Finance
Historic tunnel created under the Alps to connect Italy and Austria
Published by Global Banking and Finance Review
Posted on September 18, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 18, 2025
2 min readLast updated: January 21, 2026
The Brenner Base Tunnel, a high-speed rail link under the Alps, connects Italy and Austria, aiming to shift freight from road to rail and reduce pollution.
ROME (Reuters) -Workers broke through a final, thin veil of rock on Thursday, opening an underground tunnel between Austria and Italy that will eventually become a high-speed rail line linking the north and south of Europe.
The Brenner Base Tunnel, which is being billed as the world's longest underground rail connection, is a centrepiece of a European Union drive to shift freight off the roads and onto rail, to cut pollution and boost cross-border trade.
"Today we are taking together a decisive step for the construction of one of the largest infrastructure works in the entire continent," Italian Prime Minister Giorgia Meloni said at the rock breaking ceremony.
"It is a historic day ... for Italy, for Austria, and for the whole of Europe."
The link will be the first dedicated rail tunnel directly connecting Austria and Italy. It is due to open in 2032, about 16 years behind schedule, and is set to cost 8.5 billion euros ($10 billion) - about 2.5 billion above budget.
The tunnel will stretch 55 km (34 miles) when complete, extending to 64 km by hooking up to an existing underground link into Innsbruck. It will cut journey times between Fortezza in Italy to Innsbruck to less than 25 minutes from 80 minutes.
The Brenner Pass is one of Europe's busiest mountain crossings used for freight transport. Each year, more than 2.5 million trucks, 14 million vehicles and 50 million tonnes of goods cross the Alpine pass, choking local communities.
Currently, around 70% of trans-Alpine freight traffic through the Brenner travels by road, with only 30% by rail - a balance the tunnel aims to reverse.
However, the hoped-for impact of the new link could be undermined by Germany, which accounts for a significant amount of road traffic through the Alps, but has not finalised crucial northern access routes to hook up with the Brenner tunnel.
(1 = 0.8501 euros)
(Reporting by Crispian Balmer; additional reporting by Francois Murphy in Vienna; Editing by Andrew Heavens)
The Brenner Base Tunnel is a major infrastructure project under construction to connect Italy and Austria, aiming to facilitate high-speed rail travel and reduce road freight traffic.
The Brenner Pass is one of Europe's busiest mountain crossings for freight transport, with millions of trucks and vehicles crossing annually, contributing to pollution and traffic congestion.
The Brenner Base Tunnel is projected to cost approximately 8.5 billion euros, which is about 2.5 billion euros over budget, and is expected to open in 2032.
The European Union aims to shift freight transport from roads to rail to reduce pollution and enhance cross-border trade efficiency.
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