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“Rail Baltica” in the Lithuanian Railways development strategy

2011

JSC “Lithuanian railways”- Railway infrastructure manager

(railway network – 1765 km)

- Freight Carrier (2008 – 55 mill.t, 2009 – 42,7 mill.t, 2010 – 48,1 mill.t)

- Passenger Carrier (2008 – 5,1 mill.pass., 2009 – 4,4 mill.pass., 2010 – 4,4 mill.pass.)

Property – 1,3 bln. EUR (31-12-2010)

Number of employees – 10,3 thous. (2010)

Revenues2008 – 463 mill EUR 2009 – 350 mill EUR2010 – 395 mill EUR

State owned company in share by 100%

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Klaipėda

Telšiai

Tauragė

Panevėžys

Kaunas

Alytus

Utena

Turmantas

Švenčioneliai

Stasylos

Senovė

Šeštokai

Lentvaris

Kaišiadorys

Gaižiūnai

RadviliškisObeliai

Joniškis

Kretinga

Skuodas

Kužiai

Mažeikiai

BugeniaiLatvia

Poland

Baltic sea

Vaidotai

Mockava

Marijampolė

Vilnius

Pakruojis

Šiauliai

Kazlų Rūda

Pagėgiai

KybartaiRussia BelarusKena

Network of Lithuanian railwaysCorridor I, IA

Corridor IXB, IXD

Length of lines – 1765 km1520 mm – 1744,5 km1435 mm – 21,8 km

Electrified lines – 122,0 km

Other lines

Lithuanian Railways are at the crossroads of International Freight Transportation Corridors

TURKEY

FINLAND

GERMANY

DENMARK

Black Sea

Kiev

UKRAINE

POLAND

Klaipėda

OdessaIllichivsk

Container train VIKING

RAIL BALTICA

Corridor “EAST-WEST”

MoscowTransSiberian RailroadKazakhstanChina

ITALY

LITHUANIALATVIA

ESTONIA

VilniusMinsk

BELARUS

Middle East, Central Asia

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Freight corridor No. 8

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The main figures of activity of JSC “Lithuanian Railways”

LG freight transportation volumes

46%46%

8%

Freight transportation by transport modes (2010 )

Lithuanian railwaysRoad transportOther

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Investment sources

Investments (mill. EUR)

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The main projects of JSC “Lithuanian Railways”

The main implemented projects• Railway infrastructure projects

• Renewal of the tracks on Corridor IX• Installing of GSM-R• Extension of stations tracks on Corridor IX (for the trains up to 6000 tones)• Upgrading of marshaling yard in Vaidotai• Reconstruction of railway tunnel in Kaunas

• Projects for renewal of freight rolling stock fleet• Acquisition of 44 new DE locomotives (Siemens AG) • Upgrading and re-engining of freight locomotives:

renewed 54 locomotives 2M62 and 16 locomotives M62• Upgrading of shunting locomotives fleet:

upgraded 22 locomotives ČME3, produced 10 new locomotives TMX

• Renewal of passenger rolling stock fleet• Acquisition of 4 double-deck electric trains• Acquisition of 8 railbusses

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IX corridor development 2005-2010 y.

Klaipėda

KaunasVilnius

Radviliškis

Kaišiadorys

Šiauliai

Kena

Radviliškis station power supply facilities reconstruction 2,1 mill. EUR

Kena boundary station reconstruction47,5 mill. EUR

Pagėgiai

Kaišiadorys-Radviliškis railway line power supply facilities modernization10,6 mill EUR.

Anglinė station tracks reconstruction0,1 mill.EUR

IX corridor telecommunication facilities modernization23,7 mill EUR

IX B railways transport corridor station tracks extensionRaudėnaiTryškiaiDūseikiaiTelšiaiTarvainiaiKūlupėnaiKretinga16,2 mill. EUR

IX railways transport corridor lines reconstruction 104,5 mill. EUR

Kybartai

Radviliškis railway sorting yard reconstruction

Vaidotai railway sorting yard reconstruction

22 mill. EUR.

Kena

IX B railways transport corridor station tracks extension:KaišiadorysPalemonasGaižiūnaiJonavaRadviliškisKazlų rūda9,8 mill. EUR

Radio communication network modernization – GSM-R installation 54,2 mill EUR

Reconstruction of Kaunas tunnel24 mill. EUR

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Modernizuota Vaidotų skirstymo stotis

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2006 m.

2010 m.

