June 2012, № 3/14 (special edition) ISSN 2029-4212 RAIL

Newspaper for the transport professionalS

The „Viking TRain“ is a connecting link between Scandinavia and the Near East 2 RAIL RAIL 3

ail transport is one of the most ecologi- tion technologies, cooperation with related oday nobody doubts that intermod- housing operations to national GDP increased cal modes of transport, using which for institutions, appropriate management – all al transport is the best instrument to and during the years 2010 and 2011 the trans- Rtransportation of goods ten times less this integrated complex not only allows to Tmake cargo transportation fast, safe port sector of Lithuania generated around 13 fuel is used up. Alongside with the continually take care of ecology, to preserve and save and cost effective. Lithuania is very interest- % of GDP. developed legal framework of the European nature, but also allows to optimise time and ed in the successful development of trans- The international competitiveness of Lith- Union as well as secured financial support, it sets financial resources both for our partners port infrastructure projects connecting the uania in transport and logistics is to large ex- a background to develop a more environmen- and customers as well as for us. Baltic and Black Sea regions along the East– tent determined by a favourable geograph- tally-friendly rail transport business and to im- We are in continuous search of new de- West transport corridor. Without any doubt ical location at the crossroads of North, East prove the technical, technological and organi- velopment possibilities and are working to- Turkey is the key economic player and the and West and well-developed transport infra- sational mechanisms of interoperability betwe- wards widening the circle of partners in the most desirable trade partner in this chain. structure. en rail transport and other modes of transport. directions of both East and West. In order to In our view the main instruments for the The key elements of Lithuanian transport Ecology as a social factor in all kinds of business coordinate development in the Eastern regi- development of East-West transport cor- infrastructure comprise the extensive net- activities is among priority topics in the EU long- on, a representative office has been establis- ridor is the project of intermodal train “Vi- work of high-quality international and nation- term strategy. It is especially of high importance hed in Odessa in conjunction with partners – king” and the initiative of East-West Trans- al roads and railroads, 4 international airports in production and transport, where environmen- the company „Plaske“; likewise, cooperation port Corridor.. and the port of Klaipėda, which is the main tal pollution is one of the gravest issues. Consi- is being maintained with the Port of Sam- Initiative of East-West Transport Corri- multimodal node of Lithuania and is the north- dering a decline in global consumption and the sun in Turkey. Great expectations are evo- dor provides the frames of cooperation of ern-most ice-free port in the Baltic Sea. Cargo relating trade flows, the next challenge of these ked by the accession of the Governments of various levels involved in freight transpor- handling in Klaipėda seaport is growing each days to be faced by business is optimisation of Georgia and Moldova to the Freight Trans- tation process, that is: transportation, logis- year. I am glad to mention that Klaipėda sea- costs, the major portion of which is accounted portation Coordinating Council „Baltic Sea – tics companies, terminal operators, ship- port is the leading port in container handling for by fuel and other costs relating to logistics. Black Sea“. In order to develop relationships pers, national, regional and domestic au- among the Baltic States. In this context, Public Limited Liability Com- with partners in the direction of the West, thorities, as wel as science and research in- Talking about our future development pany AB „Lietuvos geležinkeliai“ (Lithuanian Rail- i.e. Scandinavia, cooperation is being main- stitutions. plans and goals I would like to distinguish our ways) can rejoice over a successful implemen- tained with diverse light and heavy indus- The “Viking Train” already proved itself as main priorities for the year 2012 and several tation of the project on the intermodal shuttle try companies as well as logistics compa- a very successful case of intermodal trans- important projects. train „Viking“, which runs on the route Klaipėda nies. With the aim to attract extra freight flo- portation between the Baltic and Black This year we are planning to promote sus- - Vilnius - Minsk - Kiev - Odessa (Ilyichevsk). The ws and to secure appropriate relationships, seas. The amount of containers handled by tainable mobility, improve traffic safety, stimu- joint project, undertaken by three countries – Li- regular meetings are also arranged with the this train is growing each year even in the late innovative solutions, and further develop thuania, Belarus and the Ukraine – as well as rail- companies of Klaipėda and Odessa Termi- period of global economic slowdown. The TEN-T transport network ensuring intermodal- bfl way companies thereof, in 2008 was acknow- nals, Lithuanian, Belarusian and Ukrainian extension of the “Viking Train” line to Turkey ity and connecting it with third countries. ledged and recognised as a good practice exam- freight forwarders as well as the members of would benefit carriers of all countries along In order to reach our objectives we invest ple in the survey of the PROMIT project coordi- other target trade associations. this route. into transport infrastructure development, supported by the European Union funding. New port will become a gateway of the East- nated by the European Commission. Therefore, looking forward, being in Also, I would like to mention that Cauca- modernization of roads and railways, dredging However, Lithuania is considering various al- West transport corridor. In 2009, the European Intermodal Associa- constant search of new alternatives in the sian countries (Georgia and Azerbaijan), as and widening of the port navigation channel, ternative investment possibilities, including Our priorities devoted to the development tion (EIA) endowed the project with an award competitive global economy and feeling well as Scandinavian countries are interest- reconstruction and construction of quays. in the nomination „Best Intermodal Transport social responsibility, we would like to invi- ed in this project. This allows us to expect Also Lithuanian Government has planned the participation of private capital. of transport connections, implementation of and Freight Integration Service from A to B“. te you to cooperate and develop the „gre- that in future the “Viking Train” line will ef- to establish a number of public logistics cen- Due to growing volumes of freight handling innovative and intermodal solutions, will cre- These achievements would not have been en“ transport by connecting Scandinavian, fectively connect the Caspian, Black and tres near Trans-European network transport and transit cargo it was decided to increase the ate favorable conditions for cargo transpor- possible without a close cooperation among Baltic and other Eastern European as well as Baltic seas. corridors (TEN-T) crossing Lithuanian territo- capacity of the Port of Klaipėda. A new deep- tation between the Caspian, Black and Baltic all three countries‘ business and public sec- Near East countries. Lithuania is a progressive and dynam- ry. These centres will help Lithuanian transport sea port (up to 17-17.5 metres in depth) will seas. tor institutions, contemporary managerial so- ically developing country. Transport and sector to be a part of intermodal transport net- be built and will be capable of receiving larger lutions as well as targeted investments into Dr. Stasys Dailydka logistics sector is one of the most rapid- work and a nodal point composing effective vessels. It is planned that the port will be con- Dr. Arūnas Štaras, infrastructure and the rolling-stock fleet. Re- General Director of AB „Lietuvos geležin- ly developing economic sectors of Lithua- logistics services. structed on an artificial island.T he total costs Lithuanian viceminister of Transport, Chair- gularity, infrastructure, innovations, informa- keliai“ (Lithuanian Railways) nia. The contribution of transport and ware- Construction of these logistics centres is of the project are estimated to be 1 billion EUR. man of the Board of „Lithuanian railways“ bfl

Modernisation Programme of „Lithuanian Railways“ SC Lithuanian Railways, as state owned velopment we will build a fully functional company with more than 10 thousand and operational inland intermodal terminal The company „Lithuanian Railways“ in 2012–2014 is to be implementing infrastructure renewal and development investment projects and is further implementing Jemployees, performs three main activities with two gantry cranes and storage capac- – company is railway infrastructure manager, ity of almost 1000 TEU including container the measures of Priority IV „Essential Economic Infrastructure“ and of Priority V „Trans-European Transport Network Development“ of the Economic Growth Action freight and passenger carrier. service centre where client will be able to Talking about freight transportation, by car- do repair works of their containers or rent Programme of the EU Structural Support Use Strategy for 2007–2013, which will help to improve the national railway infrastructure. rying around 50 million tonnes annually, Lithua- a container for stuffing with export goods. nian Railways is in the Top 10 of EU freight trans- There will also be a land plots prepared and Passenger Handling Infrastructure at Klaipėda ment of Kaunas Station, the bypass Palemonas – portation market. It also is the major freight car- (flattened with connections to all necessary State Seaport“ – and its projects, which are to be Rokai – Jiesia and the Kaunas – Kybartai line; re- rier in Lithuania, as it carries more half cargo communications and infrastructure) for implemented by the end of the year 2014, will construction of road/track-side structures of the coming through or inside the country. Also, ac- “brown field” investors to build their own help to perform a reconstruction of the rail yards connecting railway line Klaipėda – Pagėgiai; recon- cording the UIC, International Railway Statis- facilities (such as warehouses, truck park- of Draugystė and Rimkai Railway Stations, to im- struction and modernisation of infrastructure of the tics 2009, company’s locomotives are used 3-5 ing areas, carwashes, catering, truck main- plement Stage III of Project „Connection of the IXB section Radviliškis – Pagėgiai on the IA corridor, as times more efficient than in other EU mem- tenance centres etc.) in the territory around Transport Corridor with Klaipėda Seaport – Devel- well as other projects. The modernisation of road/ ber states, which directly affects staff numbers, Inland intermodal terminal. opment of Klaipėda Railway Hub“, which will allow track-side equipment of Kaunas Station, the bypass work efficiency, services cost and tariffs system. Last but not least, from the manageri- to increase the intensity of freight transhipment at Palemonas – Rokai – Jiesia and the Kaunas – Kybar- For example, average freight transportation tar- al side, East West Transport Corridor (EWTC)

