Interview with Mr. Vidmantas Tamulis, Head of the Railway Transport Division at the Ministry of Transport and Communications of Republic of Lithuania
Lithuania has set its priorities for 2014-2020 which include traffic safety, reducing railway bottlenecks, measures that will help increase the attractiveness of railway freight and passenger transport and reducing pollution levels. The main projects are Rail Baltica, the development of the East-West Transport Corridor (electrification of lines, implementation of ERTMS), the development of the Railway Freight Corridor No. 8 (implemented with Belgium, the Netherlands, Germany, Czech Republic, Poland, Latvia, and Estonia). Regarding safety, the Railway Inspectorate of the Ministry of Transport and Communications is presently planning a number of initiatives for increasing safety, including two innovative projects (development of mobile equipment for diagnosis on the whole network and development of measures for safety at level crossings).
In September 2013, the transport ministers of Finland, Estonia, Latvia, Lithuania and Poland signed the joint declaration on the establishment of a JV and boosting cooperation. This declaration added Vilnius to the project map. Presently, the Baltic States are negotiating the shareholding agreement of the joint company. Lithuania has already taken action to set up the company and the contribution has been included in the state budget and the company’s budget. By the end of the year, Lithuania will complete the feasibility study and will identify all technical alternatives to integrate Vilnius on the map of the Rail Baltica line route.
The market share of railway transport is 48% (in 2013), but Lithuania plans to increase the market share of this transport mode by more investments. Moreover, Lithuania, and other partner countries, involve in the implementation of container transport services to provide smaller tariffs for freight transport, the rapid operation of customs procedures and travel time reduction, compared to road traffic. The efficiency of these services is proven by results: in 2013, “Mercury” container transport services increased by 450% (1633 TEU), while “Sun” by 350% (1188 TEU), the latter providing connection between Western Europe and China.
In this interview, Mr. Vidmantas Tamulis, Head of the Railway Transport Division at the Ministry of Transport and Communications, was kind enough to provide more information about Lithuania’s strategy on the development and promotion of railway transport, measures of increasing logistics performance and increasing the capacity of logistics and the ports capacity, the importance of investments in infrastructure projects and information on the current stage of Rail Baltica.
Railway PRO: For the EU Member States, 2014 is a year of setting priorities for 2020 and the transport system is one of the most important economic sectors. What are the financing priorities for the railway transport sector that Lithuania considers together with the European Union? What are the most important projects to be initiated according to the budget period 2014-2020?
Vidmantas Tamulis: For the year 2014-2020 Lithuania considers financing priorities, which helps ensure railway safety, reduces bottlenecks in Lithuanian railway system, contributes to the attraction of freight and passengers flows and helps
reduce pollution from railway transport.
Main projects:
– Rail Baltica, completion of which will allow Lithuania and other Baltic countries to join the common European gauge railway network;
– development of the East-West Transport Corridor (electrification of railway lines, removing of bottlenecks, ERTMS deployment);
– creation of Rail Freight corridor No 8 (implemented together with the Belgium, Netherlands, Germany, Czech Republic, Poland, Latvia and Estonia).
In railway safety area, the State Railway Inspectorate under the Ministry of Transport and Communications is currently planning number of initiatives in increasing the overall level of safety in Lithuanian railway transport system. These measures include two innovative projects:
• Development of mobile equipment for the diagnostics of the railway infrastructure across the country. The mobile equipment will be installed to the new road-rail vehicle. This tool will collect and analyze data on the technical condition of railway transport infrastructure which in turn will allow the Inspectorate to determine whether the infrastructure is maintained in accordance to national and EU regulations.
• Development of safety measures in level crossings. The Inspectorate plans to roll out nationwide intellectual transport system that will carry out live video-surveillance of level crossings. The system is expected to both inform the level crossings’ users on the dangers caused by railway traffic as well as prevent illegal crossings.
Additionally, the Inspectorate is planning to significantly enhance its current Information System for the Management and Oversight of Railway Transport Risk (GERVIS) with new functionalities.
It is expected that these projects will reduce the number of fatalities and accidents in Lithuanian railway transport system as well as financial losses of railway undertakings.
Railway PRO: What is Lithuania’s stra-tegy on the development and promotion of railway transport at both national and international level (including cross-border projects)?
Vidmantas Tamulis: Lithuania’s strategy on the development of railway transport consists of these elements:
• Improve and develop TEN-T, regional and local railway transport infrastructure;
• Promote multimodal transport and intermodality;
• Provide high value added logistics services;
• Ensure sustainability of transport system through energy efficiency and better mobility demand management;
• Improve railway traffic safety and security;
• Foster research and deployment of innovations in railway transport;
• Ensure railway connection with Western Europe by constructing Rail Baltica line.
