Rail Baltica Lithuania: HISK Contract & Rail Infrastructure Expansion

Rail Baltica project gains momentum in Lithuania. New EUR 83M contract awarded for 12.1km embankment. Construction starts soon, aiming for 2027 completion.

Rail Baltica Lithuania: HISK Contract & Rail Infrastructure Expansion
July 15, 2025 3:33 pm

Rail Baltica Construction Gains Momentum in Lithuania with New Contract Award

The Rail Baltica project, poised to revolutionize rail transport across the Baltic states, has reached another significant milestone. LTG Infra, the infrastructure arm of the LTG Group, has awarded a substantial construction contract valued at EUR 83.36 million (excluding Value Added Tax, VAT) to HISK for a key section in Lithuania. This latest development underscores the project’s steady progress and commitment to enhancing regional connectivity. The contract, signed recently, focuses on constructing a 12.1-kilometer railway embankment between Šėta and Ramygala. The project aims to integrate the Baltic States into the European standard gauge rail network, significantly improving north-south rail links. Construction is slated to begin soon, with completion expected by the end of 2027. This article will delve into the specifics of the contract, the scope of works, and the broader implications of the Rail Baltica initiative for the region’s rail infrastructure.

Construction Details and Scope of Works

The newly awarded contract encompasses a comprehensive range of civil engineering works designed to establish a modern and efficient rail line. HISK, formerly known as Panevėžio keliai, will construct the 12.1 km railway embankment, alongside critical infrastructure components. This includes the construction of two “green bridges” designed to minimize environmental impact, a railway bridge for specific crossings, and two viaducts for grade separation. Additionally, 27 culverts and wildlife crossings will be installed, reflecting a strong emphasis on environmental protection and mitigating the impact on local ecosystems. The project’s comprehensive approach extends beyond track laying; it involves substantial upgrades to local infrastructure, including major repair works on regional roads, the reconstruction of drainage systems and electrical distribution networks, and the relocation of a gas pipeline that intersects the railway’s alignment. The installation of noise barriers is also planned to lessen the environmental impact on surrounding communities.

HISK’s Expertise and Project Significance

HISK, established in 1965, brings extensive experience in infrastructure development to the Rail Baltica project. The company’s background in the Baltic region and its expertise in large-scale civil engineering projects position it well to deliver the demanding requirements of this contract. The Šėta–Ramygala section is an integral piece of the overall Rail Baltica puzzle. This part of the project will contribute to the network’s functionality and its capability to handle an increasing volume of freight and passenger traffic. Tadas Ramanauskas, Head of Infrastructure Projects at HISK, highlighted that the project’s comprehensive scope and integration of environmental considerations demonstrates both ambition and a commitment to societal and ecological responsibility. This focus on safety, environmental protection, and community impact illustrates the modern standards underpinning the Rail Baltica initiative.

Funding and Broader Rail Baltica Programme in Lithuania

The Šėta–Ramygala section of the Rail Baltica project will be co-financed by the European Union and Lithuania’s national budget. This financial backing highlights the EU’s commitment to developing a robust and integrated European rail network. The project’s completion will represent a major step forward in aligning the Lithuanian rail network with European standards and fostering cross-border transport. The current construction contract forms only a part of a wider wave of infrastructure investment. Additional tenders are scheduled for finalization later this year for the construction of other embankment sections, including Kaunas–Šveicarija, Ramygala–Berčiūnai, and Berčiūnai–Joniškėlis. Once these tenders are awarded and construction begins, activity will be underway across approximately 114 km of the planned route in Lithuania, signalling a sustained period of development across the rail sector.

Conclusion

The awarding of the construction contract for the Šėta–Ramygala section of the Rail Baltica project represents a tangible step forward in this ambitious initiative. With HISK’s experience, the project is well-positioned for success. The project will also generate substantial work throughout the wider Lithuanian construction industry, resulting in both short-term economic benefits, while simultaneously positioning Lithuania as a central node within the European rail network. The successful implementation of the Rail Baltica project holds significant implications for the rail sector in Lithuania and the wider Baltic region. The integration with the European standard gauge will increase transport capacity and efficiency, boosting regional trade and economic growth. The commitment to environmental sustainability and noise reduction demonstrates a forward-thinking approach. The expected completion date in the final quarter of 2027 points to the ongoing expansion of the Rail Baltica infrastructure, which will change the outlook for rail transport in the region for years to come.

Company Summary

HISK (formerly Panevėžio keliai) is a prominent infrastructure contractor based in Panevėžys, Lithuania, with a long and established history dating back to 1965. The company specializes in large-scale civil engineering projects, including railway infrastructure, road construction, and other public works. HISK’s extensive experience and expertise in the Baltic region make it a key player in projects like Rail Baltica, where its ability to deliver complex infrastructure solutions is crucial.