Railway Construction Enters Its Golden Era

Railway Construction Enters Its Golden Era

Railway infrastructure across Europe is entering a new era of transformation, with billions of euros being channelled into new construction and modernization projects. At the heart of this rail renaissance stands Austria’s national railway company, ÖBB, and the international construction powerhouse PORR, both of which are executing critical developments in Austria and beyond. As countries prioritize sustainable, efficient transportation networks, these investments reflect a continent-wide commitment to modernizing mobility.

Multibillion-Euro Rail Investments Across Europe

The financial figures alone speak volumes about the scale of these efforts. ÖBB is investing a staggering EUR 3.5 billion into Austria’s rail network in 2025. In neighbouring Germany, EUR 1.7 billion is being directed toward expanding rail infrastructure, while Poland’s ambitious development plans call for EUR 3.6 billion in rail-related expenditures. The Czech Republic, too, is ramping up its railway modernization efforts, with EUR 1.46 billion earmarked for 2025 and an anticipated increase to EUR 2 billion in 2026.

These efforts are not isolated events but are part of a broader European infrastructure boom. According to Euroconstruct, Polish railway construction alone is expected to grow by more than 35% by 2027, underlining the significant momentum behind this sector. As part of this continent-wide strategy to modernize transportation, rail is clearly playing a central role, driven by the push for lower-emission, high-capacity alternatives to road and air travel.

PORR AG, a leading European construction firm headquartered in Vienna, is capitalizing on this momentum and playing a vital role in delivering these complex rail projects. “In Europe, the rail network will be significantly expanded in the coming years as part of the general infrastructure expansion. PORR is at the forefront here,” says Karl-Heinz Strauss, CEO of PORR. “We are already successfully utilising our patented Slab Track Austria system in numerous countries.”

Signature Projects in Austria

Austria, PORR’s home market, is the stage for some of the company’s most ambitious railway undertakings. As part of a consortium, PORR is delivering critical components of two major tunnels that will serve as core links in the country’s future high-speed network:

  • Koralm Tunnel: PORR is equipping 33 kilometres of this long-distance tunnel with its proprietary Slab Track Austria system and is also responsible for installing the entire railway technology setup.
  • Semmering Base Tunnel: Another engineering feat, this tunnel will see 27.3 kilometres of Slab Track Austria installation along with full-scale railway systems integration.

But perhaps the most notable project is the Brenner Base Tunnel, one of Europe’s flagship infrastructure projects and the largest rail construction site in Austria. PORR is building the 25.2-km-long Pfons–Brenner section at a cost approaching EUR 1 billion. Once completed, the Brenner Tunnel will form a vital north–south corridor across the Alps, linking Austria and Italy and greatly reducing heavy freight on alpine roads.

Germany’s Mega Rail Project: Stuttgart 21

In Germany, Stuttgart 21 takes the spotlight as the country’s most complex and ambitious railway infrastructure project. This vast development will transform Stuttgart’s main train station into an underground through-station, connected by a unique system of tunnels beneath the city—nicknamed the “tunnel spider.”

PORR has played an instrumental role in Stuttgart 21, supplying and installing 34.5 kilometres of its Slab Track Austria system. The company was responsible for the planning, delivery, and execution of the track system across multiple tunnel sections:

  • Between the new Stuttgart Hauptbahnhof and the Filderebene
  • Toward the districts of Ober- and Untertürkheim

Commenting on Germany’s infrastructure outlook, Strauss notes: “Germany is a market in which there will be significant activity in road construction, railway construction, and building construction. This will one day be the largest construction site in Europe.”

In order to strengthen its presence in this critical market, PORR has also pursued strategic acquisitions. Most notably, it acquired a 75% stake in Knape Bahnbau GmbH, a medium-sized railway construction firm in southern Germany. This move enhances PORR’s regional capabilities and supports its ambitions to play a central role in the long-term development of the German rail sector.

Expansion in Poland, Romania, and the Czech Republic

Beyond the German-speaking countries, PORR has also established a strong footprint in Central and Eastern Europe, particularly in Poland, Romania, and the Czech Republic.

In Poland, PORR is seen as one of the most active and experienced companies in the railway construction sector. It has been selected to lead several modernization projects by PKP PLK, Poland’s national rail infrastructure manager. These include:

  • The LK354 Poznań–Piła railway line
  • The LK356 Wągrowiec–Gołańcz line

Poland is also the site of a major first: the use of Slab Track Austria in tunnelling, specifically in the central Polish city of Łódź. This marks a significant technical milestone, showcasing the adaptability of the system for varied rail infrastructure needs.

In Romania, PORR secured a contract worth EUR 428 million to modernize a critical stretch of railway from Craiova to Caransebeș (Lot 5). This 32.6-kilometre line will be double-tracked and include:

  • 18 bridges
  • 54 culverts
  • The renovation of the Rachitoberg Tunnel (496 m)
  • The construction of a new double-track tunnel called Poarta I (1,279 m)

Six railway stations along the route will also undergo full renovation and modernization.

Additionally, PORR is actively contributing to urban transport in Romania. On behalf of Bucharest’s city council, the company is modernizing a significant portion of tram line 40, in a contract valued at approximately EUR 150 million.

Meanwhile, in the Czech Republic, PORR continues to gain ground with multiple contract wins. The company’s order backlog for 2026 in the country already surpasses EUR 100 million, highlighting its increasing relevance in the region.

Slab Track Austria: Innovation in Rail Technology

A cornerstone of PORR’s success in railway construction lies in its Slab Track Austria system, a modular, concrete-based rail superstructure designed for high-speed rail and heavy-load capacity. Unlike traditional ballasted tracks, which use gravel and sleepers, Slab Track Austria provides a rigid concrete base for rail installation.

The advantages are considerable:

  • Extended service life due to reduced wear and tear
  • Greater precision and stability in rail alignment
  • Lower vibration and noise emissions, making it suitable for urban environments and tunnels

As high-speed rail gains traction across Europe, such innovations are becoming increasingly valuable. “What we demand from mobility is becoming more challenging,” explains Strauss. “We want to be faster and faster, connect more and more routes, and travel sustainably at the same time. Slab Track Austria is an innovative Austrian invention that provides answers to the requirements of modern transport infrastructure.”

A Pan-European Vision for Future Rail

Through sustained investment, cross-border collaboration, and advanced engineering solutions, Europe is laying the groundwork for a new era of rail connectivity. With ÖBB and PORR at the helm of this transformation, Central and Eastern Europe are rapidly becoming a benchmark in railway modernization.

As billions of euros continue to be funnelled into rail infrastructure, and as governments prioritize greener, faster, and more reliable transportation options, companies like PORR are not only delivering on ambitious infrastructure goals—they’re helping shape the future of European mobility.

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