Baltic-Adriatic Corridor

CEF support to Baltic-Adriatic Corridor

Innovation and Networks Executive Agency

Baltic-Adriatic

FEBRUARY 2018

Table of Contents

1. Introduction ...... 3

2. Action portfolio: State of play ...... 4

2.1. Operational Implementation ...... 4

2.1.1. Maritime ...... 5

2.1.2. Multimodal ...... 5

2.1.3. Rail ...... 6

2.1.4. Road ...... 10

2.1.5. Financial implementation ...... 13

3. Evolution of the Action portfolio ...... 14

3.1. Funding variations after the Grant Agreement signature ...... 14

3.2. Challenges affecting the implementation of Actions ...... 14

4. Conclusion and Outlook ...... 16

5. Statistical Annex ...... 18

6. List of Actions on the Baltic Adriatic Corridor ...... 20

1. Introduction Since the 2014 CEF calls for proposals, this is the first INEA report aimed at presenting the contribution of CEF-Transport funded Actions to the development of the Baltic-Adriatic Core Network Corridor (BAC) and implementation of the BAC Work Plan prepared under the auspices of Mr Kurt Bodewig, the European Coordinator. It presents what has already been achieved thanks to CEF funding and what is still expected under the current programme.

The Baltic-Adriatic Corridor is one of the most important trans-European railway and road axes. This 1800 km long corridor runs from North to South, i.e. from Poland through the Czech Republic, Slovakia, Austria to Italy and Slovenia, connecting core Baltic ports in Poland with core ports of the Adriatic Sea in Italy and Slovenia. It runs through the industrialised areas of Southern Poland, Vienna and Bratislava, the Eastern Alpine region and Northern Italy, linking major transport nodes through key rail, road, maritime and air transport connections. Except Austria and Italy, all member states located on the corridor are Cohesion countries. It includes around 4,600 km of rail network and 3,600 km of road network as well as 13 urban nodes and airports, 10 ports and 24 rail-road terminals. The corridor also crosses, or runs in parallel, with five other corridors: North-Sea Baltic in Poland, Orient-East Med and Rhine-Danube in the Czech Republic, Austria and Slovakia, Mediterranean in Italy and Slovenia, and Scandinavian-Mediterranean in Italy.

As noted in the Work Plan, by implementing the Baltic-Adriatic Corridor, new traffic flows between Baltic and Adriatic ports and their hinterland are developed and the ports, as start and end points of the corridor are boosted. According to the Work Plan, in order to reach the full potential and develop a truly multi-modal and seamless corridor, the existing bottlenecks along the corridor, missing links in the rail network and last mile connections to ports need to be addressed. In response to these needs, the European Coordinator has set out a list of specific priorities for the Baltic-Adriatic Corridor, which focus on: developing rail and road cross-border connections, removing missing links at the Alpine crossings in Austria, improving infrastructure quality and standards with a focus on Cohesion countries, improving 'last mile' connections of the ports, and deployment of ERTMS. As it will be presented later in the report, the CEF programme makes a significant contribution to the implementation of the Work Plan along the aforementioned priorities.

The Baltic-Adriatic Corridor has been very successful in securing CEF funds, especially considering the very high oversubscription in CEF calls for proposals. In the first three calls over €2 billion of CEF funding for a total investment of over €3 billion has been allocated to 68 Actions located on the corridor. The recent Blending Call 2017 has added another 12 Actions with CEF contribution of €320 million. CEF funding concentrates on railway Actions, with a contribution of €1.9 billion to date, representing 79% of total CEF funding allocated to the corridor. 28 railway Actions supported by CEF are implemented in all countries on the corridor, focusing on the improvement of existing infrastructure and ERTMS deployment, particularly in Cohesion countries. Other modes of transport are also supported by CEF, namely road, maritime and multimodal. Amongst them, 4 road Actions address cross-border sections, 21 innovation Actions are involved in deploying alternative fuels, 6 Actions deploy ITS, 11 Actions improve port infrastructure and connections and 4 Actions develop multimodal logistic platforms.

This report will present the current state of play of implementation of CEF Actions, which are vital for the achievement of the above goals. It will also tackle the main challenges and opportunities going forward.

2. Action portfolio: State of play1 CEF Transport has so far allocated grants worth €22.3 billion with a total investment in the European economy of €46 billion. The current portfolio of Actions in the Baltic-Adriatic Corridor comprises 80 grant agreements2 allocating €2.4 billion of actual CEF Transport Funding (corresponding to 12% of total number of CEF Transport Actions and 11% of total actual CEF Transport funding). Except for one termination and one closure of these grant agreements, all Actions are ongoing. 2.1. Operational Implementation For the Baltic-Adriatic Corridor, the Core Network Corridor priority (under Funding Objective 1)3 represents 85% of actual CEF Transport funding. Other priorities, such as Innovation (under Funding Objective 2)4 and Multimodality (under Funding Objective 3)5 also contribute to the development of the Corridor. Due to its location, most of the funding for the Baltic-Adriatic portfolio is coming from the Cohesion envelope (80%). The portfolio is dominated by national Actions, which absorb around 97% of the grants allocated to this corridor. 89% of the actual CEF Transport funding is linked with works Actions. The highest number of Actions is under the rail transport mode, which also receives most of the actual funding (79%). 43 bottlenecks are expected to be addressed by Actions on this corridor, mainly regarding national rail sections, some with cross-border impact. Figure 1: Statistics by transport mode

Funding (€ million) Number of Actions Number of bottlenecks

Air 0.0 0 0

Inland Waterways 0.0 0 0

Maritime 204.1 11 3

Multimodal 50.0 10 1

Rail 1,876.1 28 37

Road 246.5 31 2

1 As of February 2018. 2 Of which 68 have been signed following the 2014-2016 calls, and 12 are under preparation following the 2017 Blending call. 3 Removing bottlenecks and bridging missing links, enhancing rail interoperability, and, in particular, improving cross-border sections 4 Ensuring sustainable and efficient transport in the long run 5 Optimising the integration and interconnection of transport modes and enhancing interoperability, safety and security of transport

