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The Albanian city of Durrës has witnessed the rise and fall of empires. From Roman legions to crusading knights, all recognised the importance of this major seaport. Today, it is a key hub along Corridor VIII — a 1 500-kilometre transport network connecting the Adriatic and Black seas that runs through Italy, Albania, North Macedonia and Bulgaria. This corridor is part of a larger European transport project that is improving economic connections across the continent.

Albania’s railways, however, have suffered from decades of underinvestment, with limited service for passengers and freight. Today, most travellers use cars and most shipping is done with trucks. This causes congestion and pollution, especially in coastal cities like Durrës.

“Both passenger and freight rail service are barely operational in Albania, with only a few sections in use,” says Denis Jakubik, an EIB Advisory project manager.

The railway from Durrës to Rrogozhinë, located in central Albania, will be restored after receiving financial and technical assistance from the European Investment Bank.

More appealing rail travel

This rail project received a €60.5 million grant from the European Commission under the Western Balkans Investment Framework and a €30 million loan from the European Investment Bank that was signed in April 2025An additional €30 million loan will be provided by the European Bank for Reconstruction and Development. About 34 kilometres of rail will be revamped, including electrification, signalling and telecommunication systems. Four new railway stations will be built, including a new stop at Plazh serving the Albanian Riviera.

The improvements will make rail travel more appealing to millions of people annually, encouraging a shift to greener transport. The trains run on electricity, which is important for seaside cities such as Durrës, which is trying to promote ecotourism. State-of-the-art signalling and telecommunication systems will enhance the safety, speed and reliability of train travel.

"This project will create new jobs, enhance trade and improve connectivity,” Kaja Kallas, the European Union's foreign policy chief, said at the project’s signing ceremony in Tirana in April.

Kaja Kallas, the European Union's foreign policy chief, at a signing ceremony for a project that will restore a vital rail link in Albania.
Photo credit: @ Delegation of the European Union to Albania

Reducing traffic on saturated roads

"Over the past 20 years, the Albanian government has invested heavily in roads, partly with finance from the European Investment Bank. However, the roads cannot keep up with growing demand," says Piers Vickers, a lead economist at the Bank.

“Without a functioning rail system, cities like Tirana face mounting congestion and pollution,” Vickers says. “Public transport in the capital is largely bus-based, and while it moves a lot of people, it’s insufficient for a city of its size.”

In total, about 150 kilometres of outdated railways will be restored in Albania with help from the European Investment Bank. The other railway project receiving EIB financial and technical assistance is a 120-kilometre line connecting Vorë to Hani i Hotit, near the border with Montenegro. The loan agreement for this project was signed on 20 March 2024.

An improved Durrës-Rrogozhinë rail route will bridge the western and eastern parts of Albania, connecting Durrës with the cities of Elbasan, Pogradec, and further to Lin, located on Lake Ohrid, a popular tourist destination. The design of another section, from Rroghozhine to Pogradec section, will be completed by the end of 2026.    

“Revitalising the rail system will bring a range of benefits,” Vickers says. “We expect to see time savings, lower vehicle operating costs, and a reduced environmental footprint.”

EIB Advisory is also helping Albania improve its ability to maintain and repair railways. Albania’s railway company had almost no capability or experience to manage complex infrastructure projects like this.

“We developed everything from scratch — teams, systems, rail project management skills,” says Jakubik, the EIB Advisory project manager. “Many of the experienced railway professionals had retired, leaving a gap in expertise. We have been helping to fill that gap and ensure compliance with the requirements of the modern railway industry.”

Improving connections with other countries

Modernising Albania’s railway also will improve freight transport with neighbouring countries, helping the economy to grow and accelerating the country's integration into the European Union. “This project is part of a much broader vision,” Vickers says. As a bank, we’re supporting the entire Corridor VIII.”

Corridor VIII is part of the Trans-European Transport Network, which is a European Union plan that began in the 1990s to improve roads, railways, airports and water infrastructure across the continent. The European Investment Bank, which has been working in Albania since 2017, is now working on preparatory studies for the Macedonian section of Corridor VIII, Vickers says.