Railway PRO: What about the projects for increasing logistics performance and the capacity of ports?
Vidmantas Tamulis: Ministry of Transport and Communications of the Republic of Lithuania pays great attention to the development and modernization of multi-modal transport infrastructure and establishment of modern logistics centres. Therefore Lithuania is already developing two public logistics centres in biggest Lithuanian cities Vilnius and Kaunas. Besides of this, Lithuania is constantly investing in development and modernization of Lithuanian port Klaipeda infrastructure.
Railway PRO: What measures should the authorities and railway companies adopt to increase the share of railway transport, compared to the other transport modes?
Vidmantas Tamulis: In our opinion appropriate condition of railway infrastructure is one of the most important factors of railway transportation shares, because only modern railway infrastructure can ensure rapid transportation of freight and passengers and compete with other transport modes. Therefore authorities and railway companies should modernize railway infrastructure and maintain it in proper condition.
Railway PRO: Lately, the Baltic States have approached more and more discussions on the development of Rail Baltica. What can you tell us about the negotiations that the three countries involved have carried out so far?
Vidmantas Tamulis: So far Baltic States have carried out feasibility study (done by AECOM Limited in 2011) to identify the most feasible development option for a standard European gauge (1435mm) line between Lithuania, Latvia and Estonia. The role of this study was to deliver a comprehensive decision base for the construction of a new 1435 mm gauge line. The study focussed on objective to give a complete and substantiated picture for the authorities of the three Baltic countries and the EU if the project seems viable enough to justify a more detailed analysis on the respective national levels and to propose a possible period for implementation of further studies at the national levels.
In June 2010, the transport ministers of Poland, Lithuania, Latvia, Estonia, and Finland signed a memorandum expressing their political intent to go ahead with Rail Baltica 2, and guidelines for the development of the project were agreed in November 2011.
In September 2013 transport ministers of Finland, Estonia, Latvia, Lithuania and Poland signed joint declaration on the establishment of the Rail Baltica Joint venture and on the enhanced cooperation in the Rail Baltica project. This Joint declaration included Vilnius into the Rail Baltica project.
Now negotiations between Baltic States are going on the Joint venture shareholders agreement.
Railway PRO: How will the joint venture operate and which will be its responsibilities in developing Rail Baltica?
Vidmantas Tamulis: Joint venture will be established for the construction of the new 1435 mm. railway line from Tallinn, Estonia to the Lithuanian-Polish border, which will connect Baltic States capitals with other capitals of EU countries. Other Joint venture tasks includes overall project management, coordinating information between member countries, preparing applications for EU financing, organising procurement tenders procedures, preparing technical specifications for design and construction of railway line, as well as monitoring overall project progress.
Railway PRO: Rail Baltica ranks 27th of the 30 TEN-T priority projects. What can you tell us about the project financing through EU funds and what will be the level of implication of the Lithuanian authorities in the financing? Will the joint venture have competences in providing or identifying funds too?
Vidmantas Tamulis: Lithuania, Latvia and Estonia agreed that project could be implemented only if it could attract around 85% from 3.67bn Euros (estimated Rail Baltica project cost) from CEF (Connecting Europe Facility) fund. Remaining part will be financed from Lithuania’s, Latvia’s and Estonia’s state budgets or other financial instruments, such as loans, public and private partnership and etc. The Joint venture will be responsible for the preparation of application for CEF funding.
Railway PRO: What is the stage of the project in Lithuania? We know that during the negotiations in February, the three Baltic States agreed that the European-gauge line should pass through Vilnius. Is this a fact or is it subject to change?
Vidmantas Tamulis: Project Rail Baltica is divided into two phases. The first part, so called Rail Baltica 1 is being implemented now. In Lithuania this part covers railway line from Lithuanian-Polish border to Kaunas (around 116 kilometres). Contracts on the construction of 1435 mm railway line were signed during April – June 2013 and works are undergoing now. This line should be completed at the end of 2015.
Next part – Rail Baltica 2 will be designed for railway transport operation at up to 240km/h and is expected to reduce Tallinn – Riga journey times to around two hours, while Tallinn – Warsaw will be cut to around six hours.
Lithuania is planning to carry out feasibi-lity study until the end of 2014 and identify all possible alternatives for the technical integration of the Vilnius in Rail Baltica 2 route, as was agreed in Joint declaration of Finland, Estonia, Latvia, Lithuania and Poland Transport ministers signed in September 2013 .
As I mentioned above, Baltic States are negotiating shareholders agreement of the Joint venture at the moment. From the large-scale shareholders agreements only few outstanding questions remain. One of them – how technically integrate Vilnius into Rail Baltica project. Another very actual question is that when Baltic States will construct railway line with designated speed up to 240 km/h, accordingly railway line in Poland should be modernised too. Otherwise rapid connection with the Western European countries will not be ensured.
