Austrian construction giant Strabag has won a €228m contract to modernise a 44km railway between the Croatian capital of Zagreb and the port of Rijeka.

Strabag will upgrade existing tracks, build new lines, replace level crossings with over- and underpasses and modernise stations and stops.

The contract is co-financed through the European Union’s Cohesion Fund, which funds work in countries in the lower percentile of the EU’s gross national income.

Trains travelling on the line will reach speeds of up to 160km/h.

Thomas Birtel, Strabag SE chief executive, said: “The modernisation of the railway line between Hrvatski Leskovac and Karlovac, which is situated along the Mediterranean Corridor of the Trans-European Transport Network, will improve the transport links between the port of Rijeka and the markets in Hungary, Slovakia and Poland in the long term."

Construction is due to start in October 2022, with completion scheduled for May 2025.