Public transport in Greater Helsinki Area to invest heavily in future

Western Metro and unmanned operation first cost items

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According to the recent investment plan of Helsinki City Transport (HKL), covering the period of the years 2007 to 2011, the financing planned for the city's public transport is to amount to nearly EUR 350 million.
      The improvement of the public transport system in the Greater Helsinki Area involves several projects, among which the automation of the Metro as well as the planned extension of the Metro to the west into Espoo are the first on the list of priorities.
     
In the course of the next decade, the need for funds will increase still further. An extension spur of the Metro north through the district of Töölö and on to Helsinki-Vantaa Airport is another project that is being planned. Further plans include a tram line to the new residential areas of Jätkäsaari and Sompasaari, on the western edge of the centre of Helsinki, and a second high-capacity "Jokeri-line" to be operated through a tunnel below the Keskuspuisto park. Furthermore, HKL calculates that new trams and Metro carriages should be purchased.
      Matti Lahdenranta, the Managing Director of HKL, estimates that the annual investment level of the public transport in the capital city should be raised by EUR 25 million.
     
Currently, alternative methods of financing are being examined, while no decisions have been reached as yet. Managing Director Lahdenranta regards the financing based on an annual budget as too inflexible.
      In comparison, Lahdenranta mentions the Helsinki-Lahti motorway, which was built using private funding.
      "It should be possible to continue the construction of roads according to a sensible schedule - not just as long a stretch per year as the budget allows", Lahdenranta argues.
     
Also new rails will cost tens of millions, let alone the construction of the Töölö Metro line, which will hopefully be started around the mid-2010s.
      Finance Director Tapio Korhonen of the Economic and Planning Centre of the City of Helsinki, stresses that important transport investments are linked with the solutions made for entire city districts. Consequently, they cannot be tied to customary budget frames.
      Korhonen would be willing to combine various methods of financing.
      "There are many possibilities. The City could take a loan, or the construction could be financed by private funds, while part of the funding could be tied to the budget. For example, the European Investment Bank offers advantageous loans for this kind of project", reports Korhonen.
     
Further sources of income, mentioned by Korhonen, were the land areas in Vuosaari, which could be sold to developers after the new purpose-built harbour is completed, and part of the money derived could be invested in the public transport services.
      "Another key factor is that the government's contribution to the transport projects in the Greater Helsinki Area should be as high as it is elsewhere in the country", Korhonen argues.
     
Also the ticket prices will be looked into. HKL is a public utility company, and half of its budget is covered by ticket revenues. "The acquisitions put pressure on potential increases in ticket prices", Korhonen anticipates.
      Helsinki's Mayor for Public Works and Environmental Affairs Pekka Sauri notes that while no decisions on the financing have been made as yet, one thing is clear. "Ultimately, the money comes from the taxpayers."


Previously in HS International Edition:
  Helsinki City Council decides to favour automation of Metro (18.5.2006)
  Helsinki wants 20-40 new trams early next decade (13.3.2006)

Links:
  Helsinki City Transport
  City of Helsinki Economic and Planning Centre
  European Investment Bank

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