S hutterstock Klaipėda Seaport by 1.25 million tons per year. tai line has been completed this year. iff EUR/1000 tkm in 2010 is the lowest in Lithu- project results and EWTC association activi- Klaipėda Railway Station Tracks Development Plan ania, compared to Estonia, Belarus, Russia, Ita- ties are important for building closer coop- has been already approved. Klaipėda railway hub de- ust the projects of the measure „Modernisation pass Kyviškės – Valčiūnai on the IXB corridor; re- Time will be saved ly, Poland, France and Germany. These facts are eration with Turkey and Middle East. The pro- velopment projects are under implementation: under- and Development of Trans-European Railway construction and modernisation of infrastructure the essential condition of efficient rail transpor- ject and the East West Transport Corridor As- J During the coming years, several railway infra- way are reconstruction of the rail yard of Draugystė Lines, Creation of Necessary Infrastructure for the of the section Radviliškis – Pagėgiai on the IA corri- tation system, or in other words an integral rail- sociation (EWTCA) founded in 2010 essen- structure renewal projects will be implemented – Railway Station and Rimkai Railway Station; recon- Establishment of Public Logistics Centres“ (mod- dor (stage I)) will improve traffic on the IXB (Kena – way operations management. tially increased the possibilities of intermodal the infrastructure of the connecting line Klaipėda – struction of Perkėla rail yard and railway track No. 54; ernisation of signalling, electricity supply and road/ Lithuania’s convenient geographical situ- trains development as cooperation began on Kybartai) and IA corridors as well as the throughput Pagėgiai and 4 bridges will be renewed. This will al- reconstruction of Anglinė rail yard EC; designing of in- ation is great importance to the whole Euro- a global scale of Eastern and Western coun- track-side equipment of Kaunas Station, the bypass of the lines. In 2015, it will be possible to transport low to save time in freight transportation. stallation of the second railway track EC and Nemunas pean transport system due to sufficiently de- tries with inclusion of an increasing number Palemonas – Rokai – Jiesia, and the Kaunas – Kyba- around 2 million more tons of cargo than currently works are being carried out in implementa- rail yard EC in Klaipėda; designing of reconstruction of veloped railway network, non-freezing Klai- of participants interested in development of rtai line; setting up of the Traffic Management Cen- is being transported. tion of such strategic investment projects as mod- Pauostis rail yard; designing of reconstruction of the peda seaport, and qualified personnel. It also transport services. Events organized by EWT- tre; construction of the second track of Vilnius By- The other measure – „Development of Freight ernisation of signalling and electricity supply equip- rail yard of Klaipėda Railway Station. creates great possibilities to development and CA stimulate development of intermodal launch intermodal train projects, such as “Vi- trains and create better conditions for busi- June 2012, № 3/14 (special edition) ISSN 2029-4212 king Train”, “Mercury Train”, “Saule”, “Sestokai ness, i.e. to use intermodal trains in transpor- Publisher PC „Transporto Media Center“ Express” and “Vilnius Shuttle” and to build tation and distributing own products. freight villages in Vilnius, Kaunas and Klaipeda. So, together with efficient infrastructure Director Аlgirdas Aushra Talking about the Vilnius freight village, and logistic hubs and perfect geographical Layout Editor Kestutis Jonaitis it covers 460 ha. The territory is situated only location, JSC „Lithuanian railway“ prioritize 15 km. away from Vilnius city centre making operational efficiency with high experience Photo TMC archive it very comfortable to deliver goods to local in organizing intermodal trains and is more Klaipeda Office arturas Aushra shops. It is very close to the biggest marshal- than capable to facilitate distribution of Turk- Head Office Kalvariju str. 135, Vilnius ling yard in Lithuania – Vaidotai railway station. ish goods coming via „Viking Train“ corridor. Right through the territory a Southern Vilnius RAIL Tel./fax +370 5 2481629 by-pass will be built giving internal road sys- Dr. Albertas Šimėnas, E-mail [email protected] tem of Vilnius freight village a perfect exter- Deputy General Director of AB “Lietuvos nal connection as well. For a first stage of de- geležinkeliai” (Lithuanian Railways) šarūno mažeikos / bfl / mažeikos šarūno Newspaper for the transport professionalS Website www.etransporter.lt 4 RAIL RAIL 5 Development of the „Viking Train“ Project: From Ideas Into Reality Mr. Eligijus Masiulis, Minister of Transport and Communications, is certain that Lithuania must develop and invest in the sector of container trains. „We will make extra investments so that the route of the „Viking Train“ would become daily“, – in support of Mr. E. Masiulis said Mr. Boris Kolesnikov, Minister of Infrastructure and Vice Prime Minister of Ukraine, who has recently paid a visit to Lithuania. So far, the initiative to transport cargo in containers to the Ukraine is displayed only by our nationals, but still the guest spoke of a possibility of carrying cargo from the Ukraine to Lithuania. So far there have been no results, so isn‘t it going to happen that this time once again the folk wisdom, saying that the road to hell is also paved with good intentions, will prove itself to be true.

ble to simplify and harmonise border crossing- railway project „Viking Train“ could run one and border control procedures in all the coun- train set every day and investments would un- tries participating in this project. It is planned doubtedly buy off. He emphasised that the Port to implement the good practice of Lithua- of Klaipėda has two container terminals, which nia and Belarus, ensuring that a state border have not utilised all their capacities, and that is crossed within 30 minutes. Quite recently, no particular investments are required for it. Mr. B. Kolesnikov paid a visit to Lithuania. Dur- ing his visit, discussions as to the prospects of Project should expand š ros au bfl / transportation by rail also took place. ū ro art

arto The Minister spoke not only that the project is u f most successfully operating within the range be- A bright future is awaiting for the tween Klaipėda and Minsk, but also that a freight bfl andriaus Lithuania to Belarus, but in the Ukraine it en- port. At the present moment, these cargoes, partners. For example, at the present moment the Freight used to be snatched away by “Viking Train” flow from the Ukraine at the present moment is counters a number of diverse problems. We which could be transported by rail, most often development and expansion of the “Viking Train” not satisfactory to Lithuania. This, according to have also written that during recent sever- carriers go to Lithuania by motor vehicles. „Earlier, po- Project is aggravated and burdened by high ser- According to Mr. E. Masiulis, with more Mr. Boris Kolesnikov: „Of course, at first the „A bright future is awaiting for contain- Mr. E. Masiulis, was one of the most important al years no container reached Lithuania from According to Mr. Rimas Kudzmanas, Head of tential customers had to wait quite for a long vice rates of the Ukrainian ferry lines, which rough- platforms in possession there on the route of train from the Ukraine – the Port of Odessa and er trains. This mode of transport already now causes for holding the meeting. Solutions to this the direction of the Ukraine. Nevertheless, it the Logistics Centre of Public Limited Liability time until a train set was formed, so they did ly twice exceed the rates of freight transportation the railway project „Viking Train“ could run the Port of Ilyichevsk – would run regularly twice is posing a challenge to the other traditional modes of transport such as navigation or avi- issue were discussed, and colleagues from the was at last said that the „Viking Train“ should Company (AB) „Lietuvos geležinkeliai“ (Lithuani- not bother their heads and transported goods by rail. This raises the cost of freight transportation one train set every day and investments would a week, but our country is prepared to make extra Ukraine assured that actions would be taken. ation and is capable of ensuring a much fast- go from the Ukraine to Lithuania twice a week an Railways), the „Viking Train“ from the Ukraine by trucks and trailers though it was more ex- from Turkey, Georgia and Azerbaijan and diminish- The Minister of Transport and Communica- undoubtedly buy off. investments and to make the route a daily one.“ er and safer freight movement than traditional and then finally – every day. towards Lithuania from now on should go twice pensive, but now, when regular journeys are in es the possibilities of attracting freight from these tions named one more problem – border cross- modes of transport. Therefore, we must devel- During Mr. B. Kolesnikov‘s visit in Lithuania, it a week – on Mondays and Thursdays. The rail- place, customers will know when their goods countries. It is expected that the Ukraine will re- ing and customs clearance speed at the Port of op this sector right now“, – said Mr. E. Masiulis was agreed that the Ukraine would prepare itself waymen hope that a clearer schedule will not will be in Lithuania“, – said Mr. R. Kudzmanas. view the tariffs of its owned ferry lines. owards the end of the year 2011, Mr. E. Masi- and by the Ministry of Infrastructure of Ukraine. Odessa: inspection of containers must take no after a meeting with Mr. B. Kolesnikov. for regular journeys of the „Viking Train“ to Lithu- only encourage transportations to Lithuania of The efforts of both countries are aimed at ulis and Mr. B. Kolesnikov discussed in Kiev as „The number of countries taking interest in the more than two hours, but it takes much more attracting more maritime transport operators T The Minister of Transport and Communica- ania according to a pre-agreed schedule. more cargoes that so far were scarce, but also to how the competitiveness of the „Viking Train“, railway project „Viking Train“ is increasing – quite time. The „Viking Train“ can presently use in the Rates for services are to be optimised who operate in the Black Sea and the Baltic Sea tions emphasised that after a huge and focused „Of course, at first the train from the Ukraine will prompt transportations to the Ukraine. which runs between the two countries, could be recently it has been joined by Moldova and Geor- Ukraine ten stations, so it is expected that more At both meetings, discussions took place over and who could enhance the quantity of con- work of several years container trains have be- – the Port of Odessa and the Port of Ilyichevsk – „It is already several years that there were no possibly increased. This meeting was also attend- gia, negotiations are underway with Azerbaijan, of them will be opened in this country. „In or- shortening the inspection of containers at sea- tainers to be transported by the „Viking Train“ come a clear niche of transport in Lithuania, would run regularly twice a week, but our country cargoes from the Ukraine to Lithuania. Inflexi- ed by Mr. Artūras Drungilas, Marketing and Ad- Turkey and Syria. As this project expands, there der to generate a larger flow of cargo from the ports down to 2 hours and over optimising the at the Port of Ilyichevsk (Ukraine) and the Port which can be utilised, but Lithuania must also is prepared to make extra investments and to make ble customs proceedings are one of the causes ministration Director of the Seaport Authority. Cer- emerge new opportunities and new challenges. Ukraine, the „Viking Train“ must be allowed to rates for services rendered by all the participating of Klaipėda. be prepared for an increased flow of containers the route a daily one“, – said Mr. B. Kolesnikov. for the small-scale freight flow. I think that reg- tain measures, whereby it is intended to promote Our country‘s infrastructure – seaports, railways, use more stations“, – said Mr. E. Masiulis. transportation of cargo by the „Viking Train“ be- customs offices - must be prepared to attend to and cargo via the Port of Klaipėda and the Lith- According to him, the train could start run- ularity will boost transportations and we will receive more freight“, – said Mr. R. Kudzmanas. tween the Baltic Sea and the Black Sea and to en- increased freight flows, securing for them com- uanian railways. This requires investments, in- The „Viking Train“ is to run on a daily basis? ning on a daily basis already in the summer. Mr. The number of countries taking interest in the railway project „Viking hance the competitiveness of this project, were petitive conditions“, – said Mr. E. Masiulis, Minis- frastructure improvement as well as more plat- B. Kolesnikov said that a demand for freight According to Mr. R. Kudzmanas, we cannot Train“ is increasing – quite recently it has been joined by Moldova and approved by way of a memorandum of mutual un- ter of Transport and Communications. forms, which are currently in shortage. The magazine „Transportas“ (Transport) has could be sufficient – a freight flow would come expect more freight coming from the Ukraine derstanding signed by the Ministry of Transport It was talked already then that in order to According to Mr. E. Masiulis, with more plat- already written more than once that the shut- from Scandinavia, Western countries as well as to Lithuania because it is more convenient for Georgia, negotiations are underway with Azerbaijan, Turkey and Syria. As and Communications of the Republic of Lithuania provide competitive services it is indispensi- forms in possession there on the route of the tle train „Viking“ is successfully running from from Lithuania and the Ukraine. everyone to transport goods to the nearest this project expands, there emerge new opportunities and new challenges.

Threats and Opportunities cessful implementation of the Project. But old Though projects like “Viking Train” could partnerships worked well and we managed to seem very advantageous and contributing to neutralize all political disagreements. Without the improved relations between the participat- any doubt, for Belarus it is also not beneficial a potential future of Lithuanian transport to suspend the programme. There are always ing countries and to the economic competitive- The “Viking Train” project has been imple- In 2009 the “Viking Train” project was ness of the East, resistance toward such projects two sides of a coin.” Nearly 200 years have passed since the first steam locomotive started its first journey in England. This invention and the steam engine marked the mented since 2003, yet the real impetus it got awarded a prize of European Intermodal Trans- is highly possible. This Project might increase Apart of the threats the “Viking Train” Pro- beginning of the Industrial Revolution globally. The impressive-looking locomotives were soon immortalized in the first movies. According to the in 2008 when European Union started pro- port Association as the best example of coop- tension between Lithuania and Russia. So far ject has many advantages. Since opportunities viding support under the Eastern Partnership eration between several transport modes. Ac- the latter didn’t express any discontent with of ports involved in the Project are still not ex- legend, people ran away from the cinema scared from the arriving train in order to escape the approaching destruction. Programme. The goal of this Programme is to cording to experts, the Project success was the “Viking Train” line, yet Russia’s foreign minis- hausted, the Project could be developed fur- promote cooperation between the EU Mem- due to the efficient cooperation between the ter Sergey Lavrov took the opportunity and said ther. The Klaipeda seaport handles 300 000 ber States and Armenia, Azerbaijan, Georgia, TEU annually, the port of Ilyitchovsk – 250 000 totals 1734 km). Sometimes the travel time of representatives of the countries concerned, that Russia’s opinion toward the EU Eastern Part- Ukraine and Moldova. TEU, the port of Odessa – 300 000 TEU. Accord- the trains carrying 20 or 40-feet containers lasts flexible adaptation to changing conditions in- nership Programme is negative. Moscow might At the same time it helps Lithuania enhance ing to the recent statistical data, about 41 000 two days. A relatively short travel time is be- cluding the support of politicians of the three treat the courageous initiatives as an interfer- mutual relations with neighbouring countries: TEU of cargo were transported via the “Viking cause the train stops only in the seaports and in countries who realized the importance of the ence of the EU into Russia’s “playground”. Since in 2007 Lithuanian embassies have been es- Train” per year, thus it is still the room for the the stations of national capitals, whereas it takes project. In fact, the major advantage of the “Vi- “Viking Train” is part of the above partnership tablished in Yerevan (Armenia) and Baku (Azer- development. The growing number of Project only 30 minutes to cross the external EU border king Train” Project is an especially fast EU-CIS programme, it might be criticised in the future. baijan). Our politicians have also been promot- partners and increasing cargo flows between with Belarus. This is the best result in Europe. (Belarus) border crossing time. According to The authors of the Project agree that it is neces- ing cooperation with Belarus and Ukraine. the East and the West will provide this oppor- Vytautas Naudužas, Lithuania’s Ambassador Vytautas Naudužas, “if you go by truck, border sary to improve relations with Belarus in order tunity. The Project enhances not only econom- for Energy and Transport Policy Issues evaluat- crossing procedures take a lot of time. If you to ensure smooth political and business rela- bfl

