Rail Baltica, a very important project for the Baltic States and for completing the missing links of the European transport network, is recording significant progress – national ratifications, tenders, financings, studies, works.
The railway, designed for speeds of 240 km/h (passengers) and 120 km/h (freight), is part of the 3,200-km long North-Sea Baltic European Corridor, the only one of the nine European corridors located in the north of Europe. It connects the North Sea region with the Baltic Sea region with Poland and Germany. The corridor rail network has 5,931 km, the main technical problem being the different gauge. While Belgium, the Netherlands, Germany and Poland have a standard-gauge network, the Baltic States have 1,520-mm gauge lines, with the only exception of a 22-km long section between Sestokai, at the border between Lithuania and Poland, with parallel rails on both gauges.
The new railway will connect the Baltic States and Europe and will help create a direct rail connection to the 1,435 mm gauge which is so necessary for all participating countries and third parties. Of the total length of 870 km, most of the railway will cross Lithuania on a distance of 392 km, followed by Latvia with 265 km and Estonia, with 213 km. Regarding the intermodality, the railway will have three multimodal terminals – Muuga (Estonia), Salaspils (Latvia) and Kaunas (Lithuania) and there will be seven stations for passengers with potential of regional hubs (Tallinn, Pärnu, Riga Central, Riga Airport, Panevėžys, Kaunas and Vilnius). Also, the railway will benefit from connections with airports and ports. By 2025-2026, Baltic States will have a direct rail connection with the EU standard network, a modern connection equipped with the latest signalling and security systems, capable to provide fast, quality and cost-effective services.
Last year’s series of progress include, first of all, the ratification of the Intergovernmental Agreement by the three parliaments of the Baltic States, the finalisation of the Cost-Benefit Analysis (CBA), elaborated by Ernst & Young and Atkins experts, based on the CBA guidelines of the EU. This analysis proves that the project is financially viable and feasible and requires a total investment of EUR 5.8 billion. In 2017, Rail Baltica project entered the design phase and models were drafted for the common tender contracts. 28 tenders were announced by the end of 2017, 21 of these tenders were concluded and three were re-launched as none of the participants qualified. For one of the tender, he proposed service tax exceeded the contract cost. “We do seek to ensure that the project is in its implementation schedule and we seek the best expertise for the project that entered into its design phase,” Baiba Rubesa, the CEO of RB RAIL AS said.
“The project has definitely entered the design phase and delivered on important studies, such as the updated CBA. The joint commitment of the Baltic States to implement the project by 2025-2026 has been fortified by the ratification of an Intergovernmental Agreement in September 2017, and I see real commitment by all partners to move forward to reach the common goal,” Catherine Trautmann, North-Sea Baltic Tent-T corridor coordinator said.
Last year, Systra won the EUR 563,000 contract for the elaboration of Rail Baltica guidelines to ensure the interoperability of the railway and the acceleration of the design and construction process.
Also, DB Engineering & Consulting signed a EUR 359,850 contract for the development of a plan and of a long-term business strategy. The contract is expected to be completed in 2018 and includes a strategy for the implementation phase (8 years) and a model of an operational phase (for 10 years).
After entering the design phase, this year, the parties will focus on this segment with over 20 tenders to be announced. Also, the comprehensive preliminary technical design will be completed in the three countries by putting together national studies to create this corridor. The long-term operational plan and the business plan will be announced, and the technical and infrastructure management problems will be dealt with. By the end of 2018, beneficiaries will make a decision on infrastructure management. In Estonia, the tender for the detailed technical design will have to be completed this year, while in Lithuania and Latvia, the detailed technical design will be partially completed for some of the sections.
In fact, the detailed technical design of the railway for all states should be completed by 2020. “The work will be continued to deliver the main studies – the operational plan, the long-term Rail Baltica Global project business plan, a series of technical studies like visual guidelines, climate change impact assessments and others – supplier market studies, commercialisation studies, and the BIM strategy,” Rubesa said.
Financing
The total cost of the project amounts to EUR 5.8 billion and includes a European financing estimated at 85% with accountable socio-economic benefits of EUR 16.2 billion. Total benefits are estimated at over EUR 18 billion. Of the total cost of the project, Lithuania will have to invest EUR 2.47 billion with a national contribution of EUR 493 million, Latvia must invest around EUR 1.97 billion with a national budget contribution of EUR 393 million, while in Estonia the project cost is lower, EUR 1.34 billion, with a state contribution of EUR 268 million.
So far, three CEF financing agreements are allocated to the project (the third will be signed over the next period) with a total grant of EUR 824 million and a total national allocation of EUR 141 million.
This year, it is important to ensure a sustainable financing on the Global project. “This means concluding work on the CEF 3 Grant Agreement, continuing to promote the project to ensure an intense co-financing ratio in the next multi-annual financial framework together with the beneficiaries, starting to implement the long-term Business plan and devising a long-term RB RAIL financing model,” Rubesa explained. >
New tenders in 2018
Lithuania ratified the implementation agreement of Rail Baltica in October 2017 assuming responsibility to develop the project by 2025, with commissioning in 2026. In Lithuania, Rail Baltica is divided in three large sections: from Kaunas to Poland, from Kaunas to Latvia and Kaunas-Vilnius link. Investigations are carried out for this final link that will be presented to partners to adopt necessary decisions.
