Tram alliances in recent years have often been under budget and completed ahead of schedule. In Vantaa, the city government will have to decide on updates to the tram project plan on Monday. Will the tram miracle be repeated in Vantaa?
Vantaa is set to be the next new tram city, but the project's costs and the location of the terminal 1,5 kilometers from the airport are causing concern. The target price for the tram project is 750 million euros. Savings have already been sought along the route; for example, moving the airport's terminal further from the terminal resulted in a calculated saving of 25 million euros.
According to information from Helsingin Sanomat (October 24, 2025), potential savings accumulated during the project will be reviewed as early as 2027. If there is room for maneuver in the financing at that time, the parties to the tram alliance will consider extending the line closer to the airport terminal building.
“In the context of the Vantaa project as a whole, 25 million euros does not seem like a sum to throw in the towel. The tram will serve for decades, even a hundred years. In light of previous projects, the alliance prices have also ultimately been ceiling prices, which have often been undercut along the way when solutions have been sought and found together. The conditions for a better stop location are good, as long as the alliance is allowed to flourish,” Deputy CEO of the Construction Industry RT Paavo Syrjö evaluate.
This is how previous tram alliances came to be – giving hope to Vantaa
The costs of similar, previous tram alliances have been understated by 3–15 percent. The first phase of the Tampere tram was completed ahead of schedule and 30 million under budget, the second phase 7,5 million under target. The Jokeri light rail in the Helsinki metropolitan area was completed 10 months ahead of schedule and 4 million under budget. The Kalasatama to Pasila project was completed on schedule and within budget.
"In the alliance model, a slice of the money saved also goes to the project partners through the bonus procedure. This creates a significant incentive to seek the most cost-effective solutions. Not everything has been seen yet regarding the Vantaa project," Paavo Syrjö believes.
An alliance is a construction contract format in which the client, designers and builders work in the same project organization and have a common goal. Responsibility, risks and potential savings are shared. The model has increased transparency, improved the flow of information and encouraged a solution-oriented approach in several infrastructure projects. When all the expertise on the construction site is at the same table at all times, decisions are made agilely. The builders' practical experience is included from the beginning, increasing understanding of costs.
The button project will rain on the city's shoulders almost immediately
RT encourages Vantaa's decision-makers to look boldly forward, as the tram project will begin to produce concrete benefits in just a few years.
"Now, not only are rails being built in the city, but a major public transport project is the engine of growth and vitality for the entire region. The tram also brings income to Vantaa: income from land sales and rentals, as well as contractual compensation for land use. The second largest revenue item consists of property, community and income taxes. The income is used to finance the tram and provide services for the growing city," says Chief Economist Jouni Vihmo says.
Previous examples prove that new tram lines create the basis for bold urban development quickly and efficiently. Public transport passenger numbers have started to grow. In 2024, more than 16 million tram trips were made in Tampere – clearly exceeding forecasts. Based on the figures published by the city, it is estimated that more than 60 million tram rides have been taken in just over four years.
"The millions and months saved in projects are a big deal, because a project that was quickly put into action starts to pay off for the city almost immediately. If the value of ticket revenue and indirect benefits related to land use, housing construction and business activities is calculated at 3 euros per tram ride, the new tram city of Tampere has already recouped benefits of at least 180 million euros," Vihmo reflects.
According to Vihmo, the economic situation is now helping those making decisions about construction projects in an exceptional way. Construction is booming, cost levels have come down, competition is fierce and experts are available.
“Trams are the backbone of modern cities – they connect residential areas, workplaces and services in a sustainable way, spinning growth around them. Now, if ever, is a good time to fix the backbone.”
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