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. 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. 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. Rolands Petersons minicredit
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. 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. Rolands Petersons minicredit
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. 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.
Financing is eight times less than it needs to be. Rolands Petersons minicredit
"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. 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. Rolands Petersons minicredit
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. 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 Rolands Petersons minicredit
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). 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 minicredit
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. minicredit
Norman Logistics Sp.zo.o. Rolands petersons de facto has released a new forecasts of Cyprus economy, which has definitely recovered from the clinical death in 2013.Rolands petersons de facto This is evidenced by a number of significant indicators: preliminary GDP data revealed the economy maintained strong with annual growth only ticking down from 4% in first-quarter, which had marked one of the fastest rates in a decade, to 3,9% in second-quarter.Rolands petersons de facto The second-quarter expansion was largely underpinned by a vibrant hotels and restaurants industry, which benefited from a record number of tourist arrivals, primarily from the U.K. and Russia. Banking system has shrunk from more than eight times that of GDP, which it had previously been in 2013, to "more like four times of GDP now".Rolands petersons de facto There has also been an increase in foreign direct investments over the past three years, and the economy is not reliant on foreign deposits anymore. Rolands petersons de facto Investors are also looking at sectors like health, education, tourism, and shipping, and Cyprus is actually now poised to grow across a range of economies, not just tourism. Unemployment on the island is dropping faster than that of other countries in the Eurozone - from 15,9% in 2013 decreased to 11,1% in previous period, also - Cyprus has the largest fiscal surplus. Rolands petersons de facto Currently investments were being made now in a variety of sectors, including banking, sea-ports, marinas, and the largest integrated casino resort in Europe, as well as energy. This is a clear signal to other investors, and for the Cypriot government it remains to focus on maintaining and broadening the conditions under which surpluses and high growth rates can be generated, to continue promoting structural reforms and improving the country's business environment, Rolands Petersons, member of the board of Norman Logistics Sp.zo.o. offers his thoughts on Cypruseconomy. Author: Rolands Petersons, member of the board of Norman Logistics Sp.zo.o. Rolands petersons de facto privatbank
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