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A WORD FROM EDITOR Yours respectfully, TRANSPORT POLICY
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Lithuanian Transport System: the Present and Tasks for the Future Minister of Transport and Communications of the Republic of Lithuania Petras Čėsna answers the questions by the journal Business and Exhibitions Lithuanian Economic Review
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What could you, as the Minister responsible for Lithuanias transport sector, say about the Lithuanian transport system? |
Transit Nature of the Lithuanian
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Transport is one of the most rapidly developing sectors of Lithuanian economy. In 2005, the Gross National Product generated by the transport and communications sector continued to grow and accounted for 13% of the total GDP, with 10% generated in transport and warehousing, and 3% in post and communications. These figures indicate the dynamics of growth of transport and communications sector and its significant impact on the whole economy of Lithuania. Lithuanian Trans-European network comprises 1617 km of roads, 1100 km of railways, 278 km of inland waterways, 3 international airports (Vilnius, Kaunas and Palanga) and Klaipėda State Seaport. Major proportion of passengers and goods in Lithuania are carried by using the mentioned Trans-European network: in the year 2005 the total amount of goods carried was 111.5 mill. tons, and these figures keep increasing. Lithuanian freight railway transport competes with road transport and accounts for more than 44 per cent of all goods traffic (road goods traffic amounts to 50.7 per cent in average). That is quite a different picture from Western Europe, where freight railway market has much weaker positions. Container traffic in our Klaipėda State Seaport has increased during the recent years and tends to grow further. Last year it grew by 23 per cent comparing with 2004 and amounted for 214 thousand of TEUs (twenty-foot equivalent units). Passenger traffic at international airports has boosted after joining the EU on 1 May 2004. Compared with 2004, the passenger traffic at international Lithuanias airports grew by almost 31 per cent and reached 1.44 mill. passengers. What are the factors that promote the growth of the Lithuanian transport sector and enhance its transit potential? The geographical situation of the country that is favourable for transit (two transport corridors of continental importance cross the territory of the country);  an ice-free Klaipėda seaport with a modern container terminal and reconstructed 14-meter deep harbours in the northern part of the port; a well-developed road network and a high quality system of their maintenance and repair; good political and economic relations with neighbouring countries; privatisation of commercial structures of the transport sector has been finished; experienced scientific potential of the transport sector (more and more often Lithuanian scientist are being invited to contribute to the international programmes and projects); a high motorisation level; a high-level transport specialists training system; navigable Ro-Ro lines enable the create favourable conditions for development of maritime shipping, sea motorways and intermodal transport, as well as for multimodal transport; comparatively high tourism potential (consisting of lakes, rivers, the Nemunas river valley, the Curonian Lagoon, etc.)In order to satisfy the demand for transportation, however, further modernisation and development of Lithuanian transport infrastructure is needed. The following: 1.Modernisation of TEN-T networks elements; 2. Development of regional transport infrastructure; 3.Development of multimodal and intermodal transport infrastructure by creating logistic centres; 4. Extension of capacities at international airports and Klaipeda State Seaport; 5.Improvement of traffic safety and environmental sustainability.
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TransBaltica
Aloyzas Tarvydas, |
First international TransBaltica exhibitions of transport and logistics were launched in Lithuanian exhibition centre LITEXPO in Vilnius, in 1995. The exhibitions are arranged by the LITEXPO together with the Ministry of Transport and Communications of the Republic of Lithuania.
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PROBLEMS IN TRANSPORTATION OF TRANSIT CARGOES ACROSS LITHUANIA AND THEIR SOLUTION Prof, Dr Habil Ramūnas PALŠAITIS |
Lithuania has a well-developed transport system and transport infrastructure, good geographic location what enables to go hand in hand with the changes occurring on the transit services market, perform mediators functions in developing trade relations between the East and the West on the main transport corridors. Transit development plays a key role in todays transport system, therefore it is very important to seek for maximum use of Lithuanias possibilities on the transit services market, introduce simplified cargo and transport transit procedures, improve transport and logistics infrastructure this all means seeking the improvement and perfection every day. If the planned modernization and development projects are not implemented on time, modern multimodal transport technologies are not introduced, it becomes impossible to compete on the international transit services market, what results in losing potential state revenues, jobs, possibilities for consolidating positions on the European Economic Area.  Every state usually motivates the possibilities for conducting transit transportations across its territory by convenient geographic location and existing infrastructure. A system of transit transportation should be developed and functioning in wishing to create favourable conditions for goods transit transportation across the territory of Lithuania.Handling of transit cargo flows would also allow Lithuanian transport companies increasing the volumes of their services what would bring the following benefits to Lithuania: the national budget would receive more revenues in the form of different taxes; additional income could be directed to modernization of the transport system so making it even more efficient and competitive on the international markets; larger employment in the sector of transport and logistics services.Transportation of transit cargoes across Lithuania would also bring indirect economic benefit that is by all means also very important. Provision of logistics services to transit cargoes would create demand in the commercial and services sectors. Seeking to improve the competitive advantages of Lithuania in the Baltic Sea region, it is necessary to provide logistics with the rating higher than in the neighbouring countries. To meet this goal, intermodal and combined transport should be developed, railway, road and seaport infrastructure should be improved. Will flows of transit cargoes go through Republic of Lithuania stopping in logistics or distribution centres and not choose alternative routes across the neighbouring countries depends upon the conditions that the Lithuanian system of transport and logistics centres will offer the senders and receivers of these cargoes. Lithuania could take the position of the third-party logistics between the technically well-developed Western countries in which production capacities significantly exceed the demands of local markets however which are low in natural resources and CIS and Eastern countries, where consumption markets have huge perspective for growth and the abundance of natural resources. The main transit cargoes between the East and the West are transported by roads. Road transportation also has its own shortcomings, like queuing at the Latvian-Russian or Lithuanian-Belarus