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LITHUANIAN HIGHLIGHTS
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SHALL WE GO BY THE SAME BOAT ? Rimantas Šlajus,
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After the resignation of the Prime Minister Algirdas Brazauskas and the 13th Government the situation in Lithuania is absolutely unclear and nobody knows when to expect some or another political stability. In fact, the model proposed by the President coalition of Conservatives and Social Democrats is quite possible and it may be expected that the 14th Government will be formed on the basis of these two political parties. On the other hand, both parties are rather weak political pillars and will have to be underpinned by other parties, if wishing to have the majority in the Seimas. The process is not easy, moreover that the President has proposed to eliminate some parties from the would-be ruling coalition, including the Labour Party enjoying the majority in the Seimas. Furthermore, the alliance of the left and right wing parties will look oddly to the electorate of the next Seimas elections. The right wing supporters will particularly feel ill at ease. In a modern world, the conceptions leftism and rightism do not bear the antagonistic economic implications any more and generally show only the margin between two political camps. The colour of political parties in the general political context of Lithuania is often identified with the attitude towards Russia. During the rule of the Conservatives numerous chances existed to see that the Homeland Union was actually left-wing, while the present-day Social Democrats nearly tearfully have defended, and not once, the interest of the capital, particularly large capital. Therefore, the coalition Government formed from two parties with actually similar party programmes could go by the same boat, however it seems that they do not have the right number of authoritative oarsmen. If at least one of the oarsmen becomes weary of political squabbles and drops oars, formation of the new Government will become unavoidable. The good and bad accomplishments of the last Government are the matter of separate and wider studies. However, we would like to point out to two economic factors having the political lining it is actually evident that Lithuania will not accede to the euro zone in 2007 and conducting the sales of the oil refinery AB Mažeikių nafta to the Polish company PKN Orlen. Here we will not discuss the euro, actually its non-introduction in Lithuania, and will just regretfully say that this fact will be a significant blow to the Lithuanian economy and prestige of the country. The future owner of AB Mažeikių nafta is much better news, not speaking about income from sale of shares what is a good thing in itself. Both parties are ready to give this money to people in the form of compensations, i.e. use money for consumption. It will be a present of the governing bodies to the Lithuanian population and some kind of bribery of the electorate before the coming elections. What benefit will the Lithuanian state gain? Shouldnt we think about more expressive investment policy? On the other hand, the sale of the company AB Mažeikių nafta to the Polish company is important as a protector against it becoming Russias tool for economic and political blackmail. Some observers threat that the Polish side will be forced to transfer a part of their assets to the future supplier of crude oil Lukoil. However it is hardly possible that one of the largest oil refineries and importers in Central Europe will fall under such pressure, moreover that the agreement envisages the sale of Mažeikių nafta shares controlled by PKN Orlen to Lithuania, if more than half of company shares is acquired by the entity raising threat to the national security. Finally, this agreement is one more attempt to foster the economic cooperation of two neighbouring countries. Probably, it will act as an impetus for the Polish Government to review the position regarding the interconnection of power systems, the project that will open export of Lithuanian electricity to Central and West Europe. Poland was and is a reliable Lithuanias partner and advocate in the EU integration. The latest example was an energetic invitation of the Polish representative in the European Parliament to approve of the euro introduction in Lithuania. In this case, we may recall the suggestion of one of the first Ministers of Foreign Affairs of the independent Republic of Lithuania Povilas Gilys not to chase after the shadows of the past but rather cherish more friendly relations with Poland. Perhaps the same gesticulation may be done speaking about one more neighbour of Lithuania Belarus. As sad as it is, based on the survey, residents of Belarus do not think Lithuania to be a very friendly neighbour, and Lithuanians will hardly receive any help if to go to Belarus to borrow salt. Regretfully, Belarus appreciate collaboration with Russia. Even some of Belarus poets once held the nostalgia to the common state Grand Duchy of Lithuania, while today Belarus is prompted by its energetic and large neighbour to cooperate with Russia. This promotion is based on the most efficient method economy. These days, the mass media started talking about the facts of the pressure made by this large country upon Belarus in terms of gas prices. Gazprom is planning to raise the gas price for Belarus to 200 dollars per a thousand cubic meters (toady, it is 47 dollars). Generally, 80 percent of Belarus economy is dependant upon export from Russia. On the other hand, Belarus, preceded by the Ukraine, is the largest transit state for Russia. Besides, A. Lukashenka and his influential people will hardly like to seek shelter under the Russian auspices. The interesting and important fact is that so far, despite of all attempts, no progress has been made in introduction of the common currency with one emission centre. The truth may be that the President of Russia V. Putin who is to complete his term of office in a year and a half would be personally interested to become the head of a new state. On the other hand, it is hardly possible that A. Lukashenka will be happy to be the second-rate leader although in a larger palace. And now we come to the paradoxical conclusion that A. Lukashenka is a guarantor of Belarus independence. By the way, aspiration for freedom had once helped A. Lukashenka to consolidate his powers, and only later, when effects of the Chernobyl catastrophe were analysed and the economic dependence upon Russia was evaluated, the present-day political policy was chosen. Wont it happen so that our politicians will join forces with other steersmen of the EU policy, board the same boat and go to save but not drown A. Lukashenka until Russia has not drowned him itself. |
Lithuania in the List of Countries Enjoying the Most Favourable Business Environment
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 Last year GDP in Lithuania grew by 7.5 percent. Which economic sectors and economic causalities helped Lithuania to be among the EU leaders? What will be the GDP dynamics in the coming years? If Lithuania is not admitted into the euro zone, what effect will that have to its economic development and business perspectives?  In 2005, GDP in Lithuania made 71 084 million litas and grew by 7.5 percent compared with 2004. The GDP growth in 2005 was mainly decided by the growth of gross value added of the majority of economic activities. The largest growth was recorded in transport and communications, construction, trade, hotel and restaurant activities.In recent years, the economic growth in Lithuania was generally stimulated by domestic demand. Significant increase of borrowing was among the major factors that determined the growth of investment, household consumption and so GDP. Large income of residents (gross wages and salaries grew by 12.2 percent, old-age pensions 13.1 percent) and consumption credits encouraged consumption. Export of goods and services surpassed import and so also impacted the faster GDP growth. To my opinion, Lithuania will retain the rapid economic growth in mid-term, although it probably will not reach 10 percent as it did several years ago. It will no tragedy if Lithuania is not admitted into the euro zone in 2007. This fact will actually impact just several business sectors. Notwithstanding, the worst point in Lithuania not acceding the euro zone is that the country will not be awarded the competitive advantage over other new EU Member States. Economic sectors requiring large material and energy costs occupy a major share in