In the infrastructure domain, public-private partnerships typically involve road projects, most notably highways. However, there are also outliers to this trend, such as a recently inaugurated tram line in Kraków, Poland.
Renowned for its historic character and strong grounding in tradition, Kraków has proven to be highly innovative in its approach for public transport development. Since 1989, when communism fell in Poland, the city has been receptive about testing and adopting new solutions to urban mobility. As such, the city was the first in Poland to operate electric buses, developed a reliable commuter rail system and conducted a vast expansion of its tram network. More recently, Kraków has been working on a project that would grant it the first metro line in Poland outside the capital, Warsaw.
While such projects keep urban mobility coordinated with the accelerated pace of urban development, the affiliated financial burden is substantial; the impact on the municipality’s debt has been increasing, which has prompted the local authorities to seek more diversified financing mechanisms for continuing mobility projects. In 2017, the administration reached the conclusion that for the new tram line to Mistrzejowice district, Public-private partnership (PPP) was a cheaper framework and yielded more advantages for such an investment.
December 2020 saw the signing of a partnership agreement between PPP Solutions Polska and Gülermak Ağır Sanayi İnşaat ve Taahhüt consortium, with the latter acting as investor in the project. The consortium was led by Turkish company Gülermak, and the value of the investment was set at 1.9 billion PLN (around 450 million euros at the time).
The agreement states that Gülermak would build and finance the entire project up until the opening of the tram line. Following the end of construction works, the Turkish-led consortium would guarantee the line’s maintenance for 20 years, while the municipality would pay for its use. Gülermak accessed bank loans accounting for 90% of the project value, with the difference being covered from the company’s own resources.
This framework incentivizes the constructor to minimize construction time and bring forward the revenue collection as much as possible. Maintenance obligations imply that, at the end of the 20-year period, the municipality would inherit the tram line in high-quality conditions. Failure to maintain the route available for tram service would result in penalties, by reducing the remuneration paid by the municipality.
Detail of the new connection
The new tram line was officially inaugurated on 26 September 2026 and serves as the 4th stage of tram infrastructure expansion under KST (Krakowski Szybki Tramwaj; Fast Tram for Kraków), a project undertaken for several decades and designed to provide new tram lines in the city to Light Rail standards. The route measures 4.5 km and serves as a connection between Mogilska and Jana Pawła II streets and the Mistrzejowice tram loop, located in the city’s north-east. The streets served by this route are Meissnera, Młyńska, Lublańska, Dobrego Pasterza, Krzesławicka, Bohomolca, and ks. Kazimierza Jancarza. Before this project’s implementation, trams had been constrained to make a significant detour: from the city’s central ring, the terminus at Mistrzejowice was 11 km (40 minutes) away. This connection reduces the travel time by 12 minutes, a notable improvement in the quality of service.
A notable aspect of the project is how it mitigates the high risk of congestion and traffic jams in some areas along the route, such as Rondo Młyńskie and Rondo Polsad intersections. A dedicated corridor runs below street level, partly as a tunnel and partly in open-cut excavation. This section measures 456 metres in length (including access ramps) and features paved asphalt to ensure accessibility for emergency services. The remaining part of the route runs with a reserved right-of-way layout, with a green track layer included.
Tunnel section included
Two stations were built on the underground corridor; “Rondo Młyńskie” is built in an open-cut excavation section and features a single platform level. “Rondo Polsad” displays a more complex layout: a pedestrian walkway is provided at the first subsurface level, with platforms located at a second, deeper level. Both stops feature access points from all sides of the intersections, as well as escalators and elevators.
Initial plans had provisions for a potential premetro line meant to connect Nowa Huta district and its adjacent industrial area with the city centre. Four stations would have been shared by the trams and premetro: “Dobrego Pasterza,” “Rondo Barei,” “Rondo Polsadu,” and “Rondo Młyńskie”. A switch chamber was built at “Rondo Młyńskie” to allow for traffic redirection, but it was later repurposed as a storage room, once Kraków announced its full-scale metro project in 2025.
Changing lines
The project has provisions for future extensions of the network, ensuring sustainable development of the tram infrastructure. One such possible development would be a branch line from Rondo Barei area, that would run along Strzelców street and then reconnect with the existing tram network at the Górka Narodowa P+R tram terminal. Another possible complementary project could be extending the line southward, along Stanisława Lema street, connecting with the existing tram line on Aleja Pokoju. Such an investment could provide an alternative link with the city centre, while avoiding the crowded junction at Rondo Mogilskie.
The new route serves as an opportunity to significantly reorganize the public transport network in the city. Three lines have been selected to operate on the new corridor, 9, 12 and 16, while eight other tram lines will have their routes modified, namely 1, 2, 5, 6, 10, 15, 19 and 21. Some of the tram routes (1, 3, 8, 20) will have an increased frequency, and the numbering scheme will be redesigned. Existing lines numbered between 40-49 (operating sporadically, only on certain weekdays) and 50-59 (high-frequency lines) will be discontinued and renumbered as follows:
Old line number New line number
44 5 (in this case line 44 is merging with the existing line 5)
49 19
50 7
52 12
Bus lines will also see changes, as four bus lines will be modified and another three will be discontinued. Most significantly, tram line 16 will replace routes 182 and 482 on the Mistrzejowice – Main Railway Station (Kraków Główny) corridor.
The new tram tracks come with frequencies of 15 minutes for lines 9 and 16 and 7.5 minutes for line 12; the latter is expected to carry the highest passenger demand and operates using the Pesa 2014N “Krakowiak” trams, currently the longest trams in Poland, at 43 m.
These major changes in mobility have prompted the municipality of Kraków to allocate an additional 40 million PLN (around 9.25 million euros at current exchange rates) yearly for public transport development. This funding is expected to result in an additional 1.6 million tram vehicle-kilometers performed annually. The new tram line is expected to attract approximately 30,000 new passengers to the public transport system. Authorities intend to monitor how the implemented changes affect passenger flows and the quality of public transport services, enabling them to make further adjustments if necessary.
The use of this new tram line by Kraków residents was made possible due to this innovative PPP financial model. Had this model not been adopted, the project would have likely been placed on hold for a long period of time, until funding became available. Collected data over the next period will test the usage and level of public interest associated with this route. If the project proves successful, it could serve as a benchmark and encourage other local authorities across Europe to develop similar projects in the future.
A network scheme is available here:
https://www.urbanrail.net/eu/pl/kra/krakow.htm
