Croatia’s Largest Ever Railway Contract Awards EUR 677 Million for Dugo Selo to Novska Railway Line

Why It Matters

The project lifts Croatia’s rail capacity to European standards, enhancing freight competitiveness and regional connectivity. It demonstrates how EU cohesion funding can unlock large‑scale infrastructure in the Western Balkans.

Key Takeaways

• Afcons wins €677 M (≈$738 M) Dugo Selo‑Novska rail contract
• Double‑track, electrified line will support 160 km/h speeds
• EU funds €289 M (≈$315 M) via CEF and €140.7 M (≈$153 M) national plan
• Project enhances freight link from Rijeka port to Serbian border
• Part of Croatia’s €6 B (≈$6.5 B) rail investment by 2030

Pulse Analysis

The Dugo Selo‑Novska upgrade marks a turning point for Balkan rail infrastructure, aligning Croatia with the EU’s TEN‑T Mediterranean Corridor objectives. By tapping €289 million from the Connecting Europe Facility and additional national recovery funds, the project illustrates how EU cohesion mechanisms are catalyzing long‑delayed upgrades that were previously fiscally out of reach. This financing model is replicating across the region, as seen in Serbia’s Novi Sad‑Subotica line and Slovenia’s Divača‑Koper upgrades, creating a contiguous high‑speed freight backbone across Southern Europe.

Beyond the funding narrative, the technical scope reshapes operational capacity. Double‑tracking and full electrification will raise line speeds to 160 km/h, cut travel times, and eliminate bottlenecks caused by level crossings. The reconstruction of 16 stations, addition of a new stop, and installation of modern signalling and telecom systems will improve safety and reliability for both passenger and freight services. With noise barriers and upgraded energy subsystems, the corridor meets contemporary environmental and sustainability standards, positioning it as a model for future EU rail projects.

Strategically, the line strengthens the logistics corridor linking the Port of Rijeka, Croatia’s primary maritime gateway, to the inland rail network and onward to the Serbian border at Tovarnik. Faster, higher‑capacity rail freight reduces reliance on road transport, lowering emissions and transport costs for exporters. As part of a broader €6 billion (≈$6.5 billion) national rail plan, the project signals Croatia’s ambition to become a competitive logistics hub in Southern Europe, attracting further private investment and reinforcing the EU’s goal of a seamless trans‑European rail network.