Kauno tunelis 15

GSM-R bokšto įrengimas

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Renewed LG freight locomotive fleet –one of the most effective in the Europe

New and modernized LG locomotives

ER20CF (Siemens) 442M62M 292М62K 25M62K 16ČME3M 22TEM TMH 10Total 146Locomotive Siemens ER20CF

Modernized shunting locomotiveČME3M in the station „Draugystė“ New shunting locomotive TEM TMX

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The main projects of LG in 2011-2015

• Railway infrastructure projects• Rail Baltica• Development of Corridor IX junction with Klaipėda Sea Port• Establishment of new traffic control center• Construction of second tracks in Corridor IX• Reconstruction of Vilnius bypass• Electrification of railway line Vilnius - state border with Belorussia

• Public logistic centers (in Vilnius and Kaunas)• Projects for renewal of freight rolling stock fleet

• Producing of 35 new shunting locomotives TMX• Acquisition and renewal of freight wagons

• Renewal of passenger rolling stock fleet• Acquisition or electric trains, railcars, diesel multiple units

IX corridor development 2011-2015 y.

Klaipėda

KaunasVilnius

Radviliškis

Kaišiadorys

Šiauliai

Kena

Draugystė station tracks reconstruction31,6 mill. EUR

Klaipėda station tracks reconstruction2,5 mill. EUR

Pauostis station tracks reconstruction24,8 mill. EUR

Kūlupėnai-Kretinga second track29,6 mill. EUR

Plungė-Šateikiaisecond track19,6 mill. EUR

Telšiai-Lieplaukė second track18,5 mill. EUR

Telšiai-Dūseikiai second track6,6 mill. EUR

Pavenčiai-Raudėnai second track13,2 mill. EUR

Radviliškis-Šiauliai line signaling system modernization26,2 mill. EUR

Kybartai

PagėgiaiRimkai station tracks reconstruction6,6 mill. EUR

Traffic control center21,5 mill. EUR

Šiauliai-Klaipėda railway line signaling, telecommunication and power supply facilities modernization28,5 mill. EUR

Kaunas bypass and Kaunas-Kybartai railway line signaling, telecommunication and power supply facilities modernization40 mill. EUR

Vilnius bypass reconstruction48,2 mill. EUR

Vilnius-Kaunas railway line modernization for 160 km/h speed88,5 mill EUR

Lukšiai-Žeimiai second track

Gimbogala-Linkaičiai second track

26,8 mill. EUR

Gaižiūnai-Jonava second track signaling system modernization

Šilainiai-Kėdainiai second track signaling system

26,8 mill. EUR

KybartaiN.Vilnia-Kena-State border electrification22 mill. EUR

- Capacity of freight transportation by rail to Klaipeda will be increased from 30 up to 50 mill.t per year

- Duration of freight transportation in the rout Kena-Klaipeda will be decreased 10-15%

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The concept of RAIL BALTICA• The project connecting Helsinki in Finland, Tallinn in Estonia - via

Latvia and Lithuania - with Warsaw in Poland and via Poland with other EU countries.

• A vision and strategy for the Baltic Sea region was elaborated by the countries in the region in the early 1990s and the idea of Rail Baltica first appeared in 1994 in the joint political document Vision and Strategies around the Baltic Sea 2010 as an important element for spatial development in the Baltic Sea region.

• On 29 April 2004 European Parliament and the Council approved the list of thirty priority transport projects:

-- Rail Baltica project of the railway in Poland, Lithuania, Latvia and Estonia is included in the list under number 27 and the implementation deadlines are indicated:

Project No. 27. Rail Baltica axis Warsaw-Kaunas-Riga-Tallinn-Helsinki

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“Rail Baltica”- TEN-T Priority project No. 27

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“Rail Baltica”- TEN-T Priority project No. 27The key events of the project

29 April 2004 “Rail Baltica” axis Warsaw- Kaunas-Riga-Tallinn- Helsinki wasawarded as a TEN-T Priority project No. 27- project of common interest

October 2010 after EC Mid Term Review of the 2007-2013 TEN-T Multi Annual work programme “Rail Baltica” axis Warsaw-Kaunas- Riga-Tallinn-Helsinki remain as a TEN-T Priority project. Implementation time prolonged till the year 2015.

June 2010 in Rotterdam was signed common declaration of Ministers of transport On rail freight corridors. Declaration signed ministers of Belgium, the Chech Republic, France, Germany, Italy, Lithuania, Luxembourg, the Netherlands, Poland and Switzerland. “Rail Baltica” section Warsaw- Kaunas is the part of the corridor Nr. 8 Bremenhafen/Rotterdam – Warsaw- Kaunas

June 2010 in Saragosa the Ministries responsible for transport of the Republic of Poland, the Republic of Lithuania, the Republic of Latvia, the Republic of Estonia and the Republic of Finland signed Memorandum of understanding on the TEN-T Priority Project No 27 “Rail Baltica”. The resolution of the Government of Lithuania Nr. 541 from 2010-05-12 concerning the implementation of “Rail Baltica” project is the annex to the Memorandum.