the national economy. What is the role of business associated with science, innovations, high technologies and information and what are the priorities in this field? The Ministry of Economy, as an institution responsible for coordination of implementation of the Lisbon Strategy in Lithuania, together with other state institutions and in close cooperation with social partners has prepared the National Lisbon Strategy Implementation Programme. The programme that was positively evaluated by the European Commission envisages the instruments how to retain fast economic growth, promote the competitiveness of Lithuanian companies, stimulate employment and investment into human capital.Lithuania has set the following national priorities to be implemented in seeking for economic growth and employment enhancement: in the field of macroeconomics - retain fast economic growth, macroeconomic stability and seek for full and equal membership in the Economic and Monetary Union; in the field of microeconomics promote the competitiveness of Lithuanian companies; in the field of employment encourage employment and investment into human capital.Maximum integration of science and business cooperation is expected to result in radical reorganisation and technical renewal of the Lithuanian industry, increasing the share of industries generating high value added. The programme envisages new forms of financial encouragement that are extremely important to small and mid-size business: microcredits, the model for promotion of risk capital investment into small and mid-size companies that should stimulate faster development of innovations-based companies, etc. So far, the number of hi-tech companies in Lithuania is small, therefore the role of science institutions in the development of hi-tech production is extremely important. Science institutions should go hand in hand with business. We must enter into cooperation with foreign and multinational hi-tech companies and encourage them to invest into the Lithuanian innovation system. Notwithstanding all the attempts, the size of allocations to R&D and experimental development, the present and future support of EU structural funds and general economic development tendencies show that it is hardly possible that Lithuania will be able to grant 3 percent of GDP to R&D and experimental development, particularly in the field of business, by 2010. The Ministry of Economy has prepared the Investment Promotion Programme. The primary goals of this programme are to encourage investment into human resources, knowledge and innovations, green field investment, also investment into public infrastructure and establishment of industrial zones, creation of favourbale legal, economic, financial and administrative conditions for private capital investment as well as public and private partnership. We hope that this programme will be useful in implementing the above-mentioned priorities. The President of Lithuania Valdas Adamkus in his State of the Nation Address noted that last year the volume of foreign direct investment in Lithuania significantly decreased. Which economic sectors could be most attractive to foreign investors? According to the data of Statistics Lithuania, foreign direct investment in Lithuania amounted to 5445.6 million euro as of 1 January 2006 and grew by 16.1 percent compared with 1 January 2005. 1600 euro of FDI was recorded per capita on 1 January 2006. The largest investment went into manufacturing industry, financial mediation companies, wholesale and retail sale, transport, warehousing and communication enterprises. The main investing countries were Denmark, Sweden, Russia, Germany, Estonia, Finland and the Netherlands.The potential investors should take into consideration that they will making investment into the EU Member State boasting some of the best economic indicators among the new EU countries. The last decade was the period when Lithuania experienced and implemented major economic reforms that resulted in successful EU accession. In its report, the International Monetary Fund recognized Lithuanias economic indicators among the best in the EU during the last five-year period. According to the data of the survey conducted by the World Bank and International Finance Corporation published in the report Doing Business in 2005 Lithuania falls among twenty countries of the world with the most favorable business environment. Favorable investment and business development environment has been created in Lithuania. Lithuania invites to invest into free economic zones where investors are offered various privileges: exemption from profit tax during the first 6 years; absence of customs, VAT and excise taxes, simplified customs procedures, etc. Lithuania creates nearly half of the Baltic GDP and is the largest Baltic market. It has been also noted that Lithuania has created favorable conditions for development and production of high technologies. 14 of 20 strongest Baltic information technologies companies are Lithuanian companies. Lithuanian lasers are exported to nearly 100 countries, while Lithuanian picoseconds lasers occupy half of the world picoseconds lasers market. Lithuania exports biotechnological products to 42 countries. These facts are a clear example that Lithuania is a modern, fast growing country offering the best conditions for business start-up and development. The energy dependence is one of the most important topics today. How strong are we to solve this problem on our own and EU help? In recent years, the Government pays large attention to the radical restructuring of the energy sector and implementation of related EU directives. The National Programme for Enhancement of Energy Consumption Efficiency in 2006-2010 envisages specific instruments for enhancement of the efficiency of energy resources and energy consumption, use of local renewable and waste energy resources. The new version of the National Energy Strategy is in the process of completion. It will take into consideration the new EU directives and recommendations, also envisage Lithuanias energy future for the coming 20 years. Following the communiqué signed by the Prime Ministers of the Baltic States, heads of the Baltic energy companies have signed a memorandum of understanding concerning the construction of a new nuclear power reactor. The memorandum envisages to complete the preparation of a feasibility study by 1 November 2006. The study will evaluate technological, environmental, legal and economic aspects of the project, also its motivation. Seeking to enhance the security and reliability of natural gas supply, the construction of gas accounting station was finished on the main gaspipe on the Lithuanian and Latvian border. The new station connects Latvian and Lithuanian gas networks. In 2005, the Lithuanian gas company AB Lietuvos dujos completed the construction of the main gaspipe going to the Ignalina NPP and Visaginas (108 km). Last year, huge progress was made in building the second line of the Kaunas-Šakiai gaspipe that will meet the growing needs of Lithuanian consumers and guarantee gas transit to the Kaliningrad Region of the Russian Federation until 2010. Seeking to improve the INPP safety and retain its high level, the third INPP safety improvement programme has been developed. Over 82 million litas was invested into INPP safety improvement in 2005, 99 measures were implemented 41 of which was fully completed. Striving to mitigate social and economic consequences arising from the INPP decommissioning in the region, 7.5 million litas was allocated from INPP decommissioning fund to implement social and economic measures under the INPP first and second unit decommissioning programme in the region. The short-term energy priorities in Lithuania are ensuring electricity supply reliability and stability, creation of the common Baltic electricity market and integration into the West European electricity markets. No less important is to retain nuclear safety during the INPP operation and its decommissioning, also the process of nuclear waste management. Lithuania aims for more active regional cooperation since regional integration of energy supply systems is a tool to enhance the energy availability and supply security.
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Lithuanian
Aloyzas Tarvydas, |
Tax Information Centre (TIC) of the State Tax Inspectorate under the Ministry of Finance has been in operation in Lithuania for already two months. The main function of the Centre is to consult taxpayers via telephone. Having dialled number 1882, people can receive detailed information provided by taxation experts.