2.1.1. Maritime There are ten core ports in operation along the Baltic-Adriatic Corridor: five maritime and inland waterway ports (Szczecin and Świnoujście, Trieste, Venezia and Ravenna), three maritime ports (Gdynia, Gdańsk and Koper) and two inland waterway ports (Wien and Bratislava). All ports are connected to the road and railway network in line with TEN-T standards. In order to develop the full potential of the seaports one of the priorities of the Work Plan relates to the improvement of last mile connections outside and inside the ports and development of hinterland connections of ports, focusing on rail last mile connections. Indeed, ports access is addressed by many CEF Actions, as described below. In total the maritime portfolio of the Baltic-Adriatic Corridor is composed of 11 Actions, 10 of which include construction works, receiving in total €204.1 million of CEF Transport funding. The funding is concentrated in 6 core ports located on the corridor, namely: Gdańsk, Koper, Ravenna, Świnoujście, Trieste and Venice. These Actions focus on maritime and land accessibility of the port (Koper, Trieste and Venice), expansion and/or modernisation of the port infrastructure (Gdańsk and Świnoujście), preparation for LNG deployment in the port (Ravenna and Venice), and port capacity improvements (Trieste and Venice). Furthermore, Actions on the corridor are expected to address existing bottlenecks in three ports: Trieste, Koper and Gdańsk. It should also be noted that a significant amount of CEF Transport funding (€390 million) is allocated to four core Baltic ports in Poland to improve their rail accessibility. These investments are reported under the rail section below. Works and mixed CEF Actions in the core ports on the corridor are shown on the map in section 2.1.3. below. 2.1.2. Multimodal 24 rail-road terminals are currently in operation at the core nodes of the Baltic-Adriatic Corridor and they are all interconnected to their respective national road and rail networks. 9 out of 24 rail- road terminals have 740 meters train length accessibility and 18 have electrified train terminal accessibility. As it will be described below, CEF Actions will improve train length accessibility to the terminal, in accordance with the Work Plan priorities. In total the multimodal portfolio of the Baltic Adriatic Corridor is composed of 10 Actions, receiving €50 million in CEF Transport funding. The portfolio can be divided into two main groups: core terminals (rail-road terminals and ports: 5 Actions in total), and innovation Actions (5 Actions). The Actions on the corridor will connect/improve connection of 3 different multimodal logistical platforms to the railway network, which is the main indicator for the multimodal sector. Within the first group there are two Italian Actions supporting the development of the multimodal logistic platform of Padova. The first one aims at enhancing the efficiency of the new container terminal by investing in gantry cranes and upgrading the rail infrastructure to accommodate 750m long trains. The second one is focused on ICT development and ancillary works at the terminal. Next Action is located at the multimodal terminal of Ostrava/Paskov and it is aimed at upgrading the rail infrastructure, namely to allow 750m long trains at the terminal. The last Action concerns the improvement of access infrastructure to the road and railway network in the maritime Port of Gdańsk. The second group of multimodal Actions concerns innovation Actions, which focus on alternative fuels for road transport. For example, one Action concerns the construction of a pilot docking

5 station in Sławków rail-road terminal of the Baltic-Adriatic Corridor, as a part of an LNG distribution system. One of the objectives is to prepare the implementation of this system in all Polish sea ports belonging to the corridor. Works and mixed CEF Actions in the core Rail-Road Terminals on the corridor are shown on the map in section 2.1.3. below. 2.1.3. Rail The Baltic-Adriatic Corridor includes 4,285 km of 1435 mm standard gauge railway infrastructure. The railway infrastructure along the corridor is already continuous and operational except for two sections in Austria (Koralmbahn line section Wettmannstätten – Grafenstein within the wider section Graz – Klagenfurt and Semmering Base Tunnel Gloggnitz – Mürzzuschlag), which are one of the Work Plan priorities. Other priorities concern the removal of the main bottlenecks (particularly in terms of line speed and train length standards), focusing on the most critical cross-border connections, as well as ERTMS deployment. See below map showing works and mixed CEF Actions on the core rail network along the corridor (ERTMS Actions not included).

In total the rail portfolio of the Baltic Adriatic Corridor is composed of 28 Actions, receiving €1.9 billion of CEF Transport funding, which represents 79% of the total CEF Transport funding allocated to the corridor. 24 Actions cover works (or works with studies) and 4 Actions cover studies. The vast majority of CEF Transport funding is allocated to Cohesion countries to improve compliance with the technical standards. The portfolio can be divided into four main groups of Actions: 'traditional' rail infrastructure (20 Actions), ERTMS (5 Actions), Nodes of the Core Network (2) and interoperability (1 Action). Actions belonging to this transport mode are expected to address 31 bottlenecks, including 6 on cross-border sections. Furthermore, Actions on the Baltic-Adriatic Corridor are expected to improve 430 km of freight lines and equip 619 km of railway lines with ERTMS. The main indicators are presented in the chart below. Figure 2: Improved railway lines (number of km)

Km of railway adapted to the European Nominal 6 Gauge standard

Km of ERTMS first deployment 619

Km of line tracks and sidings electrified 169

Km of freight lines improved 430

Rail infrastructure

Rail (traditional) infrastructure portfolio of the Baltic Adriatic Corridor consists of 20 Actions, each one addressing one or more priorities of the Work Plan. The largest number of Actions is located on the Polish part of the corridor, where 8 Actions receive around €936 million of CEF Transport funding to improve its rail infrastructure by the modernisation of the national corridor railway links and addressing the main bottlenecks, in line with the Corridor Work Plan priorities. Specifically, 215km of freight lines will be improved and 118km of tracks will be electrified. Furthermore, the Actions will increase safety (mainly by removing level crossings and modernising/constructing bridges), increase line speed (both for passengers and freight) and ensure compliance with axle load and train length requirements. The two largest Actions, receiving €634 million from CEF programme, are located on the E59 railway line, one of the major railway axis in Poland and part of the pre-identified section Wrocław - Poznań - Szczecin/Świnoujście. The first Action covers construction works on the Szczecin - Poznań section aimed to address a 118.7 km long bottleneck, increase capacity and reduce travel time. The second Action covers construction works on the Wrocław - Poznań section in a total length of 71 km to increase line speed and axle load. Two Actions address another major railway