/ ical but also political relations between Lithua- ed the above situation as follows: “Viking Train” International recognition go from Eastern Turkey, the trip might last 8-9 tions. It is especially relevant today when the EU arto is trying to impose sanctions on Belarus (in its nia and the concerned states, and this is a very u f provides smooth border-crossing and it is the At the beginning the “Viking Train” project en- days (if you don’t use ferry line/railways and go turn Belarus poses its own threats). This would positive moment. Due to these projects (“Vi- highest result in Europe. In view of this, special- countered multiple problems. The problems were to Northern Europe). With the “Viking Train”, andriaus

have a negative effect on both the Klaipeda sea- king Train”, “Saulė” and “Mercury”) Lithuania ists from other countries frequently visit us to related to the absence of the appropriate wag- it’ll take only 3-4 days”. port handling Belarusian cargo worth about LTL could strengthen its role in the region. There- receive guidance and exchange best practices. ons, all the participating countries applied differ- The success of the Project encouraged 7 billion, and to the “Viking Train” Project. fore it is necessary complete the unfinished Vytautas Naudužas, Lithuania’s Ambassador for Transit cargo comes not only from the EU but also ent IT standards and documents; therefore it took more Eastern countries to contribute to this Yet, according to Vytautas Naudužas, so far works. Ambassador Vytautas Naudužas is op- Energy and Transport Policy Issues: „If you go from from the NATO. Though the main transit trans- some time to coordinate all the actions. Besides, Project by enhancing their economic relations the Project didn’t receive any threats: “Certain- timistic: „The Project is really good and has all Eastern Turkey, it’ll take you 8-9 days (if you don’t use port flows in the “VikingT rain” project are be- different laws applied in the countries have also with Europe. The negotiations with Turkey ly, political disagreements prevent from suc- the possibilities to grow“. ferry-line/railway and, for instance, travel to Northern tween the Baltic and the Black Seas, the cargo is aggravated activities of the “Viking Train” experts and Azerbaijan are currently underway. “Both countries expressed their will to contribute to Europe). If you take a ferry and „Viking Train“, your trip also delivered to Great Britain and China. Contain- (including different tax systems in each country). Container transportation by the combined transport „Viking Train“ in 2003–2011 (thousands units) S hutterstock the “Viking Train” Project. Today we are get- will last only 3-4 days”. ers loaded to ships in Great Britain are forward- Nonetheless, the authors of the Project managed ed to Sweden; from Sweden cargo is transported to reach the agreement concerning uniform pric- ting prepared for the visit of the Turkish Pres- 60 56 015 by railroad through the country and then loaded es per tkm in all countries. Consequently, servic- ident to Lithuania and expect to hear the offi- 55 uring the entire history of railways this trans- so called “transport corridors” appeared with trains ways, seaport cargo companies, and Klaipeda, Il- in the Karlshamn seaport (the Baltic Sea). Having es of the “Viking Train” have become cheaper than cial opinion of the country about the Project. 50 45 41 804 port mode had various competitors: planes running on the international railway lines and pass- yitchovsk and Odessa seaports. The memoran- reached Klaipeda containers are loaded to the “Vi- those of truck forwarding. Due to the high speed Azerbaijan has expressed the intention con- 40 066 39 517 D 40 34 015 conquered the skies, today every family has a per- ing through separate countries and the entire conti- da and agreements between the railway com- king Train” and forwarded to the Odessa seaport and low prices more and more carriers started us- cerning cooperation several times”, said Vy- 35 sonal car and number of people travelling by train panies of the three countries have been signed (the Black Sea); then cargo is transported to Geor- ing the train services. In 2003, only 17 TEU (1 TEU tautas Naudužas. The ambassador added that 30 23 464 nents. “Viking Train” is one of such corridors. 25 has decreased significantly. Yet, since history moves in 2002; the first trains have been launched in gia or Turkey. Via Turkey the cargo could reach the is equal to a 20 feet container) were transported popularity of the Project has already left be- 20 14 923 in a circle, recently trains started gaining in popular- 2003. To ensure timely arrival at destination, the Middle East, via Georgia – Armenia and Azerbai- by this train from Klaipeda, whereas in 2011 this hind the Riga Seaport Project, one of the clos- 15 ity again: they are cost-effective and environment- Connecting Europe and Asia “Viking Train” project uses both railway and ferry jan. From Azerbaijan the cargo could be shipped number has increased to 56 015 TEU (the data is est competitors of Lithuania. According to him, 10 1 897 5 17 friendly and are especially effective for transporta- The combined “Viking Train” is a joint pro- lines. The leading companies of the project are to China. This is the way the “Viking Train” project taken from the website of the Klaipeda Seaport the project of our neighbours Latvians is not 0 tion of large amounts of freight by land. Soon the ject of Lithuanian, Belarusian and Ukrainian rail- Klaipeda and Odessa seaports (the entire route connects Europe and Eastern countries. Authority, see Table). known in the East. 2003 2004 2005 2006 2007 2008 2009 2010 2011 6 RAIL RAIL 7 The United States is interested in the success of the „Viking Train“ Project Corridor in Odessa. They believe in our coop- most impressive thing is non-intrusion (X-rays) far are the E-seals tracing container breakag- In the developing world we encounter various phenomena which earlier seemed impossible. For instance in the press one can read: milk prices eration since they also try to apply the above control system on border. The software also in- es and translating the data on the availability increase in Florida simultaneously with the increasing income of the Chinese population. Then local companies start exporting milk to China. progressive border-crossing methods” said Al- dicates homogeneity of cargoes. of containers. Thus, the owner can follow on girdas Šakalys. If computer system identifies that cargo is whether cargo is moving according to sched- ur world is full of such examples. Lithua- portation process, simplification of documen- unfit for that train you could trace this imme- ule. In case of non-compliances he can con- nia is not an exception. The United States tation procedures and implementation of in- diately on the screen. It could be oil or other tact the carrier or unit of that region and clari- O What lessons can be learned from the things, it doesn’t matter. You could even see fy the reason of detention. This system also re- showed interest in Viking Train, a joint project novations. The Association was established at the contours of an object which is of differ- duces the threat of thefts. Yet, the E-seals are of Lithuanian, Belarusian and Ukrainian rail- the constitutive conference in Vilnius in 2010. „Viking Train“ Project? ent density. When speaking about the current very expensive and are usually installed in the ways, seaport cargo companies and ministries The conference was attended by the repre- When speaking about the “Viking Train” safety of the Viking train, Vytautas Naudužas VIP cargo transportation routes. According to of transport and communications (it is a com- sentatives of Lithuania, China, Ukraine, Russia, Project the Americans mentioned two main / bfl said: “Thousands of containers disappear in Mr. Algirdas Šakalys, so far only one container bination of train and ferry services ensuring and Kazakhstan, Mongolia and Western and advantages: speed and safety. For ICITAP these transit every year for the sum of about USD 2 with the E-seal was carried by the Viking train fast cargo transportation from the Baltic Sea to North European countries. Transparent, well- are the key priority issues. Therefore the “Vi-

billion. This is an impressive sum. Meanwhile in (during the test of this service). It is expected ufarto andriaus

