Natural disasters cause a direct and indirect unbalance in a country’s economy. Direct losses affect the infrastructure, agriculture, industrial products, human beings and animals. Indirect losses consist in the impact on the economic activities which can no longer be carried on. The recent floods in Central and Eastern Europe have affected transport infrastructures causing economic losses of millions of euros.
Transport damages determine chain losses for carriers, industry and last but not least, mobility. Natural calamities cause significant economic losses which determine budget and financing reforms, as well as amendments of measures, laws and projects. Infrastructure damages can be avoided by financing long-term reliable projects on the adequate infrastructure protection. Actions to be implemented include adopting proactive measures (conservation which may include management plans), preventive measures (measures to avoid loosing the value of sites), as well as procedural guarantees (consisting in the development and implementation of the plans and projects on the total integrity of concerned areas). The impact of natural disasters has caused financial losses of billions of euros in transport due to traffic obstruction. Let’s take for example the recent air traffic paralysis caused by the volcanic ash cloud from Iceland in April 2010. Losses in the world’s economy amounted to USD 5 Billion. In just one day, 1,000 flights have been cancelled which means considerable losses for air transport operators. According to the Air Transport International Association representing companies which ensure 93% of the trade traffic, air transport companies lost EUR 1 Billion. More than 100,000 flights have been cancelled in one week and the number of passengers affected has reached 8 million. Compared to air transport, land transport is more vulnerable to natural hazards in terms of frequency and duration.
Recent floods damaged rail infrastructure. Financings of millions of euros are necessary
Currently, floods represent a national as well as international threat, countries such as Bulgaria, the Czech Republic, Ukraine, France, Poland and Slovakia having been affected by heavy rain and storms. But according to specialists, floods are growing more and more frequent due to climate change. A report elaborated by the Intergovernmental Programme on Climate Change (IPCC) shows that climate change is already influencing the evolution of the world’s regions. The report also shows that economic analyses indicate that “not assuming responsibility means higher costs than for preventing actions. Approaching climate change is an economic necessity and aims to avoid significant economic damages and support national and international social activities”. To that end, crucial aspects include ensuring the funds necessary to project development on medium and long term and adopting initiatives. Short term fund allocation determines more expensive financing. In Romania, floods have significantly affected 37 counties, while in Ukraine the water level in several localities has reached 5 metres (June 2010).
6,979 houses have been affected in Romania, while thousands of households have been flooded in Ukraine. Over 13 bridges and 60 km of roads have been destroyed. The total damages in the two countries have reached tens of million euros. Tens of people were killed. Others went missing. “In western Ukraine (June 2010), heavy rains ruined seven bridges and houses and damaged 1,250 kilometres of roads”, First Deputy Prime Minister Andriy Klyuyev declared, Bloomberg writes.
“Overall flood damages by July 6 are estimated at EUR 58.4 Million. From June 20 to early July, the State Construction Inspectorate has assessed and evaluated over 2,200 km of damaged roads”, Elena Udrea, Development Minister declared at the beginning of July.
According to the Romanian Ministry of Environment and Agriculture, flood damages exceed EUR 350 Million (0.3% of GDP) but the estimation is preliminary. The government estimates total damages of 0.6% of GDP.
“Over 6 line sections have been closed based on the risk of collapse and line breaking, destroyed superstructure and line beds or flooded lines in June. The rail infrastructure manager informs that speed restrictions have been established for 13 rail sections”, shows the official website of CFR SA.
According to Monitorul de Suceava newspaper, four CFR routes are impracticable on the long term. Unofficial estimations show that the damaged rail lines could re-enter service no sooner than this autumn. International traffic has also been affected by damaged lines, especially the routes from Romania to Moscow.
Private rail operator Ferotrans TFI Iaşi, which took over from CFR several routes in Suceava, has been forced to disrupt activity because the lines could no longer be used. “We have tried to access funds to counteract the floods impact, but it is not possible. We are seriously considering giving up the three lines and, most probably, this is what will happen”, declared Dumitru Anchidin, manager Ferotrans TFI SRL Iaşi, Monitorul de Suceava writes.
Therefore, the damaged rail lines and bridges, as well as seriously affected bridges, require over EUR 1 Million to re-enter service. Rail infrastructure didn’t escape the problems caused by floods in 2009 either. Floods occurred in the central area of Romania and a series of rail infrastructure elements were badly affected. As late as six months later (in January 2010) a Decision was adopted on allocating additional funds to the Ministry of Transport’s budget to counteract the effects of the natural disasters in July 2009.
As for the condition of the Ukrainian rail infrastructure, “rail lines have been seriously damaged and rehabilitation will last three years”, declared Ukrainian First Deputy Prime Minister Andriy Klyuyev.
Poland has not escaped heavy rain either. Floods destroyed an important rail bridge in the Malopolska region.
“The rapid flow of water in the local river washed away the bridge supports and the bridge collapsed. In result, rail traffic has been disrupted”, a spokesman of the Polish Railways declared.
More heavy rains struck Poland and triggered new flooding in the south of the country. According to Prime Minister Donald Tusk, the flood situation in the country had developed dramatically in June 2010.
Floods have also affected the international rail traffic making railway companies loose millions of euros. Losses are the result of either partial activity disruption, as well as infrastructure damage which requires new financial resources to re-enter service.
The infrastructure damages caused by natural disasters have a serious impact on the entire country mostly from the economic, social and financial point of view, especially during the current economic downturn when every country struggles to cut costs and focus expenditures on activities which stimulate the economic growth. Natural hazards make impossible the allocation of investments to new projects that could help sustainable development since the focus drops on rehabilitation works instead of construction of new rail lines. Rehabilitation works need urgent approach as the affected lines ensure the mobility between cities, regions or countries, as well as the transport of goods.
by Pamela Luică
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