6 ERTMS first deployment means equipping a railway line section which was not equipped with the system before.

8 axis in Poland – the E65 railway line, located on Katowice - Ostrava - Brno - Wien & Katowice - Žilina - Bratislava – Wien and Warszawa – Katowice pre-identified section. Specifically, preparatory studies for the Katowice - Zebrzydowice - PL/CZ state border section and construction works for the modernisation of 18 km long section, address the Work Plan priority concerning the rail cross- border section between Poland and the Czech Republic. Furthermore, €390 million of CEF Transport funding has been allocated to the four core Baltic ports in Poland, namely Gdańsk, Gdynia, Szczecin and Świnoujście, to improve their rail access, thus contributing to the Work Plan priority addressing last mile connections to the rail network. Two important Actions, receiving almost €72 million of CEF funding, are implemented on the Czech side of Baltic-Adriatic Corridor, on the pre-identified section Katowice-Ostrava-Brno-Wien. One Action covers preparatory studies for the upgrade of the 64 km long section of the Brno–Přerov railway line to address a bottleneck in terms of capacity, speed and interoperability. The second Action covers construction works aiming at upgrading the Přerov railway junction, which represents a major bottleneck due to its inadequate technical parameters and deteriorated condition. One new Action will be added to the Czech rail portfolio from the recent Blending call, addressing the cross- border section with Poland. Five Slovenian Actions, receiving over €212 million of CEF funding, contribute to the overall development of the corridor by improving the main infrastructure parameters. This includes three Actions (both works and studies) on the Divača–Koper railway line of high national importance, including the bottleneck rehabilitation in the area of Bivje and two Actions concerning the second track "Divača-Koper". The remaining two Actions concern the upgrade of Poljčane - Slovenska Bistrica and the Zidani Most - Celje railway railway lines. As regards the Work Plan priority related to the completion of the two missing links at the Alpine crossings in Austria, CEF Transport funding supports an Austrian Action of the construction works on the Wettmannstätten - St. Andrä section (including parts of the Koralm tunnel), as part of the high speed Koralm railway line connecting Graz and Klagenfurt. Once completed, the Action will address an important bottleneck on the corridor, speeding up rail traffic and guaranteeing a key north-south link on the corridor. Large part of the section has already been completed. ERTMS The ERTMS portfolio on the Baltic-Adriatic Corridor consists of 5 Actions covering trackside deployment of ERTMS on 596 km of railway lines in total along the corridor to address interoperability bottlenecks, contributing to the priority of the Work Plan concerning ERTMS deployment. In terms of the amount of CEF funding the largest Action concerns the deployment of ETCS Level 2, Baseline 2 on the Czech part of the corridor, along the 206 km long Petrovice u Karviné – Ostrava – Přerov – Břeclav rail section. The Action is part of Katowice - Ostrava - Brno - Wien and Katowice - Žilina – Bratislava – Wien pre-identified section. Next Action covers the deployment of ETCS Level 2, Baseline 2 on the important national railway line E59 Poznań – Wrocław in Poland in a total length of 168 km. The Action is part of the pre-identified section Wroclaw - Poznan - Szczecin/Świnoujście. On the Italian part of the corridor two Actions will fit almost 250 km of railway lines with ETCS Level 2, Baseline 3. In Slovenia, ETCS Level 1, Baseline 3 is deployed on the important railway section Pragersko-Maribor-Šentilj-State border with Austria in a total length of 39 km. The Action is part of Graz – Maribor – Pragersko pre-identified section.

Rail Freight Corridor 5

The Baltic-Adriatic Rail Freight Corridor (RFC5) links some of the most important Eastern and Southern areas of Europe, providing rail freight capacity according to the market demand. CEF funding is provided to a multinational Action, involving rail infrastructure managers on the corridor, to elaborate studies aimed at enhancing the attractiveness of the RFC5 offer and improving rail long distance freight transport flows along the corridor. Specifically, Long train and Last mile studies will look at the main bottlenecks affecting transport operations and the results will feed into the Work Plan. The Long train study results will be particularly interesting as regards the 740m train length standard, identified as an important issue affecting operations. 2.1.4. Road The Baltic-Adriatic Corridor includes 3,600 km of road infrastructure. One of the main priorities of the Work Plan is the removal of the main bottlenecks on the corridor in terms of technical standards, by improving the most critical cross-border road connections, in particular between Poland and Slovakia, Czech Republic and Austria. In total the road portfolio of the Baltic Adriatic Corridor is composed of 31 Actions, receiving €246.5 million of CEF Transport funding. The portfolio can be divided into three main groups of Actions: 'traditional' road infrastructure including safe and secure infrastructure (6 Actions), innovation (18 Actions) and ITS (6 Actions). In addition, one Action focuses on electromobility in urban nodes. Actions belonging to this transport mode are expected to address 2 cross-border bottlenecks. See below map showing works and mixed CEF Actions on the core road network along the corridor (road infrastructure only).

Road infrastructure

Actions included in this group address the two critical road cross-border sections, identified in the Work Plan: Katowice – Žilina (between Poland and Slovakia) and Brno – Wien (between the Czech Republic and Austria), which are expected to address 2 bottlenecks. Over €74 million of CEF funding contributes to the Katowice – Žilina section thanks to the Slovak Action addressing the most problematic section of Motorway D3 Čadca, between Bukov – Svrčinovec. As regards the Brno – Wien section, on the Austrian side, there are two Actions receiving in total €22.4 million of CEF funding for the extension of the A5 North motorway. The first Action concerns studies and works on the Schrick-Poysbrunn sub-section, including 4 bypasses causing a bottleneck. The 25 km long section was opened to the traffic in December 2017. The second Action covers preparatory studies for the construction of the further section between Poysbrunn and the national border. On the Czech side, CEF funding is provided for preparatory studies for the construction of Motorway D52, Bavory – state border CZ/AT section. One Action was already completed in 2016 and contributed to improving safety and security of the infrastructure by the elimination of railway level crossings and construction of road viaducts related to the important national railway line in Poland i.e. E-65. Innovation The Innovation portfolio includes 18 Actions which are expected to install 360 supply points for alternative fuel for road transport, of which 339 Electricity, 11 LNG and 8 CNG and 2 H2, as presented in the chart below. Figure 3: Number of supply points for alternative fuel for road transport

LNG H2 11 2

Electricity 339

CNG 8

Electricity LNG CNG H2 Electric mobility represents the largest share of Innovation Actions on the corridor. 10 Actions cover studies with pilot deployment of multi-standard high power stations (more than 22kW, usually 50kW) and/or high power chargers (150kW-350kW) for electric vehicles. Most countries on the corridor, particularly Slovakia and the Czech Republic, are taking an active approach in addressing the Alternative Fuels Directive by investing in electric mobility. In Poland, it is gaining its momentum and for example one Action will deploy electric charging stations along the corridor, between Gdynia and Warsaw. These significant investments supported by CEF funding in the electric mobility sector on the corridor contribute to the development of an interoperable electromobility network and the enhancement of cooperation on the market, facilitating the movement of electric vehicles along the corridor.