the Black Sea (and further). The Americans are functioning and integrated transport system king Train” Project serves as a good example, the Viking Train Project not a single container that in the future this technology would be ap- most of all interested in two aspects: high car- is necessary in order to ensure the economic and the experience gained during the Project was lost. In view of this, the efforts are made to plied widely. go transportation safety and the unique EU- growth in the region. In view of this, the Min- would be applied in the future transport poli- adapt the used infrastructure and experience Algirdas Šakalys, Advisor to Prime Minister CIS border (Belarus) crossing time when load- istry of Justice of the United States agreed to cies. Referring to the advantages of the “Viking of the staff in other projects. Human resources of the Republic of Lithuania and President of ed “Viking Train” is able to cross the border in cooperate with the EWTCA so as to equip the Short-term goals Train” Project Vytautas Naudužas said: “the are also used: today Lithuanian custom officers EWTCA: „Americans have their interest here. 30 minutes. international trains with the state-of-the-art Lithuanian custom officers are involved not Vytenis Ališauskas and Valdas Dovydėnas are Their main task is to ensure safe cargo delivery only in training in Ukraine. They seek to im- technologies. During the conference both par- working in Ukraine (they are financed by the prove and simplify custom procedures in the to the United States. Thus, we found a common ICITAP and EWCTA Programme unites ties agreed to take efforts assuring safe and ICITAP Programme). Lithuania’s representa- country which are not always smooth and of- interest and this month will coordinate long-term forces simplified transportation of goods.F or that tives exchange their experience in Ukraine and it is necessary to increase transportation vol- ten delay the operation of the Viking train cooperation plans”. Since 1986 the division of the U.S. Justice provide training to local staff on application of umes by railways and make this mode of trans- and other carriers. It is not a secret that cor- Department has been implementing the Pro- high-tech programmes implemented in the Vi- port more safe and cost-effective. Certainly, by ruption in the field of cargo transportation is gramme ICITAP (International Criminal Investi- king Train Project. Mr.Algirdas Šakalys couldn’t supporting the Project the United States is ex- widespread in the country. Vytautas Naudužas gative Training Assistance Program) aimed at say how much time Lithuanians would have istan where trains are encountering multiple told about the Ukrainian „money demand“ sys- assisting the police, army and customs offic- pecting direct benefits. According to Algirdas to spend training the colleagues abroad. “So problems: „There are no problems on the way tem: “Sometimes container arrives to the sea- ers in the fight against corruption, smuggling Šakalys, Advisor to Prime Minister of the Re- far the cooperation plan is without time limit. to Uzbekistan; but when platforms come back port and is left there for ten or twenty days – and terrorism. American specialists provide fi- public of Lithuania and President of EWTCA, We’ll work together until we achieve our goals. they might be detained up to 20 days and we it might stay there for good. Then cargo own- nancial assistance and other resources so as “the Americans have their own interest here. First of all technologies are installed in the Vi- cannot get them back for a certain period of er start pushing the port authority and eventu- to enable the countries to tackle these prob- Their major objective is to ensure safe cargo king train. The United States work in Ukraine time. It causes many inconveniences and in- ally the cargo is released. Lithuanians work as lems. The main focus in the ICITAP Programme delivery to the United States. Thus, we found a and major problems occur in Ukraine. That’s curs huge expenses. They pay fines but they custom officers and support the fight against is given to the Middle East and Eastern Europe. common interest and are going to coordinate why our people are there.” Advisor to Prime are so small, and transportation of the return- corruption. According to Mr. Algirdas Šakalys, During the programme implementation peri- long-term cooperation plans later this month.” Minister said that later the gained experience ing cargo is aggravated”. the American ICITAP Programme was imple- od the assistance was provided to Kazakhstan, In the Agreement the U.S. Ministry of Justice and staff members will be transferred to oth- Yet it is not worth emphasizing the prob- mented in Ukraine prior to Lithuania’s involve- Tadzhikistan, Uzbekistan, Moldova, Afghan- acknowledges that the demand for safe, cost- er international transport lines. Today the dia- lems. Hopefully their number will decrease in ment (programmes for elimination of corrup- istan, Ukraine, as well as to African countries effective and environment- friendly interna- logue is underway on concrete actions plan for Lithuania due to cooperation with the United tion and customs problems have been imple- and Mexico. tional railway lines is huge. According to the cooperation between the ICITAP and EWTCA. States and the EU. The experience of our coun- mented for many years). Vytautas Naudužas Today ICITAP is in close cooperation with American side, the focus should be given to The Action Plan anticipates cooperation aimed try and specialists has been evaluated inter- said that upon completion of the Ukrainian EWTCA (East – West Transport Corridor Asso- modern technologies and cooperation be- at analyzing the potential opportunities of in- nationally. We are glad that the United States project it will be necessary to address, togeth- ciation) the aim of which is to promote coop- tween the public and private sectors. Since the termodal transport links toward the East and would learn something from a small country er with the Americans, the problems of Uzbek- eration between transport and logistic compa- “Viking Train” Project in principle meets all the the West to effectively and safely serve Asian- like Lithuania. nies, governments and scientific institutions in above criteria, the ICITAP showed a special in- European trade flows, and at identifying and developing the European-Asian transport cor- terest in the Project. “When the American side implementing the most progressive transpor- algio palionio algio Most of all the Americans are interested in two things: high safety of got acquainted with our activity, we invited aušros artūro tation and control technologies. One of the ridor. One of the goals of the Association is the removal of bottlenecks from the cargo trans- them to the forum of the East-West Transport most progressive technologies installed in so transported cargo and fast external EU-Belarus border crossing time. Transport Architects Are Implementing Development Scenarios Mr. Darius Brekys, Head of Business Centre Growing and getting stronger On the 28th of March, in Istanbul, Lithuanian National Freight Forwarders Association „Lineka“ signed a memorandum of cooperation with Turkish Freight „AD REM Transport“ of the logistics company Today, freight forwarders virtually have no „AD REM Group“ and Vice President of „Lineka“, Forwarders and Logistics Service Providers Association UTIKAD. It is one of the steps in securing future plans that our country‘s transport flow architects have reasons to complain of reduced freight flows assures that the more attention is devoted for commenced to implement. Their ambitions are extensive, and work results show that the role of transport and logistics services in our country is only increasing. or of consequences of the crisis as last year transport infrastructure, the bigger are chanc- the sales of companies in this sector had in- es that Lithuania will become a magnet in lo- creased by 15%, and if compared with the pre- r. Tautginas Sankauskas, President of who do not mind waiting a bit longer are of- gistics processes. The members of Freight For- crisis period - by 32%. Of course, such results Lithuanian National Freight Forward- fered a freight delivery by road transport. M warders Association „Lineka“ are already build- were reached by virtue of successful work of ers Association „Lineka“, and Mr. Turgut Erke- ing a transit freight bridge between Europe all the Lithuanian transport modes – especial- skin, President of Turkish Freight Forwarders Prospects are lying in intermodal and Asia and not only towards the Kazakhstan- ly Klaipėda Seaport, „Lithuanian Railways“ and and Logistics Service Providers Association China direction. The vector of Turkey is not less road carriers. UTIKAD, have formalised and secured coop- projects popular. Figures speak for themselves: this year, in eration by way of a memorandum, whereby it One of the greatest prospects are opening For instance, it is already 8 years that the Lithuania there operated 6,063 transport sec- up in the field of rail transport through devel- will be sought to support the development of bfl company „AD Rem Transport“ is engaged in tor companies (7 percent of all the compa- intermodal transport between Lithuania and opment of intermodal solutions; for this rea- the transportation of partial shipments be- nies operating in the country), whose created Turkey and likewise the improvement of lo- son, Freight Forwarders Association „Line- tween the Baltic States and Turkey. „If the fu- gross value added (GVA) had increased and in gistics business industry. We are accustomed ka“ this year has renewed a contract signed in Mr. Darius Brekys, Vice President of Freight Forwarders ture intermodal project, i.e. transportation 2011 reached almost 12 percent. In 2011, ex- to various political memorandums that rarely 2008 with the company „Lithuanian Railways“. Association „Lineka“: „If the future intermodal project, from Turkey in containers via the Black Sea port in tons exceeded import to Lithuania by ever turn into a foundation for real works, but Mr. Stasys Dailydka, CEO of Public Limited i.e. transportation from Turkey in containers via the with loading onto the „Viking Train“, were suc- 1.5 times. In transportations from Lithuania, agreements of such kind in business open up Liability Company (AB) „Lithuanian Railways“, cessfully implemented, this would serve as there dominated Germany, Latvia, Poland, Ita- Black Sea with loading onto the train „Viking Train“, were possibilities for creating real routes for freight emphasised that it was already high time to ly, France, Russia, Belarus. successfully implemented, this would serve as a strong movement. „When you measure the distances renew the agreement as in the course of time a strong impetus for expanding not only the road transportation of partial shipments, but Freight forwarders, who are traditional- impetus for expanding not only the road transportation that cargoes shipped by sea must travel from there had arisen some issues that had to be ly considered as generators of freight flows, also the intermodal transportation of contain- of partial shipments, but also the intermodal Turkey, you want it or not but you end up with discussed anew, for example, „green corri- are feeding all modes of transport with new

shutterstock transportation of containerised FCL freight“. erised FCL freight“, - says Mr. D. Brekys. a thought that there exists a shorter route by dors“, public logistics centres, etc. Some points orders and are forming and paving new The members of the association „Lineka“ are land. It can be perfectly done by rail, and es- in the contract have been renewed, while the paths for business. It is with their help that pecially great prospects here has the “Viking other have been made more concrete. „I am interested that cargoes would move all across the flows of mixed cargo, containers, wood Train” Project“, - says Mr. T. Sankauskas. glad that this partnership is going to contin- Lithuania and its logistics centres and respec- and food products have considerably in- evoked by rising fuel prices, by a lack of work- participants will stop growing and even may Of course, our country‘s freight forwarders ue. „Lithuanian Railways“ is the main Lithuani- tively customs documents would be prepared, creased. ing capital in companies and by the fact that start dropping, while competition will be more are further placing for Turkish businessmen an an carrier and implementer of innovative solu- thus creating a value added. Freight forward- Of course, certain risk factors may be dis- equity and liquidity ratios of many road trans- intensive. Freight forwarders, who are direct- offer to cooperate in the field of freight trans- tions. New tasks are being raised for the Lithu- ers are closely cooperating with railway oper- cerned. One of the major risk factors in the port companies are low. ing freight flows, are aware of these trends, but portation by air because a freight aircraft land- anian logistics and transport system, which are ators and are promoting a mutually beneficial transport sector in 2012 is that the demand This year should be stable for large and me- they are inclined to discern and see new op- ed somewhere in Šiauliai International Airport likewise reflected in these amendments to the partnership, are looking for the best and state- and supply scissors have taken an unfavoura- dium-sized freight transportation and logis- portunities for work with new partners, who

algio palionio algio of-the-art customer service methods and ap- tics companies, but for small companies – the will give more work for our country‘s transport can most swiftly deliver a consignment or an contract, the core focus being on intermodali- ble course, i.e. the demand is already saturat- expensive cargo that is much waited for. Those ty“, - says CEO. ply contemporary information technologies. ed. Likewise, some concern and uneasiness is prospects are dismal. The number of market companies as well. 8 RAIL RAIL 9 Intermodality – Priority No. 1 Public Logistics Centres Are of Lithuanian Railways Becoming A Reality Global trade from the beginning of 1990’s till now between different countries and regions increased twice-threefold or even more, grow of it did not Public Limited Liability Company (AB) „Lietuvos geležinkeliai“ (Lithuanian Railways), which is implementing the Vilnius Public Logistics Centre even stopped in the crisis period. Such situation had increased the competition and also profits of the transportation and logistics sector. In the other (PLC) project, last year commenced preparing a technical design, which was completed and approved in April of this year. Presently, procedures hand, increase of transportation volume also has its negative effects – air and water pollution, traffic jams in the cities, etc. Container, as a universal for the procurement of works are underway, whereas the constructions of the intermodal terminal are planned to be commenced already in tare, ought to be the solution for more eco-friendlier way of transportation. It also has let to arise new way of transportation – intermodal freight the second half of this year. transportation, then more than one transport mode is used for cargo transportation without repacking it. andriaus ufarto / bfl / ufarto andriaus

Mr. Saulius Stasiūnas, Deputy Director for Development of the Freight Transportation Directorate of „Lithuanian Railways“, says: „Public Logistics Centres, which are currently in the establishment process, will bring invaluable benefits to the regions, will promote the development of infrastructure as well as of small and medium-sized business, shutterstock

and will create more new workplaces“.