All preparatory works for the establishment of Joint venture in Lithuania have been done, member state contribution for this year envisaged in the state’s budget and enterprise, which will participate as a Shareholder in Joint venture is already established.
Railway PRO: What can you tell us about the elaboration of the study for the preparation of the project, of the environment assessment report on Rail Baltica in Lithuania? What about in the other countries?
Vidmantas Tamulis: JSC “Sweco Lithuania” carried out European standard railway line Kaunas – Lithuanian-Latvian border strategic environmental assessment and presented report in March 2014 (document can be found on the following web address http://www.sweco.lt/lt/Lithuania/Apie-Sweco/Pranesimai/RaiBaltica-SPAV-dokumentai-galutinis/SEA-Report-EN-Final/). While carrying out strategic environmental assessment two alternatives were chosen: the existing railway line passing through Siauliai, marked in the Ge-neral plan of the territory of the Republic of Lithuania and railway line proposed by AECOM Limited in a feasibility study passing through Panevezys. As a more beneficial alternative was proposed railway line passing through Panevezys. Environmental assessment report was aligned with Latvia. Other preparatory works are undergoing now, they should be finished in 2015.
Railway PRO: Regarding the activity of ports, how can railways ensure a higher traffic flow to ports? What is the importance of railways in the mechanisms and activities of ports?
Vidmantas Tamulis: Railways can ensure a higher traffic flows to ports by providing rapid and smooth freight transportation and applying competitive transportation tariffs. Besides, communication with railways and ports of other countries is also very important, because it helps to attract and transport freight from other countries and brings mutual benefits for these countries. Railways are very important in the activities of ports, because they can transport huge amount of freight in the shortest time, with the lowest possible cost and are very convenient for the port operations.
Railway PRO: How are railway infrastructure investments correlated to ports investments to increase the accessibility of ports?
Vidmantas Tamulis: Investments into railway infrastructure are orientated to ensure better transportation of freight to the port by removing bottlenecks, and where necessary building second railway lines. Railway sidings inside the port are also being upgraded to better serve the port’s needs.
Railway PRO: According to EU policies, in the future, road transport will no longer be a solution for the transport of freight on distances higher than 300 km and, therefore, it is important to encourage alternative transport solutions, especially railway solutions. What is Lithuania’s strategy to answer to this challenge from the point of view of freight transport services and what is the role of the terminals in increasing the attractiveness of railway transport?
Vidmantas Tamulis: Transportation by railways already has significant share in the Lithuania (around 48% of freight were transported by railways in 2013 in Lithuania). Lithuania is planning investments in railway infrastructure, which reduces bottlenecks in Lithuanian railway system and ensures rapid freight transportation. Besides Lithuania together with partner countries are implementing container trains projects, which can offer better tariffs for freight transportation, rapid customs procedures and shorter transportation time comparing with road transport. Container trains projects are really important in attracting freight to railways and transportation of freight by these trains are constantly growing each year. For example container train “Mercury” during 2012 transported 361 TEU, during 2013 – 1633 TEU (+450% growth). Container train “Sun” during 2011 transported 82 TEU, during 2012 – 354 TEU. during 2013 – 1188 TEU (+350% growth).
Railway terminals are also very important, because they serve as a cargo collecting point, ensure rapid and smooth loading and unloading procedures and formation of trains.
Railway PRO: The transport business segment focuses more and more on building efficient transport connections between Eastern and Western Europe. In this context, what is the role of Baltic States in supplying efficient and performing transport services?
Vidmantas Tamulis: Lithuania and other Baltic States are situated between the large markets of Baltic Sea region, Western Europe and Eastern countries and from old times are well-known as attractive transport countries. There is one more advantage of Lithuania over Western European countries and other Baltic countries – a well-developed Russian railway gauge system as in Russia, Belorussia and in other CIS countries and assurance of connection with EU transport system. In Sestokai railway station (in the south-west Lithuania, near the state border with Poland) wide-gauge (1520 mm) and the European standard (1435 mm) railway gauges converge. Here railway carriages to Poland take place, therefore this station is very important transit point between the Baltic States and the Western European countries. Since 2015, when Rail Baltica line will reach Kaunas, this transit point will move to Kaunas.
Container train projects are also very important in supplying efficient and performing railway transport services. For example container train “Sun” connects Western Europe, Lithuania and China. Transit from Chongqing (China) to Antwerp (Belgium) through Sestokai (Lithuania) can be carried in 18 days.
Other container trains includes routes, to Kazakhstan, Russia, Belorussia, Ukraine, Turkey, Moldova and other eastern countries.
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