On the other hand, there are less investments on the corridor focused on LCNG as alternative fuel. 3 Actions receiving CEF funding show that the LCNG market is either not yet mature or it is only starting to develop. Even though it is outside the scope of this report, one Action funded under the 2016 CEF Synergy call, which concerns preparatory studies for the small-scale LNG Reloading Terminal in Gdańsk and bunkering services (to be used both for energy purposes and as a fuel in maritime or land transportation), is expected to facilitate the development of LNG market on the corridor. As regards the development of new alternative fuels (beside LCNG), one CEF Action will invest in hydrogen refuelling stations on the Austrian part of the corridor. Intelligent Transport Systems (ITS) The ITS portfolio on the corridor includes 6 Actions. It covers multinational Actions of ITS deployment (2 Actions as part of CROCODILE Action and 1 Action as part of URSA Action) and national Actions of ITS deployment (3 Actions: 2 in Slovenia and 1 in Poland), addressing one or more ITS Directive priority Actions. In terms of the amount of CEF funding, the most prominent is the Polish Action - National Road Traffic Management System on the TEN-T network - Phase I, which receives CEF grant of €116 million, representing 96% of CEF funding allocated to ITS Actions on the corridor. 2.1.5. Financial implementation The state-of-play of the financial implementation of the portfolio is shown in the figure below. The effective payment7 (including pre-financing) corresponds to €220 million and therefore 9% of the actual CEF Transport funding. As a consequence of the interim cost claims introduced by the beneficiaries, costs corresponding to CEF-T funding of €63 million have been accepted so far (3% of the actual CEF Transport funding). Figure 4: Financial implementation ratios (€ million)

2,376.8 (100%)

220.0 (9%) 63 (3%)

Actual Funding Effective Payment Effective Accepted Contribution

Effective payments and effective accepted contribution as shown in the figure above may appear as relatively low. This is due to a series of reasons:  Actions are due to submit interim payment claims every two years. As a consequence, the "accepted contribution" by the end of 2017 corresponds to cost claims sent in 2017 for some Actions and in 2016 for other Actions. Moreover, the cost claims received in 2017 include costs incurred until 31/12/2016 and those received in 2016 include costs incurred until 31/12/2015.

7 (closed payments – recoveries)

 The bulk of the funding goes to works (or major studies). These Actions usually start with a study and/or a tendering phase during which the costs incurred are relatively low. For this reason, the bulk of the costs are incurred in the last implementing years of these Actions (see also figure 5 below). Moreover, it has to be noted that effective payments are higher than effective accepted contribution due to the fact that advance payment (pre-financing) are made. Figure 5 gives an overview of the estimated financial progress, in terms of total estimated costs, of the overall portfolio. Figure 5: Estimated budget implementation (€ million)

1,133.3 1,112.4 (24%) (24%)

972.9 767.4 (21%) (16%)

385.9 (8%)

141.1 63.7 112. (3%) (01.4%) (2%)

2014 2015 2016 2017 2018 2019 2020 after 2020

3. Evolution of the Action portfolio 3.1. Funding variations after the Grant Agreement signature The actual CEF Transport funding allocated to Actions can differ from the initially allocated funding depending on (1) Action closures and terminations and (2) certain types of amendments. Up until now, amendments have triggered a funding reduction for 10 Actions (€170 million – 7%), while there have been one closure and one termination. Figure 6 : CEF Transport funding variations (€ million)

2,547 2,376.8 (100%) (93%)

Initial Funding Actual Funding

3.2. Challenges affecting the implementation of Actions Almost all CEF Actions on the Baltic-Adriatic Corridor are ongoing. Only a few Actions have already been completed or are close to completion, and some Actions have just started. Overall, the Actions

14 are making good progress (only one Action has been terminated so far) but a number of challenges have been encountered. Implementation delays are the main factor.

Rail

 Procurement delays

Indeed, as regards the largest portfolio i.e. rail Actions, delays (on average up to one year) are the main issue. One of the reasons are procurement delays related to complex preparation of tender documentation, for example due to changes in the national procurement law, and lengthy tender procedures, namely resulting from appeals from bidders.

 Environmental and permitting procedures

Another important issue relates to complex and lengthy environmental and permitting procedures, mainly to obtain the necessary EIA decisions and building permits, without which construction works cannot start.

 Other issues (technical complexity, budget changes)

Technical complexity of some Actions, for example related to the construction of bridges or tunnels, also cause some delays and require careful planning. Overall, the planning of CEF rail Actions is quite ambitious. Furthermore, during implementation, some Actions required budget revisions (subsequently leading to reductions of CEF contribution), following completion of tendering procedures, whereby actual contracts were of lower value than initially estimated.

 Critical rail cross-border connections (main priority of the Work Plan)

In the first three CEF calls only one critical rail cross-border connection has been addressed by CEF Actions (see section 2.1.3). Thanks to the recent Blending Call in 2017 two additional Actions addressing bottlenecks at cross-border sections have been awarded CEF funding. Specifically, the Austrian Action covers the upgrade and electrification of the railway line from Wien Stadlau / Ganserndorf to the Slovakian Border near Marchegg and the Czech Action addresses the section Dětmarovice – Petrovice u Karviné – PL border.

It should be noted that significant efforts have been made by the European Coordinator during his mandate to organise cross-border dialogues for all the critical cross-border sections, leading to better understanding of the problems on each side of the respective border and a further intensification of bilateral and trilateral agreements for the removal of the cross-border bottlenecks, which may speed up implementation of ongoing Actions and intensify preparation of new proposals. On the other hand it is worth mentioning that the investment in the infrastructure should be combined with additional measures to facilitate smooth cross-border flows from the operational point of view. The recent analysis by the Baltic-Adriatic Rail Freight Corridor has identified a number of operational and administrative bottlenecks, which hamper transport flows along the corridor e.g. long delays at the borders due to different operational rules and procedures.