s nowadays discussions about the inter- ject more than 264 thousand TEU were trans- A freight artery of the capital city their activities in the future PLC. An especially of 1435 mm and 1520 mm gauge railways will The benefit of the projects will be felt modal freight transportation (hereafter – ported by this project. According to Saulius big support in project implementation will arise be built together with transport/communica- A On the 8th of July, 2011, AB „Lietuvos IFT) in the business, political and even everyday Stasiūnas, Deputy Director for Development of from serious intentions - expressed by the Cus- tion infrastructure pertaining to the terminal‘s by business geležinkeliai“ and Vilnius City Municipality life’s environments spreads out quite fast, JSC JSC “Lithuanian Railways” Freight Transporta- toms Department under the Ministry of Finance, work to be erected within the territory of Palem- Public Logistics Centres, which are current- signed an agreement on the establishment of “Lithuanian Railways” sees this business as the tion Directorate, “Viking Train” is the best inter- the State Food and Veterinary Service as well as onas rail yard of Kaunas Railway Station, which ly in the establishment process, will bring in- Public Institution (VšĮ) „Vilniaus logistikos par- most important priority for long-term growth. modal link between Scandinavia, Western and the State Plant Service under the Ministry of Ag- is managed by AB „Lietuvos geležinkeliai“ by valuable benefits to the regions, will promote kas“ (Vilnius Logistics Park) as well as a share- From the macro perspectives, Lithuania, Eastern Europe and Middle East. riculture - to concentrate the services of all these trust. Subsequent development stages are re- the development of infrastructure as well as holders‘ agreement. The public institution, as a country has a lot competitive advantag- Lithuanian Railways are also developing agencies namely in Vilnius PLC. lated to the development of the logistics park in of small and medium-sized business, will cre- which is based at the premises of Vilnius City es. Country is on the crossroad of three im- bunch of other intermodal solutions. Inter- the former Kaunas Industrial Zone (Palemonas, ate more new workplaces, will improve busi- Municipality, is successfully carrying on its ac- ness conditions in the regions. Besides, consid- portant markets – European Union (EU), Baltic modal train “Saule” is one of the most ambi- The temporary capital – the main Naujasodis) as well as in Kaunas Free Economic tivities. The main functions of Public Institution ering that Public Logistics Centres will prompt Sea Region (BSR) and Commonwealth of Inde- tious one, as it joins 9 countries from China Zone in Karmėlava (Kaunas FEZ), where attrac- „Vilnius Logistics Park“ are as follows: search of crossroads transportation of goods by rail, the Lithuanian pendent States (CIS). Also, Klaipeda’s Seaport (Chongqing) till Belgium (Antwerp). More than tive conditions are created for newcomer com- investors for the logistics park, attraction, se- AB „Lietuvos geležinkeliai“, which is imple- transport system will be helping even more to of Lithuania is the most northern non-freez- 11 thousand kilometers are crossed in only 20 panies to set up and operate (tax incentives, a lection and consultation of such investors, ex- menting Kaunas PLC project, in 2011 com- ensure the main principles and objectives of ing seaport in the Baltic Sea with all needed in- days, compared to several weeks needed to developed infrastructure, favourable environ- ecution of contracts, development and rent- menced preparing a technical design and a the European transport policy, i.e. the use of frastructure and various state-of-the-art termi- transport containers by ship. It also has another al of land plots within the logistics park, and detailed plan, which are intended to be com- ment for investments, etc.). It is planned that more eco-friendly and more economical ve- nals. This is one of the reasons why Lithuania competitive advantage compared to sea trans- similarly. Next to the designed intermodal ter- pleted and approved in the nearest future. the logistics park will be joined by companies hicles, safe traffic, lesser environmental pollu- is in the EU’s Top 10 of freight transportation port – regularity and reliability of delivery. minal there lie land plots, which have already Presently, procedures for the procurement of engaged in transport, logistics and other rele- tion, lesser congestion of heavy-duty vehicles andriaus ufarto / bfl / ufarto andriaus by railways. Territory of Lithuania also cross- Another intermodal project, “Mercury”, is now been formed and which accordingly can be let works are underway, whereas the construc- vant commercial activities, e.g., filling stations, on motor roads, development of international es two international road and rail corridors, I under development. This solution is a link for on lease by the institution to investors who are tions of the intermodal terminal are planned parking lots, hotels, repair workshops as well as transport corridors, and similarly. Thereby, the and X. The latter has two branches – to Kalinin- any kind of containerized cargo between Klai- Mr. Tomas Keršis, Head of the Commerce planning to carry on activities relating to logis- to be commenced already in the second half other companies interested in the opportuni- projects will further contribute to the imple- grad’s seaport and to Klaipeda’s seaport. Mod- peda’s and Kaliningrad’s seaports and Moscow. Department of the Freight Transportation Directorate tics, freight forwarding and transportations. of this year. ties offered by Kaunas PLC. The terminal will op- mentation of the European concept of „green ern infrastructure, efficient and brand new roll- With the transit time only 2 days and no queues of AB „Lietuvos geležinkeliai“ (Lithuanian Railways): Vilnius PLC project will be developed in stag- The establishment of Kaunas PLC is planned erate not only as a station for changing gaug- corridors“ as the larger portion of freight trans- ing stock creates the possibility for Lithuanian on the border is a highly competitive and eco- „Much better results in multimodal transport are es. The territory of Vaidotai, situated within the to take place in several stages. In the first stage, es, but also will service import or export compa- portations will be accounted for namely by in- Railways not only to offer cargo transportation friendly solution compared to road transport. expected from the international project „East-West territory of Vilnius City Municipality, will be de- by virtue of funding provided by the European nies that are currently based in Kaunas Region termodal transportations by rail along interna- by rail, but also to solve any kind of complex lo- To link the Western Europe with Russia, Ka- veloped in the first stage. In this territory there Union‘s Cohesion Fund, an intermodal terminal or are to set up in Kaunas FEZ. tional transport corridors. gistics problem. zakhstan and other Middle and Far East coun- Transport Corridor II“, which is part of the EU Baltic sxc

will lie an intermodal terminal with any required Most important intermodal solution is in- tries by land transport, JSC “Lithuanian Railways” Sea Region Programme.“ infrastructure, a container storage area, admin- termodal project “Viking Train” taking the just started another intermodal project called istrative premises and land plots. The Northern route Klaipėda-Vilnius-Minsk-Kiev-Odessa (Il- “Sestokai Express”. Containerized cargo are col- part of the territory, which occupies a territory yichevsk). This joint project of railway compa- lected in Warsaw and then, through the cross- in the local market, Lithuanian Railways of- the project’s working group aimed at develop- fers efficient and regular solution – intermod- ing the concept of streamlined and uninter- up to the Vilnius Southern Bypass, is intended to nies of the three countries – Lithuania, Belarus road of both, wide (1520 mm) and narrow (1435 al train “Vilnius Shuttle”, which joins Klaipeda’s rupted movement of the railway freight flow in be developed in the second Vilnius-PLC estab- and Ukraine – was acknowledged as the case mm) gauges, Sestokai railway terminal, trans- seaport with Lithuania’s capital Vilnius in only the EWTC and proposing a specific action plan lishment stage. The development of the South- of good practice within the framework of the ported to Smolensk (Russia). From here cargo several hours. for its implementation. Swedish, Danish, Ger- ern part of the territory is enumerated possibly PROMIT project coordinated by the European could be delivered to any point head to the East. Even better results in multimodal trans- man, Belarusian and Lithuanian scientific insti- as a third Vilnius-PLC development stage. Commission in 2008. Latter, on 2009, the Eu- For all international intermodal projects, port are expected from the international pro- tutions, public authorities and business organ- It is a delight that Vilnius PLC project receives ropean Intermodal Association (EIA) awarded considering successful Lithuania’s cooperation ject East West Transport Corridor II (EWTC II), isations are among the project partners. its due interest from investors. From the very the project under the nomination “Best inter- with Belarus in the border station Kena cus- which is implemented within the framework Therefore, looking ahead and being in con- beginning of project implementation, an active modal transport or freight integration service toms procedure takes only 30 minutes. of the European Union’s Baltic Sea Region Pro- stant search for new alternatives in the com- marketing activity has been carried on in order from A to B”. From the beginning of the pro- In order to compete with the road transport gramme. The concept of East West Green Cor- petitive global economy and assuming social to inform the public and business about new ridor covers the movement of freight flows responsibility, company invites you to coop- opportunities that will emerge after the pro- Another intermodal project, “Mercury”, is now under development. This from Southern Baltic countries across Lithua- erate and develop green transport, which will ject is implemented. Meetings with potential solution is a link for any kind of containerized cargo between Klaipeda’s nia and Belarus as far as Russia, Ukraine, Cau- connect Scandinavia, the Baltic States, other customers of Vilnius PLC as well as with loading and Kaliningrad’s seaports and Moscow. With the transit time only 2 days casus, Central Asia, China and other Far East Eastern European and Middle East countries. technology developers have been arranged on countries, by making use of the advantages More information about company’s inter- a continuous basis, the result of which is even 6 and no queues on the border is a highly competitive and eco-friendly of transport modes and their efficient interac- modal projects and it’s other activities could letters of intent signed with major logistics and solution compared to road transport. tion. JSC Lithuanian Railways has been leading be found on the website www.litrail.lt. retail trade companies on the development of 10 RAIL RAIL 11 At Istanbul Conference New Ways of Cooperation Emerging The conference „„Viking Train“ Project: Intermodal Solutions, Development and Prospects“, held in Istanbul on 27-30 March, this year, at the initiative of „Lietuvos geležinkeliai“ (Lithuanian Railways), duly received huge interest. It was attended by Turkish businessmen engaged in the carriage of goods to Russia, Ukraine and European Union countries, by representatives of freight forwarding and logistics companies, by companies from Turkish seaports as well as by representatives of Turkey‘s Industrialists and Businessmen Association MÜSIAD. There were approximately 130 participants in total. algio palionio algio palionio algio

algio palionio algio algio palionio algio palionio algio

hen opening the conference, Mr. Arūnas is partaking in the transportation process, while ing NATO cargo through the territories of several Railways“. One more important document signed WŠtaras, Vice-Minister of Transport and Com- participation of railway transport in the interna- countries and performing customs and border in- at the conference was a memorandum of mutual munications of the Republic of Lithuania, em- tional transport market is only beginning to ac- spection procedures. The main problems that bor- understanding on cooperation between the com- phasised the importance of international haul- celerate. The conference attendees were optimis- der and customs officers face are incorrectly exe- pany PLASKE and „Lithuanian Railways“. Cooper- age between Europe and Asian regions (between tically prepossessed by the vice-minister when cuted freight transport documents and smuggled ation with Turkish cargo carriers should also be the Baltic Sea and the Black Sea). One of the most the latter came to evaluating the initiatives of the goods hidden among other legally transported strengthened by a contract for carriage of goods important emphases, distinguished by the vice- “Viking Train” Project and to outlining clear-cut goods. Due to these problems, the freight trans- signed by „Lithuanian Railways“ with the Turkish minister, was the creation of a strong intermod- guidelines of possible cooperation for the inter- portation process takes too much time and conse- company „LAM - Lyonel A.Makzume Vapur Acen- al transport platform. „The “Viking Train” Project operability of the Black Sea and Baltic Sea Regions quently financial losses are suffered. taligi A.S“ as well as by a memorandum of mutu- could become a connecting link in intermodal in the fields of transport and logistics. al understanding on cooperation between „Lithu- transport“, – said A. Štaras. The “Viking Train” was introduced anian Railways“ and Turkey‘s Independent Indus- Mr. Algirdas Šakalys, Adviser to the Prime Min- trialists and Businessmen Association MÜSIAD. It ister of Lithuania, introduced in brief the project Distances are getting shorter Mr. Tomas Keršis, Director of the Commerce is evident that in order to trigger the cargo flow „East – West: Prospects for Development of the Mr. Vytautas Naudužas, Ambassador for En- Department of the Freight Transportation Directo- from the Central Asia region and Turkey it is neces- Green Transport Corridor“. He invited the repre- ergy and Transport Policy Issues of the Ministry rate of „Lithuanian Railways“, introduced the con- sary to strengthen relationships with Turkish busi- sentatives of Turkish business to join the Asso- of Foreign Affairs of Lithuania, emphasised in its cept of the container train „Viking“ and furnished nessmen, introducing to them the possibilities of ciation of the project „East–West: Freight Trans- report the role of Lithuania as a transit and dis- information about rates for transportation of con- Lithuania as a transit country to arrange an inter- port Corridor“. Whereas in his welcome speech, tribution country in the context of convergence tainers by rail, freight transportation duration as national haulage of goods by rail and further – via algio palionio algio algio palionio algio well as the freight transportation arrangement

