Pomeranian Metropolitan Railway Tri-City’s real estate market on the new track Co-authors: Pomeranian Metropolitan Railway 01 January 2015 Dear Sirs and Madams, Pomeranian In September passenger trains will start operating on the newly built (the first in Poland after 1989) 18 km-long Kolej Kokoszkowska railway line. It will link Metropolitan Railway Gdańsk Wrzeszcz station with Lech Wałęsa international airport and Gdynia with the southern and western regions of the Pomeranian voivodeship. (PKM) Pomorska Kolej Metropolitalna S.A. – a company acting on behalf of the Pomeranian voivodeship – is the investor responsible for delivering this infrastructure. New trains have been ordered to operate on the new line. The total cost of the investment is in excess of PLN 1 billion and is the largest 10 investment being made by the Pomeranian voivodeship. Number of trains Rail transport is of key importance in the wider Tri-City metropolitan area. Together with the modernisation projects of Szybka Kolej Miejska (SKM), which transports more than 34 million passengers annually, this mean of transport is gaining in importance even more. New infrastructure will be a significant growth-driver not only for Gdańsk and 15 min Lech Wałęsa international airport (which is planning a new Airport City Frequency during project), but also for the southern and western parts of the Pomeranian rush hours voivodeship. The regional authorities intend to fully integrate the new line with the existing road and rail infrastructure of the cities it will go through. Gdańsk may serve as an example of such an approach, where tram infrastructure is being integrated with the Pomeranian Metropolitan Railway (PKM). This year a new section of tram line connected in such way will be completed. 6,5 mln Estimated annual I am convinced that Pomeranian Metropolitan Railway will greatly influence number of passangers the socio-economic development of our region over the next few years, much as the SKM did. Already today, the positive impact of the new railway is clearly visible. In the close vicinity of the PKM, new investments, such as residential projects, are starting to develop. One of the main reasons for this is the proximity of passenger transport, which is crucial for that kind of development. 18 km We are pleased to present a publication that examines the impact of the Length of the new line Pomeranian Metropolitan Railway on the real estate market of Tri-City and its wider metropolitan area. 11 Number of new stations Ryszard Świlski Member of the Board of Pomeranian Voivodship 130m 130 m Topographic drop © COPYRIGHT. 2015. Jones Lang LaSalle 2 Pomorska Kolej Metropolitalna 01 January 2015 Economy and Infrastructure The Tri-City’s accessibility from Poland’s hinterland has improved greatly as a result of the completion of the A1 motorway to Stryków and, more recently, Crucial sectors of Pomeranian economy as a result of the new Pendolino trains, which have been operating since 14 In 2010, PwC and IBnGR published research titled ‘An investment December 2014. The journey from Warsaw to the Tri-City takes attractiveness analysis of the Pomeranian voivodeship’. It showed the six approximately three hours and it is being operated by five trains which have a main sectors of the economy that have the greatest potential to develop in maximum speed of 200km/h. the region: logistics, BPO/SSC (Business Process Outsourcing / Shared Service Centre), ICT (Information and Communication Technologies), the The tunnel under the Martwa Wisła river will facilitate transportation around energy sector, light chemicals industry, and the automotive sector. Gdańsk city centre and improve the accessibility of the Wyspa Portowa island. It will not disturb the only waterway between the Motława river, Labour market Martwa Wisła and the open sea. The tunnel will also reduce transit traffic in Approximately 60% of the working population of the Pomeranian voivodeship Gdańsk city centre. is based in the wider Tri-City metropolitan area. This situation encourages labour market specialisation, which leads to better resource allocation. The The Tri-City northern ring road. The northern by-pass is designed to unemployment rate in the region is well-below the averages of the rest of the redirect transit traffic from the centres of Reda, Rumia and Gdynia and to voivodeship’s subregions. generate attractive investment areas along the regional transportation corridors. The project will also improve the accessibility of the north-western Employed* 875,000 part of the Pomeranian voivodeship from the Tri-City and the rest of the country, which is one of the priorities of the Development Strategy of the Unemployed* 84,000 Pomeranian voivodeship. Working age popolation* 1,454,944 SKM station Gdańsk Śródmieście is a project that started in August 2013. Unemployment rate** 8.8% (9.1% Poland’s average) The SKM rail line will be extended by 1 km and a new station, Gdańsk Source: Central Statistical Office Q2 2014, *Data for Pomeranian voivodeship, Śródmieście, will