Ilona Bērziņa, BNN
Latvia’s new Minister of Transport Jānis Vitenbergs inherited from his predecessor Tālis Linkaits a pile of problems that demand immediate solutions. So far it seems the new minister is fired up, and while the ice hasn’t moved much, it has started to break.
Vitenbergs’ readiness to listen to the opinions of representatives of major sea ports and businesses based there is welcome, as is his will to initiate changes in Latvia’s railway sector, develop national and local roads, as well as finally introduce some order to the public transport network are all welcome.
We can only wish luck to the new minister. However…
Latvia heard all this once before, and good intentions largely remained on paper.
Perhaps this time will be different?
Public transport and unrealised bus trips
If many different public statements from politicians and a very specific document – the Public Transport Concept for 2021-2030 – are to be believed, we already live in a fairy land, public transport-wise.
As Linkaits said last summer, Latvia’s bus network is one of the most reliable ones in the European Union. The number of unrealised trips is only 0.3% of the total number of bus runs. This is largely due to Covid-19 infections among bus drivers. Road Transport Administration LLC, which is owned by the ministry, regularly receives news of unfulfilled trips almost from all over Latvia, with Latgale being the one exception.
Carriers complain about the frequency at which drivers go sick. The Road Transport Administration waves its finger and threatens termination, whereas the countless residents of Latvia’s regions are forced to wait at bus stops and freeze while waiting for a bus that may or may not show up.
The only hops is that minister Vitenbergs fulfills his promise to replace carriers in areas in which they are unable to provide services. Another matter is whether or not all the good intentions remain such, because 59.83% of shares of the biggest scapegoat at the moment – Liepajas Autobusu Parks – is owned by LAP1R LLC, which, according to data from Firmas.lv, is indirectly owned by families of the minister’s
«colleagues» – Andris Šķēle (67%) and Ainārs Šlesers (33%). Liepaja municipal administration is a minority shareholder.
Will Rail Baltica ever progress?
Rail Baltica is another complicated matter. Progress with this project is not as fast as initially planned. Last summer, before the adoption of Rail Baltica Project’s Implementation Law, there were claims that municipalities, engineering network owners, State Environment Service, State Inspection for Heritage Protection and other institutions that decided to include their own technical or special requirements in construction permits were to blame for the poor progress. This included requirements such as construction of bridges, roads or bypasses not connected to the railway line.
Rail Baltica Project Implementation Law, which helped remove these problems, came into force on the 14th of November 2022. However, despite the allocation of more than EUR 353 million of additional funding from the European Climate, Infrastructure and Environment Executive Agency, the project remains in a standstill. Since 2018 the project’s partners from Lithuania, Estonia and Latvia have been at odds with each other. Neighbouring countries are unhappy with Latvia’s slow progress and are concerned this could put at risk the project’s implementation in Lithuania and Estonia.
Jānis Vitenbergs announced on the 3rd of January that the sides involved in the project’s implementation, including European Railway Lines LLC, are to prepare a report on the state of the project and have it submitted to him within two weeks. But it would be naive to believe this report won’t be delayed and will be able to resolve all problems in the project.
It is clear the project won’t be completed by 2026. The most optimistic outlooks suggests the connection between Riga and Lithuanian border may happen in 2028.
2030 is considered by top officials as year of completion, festive ribbon-cutting and champagne drinking.
Reality, however, is far from that at the moment. But it’s not like the Ministry of Transport is doing nothing – a curious document Ministry of Transport Plan for 2023, found on the ministry’s website, details that the institution is preparing «to inform society and mass media of attraction of funding for Rail Baltica activities in Latvia, as well as to explain the ministry’s legislative initiatives, including decisions necessary for the project’s implementation»; «Implement educational campaigns and other activities to ensure support of sides involved in the project and society in general»; «Promote society’s understanding of Rail Baltica’s progress in Latvia, including design work of the main line and construction in accordance with the construction strategy together with the project’s partners».
It is also planned to promote change in residents’ travel habits. Whether or not educational information campaigns funded by EU funds in 2021-2027 period can help with that is a different matter altogether. Meanwhile, the aforementioned Public Transport Concept for 2021-2030 includes the creation of a multi-modal system, which means coordinated bus-train routes, single ticket system and transfer points.
There is also the matter of the infamous tender for public transport services in regions. Another dream in the making is making railway the backbone of public transport services in Latvia.
LDz expecting changes
Even Latvian Railway (LDz) is a source of never-ending headaches for minister Vitenbergs, at least, according to his own words. He said in a recent interview to LETA: «[…] I’m not happy with the company’s position, one which I would describe as – ‘Previously we worked with Russia, not it’s not possible, and this is why things are bad now.’ I am surprised this company has sat around for years, not doing anything to diversify the market. The situation with Russia was difficult for a long time even before its invasion of Ukraine, and this is negligence from the company’s management – not looking for alternatives to the Russian market.»
As for the drop in turnover for LDz (according to outlooks, in 2023 it may reach approximately 16 million tonnes), the minister said: «Companies competing with LDz have managed to deal with existing challenges more successfully». The fact that the transit sector has serious problems and freight volumes are down is no secret – it has been the case for years. Representatives of this industry have been knocking on the ministry’s doors for a long time, proposing joint discussions of the sector’s problems and possible solutions.
Unfortunately, the ministry until now has suffered from hearing problems even though the appointment of transport sector expert Tālis Linkaits as minister offered some hope for constructive dialogues and solutions. Now the sector has once again entered a period of «high hopes». The good news is that minister Vitenbergs, according to himself, is prepared «to consult and listen to different opinions and suggestions».
«Hot potato» – sea port reform
However, the «hottest potato» the minister received from his predecessor is the sea port reform. Vitenbergs said it needs to be continued. Considering that the sea port reform spent most of its time under discussions in the previous government’s term, it would be odd if the minister said something else.
It cannot be denied that this reform was commenced without any economic evaluation. As previously noted by Latvian Stevedoring Companies Association (LSA), sea port-based entrepreneurs are concerned and confused over the decision-making in regards to investments and future development of economic activities.
LSA stressed that sea port management representation model should include municipalities, businesses and the state. However, whether his happens in a way that satisfies everyone is unclear at the moment. The minister’s readiness to listen to opinions of sea port-based entrepreneurs about the reform and proposals to improve the reform is a positive thing.
His statement about looking at the sea port reform from an economic viewpoint and interest in increasing freight volumes for Latvian sea ports allows for some hope for development. As for moving forward, Vitenbergs wants to wait for the verdict of the Constitutional Court in regards to the reform’s compliance with the Constitution.
Because the case is set to be reviewed in spring, no quick solutions are expected.
It should be mentioned that none of the aforementioned matters can be resolved quickly. For example, there is airBaltic, which needs to be taken off the sate subsidies «needle»; local roads, 50% of which are in poor state; Latvian Post suffers from low wages (postmen are paid an average of EUR 750 before taxes). These are but some of the existing problems.
Also read: Latvian minister stresses that opinions of businessmen are important for sea port reform