Mr. Suat Hayri Aka, Vice-Minister of Transport and between the Black Sea and Baltic Sea Regions. Klaipėda Seaport to the Western European mar- Communications of Turkey, in charge of maritime Lithuania has in possession excellent opportuni- process itself. Mr. Albertas Šimėnas, Deputy Gen- ket. It is also a necessity to utilise the capacities of transport and communications, emphasised the ties of arranging an effective intermodal process eral Director, introduced the activities of the com- the „Viking Train“ at the maximum, together with cargo along the North–South direction, to con- portation of Turkish goods by rail is targeted at freight transportation. A proposal was put forward ators to think about an alternative mode of land constantly growing potential of Turkey‘s industry of freight transportation by way of using Lithua- pany „Lithuanian Railways“, presented in brief an Belarusian and Ukrainian partners ensuring that it nect Scandinavia‘s and Central Asia‘s transport the transportation of goods to Hungary and in to consider an extension of the “Viking Train” Pro- transportation of goods by making use of the con- and trade as well as its trade volumes with Euro- nia‘s land and sea transport links that operate in overview of its performance and invited Turkish runs smoothly and expeditiously. It is also intend- flows and to extend the well-known historically- pean and Eastern markets. These trends necessi- a coordinated manner. „The “Viking Train” Project the future - to Bulgaria. ject to the direction of Azerbaijan. tainer train „“Viking Train”“ instead of the presently businessmen to start an active and constructive ed to negotiate with Belarusian and Ukrainian op- developed freight transportation line „Silk Road“ tate changes and reforms in the field of interna- provides a realistic alternative to the modern-day A speech at the conference was also made by prevailing mode of haulage of goods by road. The cooperation. At the conference, questions were erators of „Viking Train“ over an exclusive status of tional transportations. It is evident that in the not- model of transporting goods by sea from Turkey by way of integrating it into the newly develop- Ports are opening their gates Mr. Igor Butko, a representative of the Belarusian conference was also attended by representatives further asked pertaining to the execution and rec- freight-shuttle train to be granted to the “Viking ing freight transport artery“, – said V. Naudužas. logistics company „Belintertrans“, and by Mr. Vik- of the Lithuanian Customs Department; Mr. Rob- ognition of shipping documents (CIM / SMGS) as too-distant future the potential of cargo carriage to European Union countries. The “Viking Train” Mr. Nuris Kudug, a representative of the Turkish Train” Project, establishing exclusive conditions for Mr. Ibrahim Celik, Head of Freight Transporta- tor Petrov, a representative of the Ukrainian com- ert E. Olson, a representative of the U.S. Embassy in well as calculation of freight rates for transporta- services will become too low. Especially consider- Project creates a new possibility to utilise the ad- Port company „Arkas“, in his presentation positive- the running of the train, where during the train‘s ing that today only road and maritime transport vantages offered by railway transport for carrying tion Department of the Turkish railway company, pany „Liski“. An exhaustive report on Klaipėda Sea- Moscow, in charge of state border protection and tion of containers. At the conference there was a entire running route the train is not to be stopped ly evaluated Lithuania‘s goals to implement the presented an overview of activities of the Turkish port‘s activities as well as on freight transhipment export policy; by Mr. Robert Peacock and Robert memorandum of mutual understanding on coop- (except for a locomotive replacement), freight “Viking Train” Project in the Turkish freight trans- Railways and provided information about pro- possibilities and technologies was presented by E. Hessler, representatives of the U.S. Department eration signed by and between the Turkish State shipping documents are not to be re-executed, portation market, but he also emphasised that The „Viking Train“ Project creates a new possibility to utilise the jects undertaken by „Turkish Railways“. One of the Mr. Artūras Drungilas, Marketing and Administra- of Justice under the U.S. Embassy in the Ukraine; Railways, Klaipėda State Seaport Authority, and and the train is not to be connected to the sets of main emphases was put on the construction of a Turkish Port companies are currently working with advantages offered by railway transport for carrying cargo along the tion Director at Klaipėda State Seaport Authority. by Mr. Erhan Mert, a representative of the U.S. De- „Lithuanian Railways“. Moreover, an agreement of other freight trains. To enable an expeditious re- railway line for high-speed trains between Anka- the companies of Baku Seaport in Azerbaijan. This Mr. Darius Brekys, Vice-President of the Lithuanian partment of Homeland Security in charge of ex- cooperation in the field of freight transportation sponse to any violations of the “Viking Train” Pro- North–South direction, to connect Scandinavia‘s and Central Asia‘s ra and Istanbul. So far, around 300 km of the line freight transportation line is operating steadily so National Freight Forwarders Association „Lineka“, port control issues. Mr. R. Olson presented a brief was signed by the freight transportation company ject requirements, possiblities of using a satellite transport flows and to extend the well-known historically-developed has been constructed. The main activity of trans- far and witnesses constantly growing volumes of invited Turkish freight shippers and logistics oper- review of problems encountered when transport- YEGENLER LOGISTIC and the company „Lithuanian cargo-tracking system are being considered. freight transportation line „Silk Road“ by way of integrating it into the newly developing freight transport artery. sxc

12 RAIL RAIL 13 Turkey Is Opening its Doors to Lithuania Wider and Wider in 2010. The main cargo transported was bulk It can be assumed that the „Viking Train“ is what year 1,003 km of railway lines are planned to op trade between them and the Northern Eu- In its colourful history, Turkey quite often did not manage to make up its mind as to whether it is a country belonging to the West or to the East. For scrap metal, grain and fertilisers. the Port of Samsun presently needs very much: ac- be renewed. Besides, during this period a num- rope, which would be reached by goods via the us it is also difficult to understand this country: it is trivial, but if it is already participating in the Eurovision Song Contest, so maybe it belongs to cording to the data of TCDD (ports, including the ber of freight wagons were manufactured and „Viking Train“. Lithuania should occupy a sim- Europe? Especially that Turkey is talking of its plans to access the European Union over more than a year already, furnishing from time to time new Turkey‘s possibilities and future Port of Samsun and the Port of Haydarpasa, be- acquired: the number of freight wagons pos- ilar role towards Turkey, i.e. to become an im- development longing to the Turkish State Railways, as well as sessed by private owners has grown from 700 portant crossroads of trade, a kind of a „bridge arguments why it should belong to the community of our continent. Nevertheless, the Islamic religion, a different world-view and close connections some other major ports of the country), the freight up to 2,870, whereas for the national carrier in watchman“, who would assist traders in obtain- Development and cooperation are always turnover at the Port of Samsun had been drop- the meantime 5,205 freight wagons were man- ing what they need and who itself would simul- with the Near East countries are distancing and shutting it off from our Western world. welcome, but does Turkey have the poten- ping in recent years – from over 2 million tons in ufactured. TCDD presently has in total over 17 taneously earn its living out of such activities. tial needed so that the “Viking Train” Project 2006 down to 405 thousand tons in 2010. Besides, thousand freight wagons, which can carry up As the area of Turkey and its neighbours is could continue growing for a number of years during this whole period (2006–2010), the Port of huge, so long are the distances that freight has more than 3.5 times; its import and export to 700,000 tons of cargo. At the present mo- to come? In this case, prospects are better re- Samsun was operating at a loss of approximate- to travel. It takes three days for a freight train volumes are growing at a similar rate. During ment, the Turkish railways have in possession flected by figures.T urkish ports can admit 400 ly 7.6 million Turkish Lira a year. A conclusion can to carry goods all across Turkey. From Istan- the recent nine years Turkey‘s freight trans- an area of around one million square metres, million tons of cargo per year. As more than 70 be drawn that the “Viking Train” Project can give bul to Islamabad (Pakistan) there lie 6,543 km portation statistics have been steadily grow- designated for logistics (i.e. for storage, ware- percent of Turkey‘s border is abutting four seas a second breath to this port, making it profitable of railways, whereas to Almaty (Kazakhstan) ing: from 14.6 million tons in 2002 up to 25.4 housing and transhipment of goods), in Turkey (the Black Sea, the Aegean Sea, the Sea of Mar- once again. Besides, favourable conditions can be – 6,109 km. For this reason, trains and inter- million tons in 2011. The expansion of the “Vi- there being 84 train terminals. mara, and the Mediterranean Sea), its coast- expected because the managers of the port are in- modal transport are thriving in Turkey: up to king Train” Project into the Black Sea Region line of over 8 thousand kilometres in length is terested in new transport lines. 22 percent of all the goods are transported in would generate a lot of extra flows of goods dotted with ports, 21 of which are internation- however, the port is only one side of the An opportunity or a threat? this way. The most frequent mode of transpor- and cash for Lithuania. The benefit of coopera- al ports. The Black Sea ports, via which the “Vi- coin. Further on, trains are to go all across Tur- Despite Turkish railways that are obsolete at tation is a „cooperation“ between a train and tion would be mutual. king Train”‘s cargoes will be loaded too, most- key and its neighbouring countries. Turkey has intervals, despite stiff competition and despite a truck, and a slightly more rarely occurring If Turkey joined the “Viking Train” Project, ly import scrap iron, chemicals, fertilisers and around 11 thousand km of railway lines, and the Port of Samsun, which is operating at a loss, mode is a „cooperation“ between a ship and transport of containers could be launched from building materials. At the present moment, approximately 26 percent thereof are elec- this country can become a satisfactory and a train (just as in the case of the “Viking Train” the Port of Ilyichevsk to the Port of Samsun in three ports owned by the state railways and trified. Although state-owned railways have strong partner for the “Viking Train” Project. The Project). Approximately 14 percent of all the Turkey, from where freight could be carried fur- seven private ports are connected to the rail- been neglected for many years, recently they potential of its ports is measured in hundreds of freight transported by Turkey is of internation- ther to Istanbul. According to Lithuania‘s repre- way line. have been actively developed and improved. thousands of tons as are the capacities of trans- al significance.W hat is left is only to hope that sentatives, the Port of Samsun thereby would be- the intermodal project „Viking Train“ (in- During the period from 2003 to 2011, 6,455 portation by train. Via Turkey one can reach var- a considerable portion of these 14 percent will come an important transport centre of the East. termodal transport is such transport where sev- km of railway lines were renewed, whereas this ious countries in the Near East and to devel- be taken up by Lithuania. Turkey‘s political and business represent- eral modes of transport are involved; in the “Vi- atives reacted to the opening-up possibili- king Train”‘s case, it is a train and a ferry) may co- ties positively and already participated in the operate with the Port of Samsun, though pos- Turkish railway network

meetings held in March with a joint delegation sibilities of the Port of Haydarpasa in Istanbul

of Lithuania, Belarus and Ukraine. The meet- are also being considered. Although Istanbul is ings were fruitful with two contracts with the the largest city of Turkey as well as its economic

Turkish railway companies and two memoran- heart, cooperating with it is not so practical for dums of cooperation being signed. Such pro- the “Viking Train” Project as cooperating with STANBUL SAMSUN jects as the “Viking Train” Project is not a nov- the Port of Samsun because it is not so difficult H.P A elty to the Turks – a special ferry, carrying rail to reach Europe - its border is just right there, ADAPAZARI ÇANKIRI wagons, has already performed 26 journeys which accordingly diminishes the advantage DER EUROTEM VADEMSA between the Port of Samsun in Turkey and Cau- offered by the “VikingT rain”. In the meantime, BANDIRMA ANKARA ESK EH R casian ports in Russia. In the near future, Tur- the Port of Samsun, which is connected to rail- It seems that Turkey will gain more by interest in the “Viking Train” Project and are ex- than two days. Tariffs for transportation by this S VAS key is planning to purchase two more such fer- ways, opens up possibilities of shipping a cargo choosing neither of the sides and by further pressing their wish to participate in it. train are lower by a third than carrying goods ries, each of which will be capable of carrying farther to the East and South as well as to the promoting and enhancing the image that it by trucks, whereas crossing an EU external S A 50 rail wagons (such ferries are called ro-ro fer- Eastern region of Turkey, which also is an indus- AfYON possesses in the eyes of the world since quite border via Kena Terminal, which takes only 30 ZM The “Viking Train” and Turkey – both ries, which stands for „roll on – roll off“, mean- trial part of the country. Their access way desig- MALATYA IZBAN a long time ago: i.e. being a bridge between sides are the winners minutes, has no analogues in the entire Euro- ing that vehicles may be driven on and off such nated for a ro-ro ferry is 184.5 m in length, 26.5 ZM R Europe and Asia. The managers of the bridge pean Union. From the Port of Ilyichevsk in the ferries on their own wheels, there is no need of m in width, and 7.4 m in depth. This access way KONYA used to earn money from passengers in the old The “Viking Train” is a project of three coun- Ukraine, wagons with containers can further lifting them with cranes). It is a possible thing may admit ships of up to 12,000 tons in gross times already, so the present times are not an tries - Belarus, Lithuania and Ukraine, in which go by ferries to Turkey, from where all the Near that these new ferries also will perform a num- tonnage. The Port Authority says that if there ADANA exception – being a crossroads, Turkey can gain the railway companies and seaports of these East opens up. ber of voyages carrying wagons of the „Viking be such need, the system may be expanded up huge wealth from custom duties and taxes im- countries participate. Owing to this project, presently, the economy of Turkey with a Train“. According to the data of Klaipėda Port, a to three or even five railway lines. Next to the MERS posed on freight flows as well as from profits goods from the Port of Klaipėda by a shuttle population of more than 74 million is flourish- turnover of transporting goods from Turkey is Port of Samsun there lies a free trade zone of SKENDERUN derived from logistics services. This country‘s train can reach the Port of Ilyichevsk by the ing: according to the data of the World Bank, growing. In 2011, it amounted to 263.6 thou- 71 thousand square metres in area, operating politicians and businessmen are showing great Black Sea, with a journey taking slightly more from 2001 to 2010 Turkey‘s GDP had increased sand tons and was larger by 39.7 percent than since 1998.

