Rail transport in Iceland

As of 2026, Iceland has no railways, although there have been two small locomotive hauled narrow-gauge railways in the past. The main reasons for the lack of railways are the small population outside the capital region and the availability of automobile, bus, and air transportation for inter-city travel.

Several proposals were made for mainline railways 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. A diesel-hauled narrow-gauge railway was used during the construction of the Kárahnjúkar hydropower project in the 2000s. In the 2010s, there were new proposals for a light railway system in the capital region and an airport rail link to Keflavík.

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