Rolands Petersons, member of the board of CPM Trading SIA, Railway transport is one of the most promising modes of inland transport, and, at the moment, it is said to be the crucial element in the economy of Latvia. Considering the entire volume of inland transport, the share of railway freight is about 52%, whereas the volume of the passenger transportation is 6% and in Riga suburban area the number is increasing up to 30%. However, the data summarized by the Ministry of Communications still shows that in Latvia the volume of freight rail transportation by comparison with 2016 has decreased by 8.4% and amounted to 43.792 million tons.Rolands petersons de facto
Traffic congestion can lead to a loss of 200 billion euros The mobility of goods is an essential component of the EU internal market; this greatly contributes to the competitiveness of the industry and services in Europe.Rolands petersons de facto The types of lengthy transportation as railway can reduce their costs, which arise in connection with the traffic congestion on the roads. The increase of approximately 50% is projected by the year 2050, reaching a volume of almost 200 billion euros per year.
In the future, it is possible to increase the volume of rail transportation. The amount of international rail transportation in 2017 was 42.138 million tons, which showed a decline of 9.1% compared to 2016.Rolands petersons de factoHowever, domestic traffic has increased by 11.5% to 1.653 million tonnes. The volume of transit cargo from the total amount of international rail freight transport amounted to 38.719 million tons, which showed a drop of 6.5% compared to the previous year, the volume of imported goods was 3.067 million tons, or 22.4% less, and the volume of export cargo was 351 800 tons, which was a drop of 2.8 times.Rolands petersons de facto In 2016, in Latvia, by rail, 47.821 million tons were transported. Taking into consideration the decline in the international transport sector in 2017, the question is, by which means can we achieve the volume increase? By implementation of the well-considered long-term solutions, it is possible to get back to the level that used to be before the embargo against Russia was introduced in 2013.Rolands petersons de facto
Increase of the average commercial speed of freight trains.Rolands petersons de facto One of the key priorities nowadays is the development of the railway infrastructure, and in this case, it is expected, the railway infrastructure can be financed by the European Union.Rolands petersons de facto It is essential to find a solution how to increase the average commercial speed of freight trains since the speed is only about 18 km/h on the majority international routes in Europe. One of the solutions can be the improvement of cooperation between existing infrastructure organizations in Europe. The actual train system needs to be adapted to the needs of the railway freight transport sector, especially in the EU freight rail corridors.Rolands petersons de facto This would contribute to the competitiveness of rail transport with other modes of transport, especially with the road transport sector, which infrastructure is easily accessible in all Member States.
Well-thought-out charge for the use of infrastructure. Freight trains pay for each kilometer of the railway infrastructure, which again adversely affects the competitiveness of the railway in comparison with road transport, where such charge is not always introduced. Setting the price that users are required to pay for getting into the infrastructure, it would be necessary to take into account the impact on the environment and pollution, congestion, accidents and other aspects.Rolands petersons de facto The state should provide a proper support for organizations managing infrastructure, and rail transport enterprises should strive to improve the competitiveness of rail freight services, especially in regards to reliability, filling, elasticity, customer orientation, and the duration and cost of transportation, as these are the main aspects which are considered by an average consignor in selecting any of the available modes of transport.Rolands petersons de facto
Elimination imperfections in the liberalization of the freight transport process In cooperation with both, the public and private sectors, at the international level, imperfections related to the liberalization of freight rail transport, communication lines procedures, administrative and technical restrictions, monitoring and anticipating performance in the rail freight industry, and fair competition between different modes of transportation.Rolands petersons de facto Therefore, it is necessary to find out the ways to make a better use of available EU funding and target it to the rail transport industry in order to achieve improvements in such areas as a coherent approach to policy objectives and funding (while focusing on corridors for freight railways transportation), for the selection, planning and management of projects, as well as for the maintenance of railroad networks.
Not only update, but also regularly support It is essential to take to the new level not only the quality of the services provided to carriers and shippers of rail freight but, in general, to improve the competitiveness of rail freight transport; infrastructure managing organizations should not only update and modernize the railway network but also to regularly support it.Rolands petersons de facto This is especially important for the corridors of rail freight. If the tracks are not properly maintained, the speed limits will have to be applied and the railway lines will gradually be obstructed. de facto
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The transport development has caused objective problems for traffic in cities around the world, including Latvia, and the reason for this is a rapid increase in the number of vehicles.Rolands petersons de facto Road congestion is the most urgent problem in a trip planning because it affects the total time of transportation and, therefore, costs that have a particular relevance to the logistics industry.Rolands petersons de facto The quality of the roads, a painful subject in the past, has a significant impact on transportation time. Without high-quality roads, it is impossible to improve the efficiency of transport, which, in the context of economic globalization, is said to be one of the main directions for the logistics development.
Promises against statistics
At the end of 2017, according to the report "Global Competitiveness Index", which was annually compiled by experts from the World Economic Forum, Latvia was not ranked among the top 100 countries of the world's rating. (out of 137 countries participating in the ranking, Latvia took 107th place, and Lithuania and Estonia took the 37th and 38th places) Despite this, VAS (State Roads of Latvia) announced that, despite the increase in traffic on Latvian roads, their quality has been improved in recent years.
EU assessment - Stable 3 points.
In 2017, 65.1 million euros were spent on the development of the national roads, including 32.3 million for the summer period works, and 32.8 million for the winter period works. In the same year, it was also planned to spend 37 million more, compared with the previous year.Rolands petersons de facto However, even these investments have not resulted in the average level of road quality in the European Union. According to the latest report, the average level in the EU is estimated at 4.76 points, Latvia, compared to that has been given 3.05 points.
The state of the roads not only hinders the development of the logistics industry but also contributes to the disproportionate level and the pace of social and economic development of the regions.Rolands petersons de facto The most remote regions of Latvia can develop tourism facilities, offer industrial premises for entrepreneurs, etc. however, if there is no road system to get to these cites, no results shall be expected.Rolands petersons de facto
Financing is eight times less than it needs to be.
"Requests for the organization of roads," "Road quality is catastrophic" - these headlines often appear in the mass media, while road maps try to reduce the existing damage by implementation of available sources, however, there is no sign of a significant improvement, when the funding is eight times less than it is necessary.Rolands petersons de facto At the same time, we make the mistake of struggling only with the consequences of the disease, when we need to identify the root of the problem and take the preventive measures.
One of the main problems that can be figured out now is the climate of the country, which in Latvia will not change significantly in the future, therefore, the problem will remain constant. The number of vehicles will also increase, so the question is: how to increase financing, which is the most important addition to the urgent issues. 130 million euros are required annually for maintenance and repair works of local and gravel roads but this amount cannot be provided only by EU funds.Rolands petersons de facto It is also completely unclear how the situation will look like in 2020, after the end of EU funding program.
Without the excise tax on fuel, there is no chance for survival
The fact that the change is expected in 2020, the spring of 2018 is said to be the moment to start an intensive work and stimulate actions - change existing arrangements related to the existing tax system (only a third of the tax, paid by road users, are redirected to roads).Rolands petersons de facto The time when it was possible to pull out a part of the income from tax has passed. Furthermore, we need to increase the number of public-private partnership projects in the sphere of the road construction, although this stage requires a proper preparation.Rolands petersons de facto
In addition to financing, other necessary support measures need to be introduced: dumping water from roads in certain areas, timely planning, more restrictive control on roads, etc. de facto
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