Turkish Logistics Companies Show Interest in the „Viking Train“ Project „Andora Shipping Transportation and Logis- tic Co., LTD“ was founded in 1996 in Istanbul. The In Vilnius, on the 10th of May, there appeared the managers of Turkish logistics companies „Ancora“ and BALO. Mr. Ali Galip Ilter, General Director of „Ancora“, company specialises in international logistics pro- jects and in transportation of bulk cargo (grain, co- Mr. Huseyin Isteermis, Deputy General Director of BALO, and Mr. Stasys Dailydka, General Director of the company „Lietuvos geležinkeliai“ (Lithuanian al, fertilisers, etc.) all across the world. It cooperates Railways), have signed a tripartite memorandum. The parties will cooperate seeking to increase the volumes of freight flows between Turkey and Lithuania as with huge grain companies such as „Louis Dreyfus“, well as between the Baltic Sea region and the Near East. Alike, the company „Ancora“ and „Lithuanian Railways“ have signed a freight forwarding contract. „Cargill“, „Finagrain“, „Toepfer“, etc., as well as with transport companies PAN OCEAN, SANKO, WAGEN- “Ararat” – it’s a new and modern relaxation and “Ararat” – it’s a new and modern relaxation and BORG. „Ancora“ transports from Turkey to Northern entertainment complex in the port of Klaipėda, entertainment complex in the port of Klaipėda, Mr. Huseyin Isteermis, European countries approximately 200 thousand “Ararat” – it’s a nLieewp ųa nstdr emeot d4e8rAn relaxation and entertainment cLoiemppųl esxtr iene tth 4e8 pAort of Klaipėda, Deputy General tons of cargo a month. Director of Turkish Liepų street 48A Mr. Ali Galip national organisation *Comfortable, modern 4-star apartments; Ilter, General BALO (Batı Anadolu Lojistik Organizasyonlar *Comfortable, modern 4-star apartments; BALO: „Among our *Luxurious interior restaurant Director of A.Ş.) is a national organisation managed by TOBB *Luxurious interior restaurant organisation‘s plans are (*mCoamximfourtmab 1le0,0 m poeodperlen) ;4-star apartments; „Ancora“: „We (maximum 100 people); freight transportations (the Union of Chambers of Commerce, Industry, *ALuuxtuhreinotiusc ainl Aterrmioern rieasnt acuuriasinnte ; *Authentical Armenian cuisine; see realistic from Europe by transit Maritime Trade and Commodity Exchanges of Tur- *(mGarexaimt buums i1n0e0ss p leuonpchle,) t;ake-away food; *Great business lunch, take-away food; opportunities, via Turkey to China key) and supported by the Ministry of Transport *ACounthfeernetinccael hAarmll wenitihan m coudiseinrne ;e quipments; *Conference hall with modern equipments; in which we and the surrounding and Communications of Turkey. This organisa- *G24re-haot ubru lsoinuensgse l ubnarc;h, take-away food; algio palionio algio palionio algio algio palionio algio

*24-hour lounge bar; believe.“ *Conference hall with modern equipments; countries“. tion was founded in 2011 in pursuit of strengthe- *Mini spa and sauna hamam. *2M4i-nhi osupra laonudn gsea ubnaar; hamam. ning Turkey‘s economy and improving its export According to Mr. Stasys Dailydka, General Direc- both countries“, – said Mr. S. Dailydka. for the container train „Viking“. At the end of March, signed by and between the company „Lithuanian *Mini spa and sauna hamam. tor of „Lithuanian Railways“, the major portion of „We will have to work hard because not eve- this year, the company arranged in Istanbul an inter- Railways“, Klaipėda State Seaport Authority, the Tur- figures. One of the objectives of the BALO project Turkish export goes to European countries and, the- rything is going to function smoothly straight from national conference „Viking Train. Intermodal Solu- kish Railways and the Administration of the Port of is to promote transportations by rail. Among the Liepų Str. 48A, Liepų Str. 48A, refore, efforts should be exerted so that this freight tomorrow, – said Mr. Ali Galip Ilter, General Director tions, Development and Prospects“. There, AB „Lie- Haydarpasa (Turkey) as well as by and between „Li- organisation‘s plans are freight transportations LT-92107 Klaipėda, Lithuania LT-92107 Klaipėda, Lithuania as much as possible would be transported via the of „Ancora“, after the signing of agreements. – But tuvos geležinkeliai“ signed two freight forwarding thuanian Railways“, Klaipėda State Seaport Authori- Tel. +370 46L 4ie0p0ų8 S8t0r,. +4387A0, 652 99000 from Europe by transit via Turkey to China and the Tel. +370 46 400880, +370 652 99000 territory of Lithuania. „We are interested in the pos- we see realistic opportunities, in which we believe.“ contracts with Turkish companies „Yegenler Logis- ty and the Ukrainian companies PLASKE and „ARKAS wLTw-9w2.1a0ra7r aKtl.altip ė indfao, @Litahruaraanti.alt surrounding countries. In November of 2012 and in Welcome to Klaipėda www.ararat.lt [email protected] sibilities of expanding the container train „Viking“ Public Limited Liability Company (AB) „Lietuvos tic“ and „LAM-Lyonel A.Makzume Vapur Acentaligi Ukraine Ltd.“; and, likewise, a bilateral memorandum Welcome to Klaipėda Tel. +370 46 400880, +370 652 99000 project to Turkish ports such as the Port of Samsun geležinkeliai“ (Lithuanian Railways) is actively wor- A. S.“ as well as two quadripartite and one bilateral was signed by and between „Lithuanian Railways“ January of 2013, regular train routes are intended Welcome to Klaipėda www.ararat.lt [email protected] or Istanbul as well as of attracting new cargo, and king in order to establish useful business contacts memorandum. Quadripartite memorandums on co- and Turkey‘s Independent Industrialists and Busi- to be scheduled. we believe that cooperation would be beneficial for with Turkish companies and to attract extra freight operation in the field of transport and logistics were nessmen Association MÜSIAD. 14 RAIL RAIL 15 Business Contribution is a Prerequisite Modern Locomotives from Lithuania It is already almost a decade that in Lithuania and beyond its boundaries there operates JSC „Vilniaus lokomotyvų remonto depas“ (Vilnius Locomotive Repair Depot), for Successful Solution of Economic Issues which commenced its core activities with the technical maintenance, repair and modernisation of railway rolling-stock, whereas now it already manufactures, on its Ensuring employment of the population, export development, taxes properly regulating consumption and production, rational use of state funds and EU support own, brand new locomotives of the twenty-first century. The first locomotive TEM TMH was assembled and rolled out of the factory gate in 2009 and in the same year – all the foregoing are priority issues of the Government and Parliament (Seimas). Successful solution of economic and social issues requires objective data about was awarded with a gold medal by the Lithuanian Confederation of Industrialists, receiving the title „The Lithuanian Product of the Year“. public revenue, revenue-generating sources as well as the condition thereof in the long-term perspective. Let‘s try to measure the extent of contribution of such companies as „Lietuvos geležinkeliai“ (Lithuanian Railways) in this sphere. ger transportation losses and investments are fi- for business in order to stabilise the financial situ- nanced from the state and / or municipal budgets. ation of the state, failing to take a due regard to a possible reduction in the employment of the pop- Decisions rely on figures ulation, is erroneous. When taxes are raised, the fi- nancial situation deteriorates for all the compa- Inaccuracies occurring in the evaluations and nies. Therefore, the weakest economic entities are assessments produced by the State Tax Inspector- compelled to opt for an alternative – either to ter- ate are highly relevant as the Government and the minate their activities or to go „underground“. In Parliament (Seimas), based on information on tax- both events, the official unemployment rate surg- payers and their contribution to the public finance, es up. Corporate taxes to the state after a with- are shaping fiscal and economic policies and are drawal of many economic entities from the legal evaluating the activities and performance of enter- market can even experience no growth. In such prises. For example, according to the information

bfl event, the financial situation of the state due to furnished by the State Tax Inspectorate, the contri- the increased need of funds for social benefits in- bution of „Lithuanian Railways“ to the state consti- evitably deteriorates. For the state, under the cir- he State Tax Inspectorate has furnished infor- lation. In the meantime, the personal income tax tuted 47.8 million Litas or 0.16 percent of the pub- cumstances of an economic decline, the top pri- mation and comments relating to the contri- (3.8 billion Litas) and the cash inflows of SODRA lic revenue. Based on such information, economic T ority is to preserve the employment of the pop- bution of economic entities to the public revenue (10.5 billion Litas), which are in fact paid by com- experts put forward proposals for enhancing the ulation at the maximum. Therefore, in the face of in 2011. Most favourably was evaluated the per- panies (employers) and which amounted even to efficiency of operations (performance) of „Lithu- a crisis taxes for business should be reduced rath- formance of „Orlen Lietuva“, which had paid to the 14.3 billion Litas or 47 percent of the public reve- anian Railways“ and its utility to the state: begin- er than raised. A withdrawal of economic entities state 1.279 billion Litas in taxes. By economic sec- nue, remained unreflected in measuring business ning with improving the management of the com- from the market or, even worse, transition thereof tors, the largest contribution among 50 major tax- contribution to the state. In order to objectively pany and tightening the control of activities and to the underground/shadow sector worsens the payers is accounted for by trade – 3.36 billion Litas. measure the tax contribution of economic entities ending with transferring the company‘s commer- financial situation of the state to a great extent; for In order to evaluate business contribution ob- to the state, it is necessary not only to properly cial activities to the private sector. If the compa- this reason, the state must monitor and forecast jectively, it is necessary to properly identify tax- identify the entities that generate excise and VAT ny‘s contribution to the state were measured ob- changes in the employment of the population on generating entities. For example, according to the taxes, but also to comprehensively encompass all jectively – i.e. as 344 million Litas, which accounts a continuous basis and to apply adequate meas- data furnished by the State Tax Inspectorate, when the taxes that companies pay to the state and mu- for 1.13 percent of cash inflows into the state-con- ures in due time in order to stop such processes. it comes to taxes paid to the state a conspicuous nicipal budgets and SODRA. It is only then that we trolled budgets, the Government would be much

