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Helsinki-Tallinn Tunnel Set to Ink Deal with China Railway Group

Infra News - Published on Fri, 12 Jul 2019

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Yle reported that the man behind the ambitious rail project plans to sign a letter of intent with China Railway Group Limited this week. The Finland to Estonia undersea rail tunnel project led by businessman Mr Peter Vesterbacka has taken a step forward. He announced Tuesday that his firm, Finest Bay Area Development, is planning to sign a letter of intent with China Railway Group Limited to carry out the project. CREC specialises in major railroad projects with expertise in underground drilling. We plan to sign a letter of intent with China's CREC, the world's largest building company, this week.

The construction giant has reportedly drilled and constructed more than 18,000 km of railway tunnels in China.

Mr Vesterbacka said that "The expertise is there."

Finest Bay Area Development's current partners - construction firm Ains Group, consulting and engineering company Pöyry as well as construction firm Fira - will continue to participate in the project.

EUR 15 billion from China

The price tag for the project is around EUR 15 billion, which would largely come from a funding deal with a Chinese investment firm. About EUR 12.5 billion of the overall cost would go towards construction. Drilling and constructing the tunnel will take an estimated six years, and the undertaking has been estimated to amount to 20,000 person-years of labour.

The head researcher at market research firm Taloustutkimus, Pasi Holm, said the employment impact estimate sounds about right.

Holm said that "The estimate of 20,000 person years in Finland is the likely estimate, and 6,000 person-years for Estonia's part, is reasonable."

However, Finest Bay Area Development's tunnel project from Helsinki to Tallinn is not the only one of its kind, as the Finnish state is also planning a public sector tunnel effort.

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Posted By : Mohan Sharma on Fri, 12 Jul 2019
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