borders, complex customs clearance procedures, possible robberies or loss of a cargo, permission to drive the vehicle only 9-10 hours per day leaving the remaining hours for rest, crossing small settlements and towns what negatively impacts the environment (noise, pollution, residues of bulk cargoes on roads).At the moment, transit rail cargoes cross Lithuania by IX transport corridor. The largest volumes of cargoes transported by rail go between Russia and Kaliningrad Region and Klaipėda. The main transit cargo carrier in Lithuania is AB Lietuvos gležinkeliai (Lithuanian Railways). Transit transportations are very important in ensuring the growth of income of railways and profitability of the economic activity. Although in Lithuania main priorities in investing into railways network are consistently put to gradual reconstruction and modernization of infrastructure objects of international significance, still certain bottlenecks are observed, and the lack of the European railway gauge is named as the main shortcoming. The level of the development of infrastructure of roads of international significance is rather high in Lithuania to ensure international transit transportations. The most important problems to be solved today and in the short run is reinforcing the covering of roads that have the largest and growing load of heavy cargo vehicles, building by-passes around cities, introduction of traffic safety measures. Alongside the needs for transport infrastructure modernization, no less important is improving activities that give services to transit in the fields of work organization, marketing, sales so wishing not to lag behind the neighbouring countries that also liberalize conditions for developing transit business. One of the major conditions for the development of transit cargo flows across Lithuania is creation of favourable legal basis. So far, Lithuania does not have coherent and stable legislation governing transit business. In the course of the last years, the tendency of making the requirements stricter and enlarging formalities has been observed. Import/export terminals and logistics centres play a very important role in the whole system of transit services. It is expected that these terminals will also function in the future, however the largest part of them will provide services to mainly Lithuanian buyers and will function as local centres for distribution of goods, as an important part of the logistics network that will serve for quick, simple and cheap distribution, re-grouping, loading, sorting or assembling cargoes and dispatching them to the end users. Finally, it is very important to point to the importance of marketing when wishing to adapt the sector of transit services to the development of international trading market, evaluating changes in the nomenclature of cargo flows. The orientation to providing services to different types of goods gives more possibilities for increasing transit volumes, looking for new transportation markets. It must be noted that, like it is characteristic of each kind of business, the development of the sector of transit transportations is hindered by prevailing monopolies, irrational infrastructure development very often based on political decisions, unfavourable business conditions (taxes, business regulation and restrictions, bureaucracy, non-transparent management of state and municipal finances). A special attention must be directed to the fact that the status of Lithuania, as the country of transit and logistics services, is very rarely discussed on the highest ruling levels so trying to clear out concrete measures that could impact it. This status is very often used as an epithet. Bearing in mind that there are several countries enjoying the same geopolitical situation as Lithuania, attractiveness to transit, like to any other kind of business, must be created.
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Establishment of Lithuanian LCs network and its integration into the network of LCs of the baltic sea region (vision and prospects)
Dr. Algirdas Šakalys, VGTU Transport Research Institute Dr. Aidas Vasilis Vasiliauskas, VGTU, Transport Research Institute |
The EU faces new objectives for transport development, such as: restoring the balance between modes of transport and developing intermodality, combating congestion, putting safety and quality of services on the top of efforts of transport companies as well as public institutions. Lithuania developing and reforming its transport sector, alongside with the national needs, also takes maximum attention to the main trends of the EU transport policy. 1. Trends in Lithuanian transport sector development After the enlargement of the EU which took place in 2004, Lithuanian transport sector gradually take a double role: as a compound part of the EU transport system and as the chain of transport network connecting West Europe with NIS and other third countries. Such a situation unambiguously stipulates increase of transport the flows crossing territory of the country. According to the forecasts of TINA programme prepared with the initiative of the EU, local goods transportation by every transport mode on the main transport routes of Central Europe and Baltic Countries in the period of 1999-2015 should increase up to 70 %, while export up to 150% and import up to 140%. Current practice proves the rightness of these forecasts. In the period from 2000 till the 2004 amount of common freight carriages through the territory of Lithuania increased more than by quarter. Especially very positive trend can be observed in the transhipment of containers in Klaipeda State Seaport. In order to strengthen Lithuanian position as one of key transport player in Baltic Sea Region in the future, the Long term (until 2025) Lithuanian Transport System development Strategy was prepared in 2004. This Strategy foresees creation of modern, based on intermodality, transport system by the year 2025. 2. Advantages of modern LCs One of the latest measures assuring intermodal transport development is establishment of modern logistics centres as well as formation of their European network. Modern logistics centres and their networks successfully operate around the continental Europe, in countries such as Spain, Italy, Germany and others. At present, network of LC and intermodal transport nodes is under construction in the Baltic region in the framework of INTERREG III B programme InLoC project. This network supposes to function under the attendance of common network of IT. One of the main priorities of intermodal transport development in Lithuania is establishment of modern logistics centres (LCs) or freight villages along the I and IX Pan-European Transport Corridors crossing territory of Lithuania. They should be established near to the main industrial areas where different modes of transport intersect and great flows of the freight are generated. Such LCs are planned in Kaunas, Klaipeda, Panevezys, Šiauliai and Vilnius regions. Establishment of modern LCs will have following positive consequences: efficient interaction between different transport modes; increase of quality of transport services; creation of permanent job places; stipulates conditions for implementation and efficient use of modern information and communication technologies; improves business conditions for small and medium size companies. Further success of Lithuania in attracting potential investors and assurance of its successful competition in the international markets to a great extent will depend on the efficient operation of multimodal transport and business centres network. Therefore immediate work should be started for the establishment of public LCs and formation of their network, with its further integration into the LCs network of Baltic Sea Region.