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Lithuanian Border Barriers will be Lifted up for the Europeans Monika Vilutytė |
Two years ago Lithuania became a fully-fledged member of the European Union. After one and a half year our country will enlarge the Schengen area. We believe and strive for that, driven by not only ambitions, but also reasoned suggestions. During the period that was left before joining the Schengen area, we are supposed to open the inside borders for free movement of persons, and to ensure an appropriate control and security along the external borders. Strategy Foresees Five-year Plans During the recent two years our State Border regions met with considerable changes. Striking alterations will be obvious for further two years until joining the Schengen area. Afterwards, it is foreseen to implement lower-scale tasks that are equally important to Lithuania. The concept and measures for implementation of these changes are listed in the Strategy for Border Crossing-Points Development and Action Plan submitted by the Ministry of the Interior. In order to achieve goals set in the Strategy and to implement tasks during 20042007, 524 million LTL will be used from the Schengen Facility funds, 94 million LTL from the State Budget, and 140 million LTL will be received under the Special Kaliningrad Transit Programme for 20042006, the Minister of the Interior Gintaras Furmanavičius states. In 2007 Lithuania is expecting to receive financing from the European External Borders Fund. 108 MEUR have been allocated under the Special Kaliningrad Transit Programme for Lithuania to continue the new financial perspective for 20072013. Experts were Satisfied with Preparatory WorksExperts from the European Commission supervise the use of European funds as if the vigilant guardians. Few months ago Lithuania was visited by the European Commission delegation that finalized the evaluation on feasibility of administration and supervision of EU-financed programmes. According to Gintaras Furmanavičius, such verdict carries a single meaning Lithunia has made a significant progress towards the implementation of the Schengen Facility and Special Kaliningrad Transit Programme. Such evaluation can only reprove that some political speculations on quasi slackened use of the European funds do not deserve political posts, Minister notes. Franco Frattini, the Commissioner for Justice, Freedom and Security, directly responsible for the Schengen area paid his visit to Lithuania on September 2005. He was very positive towards the Lithuanian efforts to become a member of the Schengen area and refused to rate the states according to their preparedness for entering the Schengen area for ethical reasons only. Actually, we have something to show at the frontier, Gintaras Furmanavičius notes. There are the new Frontier Stations equipped with systems and technologies that meet all European standards. Filling List of Tasks CompletedBy the end of this year the external EU borders will see 7 new Frontier Stations: Kapčiamiesčio, Plaškių, Bardinų, Viešvilės, Visagino, Lavoriškių and Girėnų. Two Frontier Stations Neringos and Mickūnų were reconstructed. According to the Minister, the State Border Guard Service will be provided with the new Aviation Depot in Paluknys, 3 new helicopters, approx. 300 jeeps, 53 motorcars, 63 different types of minibuses, 7 cutters, 4 modernized vessels. This Service will purchase accoutrements, weaponry, optical and other type of equipment for 14 million LTL. It is planned to purchase up to 50 trained dogs that will help to protect the State Border. Some foreign experts believe that one officer and a well-trained dog protect borders more effectively than any other technical security system, Gintaras Furmanavičius states. Perfectly Functioning Information System is One of the Key Indicators Not only the proper border guard is important, but the Schengen Information System as well, in particular the complex database enabling information exchange among the law enforcement officers of the Schengen area countries concerning the particular persons or property, i.e. those not allowed to enter the country, those to be arrested or departed from the country, stolen vehicles, works of art, counterfeit or lost documents, forged banknotes. Those new EU Member States that have not joined the Schengen Information System yet will definitely not accede to the Schengen area even if they fulfil the rest of requirements. In May of this year we announced the open international competition on the establishment and introduction of the National Schengen Information System (NSIS) and National Visa Information System (NVIS), G. Furmanavičius notes. This competition is aimed to modernize and to incorporate currently functioning information systems, such as Information System of the State Border Guard Service, Police Information System, etc., into the central SIS II and VIS systems. Accession to the Schengen area is a process that is gaining momentum with difficulty, but when it does, the work is being done on many fronts. Currently 20 projects are being implemented from 45 scheduled under the Schengen Facility. All contracts on goods, services and works must be signed by 31 December 2006, however implementation of projects will continue till the end of September 2007. Waiting for the Experts to Arrive Experts from the European Commission have already started the entire marathon of checking. At the beginning of May it was checked whether Lithuanian Consulates are ready to issue visas in accordance with the Schengen Acquis requirements. In July experts will analyse whether Lithuanian sea border, airports and land borders meet the requirements set. In September it will be checked whether Lithuanian Police is ready for cooperation within the Schengen area. In October experts will analyse whether there is an appropriate data security in our state. Next year, when the II generation Schengen Information System (SIS II) will be launched, experts will arrive to perform checks on whether Lithuania has fully established the National Schengen Information System (NSIS) and National Visa Information System (NVIS) and installed them properly. After completing the checks, experts will draw the final conclusions on whether Lithuania meets the Schengen Acquis requirements. As we have adopted a strict procedure for selection of projects, we are not worried about conclusions inspectors may make. They just cannot be other than positive as we using the EU funds according to their intended purpose and performing the work in accordance with the schedule.
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New Developments
Rimvydas VALYS |
Factors influencing the freight transport Oil, oil products, fertilizers, ferrous metals, timber, coal and coke make the largest part of cargoes (over 70 percent) transported by Lithuanian railways. In principle, these amounts as well as transportation directions did not change much in recent years. Lithuanian railways carry most transit freight by IX D main railway line Kaišiadorys-Kybartai that is used for transportation of CIS cargoes, and by IX B main line Kena-Klaipėda by which freight is carried to the Klaipėda Seaport. Therefore, the major investment has been made into renovation of tracks and constructions of these railway lines (Crete Transport Corridor), modernization of signalling and electricity supply equipment so as to increase the weigh capacities (to 6000 tones) and speed of freight trains. IX B Crete Transport Corridor is extremely important to Lithuanian railways as the severe competition with ports of other countries makes the attraction of freight flows in this direction particularly difficult. For this reason, the conditions for freight transportation to the Klaipėda Seaport are continuously improved. Introduction of reductions for freight transportation tariffs, improvement of freight transportation technologies result in the growth of transportation efficiency and carried amounts. For instance, currently potassium fertilizers from Belarus are carried to the Klaipėda Seaport by the shipment documents formalized for the whole train and not for a separate wagon. The freight enters the territory of Lithuania in block trains trains weighting 5300 tones with potassium fertilizers. After the optimization of wagon handling technologies in Draugystės station, the unloading and other operations, the turnover of wagons carrying potassium fertilizers on Lithuanian territory has been reduced from 72 to 52 hours, the capacity of one transportation has increased by 1300 tones. Over 1.8 million tones of Belarus potassium fertilizers are transported by Lithuania railways to the Klaipėda Seaport per year. Currently, both Lithuanian and railways of other countries are facing the lack of wagons and therefore improvements made in freight transport technologies are very important in optimizing the wagon turnover. The decrease of the Baltic and CIS wagon fleet has been observed throughout many years. Renewal of the wagon fleet requires large investment, therefore in the latter years more wagons are discarded than purchased. On the other hand, the growing volumes of rail transportations in CIS and Baltic countries raise the demand for wagons. The tendency of decrease of the wagon fleet changed only in the first half of 2005 when CIS and Baltic railway companies discarded 4073 and bought 5445 wagons (in 2005 Lithuanian railways bought 150 wagons for carriage of mineral substances). Changes in transit freight flows depend not only on our own conditions but also on conditions set by other countries, particularly in pricing policy. It is the decisive factor in distribution of freight flows by destination directions. For example, Russian railways have set higher prices for freight transportation to ports of other countries (Klaipėda Seaport including) what has resulted in the increase of freight flows in the direction of Kaliningrad and other Russian ports. Theoretically, the situation is expected to change in the near future because one of the main provisions of the Governmental Agreement on the Cooperation of Klaipėda and Kaliningrad Seaports-Project 2K signed on 26 May 2005 provides for implementation of the tariff policy envisaging to fix the coordinated competitive tariffs for freight carriage. However, so far this agreement has not brought any tangible benefit to the Klaipėda Seaport. Freight transportation by containers in Lithuania The main tendencies in freight transportation prevailing on the world transport markets exit in Lithuania as well. The container freight transportation is the most promising and progressive market. The container is a universal and convenient capacity for freight transportation, warehousing and distribution and this type of transport has become very important in recent years. It is forecasted that about 70 percent of all cargoes in the world will be carried in containers by 2010. The volumes of container freight transportations are significantly growing in Lithuania. The amount of containers carried by rail grew by 5.8 times since 2001 and reached 25.6 TEU in 2005. 