Analysis evaluates the first implementation stage of the new European-gauge high-speed railway linking Estonia, Latvia and Lithuania with the wider European rail network. The analysis assesses capital, operating and maintenance costs against projected benefits such as passenger travel time savings, improved reliability, enhanced safety, environmental gains and freight efficiency. Despite significant increases in estimated construction costs, the project remains economically justified based on positive net benefits and long-term regional impacts. Passenger transport generates the largest share of quantified benefits, while freight and environmental improvements provide additional value. Beyond direct transport gains, the assessment highlights wider economic effects, including improved connectivity, labour mobility, productivity growth and stronger regional integration with European markets, supporting long-term development across the Baltic region.
