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Sweden Proposes New State Firm to Accelerate Infrastructure

By Erik Lindqvist

Sweden's government proposes a new state-owned company to build major roads and railways, aiming to fix chronic delays and cost overruns. The plan targets key projects like the E4 near Skellefteå and the Södertörn Link, challenging Trafikverket's monopoly on big infrastructure. Will this create healthy competition or just more bureaucracy?

Sweden Proposes New State Firm to Accelerate Infrastructure

Sweden's government is proposing a radical shake-up of its transport infrastructure planning to combat chronic delays and cost overruns. A new state-owned company should be created to plan and build major road and rail projects, operating alongside the existing Swedish Transport Administration, Trafikverket. The proposal, from government investigator Claes Norgren, aims to inject speed and efficiency into a system struggling to deliver on national ambitions.

"This cannot wait," Norgren said, emphasizing the urgent need for change to accelerate large-scale infrastructure projects. The needs are substantial, and the current model is not delivering as promised. Infrastructure Minister Andreas Carlson stated the government's goal is clear: to build more, faster, and get better value for every krona of state investment.

A System Under Strain

The current framework concentrates almost all planning and execution within Trafikverket once the Riksdag and government set priorities and budgets. This model has repeatedly shown weaknesses, with projects frequently extending beyond deadlines and budgets ballooning far beyond initial estimates. A 2018 report by the Swedish National Audit Office, Riksrevisionen, documented significant shortcomings in Trafikverket's project management, directly linking them to delays and escalating costs.

Trafikverket manages a vast portfolio; in 2022 alone, its investment budget for transport infrastructure was approximately 70 billion SEK. The persistent issues within this system have created a political consensus in Stockholm that reform is necessary. The proposal to establish a parallel, state-owned entity represents a fundamental shift in strategy, moving from internal reform of Trafikverket to introducing an element of structured competition.

The Proposed Projects and a New Model

Norgren's investigation included identifying specific projects suitable for the new company. He named several high-priority corridors: sections of the E4 motorway near Skellefteå, the Kongberget-Gnarp stretch near Sundsvall, and the critical Södertörn Link in the southern Stockholm region. These are not minor undertakings but significant national infrastructure pieces intended to improve connectivity and support regional growth.

The core idea is that a separate, agile state-owned company could adopt different procurement and project management methodologies. It would operate with a focused mandate on delivery, potentially free from some of the bureaucratic processes that can slow larger agencies. The company would remain fully state-owned, ensuring ultimate government control and alignment with national transport policy set by the Riksdag.

Expert Analysis: Potential and Pitfalls

Infrastructure policy experts see both clear advantages and inherent risks in the government's plan. The primary argument for a new entity is the introduction of competitive pressure and specialized focus. "A dedicated company could foster a more results-oriented culture, attract specific managerial talent, and create a direct benchmark against Trafikverket's performance," said one analyst familiar with public sector procurement. This could theoretically accelerate timelines and improve cost control.

However, significant concerns exist. Critics warn of creating a dual bureaucracy, with two state entities potentially duplicating functions or working at cross-purposes. Coordination between the new company and Trafikverket would be crucial, especially for projects that intersect with the wider national network. There is also a risk that the new firm could simply replicate the same challenges if underlying issues in Swedish construction planning—like lengthy permit processes or community opposition—are not addressed.

"The danger is we add another layer of complexity without solving the root causes of delay," the analyst noted. "The government must ensure this is about creating a better model, not just shifting problems to a new address." Some observers maintain that a more efficient approach would be a deeper, more resourced reform of Trafikverket itself.

The Political Road Ahead in the Riksdag

The proposal now moves into the political arena. Infrastructure Minister Andreas Carlson will need to build support for the necessary legislative changes. The plan will be scrutinized by opposition parties in the Riksdag committee rooms, who will demand details on governance, funding, and measurable targets. Key questions remain about how projects will be allocated between the two agencies and what happens if the new company itself encounters delays.

The government's argument will center on the economic and social cost of inaction. Every year of delay on major rail and road projects has knock-on effects for industry, commuting, and regional development. The proposal from Rosenbad is a clear signal that the status quo is politically unacceptable. Minister Carlson's challenge is to convince the Riksdag that this structural gamble is the most reliable path to faster construction.

A Broader Trend in Public Management

This move reflects a broader, ongoing debate in Sweden and across the Nordics about how best to manage large-scale public projects. The model of creating dedicated, state-owned companies for specific missions has precedents in the energy and housing sectors. It represents a hybrid approach, seeking to marry public sector accountability with what are perceived as private-sector efficiencies in project execution.

The success or failure of this initiative will be closely watched. If it succeeds in delivering the named projects on time and within budget, it could become a template for other complex areas of public investment. If it stumbles, it may reinforce the case for strengthening core government agencies rather than circumventing them. The decision, ultimately to be made in the Riksdag, will shape Sweden's physical landscape and its approach to public works for decades.

The Stakes for Sweden's Future

Beyond the bureaucratic restructuring, the real stakes are concrete: the roads and railways Sweden needs for a competitive, cohesive future. The identified projects in Norrland and Stockholm are vital for everything from the green industrial transition to managing metropolitan congestion. The government's proposal is a high-stakes attempt to break a pattern that has hampered national development.

As the debate unfolds in Stockholm, the central question remains: Can a new state-owned company truly build faster, or will Sweden find itself with two agencies navigating the same old obstacles? The answer will determine not just the fate of a few highways, but the credibility of a new model for governing the nation's largest ambitions.

Published: December 15, 2025

Tags: Sweden infrastructure projectsTrafikverket criticismSweden transport administration