The Ministry of Infrastructure and Energy and the EU-funded CONNECTA 2 program are developing proposals to award a public service contract for the operation of passenger trains on the national rail network.

Albania is aligning its transport policies with the EU as part of its accession process. A restructuring of state railway company HSH is planned, with the establishment of a vertically-separated infrastructure manager for the 677 km network, according to an article by the Railway Gazette International.

The ministry has commissioned a preliminary market consultation to assess interest in a passenger operating contract and gather feedback so that it can ensure a transparent, competitive, and efficient tendering process.

Operators would have ‘a unique opportunity to enter a growing market with strong government and EU support, offering potential for long-term profitability through public service contracts and future expansion into cross-border services’.

Passenger services would primarily operate on the Durres – Tirana – Tirana International Airport corridor, with potential future extensions to Hani i Hotit on the border with Montenegro and Pogradec on the North Macedonia border. Passenger operations are estimated at 1·1 million train-km in 2026, rising with future extensions to around 4 million train-km in 2036.

Lines are being modernized for 120 km/h operation, with ETCS Level 1 and a possible future upgrade to Level 2. Electrification at 25 kV 50 Hz is planned.

The selected train operator would supply and possibly maintain new, second-hand, or leased rolling stock, and could also be required to collect fares.

The contract length and remuneration model will be determined based on the outcome of the market consultation, taking into account rolling stock lifecycles, mobilization costs and the need to ensure a competitive tender. Tendering is expected to begin in Q3 2025 for operations to start in Q3 2026.

In April, an EU financial package worth Euro 90.5 million for the reconstruction of the Durres–Rrogozhina railway section was signed by the European Investment Bank (EIB Global) and the government of Albania. The funds consist of a Euro 60.5 million EU grant channeled under the Western Balkans Investment Framework (WBIF) and a Euro 30 million EIB Global loan. The agreement was signed by EIB Global Director of the Enlargement and Neighborhood Department, Lionel Rapaille, and Minister of Infrastructure and Energy Belinda Balluku.

The funds will make it possible to modernize a 34 km railway line between the port of Durres and Rrogozhina in central Albania, which lies on the multi-modal Pan-European Corridor VIII connecting the southern Italian ports, Albania, North Macedonia, and Bulgaria. This project is of strategic importance, extending the Trans-European Transport Network (TEN-T), and also as part of the European Union’s Economic and Investment Plan for the Western Balkans. The project is expected to cost a total of Euro 121 million, and Euro 30 million in co-financing will be provided by the European Bank for Reconstruction and Development (EBRD).