214.3 thousand TEU were handled in the Klaipėda Seaport in 2005 or by 4.2 times more than in 2001. One tenth of all containers handled in the Klaipėda Seaport were carried by Lithuania railways. After a complex analysis of potential markets, the train of combined transportations Viking was launched in 2003 and started operating the route through the territories of Lithuania, Belarus and the Ukraine. The results of containers loading and transportation (TEU) The combined train Viking is intended for transportation of 20 and 40-feet universal and specialised containers and trailer-trains on the platform. Possibilities for transportation of semi-trailers and haulers by this train are also considered, however at the moment there does not exit technical conditions for such transportations. The specialised shuttle train Viking operates the route Klaipėda-Ilyichevsk (Odessa)-Klaipėda. Moreover, the freight can be carried by train from Western and North Europe by railway and ferry line Sassnitz-Mukran-Klaipėda not only to the destination in Belarus or the Ukraine but also consignees in Turkey, Georgia and other Transcaucasian countries, also in the opposite direction. The total length of the route is 1734 km. The train covers this distance in 60 hours. Plans are made to extend the route of the shuttle train Viking to Georgia. Freight in containers and trailer-trains are transported by the combined train Viking through the territories of all countries on the basis of competitive universal rate. The price of container transportation by this train is advantageous what is an important factor for attracting extra flows of container freight, shifting a certain part of freight from the road transport. Furthermore, the rapid and timely delivery of freight adds to the advantages of this train. A special working group has been set up for the solution of organisational issues of the combined train Viking. The operators of the train established in Lithuania, Belarus and the Ukraine efficiently represent the advantages of Viking in international exhibitions of transport and logistics, other events. The specialised train Viking is often advertised in information publications and media. Averagely 16 containers (TEU) and 24 trailer-trains were carried per moth by the train Viking in 2003, 158 TEU and 11 trailer-trains in 2004, 1244 TEU and 10 trailers-trains in 2005. Most containers were transported from Belarus to Lithuania and vice-versa, trailer-trains from/to the Ukraine. In 2005, 40 percent of trailer-trains contained perishable goods that due to the excessive weight could not cover such a long way by road. Container transportations by the train Viking are growing and so does the amounts of containers coming to the Klaipėda Seaport by rail. However, irrespective of the competitive tariff for transportation of trailer-trains, popularity and promotion in Western Europe as a mode reducing road congestions and environment pollution, in Lithuania the train Viking is making the first steps and its progress may be very slow without the state support or grants. To increase the competitiveness of Klaipėda and Kaliningrad ports in respect of other ports of the Baltic region, Lithuanian and Russian Ministers of Foreign Affairs and Transport and Communications during their meeting of on 26 May 2005 signed the Governmental Agreement on Cooperation between Klaipėda and Kaliningrad Seaports Project 2K. For implementation of this project, the Agreement on Organisation of Freight Transport by the Route Kaliningrad/Klaipėda-Moscow by the Container Train Mercury was signed on the same day. Container train Mercury is the second international project with the participation of the Lithuanian railway company AB Lietuvos geležinkeliai. It is implemented by Lithuanian, Russian and Belarus railway companies. The train Mercury is intended for transportation of 20, 40 and 45-feet universal and specialised containers by the route Klaipėda/Kaliningrad-Minsk-Moscow and in the backward direction. After leaving Klaipėda and Kaliningrad seaports, the train arrives in Vaidotai Station where wagons with containers are marshalled and made up into one block train which is sent further to the destination station. Trains going in the opposite direction after leaving the Moscow Station come to Vaidotai Station where wagons with containers are marshalled and afterwards two separate trains are directed to Klaipėda and Kaliningrad seaports. The route Klaipėda-Moscow (1335 km) is covered in 46 hours, Kaliningrad-Moscow (1288 km) in 50 hours. An approximately 10 percent lower tariff is applied for container transportation to the Klaipėda Seaport by the train Mercury by Lithuanian railways than for freight transportation by an ordinary train. Additional logistics services will be given to those carrying freight by the train Mercury, like door-to-door delivery, the possibility for freight consignors and consignees to choose the most suitable model of the logistics chain. The first Mercury train was launched on 23 July 2005. Market liberalisation and enhancing competitive abilities After the rail transport market is liberalised and new freight carriers come to operate on it, AB Lietuvos geležinkeliai will have to join the battle for cargoes what will undoubtedly ask to even more enhance the competitive abilities of the company. A large portion of works that will help to easier meet the approaching challenges have already been done. AB Lietuvos geležinkeliai, in implementing the EU directives, has successfully conducted the company restructuring and established three divisions: Freight Transportation Directorate engaged in transportation of cargoes, Passenger Transportation Directorate conducting passenger carriage and Railway Infrastructure Directorate established to look after railway infrastructure. AB Lietuvos geležinkeliai is also conducting the modernization and renewal of the locomotive fleet. The goal of the remotorization of freight locomotives is to restore technical capacities of exiting locomotives in the shortest possible time, reduce the number of breakdowns, repairs and operational costs. At the moment, 17 locomotives of 2M62 type and 62 locomotives of M62 type have undergone remotorisation. The modernization of freight locomotives 2M62 is targeted to increase the capacities of locomotives so as to guarantee the transportation of heavier trains and prolong their operational time for at least 15 years. 11 locomotives have been modernized; the total of 20 modernized locomotives will be put into operation by 2007. The company performs modernization and renewal of the wagon fleet as well. Renewal of the wagon fleet consists of two parts: purchase of new wagons; extension of the service time of old wagons.300 new wagons for transportation of mineral fertilizers were purchased in 2005-2006. It is intended to buy another 2000 wagons for mixed transportations by 2013. 1081 freight wagon underwent modernization in the period between 2001 and 2005. Modernization and renewal of locomotives and wagons have direct impact on the improving indicators of their operation. In 2000-2005, the dynamics of indicators of wagon operation was as follows: the average run per day grew from 92.7km/day to 120.1 km/h; the idle time of transit wagons in stations dropped from 19.11 h to 12.53 h; the average turnover of wagons decreased from 6.14 days to 4.08 day. The quicker turnover of wagons was mainly influenced by shorter idle time, better technical status of locomotives and larger speed of trains.AB Lietuvos geležinkeliai is also implementing many other projects in the field of ensuring traffic safety, traffic control, improvement of information handling, computerisation and automation. Currently, there are 69 commercial stations in Lithuania, however not all of them are strategically well located. In those cases when cargoes are not unloaded on approach roads, the delivery of the cargo to a consignee depends upon the motor transport. For this reason, Vilnius, Kaunas, Šiauliai, Šeštokai and Paneriai railway stations have decided to conclude agreements with moto transport companies that will guarantee timely delivery of cargoes to consignees. Seeking to enhance the competitive abilities of the company, the Lithuanian railway company is planning to buy new Siemens freight locomotives that will help to reduce operational costs and will be used for transportation of trains weighting 6000 tones by IXB, D corridors from the state border in the direction of Kybartai and Klaipėda. These modern locomotives will fully conform to the environmental requirements and their projected operational time will be 30 years. The company intends to buy 34 new locomotives. The first locomotive will be delivered to Lithuania in mid 2007, the last in 2009. The new locomotives will enable to significantly increase the weight capacities and speed of freight trains.
