While Iceland has no public rail system as of 2024, it did have three small railways that operated briefly in the past. The disappearance of these railways is mainly attributed to the sparse population outside the capital, the availability of cars and buses, and the vagaries of the environment. Many proposals were floated in the first half of the 20th century, but none advanced. Little is known about the fact that the Reykjavík Harbour Railway was built between 1913 and 1928 using a narrow gauge of 900 mm (about 2 feet 11 7/16 inches).
The Reykjavík Harbour Railway is perhaps Iceland's most famous railway project, operating from 1913 to 1928 and responsible for building the harbour's breakwaters.
The line's initial run covered about 10 km (about 6 mi) of groundwater, starting at Öskjuhlíð, a quarry outside the city, and passing through ramps and sidings along the way. The railway also transported oil drums, meat and building materials to the city center between 1914 and 1918. Even during the construction process, its transport capacity was utilized in various ways.
The initial track network was about 10 kilometers long, with multiple branches, and was eventually expanded to about 12 kilometers (about 7.5 miles). The systems and slopes played an extremely important role in the transportation needs of the time.
The railway system uses two steam locomotives produced by Arnold Jung Lokomotivfabrik in Germany, which were introduced to Iceland in 1913. Although these railway vehicles are no longer functional, they are still preserved in museums in Iceland.
In the interwar period, the Reykjavík Harbour Railway experienced Iceland's first railway accident when a locomotive was deliberately derailed by a prankster. The subsequent handling of this incident also demonstrated the shortcomings of railway safety management at the time.
In addition to the MTR, the Kárahnjúkar Light Rail was built in the early 21st century. This diesel-powered light rail system only served the hydroelectric power station for a period of time. With the completion of the project, the railway also came to an end. Iceland's railway history is enriched by various small farm railways such as the Korpúlfsstaðir Railway.
While Iceland's rail needs have mostly come to nothing over the past few decades, proposals for a train between Reykjavik and Keflavík International Airport have resurfaced in recent years. According to the survey, with the increase in the number of tourists, the feasibility of this project has once again attracted attention.
In 2023, Fluglestin þróunarfélag announced plans to review the feasibility of the construction proposal and initiate dialogue with investors in Europe and Asia.
As funding is sought, the possibility of developing a more complete railway system in Iceland in the future is increasing. In addition to the proposal for Keflavík, plans are currently underway to install light rail. How will these new plans change Iceland's transportation landscape?