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| Problems and the Future of Logistics Dr. Darius Bazaras, Department of Transport Management, Vilnius Gediminas Technical University |
The concept of modern logistics The modern business of transport services is inseparable from logistics. If today an audience is asked What do you associate the term logistics with?, 90 percent of the respondents will name transportation and transit, some lower percentage will refer to warehousing and, probably, the lowest percentage will say complex activity that guarantees the way of a product from raw materials to production and from production to the end user. In analyzing the definition of the term logistics, we may note a very paradoxical situation some authors give even several definitions of logistics in their books, and sometimes they even avoid directly presenting a single definition of logistics. One of the most detailed explanation of the term and concept of logistics is found in the book by E. Palšaitis and R. Palšaitis Logistics. Lithuanian-English Terms. Concepts published in 2001. The book says that logistics is the science about coordination of supply of raw materials, production planning, production control and efficient movement of manufactured products from the place of production to the place of consumption so aiming to ensure the delivery of products of the required amount and quality to the final place of destination on the right time so as the company could earn as large profit as possible. Logistics creates the value added of a product in respect of time and place. Seeking to remove ambiguities, logistics is usually described as suggested by the Council of Logistic Managements in 1991: logistics is the process of planning, introduction and control targeted to rational and efficient movement of goods and services and related information from the initial point to the end user so seeking to meet the needs of a client. The absence of the single definition of logistics sometimes may become a problem for businessmen in understanding each other or wishing to have absolutely clear preconceptions on practically using logistics, organizing goods transportation and handling. The development of third-party logistics service may be a good example of practical use of logistics. Trade in logistics services On the global scale, trade in logistics services is more known as third-party logistics or 3PL. Many Lithuanian production, services and commercial companies already understand that it is no use wasting time and energy resources for independent realization of all logistics operations transportation, warehousing, packaging and decide to use services of third-party companies rather than do the work on their own. The third-party logistics (3PL) may be defined as the transfer of several or all logistics functions to the specialized logistics company engaged solely in logistics activity. In order to better understand the potential of third-party logistics services, let us analyze the process that starts from the production company and goes to manufacture of the product and its delivery to a client. First, we must name all operations: production, management of orders, packaging of goods, preparation of goods for transportation, transportation, receiving goods, unloading, re-packing, labeling, preparing documentation and sale. The example shows that only two functions production and sale are the main functions of production and commercial companies, the rest are secondary functions that, actually, are not characteristic to these companies and it is wise to buy them from a logistics company. The situation will cardinally change if conditions are created to divide functions, optimize costs, refuse non-characteristic and expensive activities. Companies will face lower burden of competitiveness, since a production company much quicker consolidates its positions in new markets if it uses 3PL services rather than tries to create its own logistics system. In its turn, a commercial company will significantly improve the quality of services. 3PL will create conditions for a company to direct all attempts to much more important fields of activity, better meet the clients needs, do what it is capable to do best, instead of wandering among organization and control of several activities. On the other hand, cooperation on 3PL basis brings a new partner with which the company will have to share information about clients, their needs, features, tendencies, plans and any other information that, to the opinion of some company managers, may be regarded as secret information. Lower control is another problem. In passing logistics functions to the third party, the company looses the direct management control. Here comes the question of trusting the 3PL company and its activities, since in the case of ungrounded trust, the company risks facing fatal consequences. As we see, buying the 3PL services is an ambiguous process bringing both positive and negative aspects and outcomes. Complex logistics services are usually used by medium and large business ventures; however the market of third-party logistics services is not exhausted so far. What could stimulate the development of 3PL business in Lithuania? Being aware that businessmen sometimes are very cautious about novelties, scrupulously analyze the reliability of partners, very often want to control the situation themselves, it is expedient to take this in mind and properly use in negotiations, firstly showing the advantages of 3PL cooperation. Another advice is giving a detailed methodology for calculation of costs that would show hidden costs or losses brought by non-realized transactions. Additional arguments could be saving time that could be used for searching for new clients or creation of a new product and also the possibility to guide all the efforts to the main activity of the company.
