Transport

Should a flow of Asian cargoes reach Europe by sea or land? What new transport routes will appear on the map of Euro-Asia? Who will offer a cheaper way of carrying cargoes? Competition in transit business has become as fierce as never before. Every country is trying to offer what it has best – and Lithuania is no exception.

A new role for the country

The economic crisis has made both business and states evaluate the established habits and traditions anew, to assess in essence the changed situation and new possibilities that are opening. With economy of the Asian countries growing rapidly and cargo flows to Europe increasing, Lithuania, a state on the eastern border of the European Union, might take on a new role.

The advantages offered by the geographical position, modern transport infrastructure and a European way of thinking match excellently with the economic relations that were established a long time ago with the Eastern neighbours, the perception of their traditions and mentality.

In the sphere of carrying cargoes Lithuania can offer its Eastern and Western partners cheaper and more qualitative alternatives to the established trade routes. Two international transport corridors cross the country in the North-South and East-West directions.

“During the recent years Asian countries, and China in particular, have won the name of one of the largest exporters in the world, sometimes referred to as “the world factory”. Lithuanian transport companies should make all possible attempts seeking to attract said cargo flows”, noted Deputy Director General of Lietuvos geležinkeliai AB Albertas Šimėnas.

Transportation by railway is faster

What can Lithuania offer cargo distributors? What advantages does the largest Baltic State have? By combining cargo transit and logistics, creating intermodal logistic centres, Lithuania can offer its partners faster and cheaper ways of transportation, the possibility to combine different kinds of transportation, to easily direct cargoes to their destinations.

Of late, with Asian countries intensively developing their railway infrastructure, cargo carrying by railway in the East-West direction has become especially promising. One wins time when carrying a cargo by railway, besides, this is a more economic way for long distance – this is much safer and environment-more friendly kind of transportation than road transport.

“The main advantage of railways is speed. It takes more than a month for containers to reach Europe by sea transport, and it would be possible to deliver them much faster than within ten days by railway”, states Albertas Šimėnas.

Viking links the East and the West

When carrying cargoes in the East-West direction, it is already for six years that a joint project Viking of the railways of Lithuania, Belarus and Ukraine has been operating. The combined train runs along the route Lithuania (Klaipėda State Port)–Belarus–Ukraine (Iljichiovsk Port). With every year more and more cargoes are carried by this train.

A natural continuation of the route is sea speedways enabling the ports of Denmark, Sweden, Germany and other European states to be reached through the Baltic Sea, and the countries of the Caucasus and Asia could be reached through the Black Sea.

Lithuania offers to make a more active use of the combined train Viking to carry cargoes from Asia. Cargoes could reach the eastern point of this route – Iljichiovsk Port in Ukraine through the international transport corridor Europe-Caucasus-Asia (TRACECA). This transport corridor crosses the territories of Kazakhstan, Azerbaijan, Georgia and the Black Sea, and joins the route of the train Viking in Odessa (Iljichiovsk) Port. Cooperation between Kazakhstan and China in building the railway line connecting the countries increases the importance of TRACECA even more.

Another possibility is to organise a combined train along the route Lithuania–Kazakhstan–Lithuania, which would carry transit cargoes of both countries and those of Europe and Asia.

Carriages are directed to the seaport

Transport specialists, first and foremost, emphasise that historically and geographically Lithuania is related to the railway network of the space of the countries of the CIS and the same 1525 mm wide track. Without any break cargoes by railway are carried from the space of Asia to Klaipėda Seaport or are directed towards the Polish border to be further transported to the European Union markets.

Modern and technologically strong Klaipėda deep-water (15 meters deep) seaport (this fact is emphasised by many customers who have something to do with the seaport) does not only ensure transportation of long-distance cargoes by sea from the East to Western Europe and other continents but also enables Lithuania to participate in the process of distributing cargoes carried from Asia to Europe by water.

The interesting fact is that at the present time goods from China are delivered to the regions of the Russian Federation through the Baltic Sea, having sailed half the world (south-east and south Asia, Africa, the Mediterranean Sea and Europe).

“Of course, Klaipėda Seaport has ambitions to become the port and centre of distribution from which cargoes should be redistributed in the Baltic Sea Region, and, of course, to Russia itself”, speaks the Head of Klaipėda Seaport Eugenijus Gentvilas about the visions of development.

