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ELECTRIFICATION OF THE LATVIAN RAILWAY NETWORK

To ensure efficiency of transportation, facilitate international competitiveness of the Latvian railway transit corridor and achieve environmental goals, LDz plans to carry out full electrification of the main railway network over the coming years. To implement the Project, EU Cohesion Fund co-financing and LDz funds shall be used.

Timeline of implementation of Stage 1

Benefits of Stage 1

DURING CONSTRUCTION

Impact on the GDP

120 million EUR

38%

planned local investments

In Latgale

  • New jobs
  • Development of local business

Development of new education programs in the fields of transport and energy

AFTER IMPLEMENTATION OF STAGE 1 OVER ITS ENTIRE LIFE CYCLE (2024–2047):

BENEFITS TO INDUSTRY AND THE NATIONAL ECONOMY

Competitiveness of the industry that has an impact on

20%

of the Latvian national economy

354 million EUR

Energy and labour force cost savings

147 million EUR

Operational savings of rolling stock

Increased competitiveness of international logistics services

CO2 Reduction of CO2 emissions in railway transport

-20%

Length of electrified lines increased up to

30%

Reduced Latvian energy dependence on imports of fuel

Passenger time savings in monetary terms

5,8 million EUR

Monetary savings due to reduced number of accidents

7,1 million EUR

Expert opinions

Aivars Strakšas

Board Member and Vice President of VAS Latvijas dzelzceļš

Viewing Latvia’s balance of payments, transit contributes more than one billion euros per year to the national economy, and a majority is generated by railway and railway cargo transportation, which further continues in ports and on the sea. Railway electrification is an issue of how much we are ready to invest to retain this one billion per year in the Latvian economy, increase the amount, or at least retain it in the same level.

Db.lv, 24 October 2017

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Andris Lauciņš

Partner of the audit company Ernst&Young

Transit directed towards the three largest Latvian ports puts it in a very fierce competition with at least three other directions, namely, Lithuania and the port of Klaipėda, Estonia, and the newly-established ports in the territory of Russia. Considering these competitive conditions, every cargo owner has to make careful calculations to determine the cost of cargo transportation to the ship in each of the above directions. Therefore, fluctuations of railway transportation costs, be it one euro or few cents per tonne, create a significant competitive advantage. The railway electrification project is crucial because the use of electric traction is more efficient than diesel traction, and thus enables the Latvian transit corridor to provide a more competitive price to cargo owners.

Db.lv, 24 October 2017

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Igors Gaurs

RISEBA Development Prorector, former Rector of the Transport and Telecommunication Institute

It is undisputable that railway electrification is absolutely necessary. In fact, it is a matter of survival. Speaking of railway electrification, we lag behind the rest of Europe, despite the fact that we are in among the most significant transit directions. If our neighbours, Lithuanians and Belarusians, weren’t doing it today, maybe we might not think about it; yet it is happening.

Db.lv, 24 October 2017

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Jānis Irbe

Executive Director of the Latvian Railway Industry Employers Organisation

...the railway electrification project is Latvia’s pass to the future of the transport industry in the international markets. The question is: Are we ready to take this pass and become more competitive?

Tvnet.lv, 1 June 2017

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Sergejs Gubins

Researcher for the think tank Certus, PhD in Economics

Although the industry does not share the same view regarding the railway electrification project, it demonstrates more pros than cons. The most important benefit of the project is that thanks to it, we will manage to save an entire industry – namely, Russian and Belarussian cargo transit to our ports. Without electrification, we will not be able to do it, since Lithuanians would replace us.

Diena.lv, 21 November 2017

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Steve Huan

Executive Director of DHL Global Forwarding Greater China

As the leading logistics company, we are responsible for linking people and companies and providing global logistics, but we also think about the impact our work has on the environment. We would like to be the market and technology leader in green logistics, thus differing from our competitors. Our climate protection goals include emissions caused by our own and our partners’ operations, and purchased energy. Therefore, we plan to cooperate only with partners and subcontractors who meet our GoGreen requirements. LDz is one of our partners.