Road

The main issue affecting the Road portfolio relates to the complexity of permitting procedures. What should be noted is the enhanced cooperation with signed bilateral agreements for the

15 removal of the road cross-border bottlenecks following the European Coordinator's dialogues mentioned earlier, should facilitate further implementation of the road cross-border Actions. Furthermore, some delays have been reported by CEF road Actions due to unexpected geological conditions and adverse meteorological conditions. As regards innovation and deployment of alternative fuels on the road network, the analysis of the portfolio leads to a conclusion that, unlike the electricity, the investment in LCNG deployment on the corridor is limited and the market is not yet mature.

Maritime and multimodal

As regards maritime and multimodal Actions the issues delaying implementation are similar to those mentioned above and include mainly procurement delays and pending administrative procedures to obtain necessary permits, particularly in Cohesion countries, as well as some technical problems reported by some Actions.

In summary, the main two issues affecting implementation of CEF Action on the Baltic-Adriatic Corridor relate to procurement and permitting procedures. In this context, the recent initiatives of the Commission concerning public procurement, i.e. Commission's ex ante assessment mechanisms for large infrastructure Actions and the permitting initiative for streamlining measures for swifter implementation of TEN-T Actions may facilitate implementation of CEF Actions in the future.

4. Conclusion and Outlook A significant amount of funds has been allocated from the Connecting Europe Facility to the Baltic- Adriatic Corridor. So far over €2.4 billion of CEF grants have been allocated to 80 Actions located on the corridor. The CEF Actions portfolio makes a significant contribution to the implementation of the Baltic-Adriatic Work Plan and its main priorities. It helps to develop a reinforced network in Central Europe, strengthening the infrastructural basis for efficient, safe and high-quality multimodal transport chains for freight and passengers. The vast majority of CEF Actions are still ongoing and full results will be known in the years to come.

Thanks to CEF Transport funding important improvements have already been made, or are expected to be made, in particular with regard to rail transport. Rail Actions on the corridor are expected to address existing bottlenecks in 36 locations and improve infrastructure quality and standards, especially regarding speed, axle load and train length as well as safety. In particular, significant investments for the modernisation of the national rail networks are made in Cohesion countries located on the corridor, namely in Poland, Czech Republic and Slovenia. So far, three out of six critical rail cross-border sections identified as a priority in the Work Plan are addressed by CEF. Furthermore, CEF contributes to the removal of the missing links at the Alpine crossings in Austria, another important priority of the European Coordinator. Significant investments are also made in ERTMS deployment, whereby 714 km of railway lines along the corridor will be equipped with ERTMS thanks to CEF intervention. Finally, the results of studies elaborated by the Baltic- Adriatic Rail Freight Corridor provide additional inputs to the Work Plan.

Significant contributions of CEF to the Work Plan priorities are also made to other modes of transport. Road Actions address the critical road cross-border sections, identified in the Work Plan between Poland and Slovakia, and between the Czech Republic and Austria. Innovation Actions, particularly those in the electric mobility sector, facilitate the deployment of alternative fuels for road transport on the corridor. CEF-funded Actions contribute to ITS deployment along the corridor.

Maritime Actions and Actions addressing rail access to ports help to upgrade the infrastructure of the main ports of the corridor and contribute to the Work Plan priority related to last mile connections and hinterland connections of ports. Multimodal Actions contribute to connect multimodal logistical platforms to the railway network and improve access to terminals of 740 meters long trains.

It is clear that an important progress has been made since the adoption of the TEN-T Regulation in 2013, in particular regarding rail transport but continuous efforts of all stakeholders are necessary to reach the transport infrastructure requirements along the Corridor by 2030. It is also clear that the resources required to develop the corridor in line with the standards are much higher than the available funds. It is on the basis of this consideration and of the overall success of the CEF programme, that the European Coordinators made a joint declaration on the future of the TEN-T and of the CEF in September 2017 during the Connecting Europe Conference in Tallinn. Needless to say, a close follow-up on the sound implementation of the current CEF Actions by INEA is necessary in order to ensure that the available funds under CEF programme are efficiently used. This will be particularly important in years 2018 and 2019 when the Actions are foreseen to make significant progress in accordance with the forecasted spending profile. Indeed, €1.5 billion (50% of the planned budgets) will be invested in these two years alone.

5. Statistical Annex

Corridor funding (€ million) per country Corridor funding (€ million) per type

Mixed Studies PL 1,629.4 185. 79.6 (15) (26) SI 279.5

AT 145.7

CZ 115.5

IT 91.9

SK 86.2

Works Other 28.5 2,112.2 (39)

Corridor funding (€ million) per section Number of Actions and corridor funding (€ million) by national/multinational

Gdynia - Katowice 314.7

Number of Actions Funding (€ million)

Gdynia, Gdansk 138.6 58 National €2,306.9

22 Multinational €69.8 Warszawa - Katowice 99.8

Wroclaw - Poznan - 835.5 Szczecin/Swinoujscie

Cumulative number of finalised Actions Swinoujscie, Szczecin 0.0

80 Bielsko Biala - Žilina 74 72 74 (100%) 67 (90%) (93%) Katowice - Ostrava - Brno - Wien (84%) and Katowice - Žilina - Bratislava 306.3 - Wien

Wien - Graz - Klagenfurt - Udine - 115.9 Venezia - Ravenna 30 (38%) Graz - Maribor - Pragersko 2.9 16 (20%) 3 Trieste, Venenezia, Ravenna, 1 42.8 (4%) Koper (1%)

2016 2017 2018 2019 2020 2021 2022 2023 Non pre-identified section 400.9

Disclaimer: The allocation of Actions and funding to the corridor is based on the assessment done by INEA. In the chart per beneficiary country, the funding of multinational Actions which are allocated to more than one corridor is included in the "Other" category.