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Zeimiai – Luksiai ir Gimbogala –Linkaiciai (22 km)July 2010. Contract signed for preparation of technical design for upgrading of existing single track to double track 50%

Siauliai – Joniskis – LT/LV border (60 km) 30%Reconstruction of the existing gauge 1520 mmAugust 2010 Contract signed for preparation of the technical design

Projects co-financed by TEN-T fund

Modernization of signaling system co-financed by Cohesion fund

Upgrading works co-financed by Cohesion fund (135,31 mln.€)

Projects unforeseen for EC financial support or reserved projects

Signed contracts for studies, design

IMPLEMENTATION OF RAIL BALTICA PROJECT(in line with Government Decisions of 23 December 2009 and of 12 May 2010)

Gaiziūnai – Jonava ir Silainiai -Kedainiai (14 km)July 2010. Contract signed for preparation of technical design for upgrading of existing single track to double track 24%

Gaiziūnai – Jonava – Radviliskis – Siauliai(122 km), reconstraction of the existing gauge 1520 mmThe winner of the open tender for preparation of the technical design was announced in 2011-05-17

Kaunas (Palemonas) – Gaiziūnai (26 km) 30%October 2010. Contract signed for preparation of the technical design for reconstruction of the existing line

PL/LT border – Mockava (14 km)September 2010. Open tender announced for the preparation of technical design.February 2011. Contract signed for preparation of technical design for reconstruction

Sestokai- Marijampole (33 km)September 2010. Contract signed for preparation of feasibility study for reconstruction. 60%

Marijampole - Kazlu Ruda–Kaunas (67 km)August 2010. Feasibility study was completed. (including environmental impact assessment (EIA)) 100%November 2010 .contract signed for preparation of technical design November 2010 . Contract signed for the supervision of the preparation of the technical design 30%

Mockava – Sestokai (7 km)April 2010. Technical design was prepared.May 2010. Reconstruction works has started with an aim to finish in April 2011. 95,6%

PL/LT sate border- Kazlu Ruda – Kaunas (signaling, power supply, traffic control systems)The implementation of ERTMS in Lithuania is in progress. In 2010 the implementation of the GSM-R network, as a part of the ERTMS system, is completed (Project was financed by 2004-2006 Cohesion fund).Working group for preparation of Terms of reference was established. Working group presented concept of reconstruction. Concept was approved by Technical council

Joint international feasibility study for Europeanstandard gauge separate railway line in Estonia, Latvia and Lithuania (Rail Baltica Corridor, 0.35 mln. € (TEN-T 50%/ State budget 50%). 40%

April 2010. Contract signed for preparation of feasibility study.

Territorial planning documents for new line (PL/LT border-Marijampole), August 2009. Contract signed for preparation of the territorial planning documents and EIA.December 2010 implementation of the project is finished

KAUNAS

MARIJAMPOLĖ

JONAVA

ŠIAULIAI

PL/LT

LT/LV

Freight transportation on railways:

- Possibilities- Advantages, disadvantages

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Market share of international freight transport between the road and rail transport modes in Lithuania

• The main part of transported commodities are raw materials, oil products, fertilizers, metal and  wood products, other different kinds of heavy freight, transported in  large quantities 

• Small part of different kinds of production and other packed goods (bags, boxes and etc …)

• The main part of transported commodities are different kinds of production and other packed goods (bags, boxes and etc)

• Small parts of heavy cargo

KLAIPĖDA

Russia

Poland

VILNIUS

Latvia

Belarus

KAUNAS

Baltijos jūra

KLAIPĖDA

Russia

Poland

VILNIUS

Latvia

Belarus

KAUNAS

Baltic sea

East – West South – NorthRail transport freight flowRoad transportfreight flow

LithuaniaLithuania

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Klaipėda

KaunasVilnius

Panevėžys

Paneriai

Šiauliai

Development of intermodal terminals

Development of existing freight terminals (logistics centers) of JSC “Lithuanian Railways”

New freight terminals (logistics centers) of JSC “Lithuanian Railways”

Main roads

New public logistics centers

Railways

Rail Baltica line (1435 мм)

Klaipėda Seaport terminals

International experience regarding the development of intermodal terminals:

regional logistics centers are the most active zones of the economic area

they are situated at the intersection of major traffic routes (freight flows) of various transport modes, near large industrial centers.

they ensure intermodality

Marijampolė

ŠeštokaiNew private freight terminals (logistics centers)

Rail Baltica line (1520 мм)

Palemonas

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Share in freight transportation between railway and road transport modes in Lithuania

• Raw materials, oil products, fertilizers, mineral products, grain, metal, wood products and other heavy cargo is transported by railways. This cargo can’t be transported by road transport because of technical reasons

• Almost all other kinds of cargo (packed goods, small parcels and etc), which can be transported in containers, are transported using the road transport services