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New developments in freight transport logistics
Jonas Biržiškis, Director General JSC Lithuanian Railways (AB Lietuvos |
Factors influencing the freight transport Major proportion of freight carried by Lithuanian railways (more than 70%) consists of crude oil, oil products, fertilizers, ferrous metals, timber, coal and coke. In principle these amounts and main directions of freight carried by Lithuanian railways did not change much during the latter years. Lithuanian railways carry most transit freight by the IX D main railway line Kaišiadorys Kybartai, by which freight goes from the countries of the Commonwealth of Independent States (CIS), and by the IX B main line Kena Klaipėda, by which freight is carried to Klaipėda Seaport. Therefore most resources have been invested to the renovation of roads and constructions of these railway lines (branches of the Crete Transport Corridor), to modernization of their telecommunication, signalling system and electric supply equipment, thus increasing the weight capacities (to 6 000 tons) and the speed of freight trains. Crete Transport Corridor IX B is especially important for Lithuanian railways, as due to the competition with ports of other countries the attraction of freight flows in this direction is particularly complicated. For this reason the conditions of freight transportation to Klaipėda Seaport are under constant improvement. Reductions for freight transportation tariffs are applied, technological processes of such freight carriage are constantly improved, thus resulting in the growth of transportation time efficiency and carried amounts. For example, currently potassium fertilizers from Belarus are carried to Klaipėda Seaport by the shipment documents formalized for the whole train, and not for a separate wagon. The freight enters the territory of Lithuania by the route trains. Trains weighing 5 300 tonnes with potassium fertilizers in Vaidotai station get reduced to two trains of 4 000 and 1 300 weight (the latter being structured into a block train) and thus the two trains reach Klaipėda Seaport in 16 hours. After the optimisation of wagon handling technology, in the Draugystė railway station the unloading of the route train together with other necessary operations takes 23 hours, and the return of empty wagons takes 13 hours. The turnover of wagons carrying potassium fertilisers on Lithuanian territory was reduced from 72 to 52 hours. At present 1300 tonnes of freight more than earlier are carried during one trip. This enables to carry to Klaipėda Seaport by Lithuanian railways more than 1.8 million tons of Belarussian potassium fertiliser annually. This improvement of freight transport technology is particularly relevant from the point of view of optimisation of wagons turnover. The joint rolling stock fleet of CIS and Belarus consists of 68 % wagons meeting the operational standards, but 80 thousand more of them are used for transportation. It means that certain amount of involved wagons do not meet these standards. For the renovation of the wagon fleet considerable investments are necessary. Therefore in the latter years more wagons are discarded than purchased. This tendency changed only in the first half of the year 2005. Then 4 073 wagons were discarded and 5 445 wagons have been purchased (4 346 from Russia). In 2005 Lithuanian railways purchased 150 wagons for carriage of mineral substance. By these wagons fertilisers are transported to Klaipėda Seaport. Changes in transit freight flows often depend not only on our conditions, but also from the conditions set by other countries, and particularly from the pricing policy. This determines the distribution of freight flows according to the destination directions. For example, higher prices defined by Russian railways for freight transportation to the ports of other countries (including Klaipėda Seaport) determine the increase of freight flows in the direction of Kaliningrad and other Russian ports. Theoretically this situation should change in short time because one of the main provisions of The Governmental Agreement on the Cooperation of Klaipėda and Kaliningrad Seaports - Project 2K require to carry out the tariff policy enabling the determination of coordinated competitive tariffs of freight carriage. However, as far as now, the advantage of this agreement for Klaipėda Seaport is slightly tangible. Freight transportation by containers in Lithuania Prevailing trends of freight transportation in transport markets of the world do not omit Lithuania as well. Currently, the most perspective and progressive trend is the market of container freight transport. The container is a universal and convenient tare for freight transportation, warehousing and distribution. Therefore this type of transport is very important. It is forecasted that 70% of global cargo will be carried by container transport till 2 010. The proportions of freight transportation in containers are significantly growing in Lithuania. The amounts of containers carried by rail grew from 2001 by 5.8 times and in 2005 they reached 25.6 thousand TEU; in 2005 in Klaipėda Seaport 214.3 thousand TEU have been handled, which makes 4.2 times more than in 2001. Only a tenth part of all containers handled in Klaipėda Seaport were carried by Lithuanian railways, therefore, after a complex analysis of potential markets, in 2003 the Viking train - a combined transport train - started shuttling through the territories of Lithuania, Belarus and Ukraine. The results of container loading and transportation (TEU) Combined transport train Viking is intended for transportation of 20 and 40-foot universal and specialised containers and trailer-trains on the platform. Furthermore, possibilities of this train for transportation of semi-trailers are considered as well, but currently there are no necessary technical conditions for such transportation. The combined transport train Viking shuttles on the route Klaipėda Ilichevsk (Odessa) Klaipėda. However freight can be carried by train from Western and Eastern Europe by railway and ferry line Sassnitz Mukran Klaipėda not only to the destination in Belarus or Ukraine, but also to consignees in Turkey, Georgia and other Tran Caucasian countries, as well as in opposite direction. The total length of the Vikings route is 1 734 km. The train covers this distance in 60 hours. Soon it is planned to extend the route of Viking train to Georgia. Freight in containers and trailer-trains are carried by the combined transport train Viking through the territories of all countries on the basis of a competitive through rate. Such costs of container transportation by this train are advantageous and give a prevailing factor for attracting extra flows of container freight and/or shifting a certain part of freight from the road transport. Furthermore, the timely and rapid delivery of freight adds to the advantages of this train. The working group for the train operation has been set up for the solution of organisational issues of the combined transport train Viking. The operators function in Lithuania, Belarus and Ukraine, and they efficiently present the advantages of this train in numerous international exhibitions of transport and logistics, as well as in other events. The Viking train is often advertised in information publications and media. In 2003 averagely 16 containers (TEU) and 24 trailer-trains were carried every month. In 2004 a total of 158 TEU and 11 trailer-trains were transported. In 2005 the Viking train transported 1244 TEU and 10 trailer-trains. Most containers are carried from Belarus to Lithuania and vice-versa. Trailer-trains were mostly carried from/to the Ukraine. Trailer-trains transported in 2005 were also carrying perishable goods that according to excessive weight standards could not cover such a long way by road. The results of container transportation by this train are remarkable; therefore the amounts of containers coming