Rail transport in Iceland

As of 2024, Iceland does not have a public railway system, although there have been three small short-lived railways in the past. The main reasons for the lack of railways are the small population outside the capital region, the availability of automobile, bus, and air transportation for inter-city travel, and the sometimes-harsh environment.

There were persistent discussions for a railway in the first half of the 20th century, but none of them proceeded. A 900 mm narrow-gauge railway was used for the construction of the Reykjavík harbour from 1913 to 1928, and was occasionally used for other freight transport during its operation. In the 2010s, there were new proposals for a light railway system in the capital region and an airport rail link to Keflavík.

Reykjavík Harbour Railway
Probably the most well-known Icelandic rail project, the Reykjavík Harbour Railway, of narrow gauge, operated discontinuously from 1913 until 1928 for the construction of the harbour breakwaters. Its first main operation phase was from 1913 to 1917, when the first phase of the harbour was finished. The second period of operation was from 1920 to 1922 when Kolabakki (now Austurbakki) quay was constructed. The third and final period was from 1925 to 1928 when Faxagarður quay was constructed and landfill alongside the shore (where Sæbraut is today).

Track network
The railway system initially operated a network of around 10 km of track, from a quarry outside the city, Öskjuhlíð, from which it ran a short distance to a junction, passing loop, and sidings. The junction was located just south of a large field which became the Reykjavík city airport. From there, one line ran to the west, around the western edge of the city, before proceeding along the newly constructed western harbour pier to the island of Effersey. A headshunt there allowed trains to reverse along a further line, built out onto the outer harbour wall, and extended as that wall itself grew longer.

From the first junction a second line ran east around farms to a locomotive depot just outside the city, located close to where the National Hospital, Landspítali, is today. The railway was extended in 1920, when the second phase of the harbour was constructed. The 1.5 km extension from the depot was constructed, which ran on to a further junction where a short branch line led into a secondary quarrying site. The main line continued to a further junction on the edge of the docks. From there, one line ran along the quayside Kolabakki (where one of the locomotives is today preserved on display, by Austurhöfn), whilst the other ran out along the eastern harbour wall.

The final size of the network was approximately 12 km with a gauge of narrow gauge and a rail weight of 22.5 kg/m. The steepest sections were 1:40 gradient and the tightest curves had a radius of 55 m.

The last remains of railway track were dismantled in 1940-1945 after the British invasion of Iceland during the construction of Reykjavík Airport. Today none of the track remains.

Rolling stock
The railway was operated by two steam locomotives built by the Arnold Jung Lokomotivfabrik of Germany, both of which have been preserved. Built in the 1890s in Germany, they worked briefly in Denmark before being imported to Iceland in 1913 for the harbour railway project. Locomotive Pioner is now a static exhibit at the Icelandic Folk Museum at Arbær, Árbær Museum, whilst locomotive Minør, after many years of storage in a Nissen hut under piles of rubbish, is now an open-air static exhibit in Reykjavík. A scale model of part of the railway, showing one of the locomotives at work, is displayed in the Reykjavík Maritime Museum. Minør was the first to be withdrawn, whilst Pioner (which had received a replacement boiler in 1910 to extend its life) continued to operate until the railway closed in 1928.

The locomotives had an operating pressure of 180 psi and a power of around 150 hp. The locomotives ran at a maximum of 50 km/h.

The main vehicles on the railway was a fleet of 60 four-wheeled open wagons. Two types of wagons were operated, one for large boulders and another for sand with fully-opening sides for loading and unloading. The wagons were not outfitted with brakes. Some of the wagons were modified and outfitted with rudimentary benches to transport workers and dignitaries for some press events, regular passenger transport was prohibited for safety reasons. All of the wagons were sold to Poland when the operations of the railway ceased. The typical operation used a rake was 20 wagons with around 7 to 8 trips a day on the western branch and 17 trips a day on the eastern branch.

Incidents
Iceland's first railway accident was on the Reykjavik Harbour Railway. Records at the Árbær Museum show that both locomotives were involved in accidents between the two world wars. Pioner was deliberately derailed by vandals, who placed a chain across the track and weighted down its two sides with rocks. They later claimed that they were testing the locomotive's performance, because it had already survived their previous experiments of placing coins and planks on the track. Minør was involved in a genuine accident when a section of track gave way beneath the engine. That was later found to have been caused by rotten wooden sleepers supporting that section of track.

Other uses
During the Reykjavík Harbour Railway's existence, it occasionally used to transport other freight on an ad hoc basis. When the main construction phase of the harbour was completed in 1917 the City of Reykjavík decided to purchase all of the equipment used in its construction, including the railway – presumably to ensure its continued use. Mostly in the years 1914–1918 the harbour railway was used to transport:
 * Oil drums from the new quay at Örfisey (where Reykjavík's oil terminal still stands today) into the city centre;
 * Meat for export from the Sláturfélag Suðurlands meat processing plant at Skúlagata to the harbour;
 * Timber and aggregate for building construction in the city centre; and
 * Coal from the harbour to local distributors.

The railway was again used for other purposes in 1926 during the construction of Landspítali when cement and aggregate was transported from the harbour and one of the quarries.

