Ranked 27 of the 30 TEN-T priority projects, Rail Baltica corridor (Warsaw-Kaunas-Riga-Tallinn-Helsinki) is a strategic and sustainable project providing an efficient railway connection between Poland, Lithuania, Estonia and Finland. In fact, it is the only direct railway connection between the 3 Baltic States, as well as between them, Poland and the rest of the European Union. To the North, Helsinki can be connected through the ferry services crossing the Gulf of Finland forming a connection to the countries in the north. The existing infrastructure is 1,200 km long on the most direct route from Tallinn to Warsaw.
The implementation of the project demands funds amounting to EUR 3.48 Billion, 75% of which would come from the EU, 10% less than estimated. According to the declarations of the Transport Minister of Lithuania, Rimantas Sinkevicius, (February 2013), “the project will be developed with European funds, the initial version was covering 85% of costs. The latest version includes a 75% European contribution or the reduction by 10% of the EU support”.
Rail Baltica can become the main heavy cargo transport route which reduces the environmental impact by attracting freight flows from roads to railways. Aside from the important characteristics which determine the authorities to implement the project (environment, direct connections, and attracting transport to the railway network) another reason is “the fundamental change (of January 2015) in the shipping costs in the Baltic Sea Region. Thereafter, vessels travelling in the Baltic Sea can only use bunkers with a content of 0.1% sulphur. This will bring millions of Euros of extra costs for the Baltic Sea shipping. The time of cheap short sea shipping transport may be undergoing change and this will have an important effect on the use of rail in the Baltic region”, says Pavel Telicka, the EU coordinator of Rail Baltica, in the report dated November 2012.
In June, the countries involved in the project and the representatives responsible with the project within the European Commission brought to discussion the efficient implementation and the acceleration of the project. Therefore, considering the decisions adopted by the Lithuanian Government, it was proposed that the parties involved in the project (Poland, Latvia, Estonia and Finland) would set up a joint group, the European Economic Interest Group (EEIG) responsible with the implementation of Rail Baltica. Most of all, the group should deal with the coordination and administration of the project preparation activities, to elaborate the application for European funds, to elaborate the application plans, as well as the stra-tegies for attracting freight and passenger flows.
“This legal form will permit a more efficient application of the project and will reduce costs for all participating countries. Moreover, it will ensure the application in time of the demand for EU assistance”, said Lithuanian Minister of Transport Rimantas Sinkevicius, saying that at the moment, the scheduled preparation works approved by the Government are more evolved compared to the others.
The initiative of the EEIG establishment was accepted by the parties involved in the development of Rail Baltica who will make a decision on the model for the efficient implementation of the project.
Lithuania signs important contracts
Of the countries involved in the project, Lithuania ranks first in the implementation of the project and signed several contracts in June. Thus, Nordic Investment Bank (NIB) and Lithuanian Railways (Lietuvos gelezinkeliai) signed a financing agreement worth EUR 114 Million for the construction of the European-gauge line, Rail Baltica, as well as for the modernisation of railway sections in the European network on the east-west axis on the Lithuanian territory. In fact, funds will be allocated for the construction of 115 km of line with 1435 mm gauge from Lithuania to the Polish border, the city of Kaunas. The line will be built in parallel with the already existing line which has a 1520 mm gauge. The project also includes the reconstruction of 60 km of broad-gauge line in the city of Šiauliai to the Latvian border. Projects will permit trains to run at speeds of 120 km/h. As part of the future Rail Baltica corridor, this will be the first project for the construction of the European-gauge line built in the Baltic States in order to open rail connections with Poland and the EU.
Lithuania also signed three contracts for the development of Rail Baltic in June. The first agreement was signed with Panevezio Keliai, for the construction of the 24km section of European gauge between Marijampole and Kazlu Ruda and the reconstruction of a 1520mm gauge section. The contract is worth EUR 48 Million. The second contract was signed with a consortium including the companies Kauno Tiltai and Mitnija which will deal with the reconstruction of Marijampole rail station and of the line segment between Marijampole and Sestoka stations with works estimated at EUR 22 Million. Also, the third contract was also signed with the consortium of Kauno Tiltai and Mitnija for the construction of the European-gauge line on the Sestokai-Marijampole section (33 km) and the reconstruction of the existing 1520mm gauge line. The contract is worth EUR 63 Million. The costs of all projects are VAT free and the deadline set for the finalization of works in the situation of the three contracts is of 18 months.
In April, Estonia’s Technical Surveillance Council selected the offer of the Estonian companies OÜ Reaalprojekt, OÜ Hendrikson & Ko and EA Reng AS, and that of UAB Kelprojektas (Lithuania) in the tender for the contract on preliminary design of the national section of Rail Baltica. The cost of the offer was EUR 7.49 Million. Other two offers have been submitted to the tender: from the British consultancy firm Aecom Limited and its subsidiaries and Systra and from the Swiss company Sweco Energuide AB and its Estonian and Latvian subsidiaries and Ineco (Spain). The preliminary design should be completed in 2015. However, there are still problems with the tender because Aecom contested the outcome of the tender organised by the Council.
Czech Republic and France, interested in the project
Since the launch of the project, there have been several talks about the potential routes that could be adopted, the necessary funds, the way in which the countries included in the project should participate etc. For foreign companies this project has only been a vision and they have not manifested interest to contribute.
In the Czech Republic, the project has drawn the interest of the companies activating in the railway transport. Therefore, during a visit of the Czech Prime Minister Petr Necas to Tallinn, he said that there were Czech companies which have the necessary expertise, as well as the capacity to build railway infrastructure for the Rail Baltica project. “We are definitely interested in developing this project. Our companies have the capacity to build from railway infrastructure to locomotives and wagons. Czech companies are also inte-rested in providing services and in carrying freight”, added Necas.
France is another country interested in participating in this project. The representatives of SNCF, Systra and Alstom had a meeting with officials from the Lithuanian Minister of Transport (in May 2012) to broadly discuss the project of the corridor and the participation in Rail Baltica. “We are interested in the schedule, in the construction phases and in the financial and economic needs of Rail Baltica”, declared Gaelle Leroux, diplomatic consultant of SNCF.
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