By the way, the largest amount of fertilizers loaded throughout the entire history of the existence of the port has been carried to China. In the middle of January this year about 78 thousand tons Belarussian fertilizers delivered by railway was loaded in Greek motor ship “Aghios Makarios”. The record cargo was successfully transported to China by sea. This shows that transit cargoes can be successfully reloaded in the only Lithuania Seaport.

“Ryanair” landed in Lithuania

The international airline companies recognise that Lithuania has an excellent infrastructure of four international airports. Vilnius, Kaunas, Palanga airports serve millions of passengers, and Šiauliai airport receives cargo and military NATO aircraft.

Therefore aircraft servicing centres are being established in Lithuania. The Irish Company “Ryanair”, which offers cheap flights, decided to become more firmly established in Lithuania. It is going to establish its base in Kaunas to which it has flown up till now. This year Irish planes should take off from Vilnius airport too. “Ryanair” is going to invest more than USD 140 million in its 40th base. The Irish are going to keep two of its aircraft in Kaunas all the time and is going to build a hanger. Vilnius International Airport, which is coming to life again, should become another of Irish bases within the immediate half a year. Negotiations are being held over “Ryanair” coming to Palanga airport. Before choosing Kaunas as a place for its base the Air Company looked around in Poland, Slovakia and the Czech Republic, Spain and Germany. According to the Head of “Ryanair” Michael O’Leary, Kaunas airport attracted them by its comparatively new terminal and the possibilities for development. In spring the Irish will have 120 flights a week from Kaunas airport. The Irish Company hopes that next year the number of passengers travelling through Kaunas will increase by as much as 1.5 times. Meantime Vilnius Airport hopes to service 2 million passengers this year. Last year the Airport serviced 1.3 million passengers. This year one will be able to reach 41 towns of Europe from Vilnius, Kaunas and Palanga airports; in 2009 planes from Lithuanian airports flew in 27 directions, and in 2008 – in 33 directions.

Objective is to extend logistics centres

Hence, Lithuania has a good network of roads, railways and aviation, Klaipėda Seaport, and now, with joint efforts of the authorities and business, attempts are made to develop intermodal capacities – to create logistic centres, intermodal terminals.

“We are capable of ensuring smooth logistics of cargoes and goods between Asia and Europe”, says Minister of Transport and Communications Eligijus Masiulis.

How does Lithuania see itself within the context of Asia and Europe? Fate has given the country an excellent geographical position, and its exploitation depends on the efforts of the country’s management and business. Lithuania is a small country, which is dependent on export and international exchange to a great extent; therefore competitiveness depends in essence on the quality and the added value created.

“We have worked for many years seeking to achieve that our policy should be oriented towards the improvement of transit conditions. Lithuania is a transit country creating the added value, the gateway of logistics for cargoes and goods of the Baltic Sea Region, Asia and Europe”, says the Minister.

The Chinese want to cooperate

The Minister of Transportation of the People’s Republic of China ’s LI Shenglin who visited Lithuania last October was the main partner of the Lithuanian Minister of Transport in organising a meeting of Ministers of Transport of Asia and Europe in Vilnius. This shows that the status of Lithuania as a country of cargo transit is valued and recognised at the highest level. While in Vilnius LI Shenglin noted that China was ready to actively solve the arising problems of transportation because it is interested in freer and more rapid cargo movement between China and the European Union, which is the largest trading partner. Lithuania can offer Asia and Europe the vision of a logistics country. The Ambassador of the People’s Republic of China to Lithuania Tong Mingtao is deeply convinced of that. In his opinion, Lithuania’s geographical position is Lithuania’s unique advantage, an especially significant factor in developing economic and commercial cooperation with Europe. “Lithuania is situated on the eastern coast of the Baltic Sea, it borders with Central and Northern Europe, Russia, other countries of the Commonwealth of Independent States and has easy access to the developed Western European countries. This is a huge advantage seeking to supply the European market with Chinese goods. China devotes great attention to cooperation with Lithuania in the sphere of transport. It expects to create better conditions for economic and commercial cooperation between Asia and Europe”, noted the Ambassador.