Kárahnjúkar light railway
A diesel-operated light railway was built in the early years of the 21st century, in connection with the construction of the Kárahnjúkar hydro-electric power project. The railway consisted of three trains, travelling around the clock, transporting people, concrete and other items to keep the drilling machines running. The train sets consisted of white coloured locomotive and wagons, built by Schöma of Germany. The lifespan of the railway was limited to the construction period of the project, and it has now closed. Much of the equipment used was leased from Schoma Lokomotiven of Germany and returned there.

Iceland's first train collision occurred in 2004. A passenger train, transporting construction workers, ran into a cement train in a tunnel lying under Valþjófstaðarfjall mountain. Three people were injured.

Korpúlfsstaðir farm railway
Korpúlfsstaðir was one of the first industrial farms in Iceland. Built in 1930 by Icelandic industrialist Thor Jensen, it was located on the outskirts of Reykjavík, on the Þingvellir road. The farm was equipped with a narrow-gauge railway network, allowing the transportation of goods and materials around the farm site. The rolling stock consisted chiefly of four-wheel skip wagons. There were no operational locomotives during either documented visit to the railway (in 1984 and 1993), and trains were shunted by hand, by the farm's staff. It is not known whether the railway was originally equipped with locomotives. Korpúlfsstaðir Farm has now closed and the site has been developed as a golf course and an elementary school, incorporating most of the original farm buildings. There is no surviving part of this railway network.

First proposals
The first official proposals for railways in Iceland were made in 1906. The route would have run from Reykjavík to Selfoss via Þingvallavatn. That route would allow extensions to Akranes/Borgarfjörður, Rangarvöllur. Surveys were made in the summer at the instigation of the Prime Minister, Hannes Hafstein. Over the next few years, engineer Jón Þorláksson conducted more surveys in regard to snowfall, and developed cost estimates, including a comparison between the cost of oil- and coal-powered systems.

Proposals in the 1920s
In 1921, Alþingi decided to look at the possibility of railways again. Subsequently, in 1922–1923, a Danish engineer made surveys of a route from Reykjavík to Selfoss via Þrengsli. It was the shortest and cheapest solution. The route was envisioned to carry both passenger and freight, which would have been cheaper than existing methods of transportation. In 1927, the city development plan of Reykjavík included a railway terminus with multiple platforms, just outside the Reykjavík city centre in Norðurmýri. Automobile traffic was rising and there was a need for better roads. Comparisons were made between a road and rail system in Iceland, and it was eventually determined that roads would take priority. In 1931, plans for railways in Iceland were abandoned.

Reykjavík–Keflavík
There have been intermittent proposals for a passenger railway from Reykjavík to Keflavík International Airport, firstly in the early 2000s. In 2003, the idea of an airport railway was dropped and a dual carriageway road (Route 41) was built instead, opening in 2008.

More recently, a private group has been looking into the idea of an airport railway. In 2014, a feasibility study was undertaken by Ráðgjöf og verkefnastjórnun, which declared that a high speed airport railway would be feasible with the increasing numbers of tourists coming to Iceland, and passenger numbers at Keflavík International Airport. The project has begun looking for funding and has had talks with the local municipalities about the planning and alignment of the railway.

The electrified railway would run double tracked from the airport, roughly parallel to the current road, and would then be situated in tunnels from Hafnafjörður, with a terminal at Reykjavík's main bus station BSÍ. The construction would be 49 km above ground and 14 km in tunnels. The maximum operating speed would be 250 km/h and the journey would take 15 minutes. In 2015, "Fluglestin Þróunarfélag ehf." was created, with the intention of acquiring funding for the project and planning. The proposed English name for the project is "Lava Express". It was initially planned for construction to start in 2020.

In 2019, all municipalities the rail line would pass through, except Hafnarfjörður, had approved a cooperation agreement on zoning related to the project, with Morgunblaðið reporting that a meeting with the mayor of Hafnarfjörður has been scheduled. Due to the impact of COVID-19 pandemic on Iceland's tourism industry, the project was put on hold for a few years, however little progress had been made in the years prior.

In May 2023, Fluglestin þróunarfélag announced plans to revisit the project citing interest from European rail operators as well as Chinese and Japanese contractors in financing and constructing the project. The current plans are unchanged, however the Reykjavík terminal may be scaled back to Kringlan. The project would have three stations:


 * Keflavik International Airport
 * Southern Capital Region stop in Kópavogur or Hafnafjörður - (likely Smáralind shopping centre/mall)
 * BSÍ bus terminal (Reykjavík city centre) or Kringlan shopping centre

Within the Capital Region
There have also been serious proposals for a light rail system for the Capital Region (Reykjavík, Kópavogur, Hafnafjörður). In the Samtök Sveitarfélaga á Höfuðborgarsvæðinu (Association of municipalities in the Capital Area) master plan for the capital area, Höfuðborgarsvæðið 2040, the transport section outlines a plan to create a light rail/BRT system in the Capital Area. The mayors of the respective municipalities have agreed to the masterplan and have shown interest in this proposal, which is currently in a planning stage.

In 2019, a funding package was agreed between the central government and municipalities in the Capital Region on the construction of a BRT system, scaled back from original light rail proposals. As of 2023, the first phase set for completion in 2026, is from Reykjavík city centre to Hamraborg in Kópavogur. The second phase is from the city centre to Ártúnshöfði in eastern Reykjavík, to be complete in 2027. Later phases are still in planning, but a network spanning the greater Capital Region is to be constructed in phases.