South-East Europe countries plan billions in cross-border rail investment, but a major funding gap remains

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Railway Pro•October 16, 2026•10 min read

Railway

The countries in South-East Europe – Romania, Bulgaria and Greece – have agreed on a joint action plan to accelerate cross-border rail transport projects linking the Black Sea with the Aegean Sea and, beyond that, the wider European transport network. Beyond the political commitment, the document sets out a portfolio of rail investments with different implementation deadlines, varying levels of project readiness and substantial funding requirements.

The action plan was signed on 9 October 2026 and provides an overview of priority projects, estimated costs, secured funding and the amounts that still need to be raised. It also highlights an important distinction between recognising a project as a strategic priority and being able to turn it into a completed investment within a short timeframe.

According to the document, the portfolio comprises 30 rail projects, with total investment requirements exceeding EUR 16 billion. Secured funding amounts to EUR 2.95 billion, while more than EUR 11.4 billion remains unfunded. Other projects have yet to receive cost estimates, and no funding sources have been identified for them.

The action plan builds on an agreement signed by the three countries in December 2025, under which they committed to developing a reliable and interoperable transport network in south-eastern Europe.

The plan focuses on the European Transport Corridor linking the Baltic Sea, the Black Sea and the Aegean Sea (BBA). It connects the rail networks of Greece, Bulgaria and Romania with other European transport corridors, including the Rhine–Danube Corridor. The three countries have complementary roles along this north–south route, and continuous cross-border infrastructure is essential for both freight and passenger transport.

The document identifies three main axes:

These routes are at different stages of development, and the plan does not assume that all connections already meet the required standards. Some projects involve upgrading existing infrastructure, others require new construction, while certain links need further studies.

The objective of cross-border rail investment is not simply to increase speeds on individual sections, but to create an integrated international rail network. To function effectively, this requires compatible infrastructure, electrification, interoperable signalling systems and the ability to operate trains across national borders without technical or administrative interruptions.

The plan also addresses military mobility alongside civilian transport through the development of dual-use rail infrastructure. The network must meet resilience and capacity requirements, although the corridor’s development is not limited to military objectives. Connections to ports and multimodal terminals could also facilitate the transfer of freight between rail and maritime transport.

For Romania, the six projects included in the action plan represent investments worth more than EUR 5.3 billion, including the road component of the proposed combined Giurgiu – Ruse bridge. Of this amount, EUR 1.1 billion has already been secured, leaving a funding gap of approximately EUR 4.2 billion.

Romania’s contribution to the Baltic Sea – Black Sea – Aegean Sea transport corridor includes investments in rail connections with Bulgaria, Ukraine and the Republic of Moldova. Priorities include increasing capacity for crossing the Danube, modernising links with the Bulgarian rail network and improving connections towards Romania’s eastern borders.

One of the most significant projects is the construction of a new road and rail bridge over the Danube between Giurgiu and Ruse. The investment is estimated at EUR 1.57 billion, with the feasibility study expected to be completed by 2027 and construction scheduled for completion by 2032.

Only EUR 6.9 million of the total cost has been secured through the Connecting Europe Facility (CEF), leaving a funding gap of approximately EUR 1.5 billion to be covered by Romania and Bulgaria. The estimate includes both rail and road infrastructure, with an indicative allocation of 60% for rail and 40% for road.

The new bridge is intended to accommodate expected traffic growth and address the limitations of the existing infrastructure. However, its benefits for cross-border rail transport will also depend on the construction of the approach lines and their integration into the rail networks of both countries.

A separate project involves electrifying the Bulgarian rail infrastructure connecting Ruse station with the existing bridge. The project is estimated to cost EUR 4.15 million, has no secured funding and is scheduled for 2030.

On the Romanian side, upgrading the Bucharest – Giurgiu connection, including the Jilava – Giurgiu Nord – border section (Bulgaria), is estimated to cost EUR 925 million. The project is listed as fully funded, including EUR 423 million from the CEF, with completion expected around September 2028.

Another important connection with Bulgaria is the Calafat – Craiova line, which requires modernisation at an estimated cost of EUR 730 million. No secured funding is listed for the project. Implementation is divided into two phases, with deadlines in 2028 and 2034 respectively.

The first phase is intended to bring the infrastructure into compliance with TEN-T standards, excluding speed requirements. Modernising this link is important for the continuity of the Vidin – Calafat – Craiova rail axis, although completion of the wider corridor also depends on planned works on the Bulgarian side.

To the north-east, the plan includes the modernisation of the 429 km Ploiești – Pașcani – Vicșani line, which would improve rail connectivity with Ukraine.

The project is estimated to cost EUR 1.7 billion, of which EUR 121 million has been secured through the CEF. The remaining funding requirement stands at EUR 1.6 billion, and implementation is planned for after 2030.

The project is to be delivered in stages. The first phase aims to bring the infrastructure into compliance with TEN-T standards, excluding speed requirements and the implementation of the European Rail Traffic Management System (ERTMS).

