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13 January 2025

Daily Newsletter

13 January 2025

YIT chosen for Finland’s Turku tramway depot development phase

The implementation phase will proceed based upon the Turku City Council's investment decision later this year.

aranyamondal January 13 2025

The Turku Tramway Alliance has selected construction company YIT to oversee the development phase of the new tramway depot and power supply stations for the Port of Turku-Varissuo line in the country.

YIT will manage the planning process for the depot and power supply stations.

The company will focus on developing cost-effective building solutions and establish a target and roof price for the construction in collaboration with the Tramway Alliance body.

The main clients of the Turku Tramway Alliance include Turun Raitiotie and the City of Turku, with service providers such as NRC Group Finland, GRK Suomi, Ramboll Finland, and Sweco Finland contributing to the project.

The Turku Tramway Alliance will decide on the implementation phase after the development phase concludes.

This decision itself depends on the Turku City Council's investment decision in late 2025.

The alliance has set a preliminary target budget of approximately €30m ($30.64m) for the depot and power supply stations, with the exact amount to be formally finalised during the development phase.

NRC Group Oy Turku Tramway Alliance project manager Kari-Pekka Lumme said: “We chose a collaborative procurement model for acquiring building construction, so that we can use the expertise and cost knowledge of building construction and technical services as early as possible for the Turku Tramway Alliance.

“In the tendering process, YIT stood out with the company's and key personnel's strong track record in depot construction and its capabilities for cooperative implementation.”

YIT has previously contributed to the planning and construction of the Tampere tramway, its depot and extension, as well as the Helsinki light rail line Raide-Jokeri and its depot, both in Finland.

YIT Infra segment head Aleksi Laine said: “We are delighted to start cooperation with the Turku Tramway Alliance on the development phase of depot and power supply stations. The experience we have gained from recent depot projects is a clear strength for us in this project, as depots are similar in scope and functions to the depot planned for the Turku tramway.

“In addition, we will bring our strong experience in successful cooperative project management contracts and their development work in densely built urban areas to the development phase.”

Russia Construction Market Overview

Per our analysis, the growth of the Russian construction industry is expected to slow in real terms, from 6.6% in 2023 to 2.4% in 2024 and further to 0.4% in 2025, due to high inflation, interest rates, and the effects of escalating Western sanctions. Over the remainder of the forecast period, the construction sector is expected to grow at an annual average growth rate of 2.2% between 2026 and 2028, supported by increasing investments in oil and gas, transport infrastructure, and renewable energy projects.

Russia Construction Market Overview

Per our analysis, the growth of the Russian construction industry is expected to slow in real terms, from 6.6% in 2023 to 2.4% in 2024 and further to 0.4% in 2025, due to high inflation, interest rates, and the effects of escalating Western sanctions. Over the remainder of the forecast period, the construction sector is expected to grow at an annual average growth rate of 2.2% between 2026 and 2028, supported by increasing investments in oil and gas, transport infrastructure, and renewable energy projects.

Russia Construction Market Overview

Per our analysis, the growth of the Russian construction industry is expected to slow in real terms, from 6.6% in 2023 to 2.4% in 2024 and further to 0.4% in 2025, due to high inflation, interest rates, and the effects of escalating Western sanctions. Over the remainder of the forecast period, the construction sector is expected to grow at an annual average growth rate of 2.2% between 2026 and 2028, supported by increasing investments in oil and gas, transport infrastructure, and renewable energy projects.

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