to Klaipėda Seaport are constantly growing. However, irrespective of the set competitive tariff for transportation of trailer-trains by the train Viking, this mode of transportation is very popular and it is promoted by Western Europe, as a mode reducing road congestion and environment pollution. Actually this mode is starting its first steps in Lithuania, and without the State support or grants its progress may be slow. To increase the competitiveness of Klaipėda and Kaliningrad seaports in respect of Baltic seaports of other regions, the Lithuanian and Russian ministers of Foreign Affairs and of Transport and Communications, during their meeting on 26 May 2005, signed The Governmental Agreement on Cooperation betwee Klaipėda and Kaliningrad Seaports Project 2K. For the 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 Lithuanian Railways. It is implemented by Lithuanian, Russian and Belarussian railway companies. Train Mercury is intended for transportation of 20, 40 and 45-foot universal and special containers on line Klaipėda/Kaliningrad Minsk Moscow and in the backward direction. After leaving Klaipėda and Kaliningrad seaports the trains arrive in Vaidotai Station, where wagons with containers are marshalled and made up into one joint block train, which is sent further to the destination station. Trains in opposite direction, after leaving the initial station, come to Vaidotai Station, where wagons with containers are marshalled and afterwards two separate trains are directed to Klaipėda and Kaliningrad seaports. The line Klaipėda Moscow (1335 km) is covered in 46 hours, and to cover the line Kaliningrad Moscow (1288 km) takes 50 hours. For container transportation to Klaipėda Seaport by the above-mentioned train by Lithuanian railways is applied an approximately 10% lover tariff than that for freight transportation by an ordinary train. Additional services of logistics will be delivered to those carrying freight by the Mercury train. The mentioned services will enable the door-to-door delivery, as well as better opportunities for freight consignors and consignees to choose the most adequate model of logistics chain. The mentioned train was launched from Klaipėda on 23 July 2005. On that occasion a presentation of the train was arranged in Klaipėda together with information publication. In 2005, a total of 93 containers were carried from Klaipėda Seaport, and from Kaliningrad Seaport 1364 containers (TEU). Currently the container train Mercury is in the stage of introduction into the market. Experimental trips of the train were arranged until the end of 2005, and since the beginning of 2006 permanent operation of the train has been started. Boosting competitive ability The main competitor for Lithuanian railways is the road transport of containers through the territory of Lithuania. However, containers do not constitute the only market niche for freight transport by rail. This mode of transport is capable of transporting freights of all kinds: bulk cargo, liquid, frozen cargo, oversized freight, etc. Therefore, due to applied analysis of the merits and demerits of rail and road transport, gradual improvement in all transport services, not only in that of container transport, is going on. Principle merit of the road transport is the fact that freight can be delivered to any destination due to a sufficiently developed main network. There are 69 commercial stations in Lithuania. They are not always strategically well located, sometimes freight cannot be unloaded near the approach. Consequently, the freight delivery to consignee depends on road transport. Therefore in the railway stations of Vilnius, Kaunas, Šiauliai, Šeštokai and Paneriai it was decided to make agreements with road transport companies that would guarantee to consignee the timely delivery of the incoming and outgoing freight by rail. The control of implementation of the agreements is entrusted to managers of logistics. This position was introduced in Vilnius, Kaunas, Šiauliai, Šeštokai, Paneriai, Panevėžys, Klaipėda and Marijampolė railway stations in the end of the year 2004. Managers of logistics improve the service delivery to the clients and propose for them most adequate solutions.
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Targeted Investment Enhance the Potential of Stevedoring Capacities in the Klaipeda Seaport
Director General of the Klaipėda State Seaport Authority Sigitas |
The investments channelled into the modernization of Klaipėda Port are recouping. Last year, the port of Klaipėda reached a cargo handling record over 21.8 million tones of cargo was handled at the port. The port incomes were respectively increased. Flows of transit cargo have also continued to grow. The optimistic tendencies of the port development and stevedoring works are also foreseen for this year. It is expected that stevedoring works will grow by 5 percent or 1 million tones. 2 billion for port development According to Director General of Klaipėda State Seaport Authority, Mr. Sigitas Dobilinskas, port companies intended to handle 22 million tones last year and these plans were realised (21.8 million tones). This year we expect to increase port income by 1 percent. We do hope that the number of the line ships and the amount of Belarusian cargoes will grow says the Director. Two billion litas are necessary for implementation of the investment programme of Klaipėda State Seaport in 2007-2013. Mr. Dobilinskas specifies that one billion Litas will be allocated from the EU structural funds, state budget and funds of Klaipėda State Seaport Authority itself for the port development; While the second billion litas will be needed for the preparatory works of the construction of the deepwater avant-port and the reconstruction of Šventoji Port. These two huge projects are planned to be implemented from the EU structural funds. The whole construction the deepwater avant-port would start only when the stevedoring works at the port reach 35 million tones per year. Over 100 million litas will be needed for preparatory works in reconstruction of the Port of Šventoji that should serve tourist, and not industrial, purposes.. New passenger terminal Mr. Dobilinskas puts an emphasis on the importance of a new the passenger and cargo terminal which is most interesting and necessary infrastructural object in the port of Klaipėda. Its construction is planned in the second half the year 2007. Klaipėda State Seaport Authority together with the terminal operator will allocate approx 140 - 150 million litas for this project. The public investment into the infrastructure will make 70 - 80 million litas, while the terminal operators investment into the super-structure will reach 70 million litas. In the territory of 16-17 ha, the plans are made to build a modern terminal with galleries for passengers linking onshore buildings with ship decks, restaurants, special sites for vehicles. The construction will last a year and a half and should be completed in 2009 at the latest. Since the number of cruise ships in Klaipėda Seaport has significantly increased, the new terminal could be an alternative for berthing cruise vessels in summer-time. Competitive fight Klaipėda State Seaport Authority is convinced that among most important achievements of the last year, is persuasion of Belarusian cargo operators to choose Klaipėda port, because of improved technical parameters and the quality of the port, and its ability of accommodate large -70 thousand ton -ships transporting fertilizers (which were previously handled only at Ventspils port). Last year 800 thousand tons of Kazakh cargoes were handed in Klaipėda port. Compared to the year 2004, it was an increase by 20 percent. The fact that Kazakhstan and Georgia are showing interest in our port demonstrates that the quality plays an important role, says S. Dobilinskas. Stevedoring companies of Klaipėda port expect to win the competitive fight by further improving the quality of their stevedoring works.
