Railway Funding, High-Speed Rail Development and the Future of Czech Industry
The PROFIŽEL and VRT CZ partners’ meeting addressed current issues surrounding railway infrastructure funding, organisational changes at Správa železnic and opportunities for Czech companies.
On 2 September 2026, the PROFIŽEL and VRT CZ partners’ meeting took place at The Julius Prague hotel. The main topics included current developments in the Czech railway sector, infrastructure investment funding for 2027, the preparation of high-speed rail lines and opportunities for European funding. Particular attention was also paid to the position of the Czech railway industry and its involvement in planned investment projects.
The meeting provided partners with an overview of important changes that will shape Czech railway infrastructure and the operating environment for companies in the sector in the coming years.
Organisational Changes at Správa železnic
One of the main items on the agenda was the planned restructuring of Správa železnic. From October 2026, two construction administrations are expected to be established: East and West. Further changes will affect the regional directorates, whose number is due to decrease from six to three in January 2027.
For the preparation of high-speed rail lines, it is important that this agenda remains part of Správa železnic’s standard project and management structure. The organisational changes therefore primarily represent a redistribution of responsibilities for project preparation and construction delivery.
Another topic discussed was the settlement of property rights between Správa železnic and České dráhy. As part of this transaction, approximately 3,940 plots of land covering a total area of 44 million square metres were transferred. Subsequent assessments also identified around 100 locations that could be of interest for future use.
High-Speed Rail: Focus on Preparation and European Funding
A significant part of the meeting focused on the current status of high-speed rail preparation. According to information presented at the meeting, optimisation of the planned network and technical solutions had reduced the original estimated investment cost from approximately CZK 1.2 trillion to around CZK 600 billion.
According to the outlook presented at the time, work in 2027 was expected to focus primarily on continuing project preparation, including the Moravian Gate section and connecting sections. Further progress will also depend on the availability of funding and opportunities to use European grant programmes.
European funding is one of the key conditions for the continued development of high-speed rail. The European Commission is preparing new frameworks and instruments to support the development of the European network, cross-border connections and investment in modern infrastructure. The funding model under consideration combines European funds, national budgets, loan financing and private capital through public-private partnership (PPP) projects.
The 2027 Budget as a Key Prerequisite for Investment
Discussions also focused on railway infrastructure funding for 2027. At the time of the partners’ meeting, Správa železnic’s budget had not yet been definitively approved. Several working scenarios were discussed, ranging from CZK 74.4 billion through a compromise option of approximately CZK 77–78 billion to the original request of around CZK 83 billion.
It was noted that the level of available funding would directly affect the ability to launch new investment projects, continue ongoing projects and maintain the pace of high-speed rail preparation. For suppliers, the total volume of investment is therefore important, as are its predictability and continuity.
Other areas under review included railway electrification and the deployment of the ETCS train control system. According to the information presented, the electrification plan through 2033 envisages approximately 590 kilometres of railway lines. In terms of ETCS, the focus is primarily on main corridors and key routes, while simpler and more cost-effective solutions are also being discussed for less heavily used sections.
Czech Companies as Part of the Future of Rail
At the meeting, PROFIŽEL and VRT CZ also outlined their activities aimed at supporting the Czech railway industry. A key priority remains creating the conditions for Czech companies to participate actively in the preparation and delivery of railway investment projects and compete successfully in an open market.
In the preceding period, an open letter addressing the position of Czech industry had been sent to government representatives. Subsequent discussions received largely positive responses and opened the door to further dialogue on the role of domestic companies in developing the railway sector.
The aim of PROFIŽEL and VRT CZ is not to confront the project investor, but to advocate for the legitimate interests of the Czech railway industry and highlight its contribution to the Czech economy, employment and public finances. The key challenge is to strike a balance between an open market and conditions that enable Czech companies to participate in major projects and develop their expertise over the long term.
A Shared Goal: A Strong and Competitive Railway Industry
The partners’ meeting confirmed that the Czech railway sector faces significant investment, organisational and technological changes. Alongside the preparation of high-speed rail lines, the modernisation of existing infrastructure, electrification, ETCS deployment and the development of other technologies remain essential priorities.
For Czech railway companies, it will be important to monitor investment plans, prepare for upcoming tenders in good time and strengthen their technical capabilities and cooperation with one another.
PROFIŽEL and VRT CZ will continue to support the involvement of the Czech railway industry in the development of modern railway infrastructure and work towards creating an environment in which domestic companies can grow sustainably and remain competitive in international markets.
