Keflavik - Reykjavik Train

The route length is 49km, where of 14km within the Reykjavik Area are a tunnel. The proposed design is a single track inside tunnels and double tracks above ground. The average speed of the train will be 180kph with a maximum speed of 250kph resulting in a travel time of 15-18 minutes compared with a travel time of 40-50 minutes in a private car or a taxi. A feasibility study, done by a group of Icelandic companies led by the advisory firm RRV Consulting in July 2014, found the case to be profitable with an expected project IRR of above 8% even if the tourism does not increase at all from current levels. Construction time 48-60 months.