Last year, Lithuania developed the project for the Latvian border section and initiated the procurement process for the land necessary for this section (to be completed this year). Also, construction works were launched for the sections north of Kaunas (Jiesia-Rokai, Rokai-Palemonas, and Palemonas-Kaunas). The authorities have recently announced the completion of works on Jiesia-Rokai section which will be fully completed this summer. Works to Rokai-Palemonas section will follow as included in the work schedule.
The feasibility study for the modernisation of Kaunas/Palemonas-Lithuanian/Polish section will be completed this year. Ardanuy Ingenieria won the contract for the development of the study aimed to analyse the feasibility and necessary measures for the modernisation of the existing 1,435-mm section in compliance with the definition of the global project specified in two CEF financing agreements. The study should be completed in the first quarter of the year.
“Currently, the supplier of the study has submitted the second interim report which provides a comparison of alternative options on this section for reaching speed, capacity and other requirements to fully adhere to the Global Project’s definition as well as technical parameters and relevant TSIs,” Rubesa said.
“The activities on all of the three main sections of Rail Baltica in Lithuania are ongoing. On Rokai-Palemonas works are started and they will be completed next year. On Kaunas-Latvian border, the contract of the land acquisition is already signed, and we will have the needed land to proceed with the next stage of project’s implementation by the end of 2018. Regarding the Vilnius-Kaunas, we will present the feasibility study and we should have a decision on the connection,” Arenijus Jackus, Director of Rail Baltica Coordination Department at Lithuanian Railways.
Latvia will be in charge with developing the 265-km line segment on its territory. As a result of a poll, 89% of the country’s citizens said they were supporting the project implementation. In Latvia, the construction of Rail Baltica will be carried out simultaneously with the development of Riga International Airport (RIX). So far, Latvia has completed Rail Baltica preliminary technical design including Riga Central Station and RIX rail station. “We have received five proposals for RIX, currently we are in the second phase and we are now waiting for proposals for technical and financial solutions. RIX technical design contract will be signed in 2019 and construction works will begin in 2020 and are due in 2022. What’s important is that last year we began land procurement for the airport project”, declared Agnis Driksna, Director, Development and Cooperation Department of Eiropas Dzelzceļa līnijas (EDZL), responsible of Rail Baltica in Latvia. Riga Central Station is one of the most complicated projects of Rail Baltica as it is currently operational, but has to be adapted to EU standards, including by converting the infrastructure to standard gauge. “First of all, we have to combine two rail systems, we cannot stop or have a significant impact on the existing activity and we cannot interrupt the activity of the city because of this project keeping in mind that the rail station is a multimodal centre of the city. The challenge also comes from the fact that it is a historic centre”, explained EDZL representative.
Currently, the procurement process is continued, three construction permits were issued for the station, lines and bridge, and technical requirements are necessary for the initiation of necessary procurements. Design and construction contracts will be signed this year, the technical design will be completed by 2020 and the actual construction of the station will be completed in 2022.
Last year, Cowi and PLH won the contract for the design of Riga Central Station. For this rail station, Latvian authorities issued three construction permits for Rail Baltica Riga station, bridge and embankment project, and construction works are expected to be launched by 2020.
Estonia was the first country to ratify Rail Baltica intergovernmental agreement (in June 2017). For the 213 km of railway, Estonia will have to grant EUR 268 million of the total investment of EUR 1.3 billion on its territory. In 2017, the strategic environmental evaluation was completed and approved by the Environment Ministry. The number of geologic research activities doubled last year.
“While preparing construction works, we have elaborated analyses on the delivery of necessary raw materials and most of them is available locally. Companies activating in the industry are elaborating the geologic studies to analyse delivery opportunities”, declared Riia Sillave, CEO, Rail Baltic Estonia OU.
There will be two passenger terminals in Estonia (Ülemiste and Pärnu) and one freight terminal. At Ülemiste, one of the passenger terminals, the tram connection on Tallinn-Ülemiste-Tallinn Airport route was inaugurated in September, this being the first construction project of Rail Baltica. The connection will ensure transfer from the capital centre to the rail and airport connections, Ülemiste being the terminus point of Rail Baltica passenger traffic in Tallinn. Technical design tenders for the two passenger terminals will be launched this year.
Regarding freight terminal Muuga, technological studies for its development are ongoing. According to preliminary studies, it will have a capacity of 1 million tonnes a year and 5 million tonnes in the first following years. By 2050, the capacity of the terminal is expected to increase to 10 million tonnes.
“In 2018, we will enter the design phase of Rail Baltica which includes 17 tenders for design, studies, analyses and other services necessary to project development, including the procurement of lands”, said Riia Sillave.
For 2018, Estonia prepares to announce four design tenders, three planning tenders, other four for the elaboration of analyses and one tender for construction works; among them, technical design tenders will be announced for both passenger terminals and for the feasibility study for the additional (freight) station or dry port in Tallinn area, but also the design for Muuga terminal, as well as the design tender for the construction of rolling stock depots.
This article was published in the February issue of the Railway PRO Magazine, that analyses the latest and most important railway projects around the world.
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