In the face of a rather large underground sec- archyvo leader in Lithuania is „Orlen Lietuva“. The amount will get an objective view of the tax contribution less concerned with the issues as to how to en- TMC tor and high unemployment level, a state priority of its contribution to the public revenue was pre- of companies and economic sectors to the state hance the performance of „Lithuanian Railways“. and attention declared and displayed for compa- conditioned by the excise collection procedure es- and will be able to come to rational decisions. When evaluating the performance of compa- nies creating high value added turns to be ques- tablished in Lithuania, according to which the ex- nies belonging to the public sector, one usually tionable. First of all, this sector is given priority by he idea of assembling new locomotives „Caterpillar“ engines and 60 MTU engines. This cise tax paid by consumers first of all goes to „Or- confines itself to profit tax and dividends, which Entering Germany „Lithuanian Railways“ taken as an foreign countries possessing high economic and Tarose when Public Limited Liability Com- would enable to maintain the technical condi- len Lietuva“ and only then to the state budget. If do not reflect the whole contribution of a compa- In addition to TEM TMH locomotives that scientific potential – the United States, Japan, pany (AB) „Lietuvos geležinkeliai“ (Lithuani- tion of the rolling-stock fleet in an expeditious the procedure for collection of excise tax on fuel example ny to the public revenue. For example, in the case are currently in production, among the com- Korea, China. One has to compete not only with an Railways) launched a programme to renew and high-quality manner. Moreover, after the were changed and this function were delegated, To illustrate inaccuracies occurring in the evalu- of the company „Lithuanian Railways“, profit and pany‘s plans there comes the establishment of them, but also with smaller countries (Switzer- its shunting-locomotive fleet.T hen it emerged establishment of such centre, subcontracting for example, to the filling stations, it would emerge ation of tax contribution of companies to the state, dividends in 2011 constituted only 18.6 percent of a joint venture with German company „August land, Finland, Israeli) that possess an extensive ex- that the market had a low supply of locomo- could be abandoned and it would become pos- that the contribution of excise tax generated by as furnished by the State Tax Inspectorate, „Lithu- all its actual taxes. But the most important thing is STORM Gmbh & Co.KG“. This new company is perience in certain fields of new technologies.T he tives that by their technical and economic pa- sible to independently carry out all types of re- „Orlen Lietuva“ to the state budget is small and anian Railways“ can be taken as an example. Ac- that monopolistic energy and transport infrastruc- to carry on the major repairs of new-genera- establishment and development of such compa- rameters could meet the needs of „Lithuanian pair, including overhaul (major repairs). falls behind many transport companies. It is com- cording to the State Tax Inspectorate‘s informa- ture companies belonging to the public sector are tion internal combustion engines used in lo- nies require great investments, though few work- Railways“. A not less important criterion was the It is likely that the company, which is un- panies and the population who are the main con- tion presented in the article, this company‘s contri- of high importance to companies engaged in oth- comotives. For such a responsible job, prepa- places are created. Besides, there are not many quality and price of the product. So the project dergoing transformation, will become the only sumers of fuel and respectively excise tax-generat- bution to the public revenue in 2011 amounted to er activities as well as to the population. When set- rations are being made in advance by way of possibilities to surpass strong rivals because the of developing such a locomotive was under- company in the Baltic States and Kaliningrad Re- ing entities (Estonia and Latvia manage to collect 47.8 million Litas. Whereas in fact „Lithuanian Rail- ting objectives to create conditions for business training specialists and purchasing new tech- taken by three companies: „CZ LOKO“ (Czech gion to be engaged in the repair of major electric bfl ways“ (Public Limited Liability Company (AB) „Lietu- development, for enhancing business competi- latter can quite easily take over the key specialists the excise tax on fuel to the state budget, though Republic), JSC „Vilniaus lokomotyvų remonto machinery, contemporary internal combustion nological equipment. These repair services will vos geležinkeliai“) remitted in 2011 to the state and tiveness and for ensuring the social welfare of the of a Lithuanian company. When it comes to com- they have no petroleum refining companies).T he depas“ (Vilnius Locomotive Repair Depot), and engines, electronic components and wheelsets. be offered by our country‘s company to rail- municipal budgets the following: dividends – 56 low-income population, the state not only should petition for markets, a priority should be given to Mr. Valentas Stadalnykas, General Director of the main portion of the other consumption tax – VAT „Transmashholding“ (Russia). The joint work of The company, which is operating since way companies in the Baltic States, Poland, million Litas, profit tax – 8 million Litas, land lease-, refrain from seeking more profit (and especially - companies that have already occupied a certain company JSC „Vilniaus lokomatyvų remonto depas“, – is generated not by trade enterprises, but by the partners was fortunate, it was crowned with 2003, carries on the major repairs of rolling- Germany and CIS countries. real property- and environmental pollution taxes – dividends), but vice versa, should finance part of place in the international market as well as to eco- is putting great expectations into a partnership with population and economic entities that purchase success – in total, 23 locomotives were manu- stock, the technical maintenance of railway The company‘s engineers in conjunction with 4 million Litas, and personal (company employees) the expenditure and investments of infrastruc- nomic entities that can ensure more workplaces. German colleagues to establish a new company, goods for final consumption. If the payers of con- factured. 21 locomotives are operated by „Lith- rolling-stock as well as running and major re- their colleagues from Russia and Italy are design- income tax – 52 million Litas. The company remit- ture companies, thus reducing the tariffs of servic- which is going to provide major-repair services for sumption taxes (excise tax and VAT) were identi- uanian Railways“, and a couple of them have pair works, including an exhaustive inspec- ing and preparing technological processes for fied as tax-generating entities and not as tax-col- ted 146 million Litas to the budget of SODRA. The es rendered by such companies. Exactly such pol- Attention being diverted elsewhere new-generation engines. company‘s direct taxes totalled 266 million Litas. been purchased by the Sillamae Seaport in Es- tion of wheelsets; manufactures and forms the maintenance of contact lines designated for lecting entities, „Orlen Lietuva“ should surrender icy is being implemented by advanced countries. As the opinion that the main sources of ex- The company had purchased for performance tonia. Last year JSC „Vilniaus lokomotyvų re- new wheelsets; carries out the major repairs of production of rail motor-trolleys at the premises the leading position to other companies and the It is believed that it is expedient to restructure cise tax are „Orlen Lietuva“, UAB „Philip Morris Bal- of its activities and consumed 74.8 million litres of monto depas“ was awarded with a gold medal electric machinery and electrical equipment; is of JSC „Vilniaus lokomotyvų remonto depas“. a locomotive with a hybrid power-plant in the trade sector would lose the dominating role as a and privatise state enterprises that generate low tic“ and other companies manufacturing excisable fuel, on account of which the state budget was re- by the Lithuanian Confederation of Industrial- engaged in the manufacture of new shunting The company together with partners TEM35 series, and a locomotive with two pow- taxpayer to the Lithuanian budget. profits. Privatisation of state-controlled monop- goods is prevailing, attention is drawn away from plenished with 78 million Litas as excise tax. („Or- ists for the first shunting locomotiveTE M TMH, locomotives and performs other works that from the Czech Republic, Russia and Germa- er-plants in the TEM33 series, apart from mod- olistic infrastructure companies is not advanta- the excise-tax formulation peculiarities, and de- len Lietuva“ is considered by the State Tax Inspec- intended for export. are indispensable in order to ensure a smooth ny is planning to manufacture a new four-ax- ernisation projects for passenger locomotives geous for the domestic economy and even pos- cisions necessary for the state are failed to be tak- A solid share of SODRA torate as the main payer of excise tax to the Lith- functioning of rolling-stock. le shunting locomotive in the TEM-LTH series, TEP70, which are in the plans too. es danger. For a private infrastructure company, en. For example, the state is short of money to fi- In 2011, the state and municipal budgets re- uanian budget, but in its activities it consumes which is occupying a monopoly position, the most nance the gravel roads paving programme, which is Entering Russia ceived 19.9 billion Litas (exclusive of EU support much less fuel than „Lithuanian Railways“ and, convenient way to increase its profits is raising the of great relevance for business and the population, A new stage in the activities of the compa- funds), whereas the revenue of SODRA (exclusive therefore, its generated excise tax contribution to tariffs of services and minimisation of investments because the main portion of the state and EU sup- ny is designing and manufacturing new railway of state budget allocations) amounted to approx- the state budget is lesser, but not vice versa, when for maintaining the company‘s activities in the port funds allocated for motor roads needs to be di- equipment designated for Russia. The first loco- imately 10.5 billion Litas. Respectively, the reve- compared with „Lithuanian Railways“). Summing long-term perspective, scheduling a withdrawal rected for maintaining the condition of the nation- motive TEM TMH 001 this year has successfully nue of the national budget and of SODRA (public up the company‘s direct taxes (266 million Litas) from the market just when the company‘s physical al trunk roads. A comparatively short life of recon- passed all operation-, certification- and accept- revenue) constituted in total approximately 30.4 and its generated excise tax (78 million Litas), the depreciation reaches a critical level. A private busi- structed motor roads and respectively a huge need ance tests and have met all the requirements that billion Litas. When assessing business contribu- total tax contribution of „Lithuanian Railways“ to nessman may at any time adopt a decision to ter- of funds are preconditioned by large international have been raised. This locomotive on the 24th of tion to the public revenue, the State Tax Inspec- the state constituted 344 million Litas and more minate the activities of such infrastructure compa- flows of heavy-duty vehicles. Unlike local econom- April, 2012, was issued with a certificate of com- torate confined itself to ATV (8.5 billion Litas), ex- than 7 times exceeds the amount indicated by ny. In such event, its customers – other enterpris- ic entities who by way of purchasing fuel for their pliance by the State Register of Russian Certifi- cise (3.2 billion Litas) and profit (0.9 billion Litas) the State Tax Inspectorate – 47.8 million Litas. es as well as the population – would lose the only own vehicles are building payments of excise tax to cates. This will open for JSC „Vilniaus lokomotyvų taxes, which totalled 12.6 billion Litas or 41 per- When measuring the financial benefit that the supplier of services necessary for their activities. the budget, heavy-duty vehicles that are servicing remonto depas“ new markets in the East. cent of the public revenue. It is interesting to note activities of „Lithuanian Railways“ has brought to During the period of 2011–2013, further that for assessing business contribution in terms the state budget, it should be noted that the com- international freight flows are fuelled up not in Lith- No guideposts left investments are planned to be made in or- of state taxes the State Tax Inspectorate selected pany financed not only the loss derived from pas- uania, but in the neighbouring countries where fuel der to develop the possibilities of JSC „Vilniaus consumption taxes – VAT and excise tax, the main senger transportation activities but also invest- As objectivity and attention are being lacked prices are lower. As the state is passively watching, lokomotyvų remonto depas“. The main direc- portion of which is generated not by business ac- ments for purchasing new rolling-stock. In other when it comes to evaluating and assessing enti- the population and economic entities of Lithuania tivities but rather by consumption of the popu- EU countries, including Estonia and Latvia, passen- ties generating personal income and SODRA tax- are actually financing international freight transpor- tion of planned investments is the creation of es, so in its turn the issue of employment of the tations on the national motor roads, whereas in the „Caterpillar“ and MTU ICE equipment repair cen- population cannot be objectively measured and meantime road carriers are replenishing with the tre, which is highly needed because „Lithuanian The company „Lithuanian Railways“ remitted 146 million Litas to the budget archyvo TMC

Railways“, which is serviced by the company, has bfl

appropriately solved. For example, in the face of excise tax on fuel not the Lithuanian budget, but

of SODRA in 2011. The company‘s direct taxes totalled 266 million Litas. an economic decline a decision to increase taxes the budgets of other countries. equipped its rolling-stock with more than 90 16 RAIL RAIL PB

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June 2012, № 3/14 (special edition) Publisher PC „Transport Media Center“ Contacts +370 5 2481629 Director Аlgirdas Aushra E–mail [email protected]

RAIL Editor in Chief Gytis Vincevicius Website www.etransporter.lt Layout Editor Kestutis Jonaitis Head Office Kalvariju str. 135, Vilnius