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| Road Transport: Production Tool and High Quality Services Association Linava President Algimantas KONDRUSEVIČIUS |
Last year, road transportations of goods in Europe grew by 1.77 percent; registration of new transport vehicles weighting over 3.5 t in the European Union countries increased by 1.9 percent. These tendencies are supported by the Lithuanian statistics. Last year, road transportations of goods in Lithuania augmented by 8 percent compared with 2004 and made 55.3 million tons. The interesting fact is that the largest part of passengers (97.9 percent) also used road transport. The declaration signed during the 30th IRU World Congress said that road transport had become an essential production tool in economies, providing high quality services to its clients and ultimately to consumers. Goods transport2460 Lithuanian road carriers companies held licences to transport goods on international routes in 2005. They owned 16 150 transport vehicles. Although the number of companies decreased by 30 percent from 2003, the number of freight vehicles holding license cards continued to grow during the analysed period. Today, the Association unites 1153 companies operating 3000 busses and trolleybuses and over 145000 vehicles used for international goods transportations. The companies of Association employ over 55 thousand people, 8 thousand of which work in passenger transportation companies. The largest number of carrier companies belonging to the Association have been registered in Vilnius Region (30 percent), followed by Kaunas Region (19 percent) and Klaipėda Region (16 percent). Even 85 percent of heavy vehicles that operate international routes conform to the highest ecological and safety requirements what has been a very serious argument in negotiating larger quotas for international permits. Lithuanian carriers posses over 12000 ecologically certified vehicles making over 72 percent of all vehicles used for international transportations. Carries belonging to the Association operate over 10000 ecologically certified haulers or 85 percent of all haulers used for international transportations. The number of companies possessing from 6 to 20 cars is growing what shows that companies are becoming larger. Today, these companies account for 45 percent compared to 28 percent five years ago. By the nature of transportations, Lithuanian carriers offer the whole range of services: from transportation of universal (general) goods to transportation of specific (animals, glass or over-dimensioned) cargoes. Transportation in tilt vehicles (61 percent) and refrigerators (19 percent) continue to prevail on the market. Financial indicators of goods transportBased on the data received from freight transport companies belonging to the Association, income from transport activities totalled 3.25 billion litas in 2005 (the growth of 16 percent was mainly achieved due to the enlargement of transport fleet and efficiency of activities). Road transportations of cargoes in Lithuania augmented by 8 percent compared with 2004 and made 55.3 million tones. Nevertheless, the growth of costs per company exceeded the growth of income by 6 percent in 2005. The growth of costs was mainly decided by the rise of price of fuel, road taxes and insurance. Rising fuel pricesIn 2005, the growth of diesel fuel prices was recorded not only in Lithuania but all European countries. According to the data presented by IRU, the largest growth of fuel prices comparing October and May months of 2004 was recorded in Greece, while in Lithuania it made 7 percent and 2 percent in Latvia. Passenger transportLithuanian carriers possess 2905 busses and trolleybuses, 263 of which are 5 years old. This accounts for mere 9 percent of the whole fleet. The situation in this sector is rather bad and we significantly lag behind other EU Member States where passenger transport vehicles under 5 years make 60 percent. The Association is looking for various ways how the Single Programming Document could envisage funds for renewal of the vehicle fleet. A special working group has been formed in the Ministry of Transport and Communications to analyse the action programme in the field of transport for 2007-2013 and seek for financial aid of EU structural funds. Financial indicators of passenger transportIncome of passenger transport companies totalled 385 million litas in 2005. The companies paid 84 million litas into the national budget in the form of taxes. Carriers of the Association transported 346.8 million passengers in 2005; the total run reached 167 million km. It is worth noting that last year the largest part of passengers (97.9 percent) was transported by roads. The comparison of 2005 and 2004 shows that 71.2 percent of carriers losses incurred due to the provision of public services (47.2 percent in 2004) were compensated last year. This has been achieved through the consistent work of the Association divisions and carriers representatives in regions. Business environment in the road transport sectorHolding the competitive position on both the East European and EU markets is the most important task in carriers business. The SWOT analysis of goods transport companies-members of the Association demonstrates that so far Lithuanian carriers preserve the competitive advantage over the carriers of the old EU Member states owing to better understanding of Eastern markets, convenient geographic location and flexibility of activities. The weak side of Lithuanian carriers is lower productivity and drawbacks in financial, economic, marketing and logistic knowledge, poor use of information technologies. The EU enlargement has opened possibilities for Lithuanian carriers to operate on the EU logistics services market. The Association has joined the projects working the field of exploration of the South and East markets. To my opinion, the growing competition of carriers of the neighbouring countries and old EU Member States is the major threat that Lithuanian carriers may face. Among other factors negatively impacting the competitiveness of road transport are growing infrastructure taxes, lack of skilled labour force and low investment into the intellectual capital. In addition, huge internal and external competition makes it impossible to raise the price of services. What are the ways for Lithuanian carriers to overcome these threats and preserve positions on the road transport market? It is evident, the carriers attempts and investment will not suffice to achieve this goal. The Association Linava is systematically realising its mission to represent carriers interests. Its activities are targeted to improvement of business environment on the national and international scale. Business has always faced problems and so our task is took for ways how to best solve them. Training and employment of driversThe lack of drivers is among the most serious problems. Lithuanian carriers are looking for various ways to get drivers coming from the third countries (Belarus, the Ukraine, Russia) employed in Lithuania. According to the data of Linava members, this lack makes about 3000 drivers as of the present day. The process of employment of third country drivers is very long; the issuance of permits for temporal residence in Lithuania lasts up to 6 months. The Association has asked the Migration Department to take into consideration the specifics of drivers work in issuing permits for temporal residence in Lithuania. The preparation of legal regulations on the refusal of such permits is underway. The Association is raising a question of solving carriers problems on the state level through preparation of special training programmes for secondary schools, professional orientation of the youth in the regions recording the largest unemployment rates, etc. An agreement has been reached to discuss this issue with other interested institutions. The same problem was raised during the 30th IRU World Congress where we received IRUs promise to solve it on the European scale. The Congress recognised the drivers profession as a strategic profession. Wages must serve the people The average monthly wages (gross) in goods and passenger transport companies continued to grow during the analysed period. In 2004, as compared with 2003, it increased by 12 percent. The particularly significant increase in wages (about 22 percent) was recorded in goods transport companies last year. Wages paid by passenger transport companies increased 5.3 percent in 2003 and 5.7 percent in 2004 (Picture 10). In 2004, the growth rate of average salaries in road transport sector was almost by 4 percentage points higher than the national average. The present and the future of the road transport market Today, hardly anybody disputes against the huge impact that road transport makes on public welfare, mobility, economic prosperity and creation of jobs. Road transport is the main link between various modes of transport that guarantees the successful operation of the whole EU logistical system. During the celebration of the anniversary of the Association in October this year, it was stated that the Association successfully helped the Lithuanian carriers to acclimatize to new work conditions after changes occurred in the volumes and directions of goods and passenger transportation, requirements to the quality of services increased and trade with Western, Central European and CIS grew. In evaluating these achievements one should not forget that they were achieved under sever competition, rising fuel prices, lack of professional drivers and strict EU environmental and technical requirements to road transport. The situation in the road transport sector is very dynamic, thus carriers of the Association are seriously discussing the possibilities for launching business as in Europe, as in other regions of the world. The first move has already been done in the direction of Asia. On 17 October 2005, cargo vehicles left Brussels for the journey Beijing-Astana-Moscow-Riga-Vilnius-Warsaw-Berlin-Brussels under the symbolic Silk Road name (12 thousand km). Lithuania was represented by the crew of the Association Linava. In the light of the growing economic cooperation of China and Europe, the Silk Road is expected to become a good chance for Lithuanian carriers to get consolidated on East-West transport services market. State