The modernisation of the Pașcani – Ungheni connection is also planned for after 2030. The 97 km line provides a rail link with the Republic of Moldova.

The investment is estimated at EUR 388 million, including EUR 68 million secured through the CEF. Funding sources must still be identified for the remaining EUR 320 million.

In Bulgaria, rail investment priorities focus on developing the Sofia – Vidin axis, which connects to Romania via the Vidin – Calafat bridge, and improving connections with Greece. These projects are important for maintaining rail continuity between the Aegean Sea, the Danube and Central Europe. However, the projects included in the plan have substantial funding requirements, and some sections do not yet have secured financing.

Modernisation of the Sofia – Vidin route is divided into three projects with a combined estimated value of EUR 1.77 billion.

The 84.3 km Mezdra – Medkovets section is estimated to cost EUR 985.5 million, with no funding secured. The 45 km Medkovets – Sratsimir section has an estimated cost of EUR 459 million. Of this amount, EUR 198 million has been secured through the Connecting Europe Facility, leaving a funding gap of EUR 261 million.

The third section, Sratsimir – Vidin, covers 21 km and requires an investment of EUR 323 million. The plan does not identify any secured funding for this project.

The financial scale of these projects demonstrates that upgrading the Sofia – Vidin axis will require substantial resources, particularly for sections where funding has yet to be identified. From a regional corridor perspective, however, these investments cannot be considered in isolation from the infrastructure at the Romanian border. The plan also includes the modernisation of the Calafat – Craiova line, as outlined above.

Another priority is the rail connection between Bulgaria and Greece, including the modernisation of the line from Sofia towards the Greek border and the development of links between Thessaloniki and Sofia, as well as between Alexandroupoli and Svilengrad via Pithio and Ormenio.

Greece aims to complete the cross-border sections by 2029. The next phase, including electrification and signalling systems, must be funded and implemented by 2030. In Bulgaria, modernisation is expected to proceed in stages, requiring close coordination between the two countries to ensure interoperability.

In Greece, rail investment is concentrated mainly in the north of the country and on improving connectivity with ports.

One major project is the construction of the new 31.7 km Nea Karvali – Toxotes railway line, estimated to cost EUR 269 million. Of this amount, EUR 213 million has been secured, leaving a funding gap of EUR 56 million. Completion is planned by the end of 2030.

The new line forms part of wider efforts to develop northern Greece’s rail infrastructure in a region that is important for connections between ports and the inland transport network.

Around Alexandroupoli, the plan also includes a project to realign the railway and connect it to the port over a distance of 7 km. The investment is estimated at EUR 1.5 million, but no funding has been secured. The project remains at the study stage, with an indicative deadline of December 2029.

By contrast, works on the Inoi – Thessaloniki line, estimated to cost EUR 24.5 million, are fully funded, with completion scheduled for June 2027.

These investments have significance beyond national rail networks. The port of Alexandroupoli and rail connections in northern Greece could help develop the route towards Bulgaria, the Danube and Romania, provided that connecting lines offer sufficient capacity and technical compatibility. At the same time, upgrading the Thessaloniki – Sofia connection could strengthen the corridor’s western axis.

The joint plan emphasises the coordination of design, funding and implementation so that national investments contribute to a coherent cross-border rail corridor, providing uninterrupted connectivity between the Aegean Sea, the Danube and the Black Sea.

Projects across the three countries, including connections towards Ukraine and Moldova, are divided into five categories and organised around the three main axes. Their classification reflects their level of maturity and readiness for implementation.

Highest-priority projects at an advanced stage of preparation. This category includes 11 rail projects with total investment requirements exceeding EUR 8.4 billion. Of this amount, EUR 2.24 billion has been secured, leaving a funding gap of EUR 6.19 billion.

These projects represent the most advanced group in terms of preparation, although substantial additional financing is still needed.

Priority projects at an advanced stage of maturity. This category comprises five projects with a combined estimated cost of EUR 856.8 million. Of this total, EUR 538.4 million has been secured, leaving EUR 318.4 million still to be funded.

These projects have a relatively high level of maturity, but some financing gaps remain.

Priority projects at an earlier stage of maturity. This category includes 11 rail projects with a combined estimated value exceeding EUR 5 billion. Secured funding amounts to EUR 169.4 million, while the remaining funding requirement stands at approximately EUR 4.9 billion.

The limited amount of secured financing highlights the challenge of moving these projects towards implementation.

Projects relevant for future assessment. This category includes two rail projects. The proposed 174 km high-speed railway between Thessaloniki, Amphipolis and Nea Karvali has an estimated investment requirement exceeding EUR 1.4 billion, with no funding currently allocated.

The second project is a cross-border link between Greece and Bulgaria involving the doubling of the Alexandroupoli – Ormenio – Svilengrad railway line. Completion is envisaged for 2040, but neither the investment cost nor a funding source has yet been identified.

Projects for future assessment or outside the corridor/TEN-T network. This category includes one project in Greece: the construction of a double-track railway between Thriassio and Sfigga, covering 46 km. The project is estimated to cost EUR 600 million, with no secured funding currently identified.