Intro
An efficient and intelligent transport and logistics system is a key determinant of a competitive and well-integrated Baltic Sea Region (BSR). Regional projects on transport and logistics have been actively working with the improvement and integration of these systems in the past few years.
Main messages
• Logistics are global and we need platforms to meet and debate transport and logistics issues
• There are a number of bottlenecks in the transport system of the BSR that affect many businesses (both physical and in terms of a lack of harmonisation in rules and regulations and administrative procedures). To tackle the problems and to decrease the cost of transport of goods and passengers, regional cooperation must continue and investments must be increased in the area of logistics and transport. As for investments, cross-border efforts need to be prioritised
• We also have to bear in mind that the BSR to some degree is a transport side-road far away from the main logistic chains, which can entail very specific challenges and costs.
• Nevertheless, the Baltic Sea Region has a large, untapped potential to become a gateway for increasing flows of trade between Europe and Asia. In this regard, the Siberian Railway has a large potential and unutilised capacity
• Under the umbrella of the renewed Northern Dimension policy program, an elaborate partnership on transportation and logistics between North-West Russia and Europe has been proposed by the Finnish EU-presidency
• Border-crossings between neighbouring countries, even within the Region, are a huge issue that needs attention at the regional as well as the EU-level. This issue is not the least important for the transportation between the Region and Russia
• National solutions are not enough. Even so, many of the transport infrastructure investments are still national projects. We clearly need a broader transnational and regional approach to solve many issues
Themes
Background
The existence and dynamic development of a coherent and intelligent transport system tied up with a strong transport infra¬structure is a crucial element for economic growth and quality of life in the Baltic Sea Region. However, a snapshot picture reveals that significant gaps currently exist. Studies, including the report from Baltic Development Forum’s Round Table process, have decisively shown that the transport system in the Region barely lives up to present needs, and steps are needed to improve it. In addition, today’s challenges are global. A rapidly increas¬ing flow of goods from emerging players such as China and Russia are transported to and through the Region, putting additional pressure on the system.
Against this background, the session focussed on opportunities for improved intermodality and interoperability – how we can bridge the gaps in a global context. In this regard, the need and requirements for a pan-Baltic transport strategy were addressed. Interreg-projects Baltic Tangent, Baltic Gateway and InterBaltic were pre¬sented and the role of EU-supported transnational co-operation as a tool for transport strategy development and implementation through increased public-private partnerships provided a basis for the discussion.
What is being done?
State Secretary at the Finnish Ministry of Transport and Communications, Pertti Puro, presented a Finnish national action program agreed on in 2005 that includes 35 concrete measures, focussing on the role of the public sector in strengthening Finland’s logistics position and competitiveness. Mr. Puro was pleased to announce that, in response to the Finnish proposal, the European Commission has promised to draw up a concrete action plan during the German presidency. Transport and logistics have also been on the agenda of the EU-Russia dialogue, and for the first time one has agreed on creating a joint working group to identify obstacles to freight transport between Europe and Russia, with a view to eliminate them. This includes the ever-ongoing problem of border-crossing from Europe to Russia. Mr. Puro also drew the attention to the renewed Northern Dimension policy framework, which maintains special focus on a possible transport and logistics partnership, in which international financing institutions (IFI:s) such as NIB should play an important role. He stated that the main role of the public sector is to create a stable and favourable legal and policy framework alleviating for companies to offer logistical services.
In Finland four main areas were identified where public sector can influence logistics:
1) Research, development and education (e.g. ICT innovation in logistics)
2) Legislative frameworks
3) Improving infrastructure and connections (e.g. border-crossing points between the EU and its neighbours)
4) International cooperation in logistics (the BDF summit is an excellent forum for dialogue between stakeholders, he said)
Shortcomings and bottlenecks in the Region
Mr. Puro stated that the Finnish side is deeply concerned with the efficiency of the logistics system in the BSR. Logistics is a more and more important factor for competitiveness and economic growth, he argued. He added that it is important to acknowledge that the logistics sector, as an industry, is a major source of employment in Europe. He recognised that sustainable logistics also strongly support the goals of EU’s transport policy.
CEO of Maersk Nordic & Baltic, Thomas Dyrbye, stressed that the BSR is at the ‘end of a side road’ when looking at the global logistics chains. “It is a long way from here to where the main cargo flows are moving”, he said, referring to Hamburg as the destination where a lot of goods is turning. In fact, this leads to additional costs when importing goods and should therefore not be underestimated, he emphasised. Mr. Dyrbye pointed out that although the main cargo routes cannot be moved, a lot of bottlenecks in cargo flow and obstacles in the logistics chain can be removed with regional efforts. He, therefore, opted for more investments in logistics and transport.