6. List of Actions on the Baltic Adriatic Corridor

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share

Improving North Adriatic ports’ maritime accessibility and Maritime 2014-EU-TM-0343-M FO 1 Core Network Corridors Mixed 100% 01/01/2014 31/12/2018 21,959,999 109,799,996 hinterland connections to the Core Network (NAPA4CORE)

Sweden-Poland Sustainable Sea-Hinterland Services “Sustainable Swinoujscie- Trelleborg MoS based on Maritime 2014-EU-TMC-0641-M FO 3 MoS Mixed 100% 01/01/2014 31/12/2019 22,437,167 29,812,872 upgrading port infrastructure, developing intermodal transport and integrating hinterland corridors.”

Maritime 2014-IT-TM-0450-S GAINN4CORE FO 1 Core Network Corridors Mixed 22% 01/06/2015 30/09/2019 2,737,224 9,676,009

CarEsmatic – Supporting cars and electric cars distribution Maritime 2015-EU-TM-0250-M using Motorways of Sea’s FO 3 MoS Mixed 34% 01/03/2016 31/12/2018 1,778,295 5,828,579 solutions and promoting sustainable shipping concepts

Adriatic MoS Upgrated Services Maritime 2015-EU-TM-0310-M FO 3 MoS Mixed 38% 01/03/2016 20/12/2020 2,709,590 8,635,500 - Adri-Up

Design and environment documentation for the expansion and modernization Nodes of the Core Maritime 2015-PL-TM-0280-S FO 3 Studies 100% 16/02/2016 30/03/2018 527,492 1,054,984 of core network node in the Network Port of Gdańsk concerning road and rail infrastructure

Modernisation of the fairway, expansion of the quays and Maritime 2015-PL-TM-0413-W FO 1 Core Network Corridors Works 100% 31/08/2016 31/12/2020 93,735,340 110,276,871 improvement of navigation in the Internal Port in Gdansk Sweden-Poland Sustainable Maritime 2016-EU-TM-0290-M FO 3 MoS Mixed 9% 07/02/2017 31/12/2019 86,017 292,122 Sea-Hinterland Services III MoS Venice–Patras. Developing and upgrading of the East- Maritime 2016-EU-TM-0342-M FO 3 MoS Mixed 30% 01/07/2017 31/03/2020 849,390 3,014,000 Mediterranean Mos link Italy- Greece

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share Ravenna Port Hub: Maritime 2017-IT-TM-0044-W FO 1 Core Network Corridors Works 100% 01/07/2018 31/12/2023 37,377,000 186,885,000 infrastructural works

Expansion of the Northern quay Maritime 2017-PL-TM-0038-W at the peninsular breakwater in FO 1 Core Network Corridors Works 100% 28/02/2018 31/12/2021 19,914,950 99,574,749 the Port of Gdańsk

Maritime 204,112,465 564,850,682 Total e-Freight Implementation Multimodal 2014-EU-TM-0686-S FO 2 Innovation Studies 33% 01/07/2015 30/06/2018 643,500 1,287,000 Action (e-Impact) Enhancing the efficiency of the Multimodal 2014-IT-TM-0591-M new container terminal of FO 3 Multimodal Works 100% 01/01/2014 31/12/2019 3,248,432 16,242,161 Interporto di Padova Multimodal Container Terminal Multimodal 2015-CZ-TM-0330-M FO 3 Multimodal Mixed 100% 16/02/2016 31/12/2020 5,871,360 8,896,000 Paskov, Phase III

Enhancing Interporto di Padova - Step 2: ancillary measures and ICT solutions for optimising Multimodal 2015-IT-TM-0247-M FO 3 Multimodal Mixed 100% 01/03/2016 31/12/2020 1,352,120 5,935,600 terminal operations, accessibility and interconnections

Extension and modernisation of Multimodal 2015-PL-TM-0372-M road and railway network in the FO 3 Multimodal Mixed 100% 16/02/2016 31/12/2020 24,450,726 28,765,560 Gdansk outer port Multimodal 2016-IT-TM-0284-S GAINN4MED FO 2 Innovation Studies 11% 01/03/2017 31/03/2020 668,525 1,337,050

The construction of a pilot docking station, as a part of an Multimodal 2016-PL-TM-0268-S FO 2 Innovation Studies 100% 01/12/2017 03/12/2020 945,291 1,890,582 LNG distribution system based on cryogenic tank containers

Multimodal 2016-SK-TMC-0235-S fueLCNG FO 2 Innovation Studies 33% 03/07/2017 31/12/2020 5,178,785 6,092,688 GAINN4MID -GAINN for Mobile Multimodal 2017-EU-TM-0062-W FO 2 Innovation Works 20% 01/11/2017 31/08/2020 1,233,061 6,374,000 Infrastructure Deployment GAINN4SEA - GAINN for South Multimodal 2017-IT-TM-0066-W FO 1 Core Network Corridors Works 45% 01/03/2018 30/04/2022 6,448,826 34,977,924 Europe mAritime LNG roll-out Multimodal 50,040,626 111,798,564 Total

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share

Baltic-Adriatic Corridor—Rail: Koralm railway line (Graz – Klagenfurt); package of Rail 2014-AT-TM-0003-W implementation measures FO 1 Core Network Corridors Works 100% 14/01/2014 31/03/2019 57,579,127 191,930,423 being carried out from 2014 to establish a new line (removal of a bottleneck)

ETCS Petrovice u Karviné – Rail 2014-CZ-TMC-0308-M FO 1 ERTMS Mixed 100% 01/12/2015 31/12/2018 20,519,708 24,140,833 Ostrava – Přerov – Břeclav

Studies and activities regarding Rail 2014-EU-TM-0335-S enhancement of Baltic-Adriatic FO 1 Rail interoperability Studies 100% 01/01/2016 31/12/2020 1,455,000 2,910,000 Rail Freight Corridor 5 offer

Works on the E 59 railway line on the Wrocław – Poznań Rail 2014-PL-TMC-0180-W section, stage IV, border of FO 1 Core Network Corridors Works 100% 01/01/2015 31/12/2020 226,496,522 295,032,593 Dolnosląskie Voivodeship – Czempin section.