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Transport System - One of Key Economic Sectors Dr.VIRGAUDAS PUODŽIUKAS, Director General of Lithuanian Road Administration |
Roads are of vital importance to Lithuanias economy and its development. The transport system is one of key economic sectors greatly impacting the economic growth, development of international trade, tourism and cultural relations. The development of transport system has particularly risen in importance after the EU enlargement which has resulted in opening the borders, growing partnership relations and international projects. By the Republic of Lithuania Law on Roads, maintenance of national significance roads has been trusted to the Lithuanian Road Administration under the Ministry of Transport and Communications. 6.25 km of roads fall per one thousand residents in Lithuania; 326.6 km of roads of national significance half of which are covered with asphalt fall per one thousand square kilometre. Compared even to economically strong countries, Lithuania may boast a well well-developed road network. The expanding international cooperation puts preservation, maintenance and improvement of national highways making them a part of the common European road network as one of the primary tasks in the Lithuanian road transport policy. Transport flows and international transportation are growing with every year and so main roads are becoming more and more modern. They are very important for Lithuania, a transit country crossed by the shortest routes in East-West and North-South directions. Trans-European are becoming more modern Economic development and growth of transport flows are tightly interconnected. Both Lithuanian institutions and foreign organisations forecast rapid economic growth in Lithuania - National Economic Development Strategy plans the 5.5-6 percent annual GDP growth in Lithuania. International relations of Lithuania and the share of international transportations on Lithuanian roads are also expected to grow. As of the present day, more than 60 percent of goods are transported by roads. Roads of national significance are the most important. They cover over 21 thousand km, of which 1.750 thousand km are main roads, 4.948 thousand km national roads, and 14.630 thousand km regional roads. The Lithuanian economic development programme envisages that by 2015 all TEN-T roads within Lithuanias territory will meet international requirements (European Agreement AGR, Convention on International Road Traffic). Urban development next to the largest cities is especially rapidly growing so do traffic flows, therefore former plans have to be changed and 4-lane roads must be built. The motorway Via Baltica crossing all three Baltic States and reaching the Polish capital Warsaw is becoming more modern with every day. Nearly the whole motorway crossing Lithuania and going to the Polish border already meets the international requirements. During the road building, huge attention has been given not only to the speed of works and quality of road covering but also to traffic safety and environment protection. Joint projects implemented in cooperation with different EU institutions are a great impulse in developing international trade and Lithuanias economy. On the joint efforts of Lithuania and the European Commission, the first stage in reconstruction of the transport corridor IXB has been successfully completed what has significantly improved the interconnection with the Russian Federation and Central Europe. The transport corridor I (Via Baltica) connects the Nordic countries with Central and Western Europe (road E67 Helsinki-Tallinn-Riga-Panevėžys-Kaunas-Warsaw). The length of this corridor in Lithuania makes 270 km. Up to 19 000 vehicles go by separate sections of the road per day. The rapidly growing transport flows on Via Baltica stimulate the improvement of roads belonging to this corridor. The branch IA of the transport corridor I connects the Nordic countries with Eastern and Central Europe (road E77 Pskov-Riga-Šiauliai-Kaliningrad-Warsaw-Krakow-Budapest). The branch IXB belongs to the transport corridor IX and is the main road going in the East-West direction (road E85 Klaipėda-Kaunas-Vilnius, and road E28 Vilnius-Minsk). This corridor consists of main roads Vilnius-Kaunas-Klaipėda (296.30 km), Vilnius-Minsk (27.34 km) and a 4 km section of the road Klaipėda-Liepaja. The total length of this corridor in Lithuania is nearly 328 km. Works done on the branch IXB were co-financed from the EU ISPA funds. Among the most important renovations were reinforcement of road covering and shoulders, renewal of road covering, repair of flooring of bridges and viaducts, introduction of environmental measures. In 2004-2006, it is planned to spend 186.8 million litas for works on Vilnius-Kaunas-Klaipėda and Klaipėda-Liepaja roads, of which 85 percent will come from the EU Cohesion Fund. The status of a highway has been awarded to the road Kaunas-Klaipėda of the transport corridor IXB; requirements raised to highways have also been implemented in some sections of the road Vilnius-Kaunas. In the future, after the remaining sections are modernised, the whole road Vilnius-Kaunas-Klaipėda will be granted the status of highway. The branch IXD belongs to the transport corridor IX and connects the Kaliningrad Region with the Eastern EU Member States in the Baltic Sea Region and the main territory of the Russian Federation (road E28 Berlin-Gdansk-Kaliningrad-Kybartai-Marijampolė, road E67 Marijampolė-Kaunas). The length of this corridor in Lithuania is 104 km. The 2004-2006 project value of modernisation of this corridor is 41.7 million litas. The road E28 Vilnius-Marijamploė being a part of the European road network crosses Lithuanias territory from South-East to South-West and so connects the transport corridor IXB in Vilnius and the transport corridor IXD in Marijampolė. The road is the shortest connection between the Kaliningrad Seaport and Vilnius, Minsk, Moscow. The 2004-2006 project value of modernisation of this road is around 78.5 million litas. The European road network E85 Lida-Vilnius and E272 Vilnius-Panevėžys-Šiauliai-Palanga crosses Lithuania from the South-East to the West and so connects the Šalčininkai border post with Klaipėda and Palanga. The road length is 409 km. A project valued 124.9 million litas was launched in 2004. 