institutions have taken a passive attitude towards the development of transit infrastructure. Its a pity that integrated actions of state bodies are lacking in the establishment of logistics centres, cargo terminals and other transit objects. State institutions should not neglect the future development of this sector and help Lithuania to become a strong logistic operator. The routes going to the East will become promising if we have special multimodal systems. So far, Lithuania has only one multimodal centre in Klaipėda which integrates transportations, handling and distribution of cargoes delivered by various transport modes. One centre is not enough. Lithuania needs large logistics centres significantly bigger as the existing warehouses with limited possibilities. At the moment, Lithuania does not have a single large international logistics centre or freight village. Transit transportations, by all means, generate income, however it would be significantly larger if the freight stops in Lithuania for such services as warehousing, forming of orders, etc. The experts say that in changing tendencies of a transit country Lithuanian authorities lack strategic thinking, perception of competitiveness and the necessity to respond to the present-day challenges. Many of the problems are analysed and solved taking no account of Lithuanias development in the global context. The best example of the Lithuanian attitude is the fiasco of logistics centres in Klaipėda and Vilnius proving that poor competence of bureaucrats has been the main barrier in successfully realising these projects. Probably, not everything is lost? The Eastern markets have been and will remain very important to Lithuanian carriers. Russia holds the leading position among Lithuanian trade partners in the field of export/import. Lithuanias geographic position and good understanding of Eastern markets awards our carriers the competitive advantage over their western rivals. Business tendenciesThe evaluation of business tendencies shows that the attitude of the highest-ranking EU politicians towards road transport is changing. It has been finally admitted that road transport has a huge impact on public welfare, mobility, economic prosperity and creation of jobs. In the EU countries, road transport generates about 20 percent of GDP and brings about 10 percent revenues to national budgets. About 16 million people are employed in the road transport sector in the EU Member States. It has been finally refused to move some of the major freight flows from road transport to railways. Particular attention is directed to strengthening the interconnection of various transport modes so ensuring the successful operation of the whole EU logistics system. IRU Commission on Customs Affairs informs that 3.3 million TIR carnets were issued in 2005 and the East is becoming the main direction of all transportations. It has also noted that plans are made to expand the functioning of the TIR system in the direction of Asia and such countries, like China, Thailand, etc. The motif of the recently arranged 30th IRU World Congress was to discuss the growing influence of road transportations over the world economics. The congress once more stressed that road transport is the provider of qualitative door-to-door transportation services, modern production tool and inseparable part of logistics systems. A survey presented during the congress by the company TRANSCARE showed that the only instrument enabling the railway transport competing on the market is improving the quality of services and not increasing the tariffs. The findings show that if the price of road transportations grows by 1 euro/km, only 1.2 percent of freight will be directed to railways, since over 70 percent of cargoes transported by roads are insensitive to tariff changes. Significant contribution of carriersLithuania may be deservedly proud of well-developed road transport, private logistics companies, warehouses and forwarders. During 16 years, carriers companies have achieved significantly better results than transit projects hidden deep in drawers of Lithuanian strategists. This year achievements of Lithuanian carriers have evidently proved that road transport is an efficient instrument in developing the economic cooperation among different countries, while no less important and significant is contribution of carriers into the development of the Lithuanian economy. Lithuanian carriers expect to receive better understating and larger attention of all public institutions and bodies in solving problems arising in transport business.
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Intersystem Power Grid and
Rimvydas RUKŠĖNAS
Lithuanian Electricity Association |
The general electricity generation capacities in Lithuania (nuclear and non-nuclear) are more than twice larger than the actual demand in the country. Ignalina Nuclear Power Plant (INPP) is the main producer of electricity in Lithuania. The price of electricity generated at INPP is lower compared to thermal plants using organic fuel. During the last fifteen years INPP generated from 73 to 87 percents of electricity, however in 2005, after shutting down Unit 1, its share in the electricity generation balance dropped to 70 percent. The decision regarding the duration of operation of INPP will have extremely great impact to the development of the national electricity system in the coming ten years and it will actually depend upon the safety and economic indicators of the power plant. After closing Unit 2 of INPP at the end of 2009, the generation capacities, including small thermal plants planned to be built in the near future, will suffice to meet the national needs until 2015. It is necessary to perform the modernisation of the Lithuanian Power Plant in Elektrėnai and the existing thermal plants. In the period between 2009 and 2015, the Lithuanian Power Plant will become the main electricity generating facility, while the cheapest electricity will come from the modernised thermal power plants in winter season. The technical and economic analysis shows that the need for new capacities and economic expediency will be the decisive factors in starting the construction of new thermal power plants in Klaipėda, Šiauliai, Panevėžys and other cities that have well-developed district heating systems. However, even at the end of the analysed period, their share in the general electricity generation balance will not exceed 45 percent. Seeking to avoid too great dependence upon the imported organic fuel that is very limited in resources, moreover that its extraction is envisaged to drop down after 2025, a new nuclear power plant should be built in Lithuania no later than 2020. The size of the future plant and more exact construction date will be set in the feasibility study to be prepared by energy companies of the Baltic States in the near future. Lithuania is getting ready to implement its commitments to the EU regarding the use of renewable energy resources for electricity generation. In the coming five years, the construction of wind-power plants and small hydro and thermal power plants will increase the share of renewable energy resources in the general electricity generation balance to 7 percent and 10 percent at the end of 2015. Electricity transmission and distribution networks actually satisfy the current needs of the electricity system. Irrespective of the fact that in recent years a part of electricity networks and sub-stations have been renovated, around 60 percent of transmission and distribution facilities are 20 and another 30 percent 30 years old. For this reason, it is necessary have them renovated as soon as possible so as to meet the increasing requirements raised to energy supply reliability and stability, particularly in seeking to create the efficient common Baltic electricity market. So far, Lithuania does not have interconnections with the Scandinavian and West European electricity grids. It is absolutely necessary to build such interconnections with Polish and Swedish electricity systems in the most immediate future. These interconnections should stimulate the integration of the Baltic States into the West European electricity market, enhance reliability of electricity supply and create conditions for better competition. Lithuanias integration into the European Union, cooperation with other Baltic and Nordic states and the forecasted distribution of demand and generating capacities necessitates to change the structure of the Lithuanian national electricity network. The joint efforts of the three Baltic States must be united to prepare the strategy for the development of the electricity transmission grid, envisage the sequence of actions and sources of financing. The following actions should be taken to guarantee the reliability of electricity supply and integration into the EU market: Preserving the potential of the exiting and planned non-nuclear power plants, its gradual adjustment to the requirements of market economy through introduction of measures for the control of instant power balance. Reconstruction of the old electricity transmission and distribution networks so as to guarantee the reliability of the increasing load and electricity supply, and requirements for quality. Construction of the new nuclear power plant by 2020. Cooperation with the neighbouring countries to guarantee the reserve power capacities. Construction of interconnections with Poland and Sweden for the purpose to get integrated into the electricity systems of West European countries and enhance the strategic reliability of electricity supply. Developing the cooperation with the Baltic countries in creation of the common electricity market and using the potential of Baltic electricity systems. Preparation of the energy strategy and plan of the Baltic States in cooperation with Latvia and Estonia that will be targeted to integration into the West European and Scandinavian networks and will envisage how to best exhaust the existing generating capacities and enhance the reliability of supply of all types of energy. Completion of privatisation of power generating enterprises and distribution networks.The Lithuanian electricity sector has a far-sighted and clear strategy which needs the integration of efforts and powers of the Lithuanian and foreign partners to realise huge aspirations in the field of energy.
