RAIL & METRO | TRANSPORT
PROJECT PIPELINE: RAIL & METRO
Transport projects with tunnels continue to be the dominant investments by value in underground infrastructure and also within the sector the leading activity internationally is Rail & Metro, as shown from the latest analysis by T&T’s owner, GlobalData. Report by T&T.
Transport projects in many areas led the way in investment in tunnel-related infrastructure globally, and within that sector the dominate projects are those of Rail & Metro. As said in the latest (Q2-2026) project pipeline analysis from GlobalData, which owns T&T, tunnelling has emerged as “critical” to infrastructure development today, especially with growing economies and increased urbanisation. The analysis points to a group of four countries in Asia – China, Japan, India and Malaysia – as ranked among the top 10 countries for tunnel-related project pipelines (including all stages of development), and together accounting for US$360 billion. The analysis adds that tree European countries follow – UK, Germany and Switzerland – which account for almost US$236 billion. Worldwide, the tunnel-related projects tracked by
GlobalData is approaching US$1.18 trillion, led by Western Europe as a whole (US$335 billion, or 28.4% share) and then North-east Asia (US$287 billion). Following, in total value ranking with each approaching US$150 billion are North America and Australasia. Thereafter, South-east Asia is near US$80 billion, South Asia is close to US$60 billion, and both the Middle East and North Africa (MENA) and Eastern Europe are near US$50 billion. In terms of stages, the pipeline of projects split in value
as follows: Pre-Planning (US$150 billion); Planning (US$166 billion); Pre-execution (US$184 billion); and Execution (US$676 billion) – or more than half of overall tunnel- related project activity globally. By sector, Transport dominates with the combination of
tunnel-related projects in Rail & Metro and Roads having a total pipeline value, globally, of US$950 billion or an almost 81% share. The next sector by value is Water and Sewerage with US$136 billion. The analysis adds that, as currently seen and should all projects across all sectors and stages proceed as planned, annual spending on the tunnel-related project pipeline may peak at almost US$120 billion in 2028. Public funding leads overall in the tunnel-related project pipeline with a 78.2% share. The other modes are Public/
Pre-planning
Private (14.9%) and Private (almost 7%). In some regions, like Latin America — and while it has the lowest ranking in project pipeline value (US$12 billion), it makes significant use of Public/Private funding. GlobalData’s analysis, though, notes the challenges of late: “Despite these substantial pipeline values, the tunnel construction sector continues to face significant short- to medium-term challenges, largely stemming from supply chain disruptions and financial pressure due to the current geopolitical climate.” Budgets are tightening and interest rates increased. It
adds: “Elevated raw material prices also often lead to budget overruns and schedule delays.” Below, and within the global context discussed, the
focus is on Western Europe and Eastern Europe and how Transport – and Rail/Metro – fits in the respective tunnel- related project pipelines of the regions. Within Western Europe, there is a spotlight on UK.
EUROPE
Western Europe The region had a total value pipeline of tunnel-related construction projects of almost US$335 billion, up slightly from US$315 billion in Q3 2024. Leading countries in Western Europe undertaking such major investments continue to be, in order of rank, UK, Germany, Switzerland and France. Also notably ranked are Norway, Italy and Austria. Effectively, half the regional total is related to the UK pipeline (about US$167 billion), with substantial contributions assigned to two projects - the Hinkley Point C power plant and High-Speed Two (HS2) rail link - set to an earlier budget. Also included is the Lower Thames Crossing (LTC) and Bakerloo Line metro extension. Previously, neither of the two largest projects were listed
for the UK, although the LTC was accounted for, along with inclusion, then, of the now-completed Thames Tideway and Silvertown Tunnel projects, both in London. Although the later projects were substantial and well-advanced back then, the UK was ranked middling in Q3-2024, at
Planning Pre-execution Execution
0
200,000
400,000
600,000
800,000
1,000,000 Above: Global – Tunnel Construction Project Pipeline, Value by Stage ($M) Source: GlobalData August 2026 | 23
1,200,000
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