85 percent of funds needed for project implementation will come from the Cohesion Fund. The European road E262 Kaunas-Ukmergė-Zarasai-Daugavpils-Rezeke-Ostrov connects Lithuanian with northern countries. Unexpected growth of heavy transport flows Lithuania witnesses the significant increase of heavy transport flows and so grows the damage it brings. Heavy transport makes ruts in the road covering that are very dangerous to safe traffic. A road must undergo repair when ruts get more than 20 mm deep. Wishing to make the road structure serve the whole projected time, it is necessary to use more expensive technologies, better materials, thicker covering layers and make road substructures stronger. We were getting ready for the growth of transport flows on international roads within Lithuanias territory, however it was not expected that this growth will be so quick. It has even more intensified after Lithuania acceded the European Union: in two incomplete years, the flow of heavy vehicles on Via Baltica increased by 62 percent, on the road Kaunas-Utena-Daugavpils 58 percent. Such significant growth of transport flows and transit volumes has put new tasks to Lithuanian road companies and specialists. What has been done to change the situation to the best? In 2002-2005 EU ISPA and Cohesion Fund money was used for realisation of projects targeted to the development of IXB (Vilnius-Kaunas-Klaipėda), Via Baltica (Helsinki-Tallinn-Riga-Panevėžys-Kaunas-Warsaw), IA (Riga-Šiauliai-Tauragė-Kaliningrad) and IXD (road Marijampolė-Kybartai) transport corridors; reconstruction of European network roads E28 (Vilnius-Prienai-Marijampolė), E85-E272 (Vilnius-Lida-Panevėžys-Šiauliai-Palanga). In 2002-2005, 620 km of road covering was reinforced, 493 km of roads underwent reconstruction, a new bridge across Neris was built, and 1000 km of road covering were adapted for the axle load of 11.5 tonnes. The least of 1.5 million litas is needed for reinforcement of 1 km of road covering, while another 7.5 million litas is necessary to adapt it for 11.5 tone axle load. Maintenance of roads of national significance is financed from the National Road Maintenance and Development Programme and EU aid from Cohesion and Regional Development Funds. Financing road maintenance and development Considering the growth of traffic volumes, the need for improvement of road maintenance and road development, Lithuanias international commitments, it is necessary to increase financing of the Road Maintenance and Development Programme agreeably to the forecasted GDP growth in Lithuania. In view of the expected 3 percent annual inflation, financing of the Road Maintenance and Development Programme should increase from 835 million litas allocated this year to 1 billion 828 million in 2015. On the other hand, we should not forget that road works are getting more expensive every year and we cannot foresee fuel prices, tax tariffs, wages and salaries for the coming 10 years. Therefore, for the meantime, such financial optimism should be more of theoretical aspect. The analysis of EU allocations from Cohesion and Regional Development Funds shows that in 2007-2013 roads of national significance should receive the financing of 3.4 billion litas. The Road Maintenance and Development Programme is implemented by Lithuania on its own funds and efforts. People are employed in road maintenance, repair of bridges and overpasses, thus the construction industry and transport are supported. Hereby the industry is developed that contributes to the reduction of unemployment rates in Lithuania. Great attention was directed to ensuring safe traffic on roads in 2002-2005, allocating 75 million litas (of which 35 million litas arrived as EU financial aid) for these purposes. Nevertheless, the results show this sector to be under-financed. The findings demonstrate that in wishing to fundamentally improve traffic safety and approach western standards, financing must significantly grow. Financing of traffic safety measures alone in 2005-2015 should make 600 million litas. We must seriously think how to increase financing of the Road Maintenance and Development Programme year by year so seeking to secure the best road maintenance through reinforcing road coverings. Road repair should help to reduce operational costs of vehicles, duration of transportations, introduce traffic safety measures that in their turn should minimize road accidents. 255 million litas was allocated to road maintenance works in 2005; the total financing of maintenance and development of roads of national significance made 967 million litas. It is estimated that introduction of the planned traffic safety measures could save nearly 200 lives and 2.5 thousand less people would be injured within the next decade. The road development works would help to reduce operational costs and save time on the road and so people would be less tired. In the coming decade, we would be able to save around 65 million hours spent in cars. In monetary expression, shorter road trips would allow saving 1.3 million litas, operational costs would be less by 1.24 billion litas.
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GIVING ATTENTION TO ROAD TRANSPORT DEVELOPMENT AND SAFETY
by VIDMANTAS ŽUKAUSKAS, Head of State Road Transport Inspectorate |
The major goals of the State Road Transport Inspectorate under the Ministry of Transport and Communications (further in the text the Inspectorate) founded in 1993 is creating proper environment for the development of road transport business, implementing the road safety measures, promoting social progress and reducing negative environmental impact of the road transport.