State Secretary at the Lithuanian Ministry of Transport and Communications, Alminas Maciulis, focussed on the bottlenecks in cooperation and utilisation of the transcontinental transport system. He underlined as shortcomings the fact that customs, freight documents and tariffs are not harmonised, and that there is a high level of bureaucracy and unbalanced traffic. According to Maciulis, these bottlenecks are undermining effective cooperation and utilisation of the transnational transport system.
What should be done?
Mr. Maciulis spoke of the Lithuanian perspective on transport development and its impact on the competitiveness of the BSR. He raised the important question: “How can the BSR become a gateway for Europe and the emerging Eastern economies in the global transportation chain?”
He pointed out that better interconnections create opportunities for integration of the logistics chains, and underlined four important aspects, namely: 1) development of trans-national transport links, 2) improvement of transport and logistics services, 3) elimination of physical as well as non-physical trade barriers from emerging regions, and 4) increasing demand for international trade from emerging regions.
He also praised the Finnish presidency for putting railway interoperability on the EU transport agenda. This is especially important in the dialogue between the EU and Russia, he argued. Maciulus advised that in Lithuania’s long-term strategy for transport and infrastructure, the development of two main priorities were identified: 1) Development of North-South transport access including the construction of the new railway line, RailBaltica, and 2) modernisation of the East-West transport corridor. These two priorities reflect the efforts to create a modern transport network and to ensure the development of an intermodal infrastructure.
Director of Business Development at Södra Cell, Gustav Tibblin, stressed that transportation is extremely important for the forest industry. In fact, for Södra Cell, 25% of all the costs stem from transport. Taking care of infrastructure, therefore, is of vital importance. He underlined that it is not only important to improve the big ports but the smaller ones too. “We have to have the right conditions to be competitive”, he stated.
Mr. Tibblin strongly proposed more investments in infrastructure of road systems both in the emerging as well as in the developed countries. This could lead to increasing maximum truck weight in, for example, the Baltic States. He also called for improvements of port roads, in smaller ports as well, and an openness towards new industry ports. Discussions after the speeches drew upon the fact that there should be more efficient concentration of important ports in the BSR instead of many small ones.
During the session three EU-funded transport projects (Interreg IIIB) were presented.
Baltic Tangent
Presentation by CEO of the Regional Council in Kalmar County & Chairman of Steering Committee in the Baltic Tangent project, Hǻkan Brynielsson
The basic idea behind the project is the need for economic development in the East-West corridor of the BSR; in Russia, Baltic States and Scandinavia. China was added later. One restriction is the poor accessibility by road, rail and sea to the main TEN-T (Trans-European Network) roads. The goal of the project is to improve this accessibility in a sustainable way. The project is built on a strong partnership between public institutions and businesses. Transport infrastructure is important for many industrial actors who support this initiative. Five important bottlenecks were identified by the project: 1) border crossing difficulties to Russia and the Far East, 2) the restricted capacity of rail and road transport in the Baltic States, 3) the traffic congestion around Riga, 4) the access to ports and ferry capacities in Latvia. The project aims at finding ways of eliminating these bottlenecks. The BSR should be the gateway between China and Europe. The Trans-Siberian railway is an important connection in this regard.
Baltic Gateway
Presentation by Region Blekinge, Project Coordinator for Baltic Gateway/East-West, Bengt Gustafsson
The Baltic Gateway project has formed a joint action plan with the objectives of capacity building, improving the Southern Baltic ports as growth centres and connecting these. Mr. Gustafsson pointed out that the BSR must be better connected to Russia, the Far East and China. He acknowledged the importance of the Tran-Siberian railway for the BSR. The success factors identified by the Baltic Gateway are: 1) the access to infrastructure, 2) access to good public transport services, 3) access to markets and 4) the stability in prices and lead times.
InterBaltic
Presentation by Transport Coordinator, CPMR North Sea Commission and Partner in InterBaltic, Jon Halvard Eide
The project has three thematic work packages: megatrends and strategy, intermodal toolbox development and action-oriented business development. Its four focus areas are the North-South transport axis, intercontinental intermodal transports, the motorways of BSR and the strengthening of the ‘Baltic Ring’.
InterBaltic has a lot of features in common with the other projects. However, InterBaltic differs from the others in terms of its pan-Baltic scope, its analysis of global megatrends, its intermodal toolbox development and its explicit integration of existing knowledge.