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Staņislavs Šķesters

Deputy of Rēzekne Municipality Council, Chairman of the National Economic Development Committee

Implementation of the railway electrification project will not only have a positive impact on Rēzekne and Daugavpils, but the region of Latgale in general. For example, during project implementation many new jobs will be created, thus reducing the number of people leaving for other regions of Latvia or going abroad in search for a better life. Moreover, I see there are business development opportunities, for example by producing innovative products not only within the framework of railway electrification, but also within the framework of the Rail Baltica project. Of course, we cannot forget the benefits to the environment as a result of replacement of diesel locomotives with electric locomotives.

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Iveta Maļina-Tabūne

Manager of Latgale SEZ and Head of the Latgale Planning Region Administration

The project is very important for Latgale as it will create a multiplication effect on development. The improved infrastructure will facilitate mobility, both in terms of inhabitants and businesspeople who will be able to transport their cargo faster than before. At the same time, business and education programmes will develop, as a result highly qualified specialists will be attracted to the region, and, possibly, this might facilitate re-emigration.

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Jānis Brizga

Representative of the Green Fund

In Europe, railway is mainly electrified. Therefore, with all the arguments in place, Latvia should also move to this environmentally-friendly transport. Diesel locomotives are almost history, but our future is environmentally friendly technologies, not only railways, but also private cars and public transport.

Tvnet.lv, 20 August 2018

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Vitaly Gavrilov

President of the Employers’ Confederation of Latvia

Railway electrification is a project not only stipulated in the national strategic planning documents of Latvia, but also a relevant step to achieve the development goals of the European Union strategic documents for the environment and transport industry.

Diena.lv, 23 August 2018

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News

10.10.2019

SJSC Latvijas Dzelzceļš signs agreement on the implementation of Stage 1 of the project Electrification of the Latvian Rail Network

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15.07.2019

European Commission gives full approval to railway electrification project

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11.01.2019

JASPERS IQR, Independent Expert of the European Commission, Provides Positive Opinion for the Railway Network Electrification Project

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10.08.2018

Procurement announced for Phase 1 of railway electrification Project

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06.12.2017

Government accepts the proposed funding option for the railway electrification Project

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02.03.2018

LDz submits the electrification project to CFCA

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Procurements

VAS Latvijas dzelzceļš announces

Negotiated procedure, publishing prior contract notice “Electrification of Latvian Railway Network: Construction”. Procurement identification No. LDZ 2018/8-IB

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About the Project

Stage 1 of the Project will be implemented within the framework of Measure 6.2.1.1 “Electrification of the Latvian railway network” of specific support goal 6.2.1 “To provide a competitive and environmentally friendly TEN-T railway network facilitating its safety, quality, and capacity” of the Operational Programme “Growth and Employment” of the programming period 2014–2020 of the Cohesion Fund of the European Union (EU) Structural Funds.

The proportion of the transport and storage operations that also include the railway industry made up 9.1% of the GDP in the Latvian economy in 2016. Consumption of intermediate products produced by the industry provides additional turnover in other industries as well. The proportion of railway cargo in total cargo turnover makes up approximately 55%.

To increase the efficiency of transportation, facilitate the use of environmentally friendly technologies, and increase international competitiveness of the Latvian railway transit corridor, LDz plans to carry out full electrification of the main railway network over the coming years.

Documents

The Latvian railway network electrification project complies with the goals stipulated by the European Union and national strategic planning documents.

National Development Plan 2014–2020

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Transport Development Guidelines 2014–2020

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Sustainable Development Strategy of Latvia until 2030

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Implementation Regulations of Measure 6.2.1.1 “Electrification of the Latvian railway network” of specific support goal 6.2.1 “To provide a competitive and environmentally friendly TEN-T railway network facilitating its safety, quality, and capacity” of the Operational Programme “Growth and Employment”

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Regulation (EU) No. 1303/2013 of the European Parliament and of the Council of 17 December 2013 setting common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and setting general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No. 1083/2006

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WHITE PAPER. Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system

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Directive (EU) 2016/2370 of the European Parliament and of the Council of 14 December 2016 amending Directive 2012/34/EU as regards the opening of the market for domestic passenger transport services by rail and the governance of the railway infrastructure (Text with EEA relevance)

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Regulation (EU) No. 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No. 661/2010/EU (Text with EEA relevance)

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Strategy “Europe 2020”

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Commission Staff Working Document. Country Report Latvia 2017.

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If you have any questions, please contact LDz