• JSC “Lithuanian railways” containerized cargo (1 mill. tones) takes only 1.% in compare with the amount of freight transported by road transport

• Minimal charges (not cost-effective for rail carrier) are used to attract these freight flows to the railway transport. But this is not enough for present time and conditions

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Freight pricing policy on freight transportation by Rail and Road transport from the point of view of the

Customer

Comparison of conditions of transportation of containerized cargo by rail and road

1. Transportation safety + Accidents in Lithuania (2007):

- In roads – 6600 (~600 due to track drivers’ fault) - on rail – 21 accident

2. Transportation time =

+

- Transit freight transportation by rail through Lithuania is 5 hours longer than by road. No major effect on efficiency of transportation- In case of traffic bottlenecks on EU/CIS border cargo transportation by road can be extended to several days. “Viking” container train needs 30 minutes to cross EU/CIS border

3. Transportation costs − Costs on containerized cargo transportation by rail are ~1/3

higher than transportation by road.This disadvantage appears because of Lithuanian rail carrier’s duty is to cover all infrastructure maintenance and renewal costs. Road carrier in Lithuania pays symbolic national vignette road charge to use the infrastructure – less than 6 EUR per day. Other road carrier fees are also low and cannot cover road infrastructure costs nor external transport costs

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Cargo Transportation volume by Rail and Road from the Point of View of the State

1. The expenses on the infrastructure maintenance and renewal, financed by the State

+- Road users in Lithuania cover only 10% of road infrastructure maintenance and renewal costs. The rest part is being covered by the government (through excise tax, other country budget and EU funds)- Lithuanian rail carriers cover 70% of rail infrastructure maintenance, renewal and development costs

2. External cargo transportation costs :- Death of people +

People lost in traffic accidents in Lithuania:- on roads – 739, due to track drivers’ fault 60;- on railway – 37, due to railway carrier’s fault – 0.Death of one person costs ~1,3 mill. LTL (~0.4 mill. EUR) according to governmental estimations

- Injury of people +People injured in traffic accidents in Lithuania: - Road accidents – 8234, incl. due to track drivers’ fault 715;- Rail accidents – 6, incl. due to carrier’s fault – 0.Injury of one person costs ~80 thous. LTL (~23 thous. EUR) according to governmental estimations

- Air Pollution +Lithuanian cargo trains pollute environment ~10 times less than road tracks Diesel fuel consumption per cargo:- Road tracks ~200 litres / 10 000 tkm- Lithuanian cargo train ~18 litres / 10 000 tkm

Traffic congestions at the border, air pollution, CO emissions, noise, etc. +

In any case rail transport create less external costs than road transport

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The volume on containerized cargo transportation by road and rail: comparison of the prices*

168

6

133

127

0

100

200

300

Tran

spor

tatio

n pr

ice,

EU

R

Road transport Rail transport

Carrier's part Infrastructure charge

174

260

Excise tax

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* The prices for comparison are taken of single trailer-fit cargo transit freight volumes through Lithuania, from Latvian to Polish border

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Passenger transportation on „Rail Baltica“

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History

• In former Soviet Union passenger rail transport of Baltic States was developed to transport passengers eastbound

Lithuanian-Polish border

Lithuania

LatviaEstonia

Poland

- 1520/1524 mm - 1435 mm

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Current situation

• Today geopolitical situation is different

• Demand for travel exists westbound mostly

• Still passenger rail transport of Baltic States remains integral part of eastern transport system

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CONNECTION WITH LATVIA

Passenger train route Vilnius–Riga–Vilnius had been operating every second day. Due to very small amount of passengers the route was cancelled on the 15th of January 2004. Now the only connection with Latvia isoperated by Vilnius–St. Petersburg trainwitch goes through Daugavpils (Latvia).

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COMPETITION BETWEEN PASSENGER CARRIERS IN ROUTE VILNIUS–WARSAW

TYPE OF TRANSPORT

TRAVEL DURATION PRICE, LT

TRAIN 9.20 h 80,98

BUS 8.10 h around 50,00

PLAIN 1.05 h starting from 505,00

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Tasks for the nearest future• To shorten trip time between Vilnius/Kaunas and

Warsaw via Sestokai by increasing trains speed and eliminating some intermediate stops

• To increase number of trains connecting at Sestokaistation

• To re-open Vilnius – Riga train communication

• To prepare timetable, service descriptions, pricing options, marketing activities plan, modern modular passenger trains acquisition documents, project financing options etc.

• Become fully ready to benefit from advantages of Rail Baltica line

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Conclusion

• Rail Baltica line will open gates for passenger traffic to destinations of demand

• Today already we need to form passenger flows for the future Rail Baltica operations

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Thank You for Your attention