Shops aren’t closing because of the tram

Last week, Luxembourg’s Chamber of Deputies unanimously approved a plan to extend the city’s tram line from Place de l’Étoile to the Centre Hospitalier. The plan includes the creation of a new stop next to the former Batiself shopping centre. Against the backdrop of this news, local business owners have expressed concern, as the tenancy agreements for a number of shops in the area have been terminated with effect from the end of this year. However, Yuriko Backes, Minister for Mobility and Public Works, categorically rejected suggestions that the transport project was the cause of the businesses being evicted. As an example, she cited the case of the furniture retail chain Roller, which had announced the closure of its outlets across the country even before the infrastructure expansion bill was officially passed.

Explaining the government’s position, Yuriko Backes emphasised that the expansion of the tram network is essential to meet Luxembourg’s growing transport needs. As part of the next phase of modernisation, the National Roads Administration will build a new bus station and a Park & Ride facility in the Merl area. At the same time, a key element of the infrastructure plan remains a plot of land covering almost four hectares, which is currently owned by the Belgian investment fund Boomerang sarl. The government has not yet made a final decision on whether it will purchase the land required for the construction of the tram tracks.

Active consultations are currently underway involving representatives from Strassen and Luxembourg, as well as property owners in the area earmarked for development. In addition, the relevant authorities are carrying out studies to determine the best approach to developing the site, where major construction work is due to begin in 2029. According to the minister, negotiations are still ongoing and a final agreement has not yet been reached. At present, the future of the wider area adjacent to the project also remains unclear, including the potential for residential development.