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Kaunas Energy
AB Kauno energija Director General
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The introduction of the district heating system in Lithuania started fifty years ago when the country faced the need to supply heat to the newly built residential districts and industrial enterprises. At that time, the generation and supply of electricity and heat were centrally administered by the company AB Lietuvos energija. In 1997, the company reorganisation was conducted separating the district heating sector from the central system and establishing regional district heating companies. A special destination public limited liability company AB Kauno energija was established in Kaunas region on the basis of Lietuvos energija subsidiary companies Kauno elektrinė and Kauno šilumos tinklai. Today, AB Kauno energija supplies heat and hot water to Kaunas and Jurbarkas cities, and Kaunas District. In 2000, the company AB Kauno energija experienced major changes. The outcomes of its restructuring were separation of those divisions that were not related with the core activity of the company, introduction of the new management structure, review of heat energy tariffs. The reorganisation of the company brought tangible effects. Although the end of 2000 witnessed losses, the financial indicators of the company started significantly improving. The debts of AB Kauno energija decreased more than three times in the period between 2000 and 2005 from 240 million litas down to 73 million litas. The better financial situation in company enabled to increase investment that grew more than twice and made 24 million litas in 2005. Investment was targeted to reconstruction of pipelines, dismantling of group hot water preparation facilities and introduction of modern information technologies. In the run of the last five years, 68 km of old pipelines were replaced with new heat supply pipes with polyurethane insulation, 10 km of new heat supply pipelines were built. A huge work has been done in dismantling group hot water preparation facilities and installation of individual hot water preparation and automated heat regulation units in individual buildings. At the end of 2005, the number of group hot water preparation facilities administered by AB Kauno energija decreased more than three times and number 35 at the moment. On the joint efforts of Kaunas City Municipality, AB Kauno energija and heat energy consumers, the modernisation of heat facilities is conducted. The facilities have already been modernized in over 1000 buildings. Losses in district heating networks have dropped by 28 percent and in hot water supply networks by 33 percent as compared with 2000. The major goal of the companys business management policy is not only holding the present positions on the district heating market but also providing the consumers with the highest quality services, enhancing generation and heat supply efficiency and heat supply quality. Another no less important field of AB Kauno energija activities is attracting new consumers and joining them to the district heating system. In recent years, the number of consumers choosing district heating services is growing: new multi-apartment houses, large enterprises and supermarkets are built, large commercial centres, like Hyper MAXIMA, Molas, Savas, Mega are opened. Keeping relations with debtors and debt prevention are among the most difficult tasks of AB Kauno energija. Although the situation is improving, the indebtedness of heat consumers to the company remains a serious problem so far. The company directs particular attention to the improvement of the quality of services. A new tariff calculation and accounting system and a single-call system providing customers with the information about accounts, methodologies, maintenance of heating facilities and accidents have been introduced. The qualitative heat supply, stable heat tariffs, cooperation and regular meetings with heat consumers raise their trust in the company AB Kauno energija.
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Vilniaus planas by Eelena Berukštytė |
This year Vilnius City Municipal Company Vilniaus planas, founded in 1996, is celebrating its 10th anniversary of establishment and intensive work. The company was established with the aim to develop Vilnius City planning documents, to monitor their application, to provide information on the changes of environment and to develop public infrastructure. Since the very first days of its existence Municipal Company Vilniaus planas had following divisions General Planning Division, Detailed Planning Division, Geographical Information Systems (GIS) Division and Digital Cartography Division. Experienced highly qualified specialists work in the Company. They cooperate with partners from other countries and participate in joint projects for general territorial planning of citiesboth in Lithuania and European Union (EU). Vilnius City Council is the founder of the Company. The Board and administration is Companys management body. The Board controls and coordinates activities of the Company, and lays proposals to Companys founder on issues related to Companys activities. Today the diary of Municipal Company Vilniaus planas bears the record of a long list of already completed works, such as detailed examinations of the current situation of the capital and Vilnius City vision until 2020. The staff of the Company has prepared Vilnius City strategic, general and special plans, proposals for reconstruction of citys residential districts and streets, detailed plans for specific objects as well as technical projects and transport schemes. Municipal Company Vilniaus planas does not restrict its activities to the capital. The employees of the Company have developed Vilnius County general plan, Klaipėda City development strategic plan, and special planning for the boundaries of Mažeikiai and Seda towns. Apprecation letters presented to the company by Vilnius Mayor Artūras Zuokas best evidences good results of the Municipal Company Vilniaus planas. Director of the Municipal Company Vilniaus planas Justinas Kulakauskas has named the perspective of companys activities: We stand firm to the strategic attitude be one of the leaders in the planning sector; we increase the volume and quality of our services and expand our activities to other towns of Lithuania. Special attention is given to the qualification raising of our specialists; using our own experience we aim to train planning experts in accordance with the European Union standards and requirements. Speedy developments in the capital set new targets for Vilniaus planas. One of the first major works performed by the Company was new Vilnius City general plan approved in 1998. The plan was developed at a time when new constructions were scarce and it was hard to forecast their boom. Therefore the plan was not fully implemented and part of plans solutions became successive yet monitored following new methodological principles. According to the chief architect of Vilniaus planas Mindaugas Pakalnis, having started to develop the concept of Vilnius general plan until 2025, the analysis of the current situation has demonstrated that the general city plan in force since 1998 was a solid instrument for the management of capitals development. It helped to concentrate investment and to retain and enrich key characteristics of Vilnius urban structure. Main and peripheral centers of the city were successfully developed and imbalance of working and residential areas of the city has been decreased. Periodic surveys have showed that residents of Vilnius appreciate the ongoing developments in the city. Preparing the concept of general plan Municipal Company Vilniaus planas used monitoring data of the valid general plan, strategic city plans, data of Territorial Planning Register, analyses of transport flows, data of city functioning modeling, analysis of the current situation and proposals from residents, companies and organizations. The target of the developed concept is to ensure continuous increase of life quality and diminish territorial differences in Vilnius. The set target is being achieved by using worldwide-acknowledged sustainable development principles widely applied in modern urbanistics. Another aim of the concept is in cooperation with neighboring municipalities to form a harmonious territorial system of Vilnius city and adjacent territories thus increasing international competitiveness of the capital and its partners.
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The secrets of success
Raimonda Karosaitė |
The company UAB Audėjas is even four times older than the re-established independent state of Lithuania. This year, this biggest and most modern company producing upholstery fabrics in the Baltic countries has celebrated its 60th anniversary. Every year, the company established in Markučiai District in Vilnius creates about 30 new structures of fabrics, produces over three million meters of highest quality modern upholstery and decorative fabrics. Jacquard, chenille and mottled fabrics, plain and jacquard velour are offered in even three and a half thousand colouristic solutions and combinations. The designers and weaving specialists are always among the award-winners in the international exhibitions. Four years in turn, UAB Audėjas has been nominated as The Successfully Operating Enterprise, was awarded the prize of the competition Lithuanian Exporter the Year 2005, eight times the production of the company was recognised The Best Lithuanian Product of the Year. The Ministry of Economy of the Republic of Lithuania awarded UAB Audėjas National Quality Prize for efficient quality management methods and excellent business achievements. For 34 years the company Audėjas is lead by the exceptional business figure, Vice-president of the Lithuanian Confederation of Industrialists, President of the Lithuanian Apparel and Textile Industry Association, bearer of the 3rd Class Order of the Grand Duke Gediminas and Cross of Vytautas the Great, Economist of Credit Jonas Karčiauskas.