be added to the existing network. The station will be located **Economic Activity data next to the Urząd Marszałkowski office and the planned Forum Radunia shopping centre. The project also involves the construction of a new Dynamic changes of the labour market in the region have resulted in a integrated transportation hub. SKM Śródmieście is due to be completed in significant increase in salary levels. The average monthly gross salary in the March 2015. enterprise sector in the voivodeship is PLN 4,088 (as at H1 2014). Other investment projects Infrastructure The Tri-City is an important historical and cultural location and therefore Attracting new investments from the desired sectors requires new transport invests in a range of projects in addition to infrastructural improvements. and technical infrastructure. Often, existing infrastructure is vastly outdated Those projects refer to local history and genius loci and thus enrich the Tri- and needs significant improvements. The Tri-City is currently one of the City’s tourist and cultural attractiveness. largest construction sites in Poland. In addition to the ongoing Pomeranian Metropolitan Railway project, the key investment projects in the region include: The European Solidarity Centre in Gdańsk opened in August 2014. It was co-funded by the European Regional Development Fund within the Infrastructure and Environment Programme. The ESC, located next to Gdańsk and Gdynia ports development. Gdańsk shipyard, has, due to its extraordinary design, become an important The state-of-the-art Deepwater Container Terminal Gdańsk provides historical and architectural symbol of the city. Moreover it is an interesting Pomerania with a direct connection with Asia through the Maersk Line point on the landscape of the Tri-City area. service point. It is worth mentioning that the new terminal is able to handle the largest container ships with a capacity exceeding 18,000 TEU (twenty- foot equivalent unit). In March 2013, Port of Gdańsk authorities and DCT The Museum of the Second World War in Gdańsk. The idea for this signed an agreement to further extend the DCT capacity to 4 million TEU. museum came to life in 2008. The mission of the museum is for it to become an important institution that will show the wartime experiences of both Poland In order to maintain its competitive edge, Gdynia port decided to improve its and other European countries. The museum will be located next to Główne capacity and transport infrastructure. In January 2014, Port of Gdynia Miasto and the Radunia channel. Its completion is planned for 2016. Authority SA. acquired the Gościnne quay from Naval Shipyard Gdynia Poland, which will allow the port to build a new 480 m-diameter turn-table. The Emigration Museum will be located in the building of Dworzec Morski in The next stage of the Gdynia port refurbishment is deepening the port the Port of Gdynia. It will focus on the history of the emigration from Poland channel by 2 m from 13.5 m to 15.5 m. All these planned improvements will and will combine exhibitional, educational and artistic functions. It is planned allow Gdynia port to handle 380 m-long container ships of up to 14,000 TEU for completion in May/June 2015. capacity. © COPYRIGHT. 2015. Jones Lang LaSalle 3 Pomeranian Metropolitan Railway 01 January 2015 © COPYRIGHT. 2015. Jones Lang LaSalle 4 Pomeranian Metropolitan Railway 01 January 2015 © COPYRIGHT. 2015. Jones Lang LaSalle 5 Pomeranian Metropolitan Railway 01 January 2015 of the increased inflows of passengers. As a result of passenger transfers Real Estate Market from the PKM to the SKM in Wrzeszcz, properties located along the existing SKM line will also benefit indirectly from the new infrastructure. The Pomeranian Metropolitan Railway (pol. Pomorska Kolej Metropolitalna – Another area with growth potential is Strzyża station. The station is located PKM) will not only improve the quality of public transport in the Tri-City area, close to the university campus and a dynamically expanding modern office but will also influence the geography of the real estate market there. Similar hub. The accessibility of the area will be significantly improved by the transport projects in other cities, in particular those involving rail, have been a convenient transfer to the existing tram line, which looks set to reduce travel stimulus that inspired changes of both local and regional scale. time to real estate assets located in a vicinity of the Strzyża station. The PKM will open new areas of the agglomeration for investments, integrate From the commercial and residential property perspective, Niedźwiednik various means of transport and operate as commuter transportation for the station, situated next to the de la Salle roundabout, will be less impactful. residents of the wider agglomeration. As a result of improved accessibility, However, this situation may change after the new master plan, which is areas adjacent to the new stations will gain the potential necessary for them currently being drawn up, is in place.