Borgarlína is a bus rapid transit system designed to enable environmentally-friendly, people-oriented transportation in the capital area of Iceland. The project has been in development since 2015 and involves upgrading existing road infrastructure to include long stretches of separated public transport lanes. In June 2022, it was announced that the first section of the project would be delayed, with completion now projected for the year 2026 instead of 2025. It is not clear whether this will affect the overall deadline for the Borgarlína project, set for 2033.
Next to Borgarlína, no other railway or light-rail proposals are being considered in Iceland. There has, however, been some discussion regarding the possibility of constructing an airport rail link, called the Lava Express. The Lava Express is an ambitious project involving 49km [30 mi] of train tracks (of which 14km [8,7mi] underground) between Keflavík Airport and the capital area, with BSÍ bus station as the terminus in Reykjavík.
The average speed of the train would be 180kph [112mph] with a maximum speed of 250kph [155mph] resulting in a travel time of 15-18 minutes compared with a travel time of 40-50 minutes in a private car or a taxi. The construction time of the project is 48-60 months. The last estimate was that work on the project could begin in 2022 and that it would take three years to finish, but as funding was problematic even before COVID started, the project will not start any time soon.