TRANSPORT POLICY AND DEVELOPMENT IN ESTONIA

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TRANSPORT POLICY AND DEVELOPMENT IN ESTONIA
Peter Tiks Economic Development Department
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• Transport in Estonian Economy
• Transport policy
• International trends, routes of merchandise

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Ministry of Economic Affairs and Communications
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Transport Policy Measures

• Transport Development Plan for the period
  2006-2013
• Plan of Road Management for years 2002-2010, etc.

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• The Estonian transport system consists of
• road transport
• railway transport
• maritime transport
• river transport
• air transport
• urban electric transport
• pipeline transport

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The main objectives of the Estonian national
transport policy

• To provide faster, cheaper and safer transport
  connection - Accessibility
• To reach spatial balance and narrow development
  differences between economically stronger and
  weaker regions of the country Regional aspect

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GDP at current prices in Transport, Storage and
Communication (Unit million kroons)
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Transport in economy of Estonia

• Location is the only the most calculable natural
  resource of Estonia
• Transport generates ca 10 GDP
• GDT in transport sector divides between different
  modes of as next
• 64 road transport
• 26 railway transport
• 7 sea transport
• 3 flight transport.

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Global freight routes
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European level
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Baltic sea level
ca 100 mio. inhabitants ca 500 mio.tons
freight, yearly increase 3-5 Developing
economy Baltic sea EU inner sea Bridge
between east and west
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The Main transit corridor
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Skandinavian transit corridor
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South transit corridor
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Local level
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ESTONIAN RAILWAYS
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Main freight routes of Russia to west 2003
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Main freight routes of Russia to west 2030
source Transport connections between the EU and
Russia
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Competition between the Ports in the East side
of Baltic Sea 2000-2004
Total Amount 2000 201 mln tonnes 2001 217 mln
tonnes 2002 244 mln tonnes 2003 266 mln
tonnes 2004 308 mln tonnes
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• Freight transport from Europe to Russia through
  Estonia has the history over 1000 years
  experience is the advantage in competition
• Today the transit through Estonia consists in 90
  of Russias freight (oil, coal,fertilizers etc.)
  to Europe
• Mostly the cargo is operated as multimodal
  railway-ship (2/3) or ship-truck (1/5)

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Local Reality

• Estonia is the member of EU
• Russia is and stays our neighbour
• Russia is always been part of Europe
• Russia and West-Europe are interested in
• co-operation
• Russia is joining with WTO
• Baltic Sea Region is one of the most fastest
  developing regions in Europe
• Global, regional and local concerns and
  developments are highly entwined in Baltic States
  

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Ice conditions in the Gulf of Finland

• Ice conditions in the Gulf of Finland March 15,
  2005 Narva bay is covered with fast ice (also
  all the eastern part of gulf), but west of Kunda
  drift ice is dynamic and ice conditions are very
  much depending on wind.

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Future of Ports in Baltic States (1)

• The Russian pipeline system does not have enough
  throughput capacity and further increase export
  volumes will depend more on rail transport. This
  works for foreign ports.
• With the ever increasing volumes, terminal
  operators have invested heavily in wagon handling
  equipment. In Muuga Harbor and in the ports of
  Riga, Liepaja and Klaipeda is rail transportation
  the only economically possible means of oil
  transit transportation.
• Russian capital is presented also in the Estonian
  harbors and terminals. The Russian businessmen
  want to continue the transit and earn money.
• Russian oil production and exports are expected
  to increase substantially over the next five to
  ten years. Insufficient oil export capacity in
  Russian ports, bottlenecks in hinterland
  infrastructure and adverse winter conditions
  should allow Muuga Harbor, as well as the other
  ports in the Baltic States to stay in
  competition.

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Future of Ports in Baltic States(2)

• Almost 80 of Russian oil exports are destinated
  to Europe. With limited market growth potentials
  in Europe, Russian oil companies give high
  priority to new markets in the United States and
  in Far East. The existing Russian oil transport
  infrastructure does not supports these potential
  new markets.
• Using foreign ports it is cheaper to transport
  the oil via the Baltic States (from the Russian
  press, interviews with Russian businessmen).
• The export of oil products is growing faster than
  crude oil export. Foreign ports are more reliable
  to handle this more valuable cargo.
• For several reasons the Russian Ports do not
  handle the import of consumer goods and other
  valuable cargo (electronics, etc). Such cargo has
  to be handled by the logistic centers abroad at
  first, then distribute to Russia.

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Thank You!