Finnish railway market
In Finland, long-distance train traffic and freight train traffic are market-based business and freely competitive. Rail transport applies a free competition model based on EU regulation, where any competing operator can enter the rail market and there may be multiple operators on the same routes. Operators use their own rolling stock or rolling stock leased from commercial actors on the routes.
In addition to market-based rail transport, unprofitable passenger rail transport is maintained in Finland by means of contract traffic purchased by the state and cities.
Market-based traffic:
More than 86% of long-distance train traffic consists of VR's rail transport funded by ticket revenues, in other words, market-based train traffic. Freight rail transport is entirely market-based, and there are other freight rail transport operators in addition to VR.
Contract traffic:
The Finnish Transport and Communications Agency Traficom purchases passenger train services (night train and railbus traffic as well as individual IC/Pendolino services) for routes that are unprofitable due to the low number of passengers. Traficom decides on the service level for contract traffic.
HSL commuter traffic:
HSL has carried out competitive tendering for commuter train services in the capital region and VR has won this tender. HSL procures the transport services and decides on their service level, ticket prices and sales.
Competition in rail transport
The aim of the current Government Programme is to increase competition in rail transport and make it easier for operators to enter the market.
In Finland, the rail transport market for freight transport was opened up to competition in 2007. The beginning of 2021 saw the end of VR's exclusive right to operate passenger services, and since then, all willing operators have had open access to the railway network and the opportunity to enter the Finnish market on the basis of the model of free competition in accordance with EU regulations.
VR takes a positive stance on competition and we are committed to promoting the objective of the Government Programme to increase competition. We want to participate in the growth of the customer-oriented, sustainable and competition-based rail market as a whole that consists of market-based rail transport and publicly funded regional passenger rail transport.
Through its own measures, VR has actively promoted access to the market and increased competition in the sector. VR has promoted competition by, for example, selling some of its own rolling stock. In addition, VR wants to improve the competitive neutrality of the rail market by giving up the stations, private tracks and depot properties it owns. VR will continue to focus on its core rail operator business in passenger and freight rail transport.
Public contract traffic rolling stock company and regional contract traffic
As the competent authority, the Finnish Transport and Communications Agency Traficom is currently preparing a competitive tendering process for passenger rail transport procured by the state for the 2030s.
As part of the implementation of the competitive tendering, a rolling stock company for contract traffic was established in Finland on the basis of the Government Programme and the principles decided on by the Ministerial Committee on Economic Policy. A rolling stock company for contract traffic is a practical prerequisite for carrying out future competitive tendering processes for contract traffic. On 2 March 2026, the rolling stock used by VR in contract traffic was transferred to RailStock Finland Oy.
Similar publicly owned rolling stock companies for contract traffic are used in HSL's commuter traffic and in Sweden, for example.
There is also competition between different modes of transport
In Finland, the market is free in passenger and freight rail transport, tram services, bus services and maintenance. There is also competition between different modes of transport; for example, rail transport is constantly competing with bus transport and passenger cars.