Southern Italy Outpaces the North Thanks to Infrastructure and High-Speed Rails

Modern highways, urban construction, water systems, high-speed trains. It is urban infrastructure that is driving the growth of Southern Italy, and it is doing so also thanks to the boost provided by the PNRR funds.

The latest report by the Italian Government on the use of NextGenerationEU resources, presented to Parliament on March 31, reveals that as of December 31, 2024, 40.8% of the resources allocated by the PNRR have been earmarked to finance projects in South Italy, for a total value of €59.3 billion—a figure that on one hand demonstrates the commitment to the South and, on the other, explains the acceleration that these regions have recorded in recent months in terms of infrastructure development and growth.

The news came from SVIMEZ (the Association for the Development of Industry in the South) and it is one that surprises many. In 2024 (for the second consecutive year), the economy of Southern Italy grew more than the average of the North, posting a growth rate of 0.9% compared to 0.7% in the traditionally wealthier and more industrialized northern regions.

This growth is largely due to the impact of PNRR funds, invested primarily in infrastructure development.

“On average,” the SVIMEZ report reads, “about three-quarters of GDP growth in South Italy over the three-year period is linked to the effective implementation of the Plan’s investments, compared to about 50% in the rest of the country.”

Once Southern Italy’s momentum was confirmed, SVIMEZ focused on the drivers of this growth and identified infrastructure as one of the main catalysts.

“The more sustained growth in the South of Italy,” the Report continues, “is due to a stronger dynamic in construction investments (+4.9% compared to 2.7% in the rest of the country), driven by public works spending under the PNRR.”

Leading this growth is the boost from major construction projects, especially the railway projects from Naples to Reggio Calabria, from Bari to Palermo, which are reshaping the ambitions and transportation models of Southern Italy.

Today, the Webuild Group is engaged in 19 major infrastructure projects in Southern Italy, employing 8,100 people (direct and indirect), and involving more than 5,400 suppliers. These are long-awaited projects, such as the high-speed rail line commissioned to Webuild by Rete Ferroviaria Italiana (FS Group), which will connect Naples with Bari, the one reaching Reggio Calabria, and the double-track railway line between Catania and Palermo.

Some of these projects are funded with PNRR resources. Among them are the high-speed/high-capacity lines Salerno–Reggio Calabria and Naples–Bari, both currently undergoing key phases of construction.

At the end of March, on one section of the Naples–Bari line—specifically the 15.5-kilometer Naples–Cancello segment—the first two kilometers of track were laid. Further along the same section, 60% of the Casalnuovo tunnel was completed using hyperbaric excavation, which increases air pressure inside the tunnel to prevent flooding caused by the water table.

Further south, in the Salerno–Reggio Calabria high-speed rail line construction sites, Webuild and its joint venture partners deployed Europe’s largest tunnel boring machine (TBM). Named Partenope, the mechanical mole is 130 meters long and weighs about 4,000 tons, with a cutting head diameter of 13.46 meters.

Once completed, the two high speed railway lines will become part of the Trans-European Transport Network (TEN-T), designed to promote integration and connectivity among EU member states, reduce CO2 emissions by shifting from road to rail transport, and improve the competitiveness of the Union’s economy.