Helsinki – Tallin Tunnel to be Financed by Chinese Investment Company
What would be the longest undersea railway tunnel in the world is planned with finance from a Chinese Investment Company. The tunnel would link the Finnish capital, Helsinki, and Tallin, the capital of their Southern neighbour on the other side of the Gulf of Finland, Estonia .
The FinEstbay Area Development Company, a company based in Helsinki behind the project, has announced that the project is to get backing to the value of $16.8 billion from Touchstone Capital Partners.
They report further that ‘One-third of the funding will come as a private equity investment – giving Touchstone a minority stake in the project – and two-thirds will be debt financing.’ And, “Financial details will be negotiated over the next six months.”
Currently a ferry journey between the two capitals takes more than 2 hours and a flight 30 minutes. A planned train tunnel journey would be 10 minutes faster than the current flight.
Backing for the tunnel project from the two governments and the European Union is yet to be secured. Recently Finland’s Prime Minister, Juha Sipila, said during a visit to Estonia, ‘The long term vision for Finland includes that we can get through the tunnel to Tallinn.’
The two governments produced a report in 2017 which estimated that the 100km tunnel could be operational by 2040 but the new estimates are saying that it could be much earlier.
The project also includes the building of an artificial island 15kms off the Finnish coast.
Source and graphics FinEstbay Area Development