Plans Required for the City Council Decision on the Turku Tramway Have Been Published

The final materials published on Monday, 26 January 2026, include the tramway execution plan, an assessment of impacts on municipal finances, and an update to the superbus report, which complements the public transport solution materials. The execution plan includes a cost estimate for the tramway and a construction schedule.

Updated Estimate Presents Realistic Costs  

The updated total cost estimate for the tramway is 465.2 million euros, of which the City of Turku’s share would be approximately 338 million euros. The tramway would be funded by the City of Turku and the Government of Finland, with the state expected to cover around 27 per cent of the total cost. State funding is expected to be confirmed in the next MAL negotiations in 2028.

– The previous cost estimate was based on the general plan, which sets the framework for the project. Based on the concrete planning carried out over the past 1.5 years, we at the Turku Tramway Alliance have been able to calculate a realistic cost estimate to which the constructors are now committed when delivering the project in Turku, says Juha Saarikoski, CEO of Turku Tramway Ltd.

The difference compared to the previous estimate is 108 million euros. The main reason for the increase between the general plan and the execution plan is that the technical scope of construction has now been assessed realistically. Other contributing factors include project components such as commissioning and the post-completion liability period, improved integration with existing street infrastructure, higher-quality design choices, and schedule delays related to the expectation of state funding.

Of the total cost estimate, 421.5 million euros is the alliance’s target cost, which is binding for the Turku Tramway Alliance. Any changes to this amount are jointly paid by all alliance partners.

– In alliance projects, costs are calculated with great precision and care. This is why alliance projects tend to stay within budget or even below it. If costs change, the change occurs at this stage — between the general plan and the detailed implementation plan — not later. We are confident that this budget will hold. That is why private companies are able to commit to construction while carrying their own financial risk, Saarikoski states.

In addition to the tramway infrastructure and street renewal works, the cost estimate for rolling stock procurement has been updated. According to current estimates, tram vehicles would cost 65–75 million euros. The increase is due to vehicles being longer as well as changes in the market situation and rising component prices. If a decision is made to build the tramway, the vehicle procurement will proceed to the tendering phase. The alliance will not participate in the rolling stock procurement, and the state will not contribute to these costs.

Tramways Bring Jobs, Growth and Vitality

Turku would benefit from the tramway in several ways. The construction project would directly create a significant number of jobs in the region, while the decision to build the tramway would accelerate substantial private investments in housing and commercial construction along the route.

– Experiences elsewhere have shown that tramways generate growth and vitality. All residents of Turku benefit from this. A tramway connecting Turku’s growing areas would form the backbone of the city’s development, guiding growth in a controlled and sustainable way while reducing segregation. In the future, one in three residents of Turku would live along the route, and almost one in two would work there, says Tuomas Heikkinen, Chief of Staff at the City of Turku.

According to the tramway’s urban development reference plan, just under half of all construction in the city would be concentrated along the tramway corridor. By 2060, plots along the route would generate nearly 840 million euros in revenue for the City of Turku.

The tramway project is not limited to track construction. It includes a comprehensive renewal of public urban space along the entire 12-kilometre route, redesigned from building façade to building façade. Streets that are outdated in terms of materials and functions would be renewed to meet the needs of present-day and future residents of Turku. Approximately 40 per cent of the project’s total costs would be allocated to street and public space renewal.

– At the same time, we would gain both a stable, high-capacity public transport system that attracts private investment along the route and 12 kilometres of pleasant urban space with new facilities for pedestrians, cyclists and motorists, says Timo Hintsanen, Director of Urban Planning at the City of Turku.

Tramway Accelerates Revenue Growth From Urban Development and Construction

According to a recent assessment of impacts on municipal finances commissioned by the City of Turku, the tramway investment would significantly accelerate the accumulation of revenues from urban development and construction. The assessment was prepared by FCG Finnish Consulting Group.

– The tramway requires a substantial upfront investment, meaning the project would place a burden on the city’s finances particularly in the early years. However, accelerating population growth increases the need for construction and thereby revenue flows from property-related economic activity. Compared to a trunk bus system, these revenue flows would materialise more quickly with a tramway. Nevertheless, given the long review period, uncertainties remain significant, says Valtteri Mikkola, Finance Director at the City of Turku.

Tramway investment costs during 2025–2033 would total approximately 460 million euros, of which the state’s share would be around 127 million euros. For comparison, the City of Turku’s investments during 2017–2024 amounted to approximately 1,015 million euros, and the investment programme for 2026–2029 includes approximately 1,234 million in investments excluding the tramway project.

The assessment covers a 35-year period up to 2060 and takes into account capital costs, property economics, operating costs of transport, as well as the effects of population growth and construction on tax revenues and service structures. The economic impacts of the tramway are compared with those of a trunk bus system.

Report on Superbuses Has Been Updated

To support the City Council’s decision-making, Turku decided in August 2025 to update the report on superbuses that was more than five years old. The update includes a definition of the superbus concept, Nordic experiences of superbus systems, and preliminary assessments of impacts as well as construction and operating costs. The update was prepared by WSP Finland and Welado, the municipal finance impacts were assessed by FCG, and archaeological survey requirements were assessed by Muuritutkimus Oy.

In Turku, a superbus refers to a high-quality system designed to resemble a tramway as closely as possible in terms of functions and features. The route, stops and traffic arrangements would be similar to those of the tramway. The rolling stock would consist of articulated electric buses with two joints.

– The scope and quality of international superbuses systems vary significantly, and there is no uniform definition of a superbus, which makes comparisons difficult, says Juha Jokela, Development Manager.

The preliminary cost estimate for a superbus investment is approximately 241 million euros. The estimate involves significant uncertainties. A binding cost estimate would require a project plan, an execution plan and the competitive tendering of a delivery partner.

According to the superbus report, the superbus would require lower investments than the tramway, but the benefits achieved would also be smaller. The superbus does not provide the same image benefits as a tramway, which would require greater investment in marketing. It would attract fewer private investments, and more slowly, than a tramway, and passenger numbers would be lower. However, construction time would be shorter than for a tramway.