Intro
One of the most important challenges of the BSR at present is to create a more efficient and well-integrated transport and logistics system. This is an urgent issue on the agenda of The Baltic Metropoles (BaltMet). Initiatives are being taken under the umbrella of the new project BaltMet Infra. The session discussed ways of improving the BSR infrastructure system in the light of the BaltMet Infra project.
Main Messages
• A Northern Dimension partnership on transport and logistics would be an excellent start for cooperative work in the BSR – Juhani Tervala
• One key issue is to build an integrated transport information system for the whole BSR. – Igor Kabashkin
• Poor access from cities to the main corridors is a common problem in Baltic metropolises. – Jussi Pajunnen
Themes
Infrastructure - Baltic Sea Region
Lord Mayor in the City of Helsinki, Jussi Pajunnen, concentrated on infrastructure development in the BSR and the contribution of BaltMet. He stated that their clearly defined goal is to integrate the BSR internally towards the European mainland and Russia. The BaltMet Infra project aims at providing best cost benefit value for improving the internal and external connections of the BSR, Pajunnen emphasised. There is a priority of 24 projects on developing transport and environment that was approved by the Mayors’ meeting just before the Summit. Pajunnen acknowledged that the cities are most dependent on good connections. They are presently facing several challenges in terms of missing links to Russia, inadequate capacities, poor access, bad connections, ineffective logistical chains, and emissions to the Baltic Sea. Poor access from cities to the main corridors is the common problem in Baltic metropolises, Pajunnen stated. Most importantly, he pointed out, there is still an underdeveloped pan-Baltic infrastructure despite the many players in the Region, and BaltMet will make efforts to put this highest on the agenda. Pajunnen called for the upgrading and development of corridors between the cities and better coordination between financial institution and the national governments.
Environment
Pajunnen underlined that “our common concern is the emissions to the Baltic Sea”. The sea is not recovering and Pajunnen encouraged continuous efforts and investments in the Baltic Sea environment. He stated that the major cities are key actors contributing to the state of the environment. He emphasised that the successful wastewater treatment plant that opened last year in St. Petersburg as a result of a transnational project has set a good example for future projects. Also, Senior Vice President, Head of Area Europe & Eurasia, Nordic Investment Bank, Harro Pitkänen, pointed out that the environmental impact of bigger investments in infrastructure needs to be taken into account.
Infrastructure - Russia
Chairman of the Committee for Transport and Transit Policy in the Government of St. Petersburg, Andrey Karpov, talked about the possibilities of St. Petersburg being a logistical centre. The problem of the growing cargo traffic through the city and the insufficient income of the city budget forced the government to create a committee. Karpov explained that a shift had to be made from the model of “the city as port” to the new model of “the city as logistical and distribution centre”. The main idea was to understand that if we “cannot directly make money on the ports, we have to make money on the cargo that the ports attract. He pointed out that to strengthen its competitive advantage, St. Petersburg will have to integrate deeply into the transport and logistics network of Europe and most importantly the BSR. Karpov stated that he believes it is very important for the BSR to see which Russian region can speed up the development of the transportation and logistics area. Pajunnen agreed and found that St. Petersburg is especially important, as it is the main Western logistical centre in Russia.
Karpov pointed out some challenges that need to be tackled between Russia and Europe. Firstly, sea border custom procedures must be simplified along with land border procedures. Secondly, he suggested creating a common space of standards that would ensure the safety of transport activities in the BSR. Furthermore, he pointed out that a clear understanding of the conditions and the monitoring of the transport and logistics infrastructure of the BSR are two important factors along with professional education in this area.
Pajunnen explained that RailBaltica is the biggest missing link in the BSR traffic network. In fact, BaltMet calls for further development of the project and urges St. Petersburg and Berlin to join. Pajunnen also stated that bottlenecks in connection to Russia are becoming a large problem especially in terms of customs and logistical services.
Future action in infrastructure
Vice-Rector of Transport and Telecommunication Institute of Riga, Igor Kabashkin, spoke of three main aspects of transport infrastructure in the BSR. Figures show that trade will be increasing intra - and extra-regionally in the near future. One of the main reasons is the emerging economy of China. In the future we must think about logistics centres and regions, and not local logistics points when it comes to linking Europe to Asia, he said. There is a paradigm shift in transportation towards ‘mobility’ from the classical concept of “movement of passenger and goods”, he explained. One key issue in the future is to build an integrated transport information system for the whole BSR. It is of course also important to have the right political decision before starting to build a new type of infrastructure, and BDF could be a sufficient accelerator in this process, he stressed.
Senior Vice President, Head of Area Europe & Eurasia, Nordic Investment Bank, Harro Pitkänen, talked about the importance of an effective transport scheme. Transport corridors are chains and one little missing link can ruin the efficiency of such a chain, he explained. A deeper integration in the BSR requires an efficient transport and logistics system in the future. It has to be kept in mind that the effective utilisation of natural resources in the Region also requires effective modes of transport and communications. Pitkänen explained that metropolises have multiple roles; they are project initiators, investors and lobbyists at the same time. Metropolises also have the role of regulators that set the playing field. He recognised that there is a need for substantial capital investment over the next years in the BSR. There is a multitude of financial sources, but for viable investment there is a need for a substantial base of own capital, he pointed out. Pitkänen underlined that public-private partnerships in transport and logistics are often the answer, but the right structure of these partnerships are very important to build at an early stage. He also pointed out that the role of local and international financial agencies is significant in infrastructure-related projects.
Moderator, Director General in the Finnish Ministry of Transport and Communication, Juhani Tervala, stressed that a Northern Dimension partnership on transport and logistics would be an important start for common work on infrastructure in the BSR.
