Uncertainties in the operating environment

The development of the Finnish rail transport market has been positive in many ways. The operating environment has stabilised after the COVID-19 pandemic, and the number of journeys and customer satisfaction in long-distance traffic have been at a record high in recent years. VR's profitability has improved significantly. 

The operating environment will undergo a significant reform on the basis of the Government Programme. The aim of the reform is to increase competition and make it easier to access the market. The Finnish Transport and Communications Agency Traficom is currently preparing to carry out competitive tendering for publicly funded passenger rail transport.  

However, there are still uncertainties in the operating environment of rail transport due to the overall weak economic development and the uncertainty in the global economy. Market uncertainty, increased competition in both road and rail transport and, in particular, reduced demand from the forest industry are affecting the volumes and profitability of rail logistics. Extensive track work and electric railway disruptions occasionally affected the punctuality of passenger rail transport. 

The long-term outlook for rail transport is threatened by the lack of state appropriations for both basic railway maintenance and new railway projects. The amount of the maintenance backlog of the state-owned railway network has increased to approximately EUR 1.7 billion. 

The changed security policy environment of Finland forces us to develop transport connections from the perspective of security of supply and military mobility. It is important to connect Finland more closely to the West in terms of transport.