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Sports and Perfection!
Lina Daugėlaitė
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In Lithuania, like in the whole modern world, the influence of inventions and new technologies is growing and so does the number of people suffering various health disorders, overweight, etc. The inactive way of life is becoming very popular among young people what causes the greatest concern. One of the priority activities of the Department of Physical Education and Sports is to engage children and young people in sports. If the need to make sports and lead active life is developed in early childhood, it is expected that it will survive throughout the rest of life. It is the major goal that the Department pursues today. Occupation of children
4-5 contests are arranged for children and the youth per year. The traditional event are The Most Sporty School, The Healthiest of All, Sport and Environment, TV programme Winners League. In encouraging children to lead healthy and active way of life, the Department of Physical Education and Sports launched the long-term programme Lithuanian Physical Education Badge in secondary schools in 1996. The Department continuously looks for new and more interesting sport forms. In 2006, on the Departments initiative the first Olympic Festival of Lithuanian Schoolchildren was organised. The President of Lithuania H. E. Valdas Adamkus has gladly agreed to be the patron of this festival. The aim of the new festival is to involve as many as possible schoolchildren into the sport movement. The first festival has already proved to be a success: 1435 schools of 1578 education establishments and over 200 thousand schoolchildren participated in it. The programme of the Olympic Festival of Lithuanian Schoolchildren consisted not only of contests (17 sport branches in all) but also involved art competitions where children were invited to paint posters and compose poems on Olympic themes. The festive award ceremony of the winners of sport contests and art competitions was arranged on 3 June in Vilnius. The final event of the Festival started with Antique Sport competition that involved six non-traditional sports branches, followed by the award ceremony in Kalnų Park, sport show and concert. Plans are made to expand the sport movement of school children next year and arrange an international Olympic sport festival of schoolchildren. One more important traditional programme is targeted to occupation of children in summer and teaching them to swim. Every year, the programme receives larger financing and this enables to give larger support to summer camps, get children occupied and create conditions for their active leisure and rest. This year, the Department of Physical Culture and Sports is a co-financer of projects prepared by 48 Lithuanian cities and districts. The major goal of this programme is to make childrens leisure time purposeful, offer them interesting sport activities and so distract from spending time in streets in summer. Such camps attract by their original character, invite children not only make sport but sport is rather used as an education tool to advocate the benefits of sport. The Department of Physical Culture and Sport is currently implementing one more project designed to make young people more active. The project is aimed at construction of 20x40 m universal sport fields with artificial covering near schools in 14 Lithuanian cities and districts. The potential places for arrangement of these fields have been selected under three criteria: first, the schools must be active in sport, participate in various competitions, contests and tournaments; second, the municipality must involve the community into sport activities; third, private investment must be attracted. The realisation of this project is expected to enliven the sport life in schools, towns and settlements. In general, sport centres are the cornerstone for the development of physical education and sport. Public and municipal investment into construction and renovation of sport centres in Lithuania is growing with every year. The assimilation of EU structural funds opens no smaller possibilities in this field. Some of the most important projects realised in recent years are reconstruction of S. Darius and S. Girėnas stadium in Kaunas, universal hall Sportima and Vingis Stadium in Vilnius, construction of a sports complex in Ignalina, etc. New initiatives of public bodies have attracted the attention of private investors. Private funds have been used in realisation of such projects as construction of the most modern in the Baltics Siemens arena, modern tennis complex Teniso pasaulis, ice palace in Vilnius, golf fields in the territory of Elektrėnai municipality, etc. Public investment and EU structural funds are primarily targeted to the most necessary sport buildings and centres. By 2009, the year when Vilnius will be declared the European Capital of Culture, a national stadium should be built for arrangement of sport and cultural events. In 2011, Lithuania will host the European Basketball Championship. One of the championship rounds will be held in Šiauliai universal sport and entertainment arena that will be opened next year. Modern arenas will be also built in Kaunas, Klaipėda and Panevėžys. The resort town Druskininkai is getting ready to offer the best facilities for rest and training. The design works of the future sportsmen training and rehabilitation centre have been recently launched. At the moment, Lithuania is overwhelmed with construction of sports centres and halls.
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The Society Žalgiris Is Worth Joining
by Eelena Berukštytė
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The final competition of the Lithuanian Sport Society Žalgiris will be arranged on 15 June in Klaipėda. It will welcome over 1000 lovers of non-professional sport and winners of regional competitions. The Lithuanian Sport Society Žalgiris established nearly 60 years ago unites 87 sport clubs with 15 thousand members. Participants of competitions may be also non-registered non-professional sport clubs than number over 100 today. Some clubs are established under municipalities, other in companies and organisations, some other are independent and go in for sports they enjoy most. About 20 sports branches are practised by members of the Society Žalgiris starting from draught and sport fishing to football or basketball.
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The XI
Giedrius Kalninis
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The Pažaislis Music Festival to be held for the 11th time will invite classical music lovers from Lithuania and all around the world to stop for a short moment under the shady arcs of Lithuanian estates, prominent domes of baroque masterworks or simply picturesque places, listen to the sounds of eternal music and perceive the charm of existence in the unceasing run of centuries accompanied by the wonderful sounds of classical music
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The Harmony of
By Elena Berukštytė
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The sculptor Darius Bražiūnas was born in 1970 in Vilnius. In 1994, he graduated in sculpture at Vilnius Academy of Fine Arts and joined the Lithuanian Artists Association a year after. As a student, the artist started participating in exhibitions arranged in Lithuania. Later, his original works of small plastics were presented to art lovers in Latvia, Austria, Germany and other countries. As of today, D. Bražiūnas has arranged 37 personal exhibitions. During 12 years, the artist has created 3 monumental works decorating Vilnius and over 2000 works of small plastics that are mainly found in private galleries, at art lovers and collectors in Lithuania and all around the world.
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Creation is a pray
says
By Elena Berukštytė
Address: Tilto St. 17-7,
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Aldona Jonuškaitė-Šaltenienė says, Sometimes I am thankful to my destiny that made me a ceramist. I feel and comprehend the spatial art more easily
Creation is a pray, a confession
My animals live deep inside me, inside my heart. You will never find them in forests and encyclopaedias. It is my spiritual status, mood, environment, my hands and eyes, sometimes even clay and furnace that give them the real form. Very often, I wish them to have homes and fields
. However the most beautiful thing is that I have a possibility to communicate with flame, the flame that may forgive and punish.
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Space and Form in Robertas Bluj
By Elena Berukštytė
Address: Minties St. 30-28,
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The painter Robertas Bluj was born in 1970 in Vilnius. In 1992-1997, he studied at the Warsaw Academy of Fine Arts (Polnad) which he graduated with the Masters Degree. He was the student of the Painting Department and had the additional speciality mural painting technique. R. Bluj is the member of the Lithuania Artists Associaiton since 2002. The artist actively participates in exhibitions, symposiums and plein-airs organised in Lithuania, Poland and other European countries. Robertas Bluj periodically arranges personal exhibitions. His works are included into collection of galleries, art lovers and collectors.
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Unceasing Spring of Creation in Eduardas
By Elena Berukštytė
Address:
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The art center Rojaus arka has been established in the particular place of Vilnius (M. Daukšos 3) where it is said that two hundred years ago people lived as if in heaven. The facade of the building is facing the Gate of Dawn and the Rojaus Street passed nearby.
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