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LINAVA Successful Development of the Lithuanian Carriers Business
Valdas Gilys, Secretary General of the Lithuanian National Road Carriers Association Linava
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The Lithuanian National Road Carriers Association LINAVA (further in the text association) was established on 4 October, 1991. On 23 May, 1992 the association LINAVA was admitted to the International Road Transport Union (IRU) and became its true member. The association represents Lithuanian carriers in passenger and goods transport councils of this international organization. LINAVA closely collaborates with the Ministry of Transport and Communications, other state institutions in creating the best conditions for the development of carriers business. During fifteen years of association activities, Lithuania has acceded to the main conventions governing road transport and has signed agreements regarding international road transport with 34 countries. In 1993, Lithuania became a full-fledged member of the Conference of the European Ministers of Transport (CEMT) and takes part in the system of multilateral quota for international cargo transport issued by CEMT. The Lithuanian National Road Carriers Association LINAVA that will mark its 15th anniversary this year has been a great help to Lithuanian carriers in their adaptation to new work conditions after passenger and goods transportation direction and volumes have changed, new requirements to the quality of services have been set and the trade with Western and Central European and CIS countries have significantly increased. The association LINAVA aims at open, responsible and strategic participation in the national and international market.. The daughter company of the association LINAVOS SERVISAS applies flexible discount systems to it services and gives favorable payment deferments to the association members. Carriers are offered the wide selection of qualitative goods, services of petrol stations in Lithuania and Poland, tire mounting and truck-wash. Another daughter company LINAVOS mokymo centras (LINAVOS Training Centre) provides training to general managers and employees of transport companies, creates all conditions for improvement of professional skills and knowledge. Recovering VAT paid in foreign countries is among the most popular services of the association. Three years ago, the association LINAVA started to act as a mediator for carriers in recovering VAT paid in Poland, while this year members of the association may get recovery for VAT paid in 19 European countries. LINAVA also holds the right of representation and has concluded agreements with tax bodies in Poland, Germany, Spain, France, Czech Republic, Slovakia, Slovenia, Austria, Belgium, the Netherlands, Estonia, Latvia, Denmark, Luxembourg and Finland. Since the beginning of VAT recovery in Poland, not a single case has been registered of rejecting applications prepared by LINAVA. This service is enjoyed by over 600 transport companies (as of the present day, the association unites 1147 transport companies, of which 61 is passenger transport company) and their number continues to grow. The scope of work of VAT Division of the association LINAVA that works with tax inspectorates of 19 countries is huge. The documents for VAT recovery must be prepared in the Polish, German, French, English, Czech and other languages. Besides, each state sets its own procedures for document processing. Therefore, mediators assume huge responsibility since making a mistake means that a carrier will not get VAT recovery. Unlike with other mediators, so far no such cases have been registered in our association. One more important fact that makes us different from other companies is that we do not charge any fee from carriers for submission of documents to tax inspectorates and their translation into foreign languages. Seeking to maximum simplify the international transportation of customs-controlled goods, assure control and give guarantees necessary to transit countries a TIR transit system has been created that is regulated by the Customs Convention of 1975 on the International Transport of Goods under Cover of TIR Carnets. Following the regulations of this Convention, national associations of each country assume all responsibility for commitments emerging in that country relating to goods transportations with TIR carnets which in Lithuania are issued by the association LINAVA. The association LINAVA has signed an agreement with the Association of International Road Haulers in Russia (ASMAP) on issuing the guarantee sheets of the fixed size to Russian carriers that hold the right of the procedure executor to perform the Community transit procedure according to the so-called transit scheme for Kaliningad. It significantly simplifies customs transit procedures and the procedure for presenting guarantees to customs. The association LINAVA is very much interested in becoming a link between the EU and Russian markets, developing transport infrastructure important to all countries, looking for cooperation contacts and becoming constructive partners. Three years ago, a representative office of LINAVA was opened in Moscow. Every year, around 800 transport companies use its services and legal assistance. The operation of carriers on the Russian market is becoming more active with every year, so the activity of the representative office is also becoming more and more needed and useful. The representative office has permanent partners advocates boards that represent our carriers in the regions of Moscow and St. Petersburg. Most of administrative cases are related the wrong declaration of cargoes. Advocates in the Russian Federation have successfully represented our transport companies Šatra, Dinaka, V. Kuzas moto-transport company, etc. On the initiative of Linava office in Moscow, seminars and meetings with the representatives of the Federal Customs Service and its divisions have been organized. The representative office participates in the activity of international customs attaché club in Moscow and is a member of this club. Representation of Lithuanian carriers in this club is very useful for developing business-like and friendly relations with the Federal Customs Service and formation of the image and prestige of Lithuanian carriers not only in Russia but also on the international scale. The major event of the last year which made the association LINAVA even more known on the international scale was the Silk Road. Beijing-Astana-Moscow-Riga-Vilnius-Warsaw-Brussels this was the route of the 7.5 thousand km long Silk Road on September 27 October 17 of Lithuanian, Latvian, Russian, Kazakh and Polish carriers. This first trip was organized by carriers associations of the said countries under the patronage of the International Road Transport Union. The carriers transported sea containers that were loaded and unloaded in capital cities of all countries-participants of the project. No less important event of the year was awarding the gold medal to the logistics project Silk Road in the transport services sector of the competition of the Lithuanian Confederation of Industrialists The Product of the Year 2005. The medal presented by the President of Lithuania Valdas Adamkus shows that it was the first time when services of companies working in the services sector were put for nomination, while Silk Road demonstrates that Lithuanian carriers may successfully work on the East-West transport services market.
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SUCCESFUL STRETCH OF LITHUANIAN AVIATION TOWARDS EUROPE
Kęstutis Auryla, Director of Civil Aviation Administration
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Stimulation of civil aviation development
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WHENEVER CARGO NEEDS A RIDE
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UAB Arijus stands out by the possibility to offer transportations by all transport modes. What is your market share ? How much increased UAB Arijus transportation volumes last year?
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KLAIPĖDOS TERMINALO GRUPĖ UAB
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Klaipėdos Terminalo Grupė successfully working in Klaipėda port for 11 years has been occupying and increasing part of the stevedoring market and winning the competition between port companies.
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