Works on the E 59 railway line, Rail 2014-PL-TMC-0198-W Poznań Główny-Szczecin Dąbie FO 1 Core Network Corridors Works 100% 04/02/2015 31/12/2020 407,532,937 495,300,118 section. Works on railway line Rail 2014-PL-TMC-0205-W Warszawa Włochy - Grodzisk FO 1 Core Network Corridors Works 100% 26/10/2015 17/08/2020 50,345,030 67,586,294 Mazowiecki (line no. 447)

Works on the Warsaw ring railway (section Warszawa Rail 2014-PL-TMC-0212-W FO 1 Core Network Corridors Works 100% 23/02/2015 17/04/2019 45,961,536 54,072,395 Gołąbki/Warszawa Zachodnia - Warszawa Gdańska).

Bottleneck rehabilitation in the Rail 2014-SI-TMC-0301-M area of Bivje on the Divača– FO 1 Core Network Corridors Mixed 100% 05/01/2015 27/02/2019 14,187,107 16,690,714 Koper railway line Upgrading of the railway line Rail 2014-SI-TMC-0537-W FO 1 Core Network Corridors Works 100% 01/05/2015 30/06/2020 11,937,879 27,317,800 Poljčane - Slovenska Bistrica Modernisation of selected Rail 2015-CZ-TM-0121-M sections of the Brno – Přerov FO 1 Core Network Corridors Studies 100% 11/04/2016 01/10/2020 38,654,163 45,475,486 railway line Design of the railway Nodes of the Core Rail 2015-IT-TM-0144-S connection with the Venice FO 3 Studies 100% 09/03/2016 30/09/2017 4,000,000 8,000,000 Network airport

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share

ERTMS trackside equipment on Italian sections of the Rail 2015-IT-TM-0168-W ERTMS/Core Network Corridors FO 1 ERTMS Works 37% 02/01/2017 31/12/2020 16,912,700 33,825,400 in compliance with the Breakthrough Program

Works on railway lines no. 14 and 811 on the section Łódź Nodes of the Core Rail 2015-PL-TM-0005-W Kaliska - Zduńska Wola- Ostrów FO 3 Works 100% 29/09/2016 31/12/2020 43,162,749 66,805,060 Network Wielkopolski, stage I: Łódź Kaliska-Zduńska Wola

Improving rail access to the Rail 2015-PL-TM-0006-W FO 1 Core Network Corridors Works 100% 01/09/2016 31/12/2020 108,543,271 132,774,644 Gdansk port Improving rail access to the Rail 2015-PL-TM-0034-W FO 1 Core Network Corridors Works 100% 01/09/2016 31/12/2020 162,235,595 190,865,406 Gdynia port

Works on primary passenger lines (E30 and E65) within the Śląskie Province, stage I: E65 Rail 2015-PL-TM-0081-S railway line, Będzin - Katowice - FO 1 Core Network Corridors Studies 100% 24/02/2017 30/06/2019 7,569,926 8,905,795 Tychy - Czechowice Dziedzice - Zebrzydowice section - PREPARATORY WORKS

Improving rail access to the Rail 2015-PL-TM-0125-W Szczecin and Świnoujście FO 1 Core Network Corridors Works 100% 30/08/2016 31/12/2020 119,897,528 141,055,915 seaports.

Deployment of ERTMS/ETCS on the Dobova-Zidani Most and Rail 2015-SI-TM-0111-W FO 1 ERTMS Works 38% 01/12/2016 31/12/2020 2,422,500 2,850,000 Pragersko-Maribor-Šentilj railway lines Upgrade of the Zidani Most - Rail 2015-SI-TM-0228-W FO 1 Core Network Corridors Works 100% 17/02/2016 31/12/2020 90,575,881 158,626,761 Celje railway line Upgrade of the Přerov railway Rail 2016-CZ-TMC-0033-W FO 1 Core Network Corridors Works 100% 01/12/2018 31/12/2021 33,137,851 42,364,934 junction, phase 2 ERTMS on strategic sections of Rail 2016-IT-TM-0244-W FO 1 ERTMS Works 12% 07/02/2017 31/12/2020 3,270,000 6,540,000 3 CNCs

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share

Works on primary passenger lines (E30 and E65) within the Silesian Province, stage I: E65 railway line, Będzin – Katowice Rail 2016-PL-TMC-0105-W FO 1 Core Network Corridors Works 100% 06/02/2017 31/12/2023 94,952,734 111,709,099 – Tychy – Czechowice Dziedzice – Zebrzydowice; LOT C Most Wisła – Czechowice Dziedzice – Zabrzeg section

Deployment of ERTMS/ETCS on Rail 2016-PL-TMC-0136-W FO 1 ERTMS Works 7% 19/05/2017 31/12/2023 20,508,548 24,127,704 the TEN-T core network lines

Second track "Divača-Koper" – Surveys, executive design, Rail 2016-SI-TMC-0151-M construction of access roads FO 1 Core Network Corridors Mixed 100% 01/10/2017 30/06/2021 44,333,766 52,157,372 and structures for bridging Glinščica Valley

Upgrading and electrification from Vienna Stadlau to the Rail 2017-AT-TM-0001-W FO 1 Core Network Corridors Works 100% 14/07/2017 31/12/2023 65,753,400 328,767,000 Slovakian Border near Marchegg (bottleneck removal)

Removing selected bottlenecks on pre-identified sections on Rail 2017-CZ-TM-0020-W FO 1 Core Network Corridors Works 38% 01/03/2019 31/12/2022 14,548,036 72,740,178 the Core Network Corridors of the Czech Republic

"Works on the E 59 railway line Rail 2017-PL-TM-0054-W on the Wronki - Słonice and FO 1 Core Network Corridors Works 100% 03/01/2019 30/12/2023 60,547,045 302,735,223 Szczecin-Dąbie section" Second track "Divača-Koper" – Rail 2017-SI-TM-0016-W FO 1 Core Network Corridors Works 100% 01/04/2018 31/12/2023 109,026,725 545,133,626 Construction of tunnels T1-T7 Rail Total 1,876,067,264 3,450,440,773

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share

Reinforcing the Baltic-Adriatic Corridor between Vienna and Brno by extending the Austrian A5 North motorway as a cross- Projects on Core and Road 2014-AT-TA-0063-S border project with the Czech FO 1 Studies 100% 01/01/2015 31/12/2018 1,322,166 2,644,332 Comprehensive R52 (Planning of the A5 North motorway, section between Poysbrunn and the national border)

Reinforcing the Baltic-Adriatic Corridor between Vienna and Brno by extending the Austrian A5 North motorway as a cross- Projects on Core and Road 2014-AT-TA-0064-M FO 1 Mixed 100% 01/01/2015 31/12/2018 21,077,519 200,060,723 border project with the Czech Comprehensive R52 (Planning and construction of the A5 North motorway, Schrick-Poysbrunn section)

Connecting Hydrogen Refuelling Road 2014-EU-TM-0318-S FO 2 Innovation Studies 10% 01/09/2015 30/06/2019 1,297,779 2,595,557 Stations (COHRS) Road 2014-EU-TM-0563-W CROCODILE 2 FO 3 ITS Works 20% 01/01/2015 31/12/2018 1,651,400 8,257,000 Road 2014-EU-TMC-0568-S FAST-E (SK/CZ) FO 2 Innovation Studies 40% 01/09/2014 30/09/2018 868,734 1,022,040 Development of LNG Road 2014-PL-TM-0341-S infrastructure in Poland - the FO 2 Innovation Studies 100% 16/03/2015 30/06/2017 3,319 6,638 pilot project

The improvement of safety on the Central Railway Line by elimination of railway level Safe and secure Road 2014-PL-TMC-0207-W FO 2 Works 100% 16/01/2014 30/06/2016 3,515,881 4,136,330 crossings at km 127 and km infrastructure 147 and construction of road viaducts

Studies for construction of Other sections of the Road 2015-CZ-TM-0333-M Motorway D52, Bavory – state FO 1 Studies 100% 01/02/2017 30/11/2019 902,093 1,061,286 Core Network border CZ/AT section EV Fast Charging Backbone Road 2015-CZ-TM-0357-S FO 2 Innovation Studies 25% 18/02/2016 31/12/2018 491,938 578,750 Network Central Europe Road 2015-EU-TM-0204-S EAST-E FO 2 Innovation Studies 30% 01/03/2016 31/12/2018 1,516,740 1,784,400

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share

Expansion of safe & secure truck parking spaces and truck Safe and secure Road 2015-EU-TM-0261-M parking information systems on FO 2 Mixed 20% 16/02/2016 31/12/2018 612,664 2,783,722 infrastructure the TEN-T core network in Austria and Germany (Bavaria)

Road 2015-EU-TM-0367-S ULTRA-E FO 2 Innovation Studies 8% 01/03/2016 31/12/2018 523,412 1,046,824 EVA+ (Electric Vehicles Arteries Road 2015-EU-TM-0415-S FO 2 Innovation Studies 26% 01/07/2016 31/03/2019 1,101,528 2,203,055 in Italy and Austria) LNG motion: Fuelling trucks Road 2015-EU-TM-0422-S with LNG/CNG along the core FO 2 Innovation Studies 3% 16/02/2016 31/12/2020 832,953 1,665,906 network National Road Traffic Road 2015-PL-TM-0093-W Management System on the FO 3 ITS Works 94% 01/11/2016 31/12/2020 115,818,883 136,257,509 TEN-T network - Phase I Traffic Management Integration Road 2015-SI-TM-0303-W in the National Traffic FO 3 ITS Works 25% 30/06/2016 29/11/2019 668,293 786,227 Management Centre Motorway D3 Čadca, Bukov - Road 2015-SK-TM-0052-W FO 1 Core Network Corridors Works 100% 15/11/2016 31/12/2020 74,317,452 114,106,329 Svrčinovec Road 2015-SK-TM-0320-S NCE-FastEvNet FO 2 Innovation Studies 33% 01/03/2016 30/03/2019 1,075,437 1,265,220 Road 2016-CZ-TMC-0212-W URSA CZECH REPUBLIC FO 3 ITS Works 100% 01/09/2017 31/12/2019 834,615 981,900 CEZ EV TEN-T Fast Charging Road 2016-CZ-TMC-0296-S FO 2 Innovation Studies 20% 08/02/2017 30/06/2020 499,290 587,400 Network Road 2016-EU-TM-0163-W CROCODILE 3 FO 3 ITS Works 33% 01/01/2018 31/12/2020 907,830 4,539,150 Road 2016-EU-TMC-0350-S NEXT-E FO 2 Innovation Studies 13% 01/03/2017 31/12/2020 2,449,785 2,882,100

URBAN-E: e-Mobilty, Infrastructure and Innovative Nodes of the Core Road 2016-EU-TMC-0351-S Intermodal Services in FO 3 Studies 25% 01/03/2017 31/12/2020 950,525 1,118,265 Network Ljubljana, Bratislava and Zagreb

LEM project – pilot implementation of Road 2016-PL-TM-0281-S FO 2 Innovation Studies 80% 20/11/2017 22/12/2020 320,381 640,762 electromobility along the TEN-T base network

Actual Transport Funding Actual Start Actual End Project Code Title Priority Type Corridor Actual Funding Actual Costs Mode Objective Date Date Share Traffic Management Integration Road 2016-SI-TM-0229-W in the National Traffic FO 3 ITS Works 26% 03/01/2018 31/12/2020 291,200 1,456,000 Management Centre 2 Road 2016-SK-TMC-0317-S NCE-AdvancedEvNet FO 2 Innovation Studies 5% 01/03/2017 30/06/2020 308,275 362,676 LBG: Fuelling Renewable Road 2016-SK-TMC-0320-S Transport in the Visegrad FO 2 Innovation Studies 20% 07/02/2017 31/12/2020 5,515,328 6,488,621 countries EUROP-E: European Ultra- Road 2017-DE-TM-0064-W Charge Roll Out Project - FO 2 Innovation Works 7% 15/07/2017 31/12/2021 2,737,377 13,686,883 Electric Central European Ultra Road 2017-EU-TM-0065-W FO 2 Innovation Works 25% 01/08/2017 31/12/2020 3,086,901 15,434,507 Charging MEGA-E: Metropolitan Greater Road 2017-EU-TM-0068-W FO 2 Innovation Works 3% 01/08/2017 31/12/2021 879,010 4,395,050 Areas - Electric Road 2017-FR-TM-0034-W Blue Stations Network FO 2 Innovation Works 3% 12/07/2017 31/12/2020 163,650 818,250 Road Total 246,542,357 535,653,413