Latvijas dzelzceļš is investing millions in development
14.12.2009 (15:31)
ldzLatvijas dzelzceļš (LDz, Latvian Railways) will not review its investment program for the period from 2008 to 2013, despite the economic crisis and the common for all railway companies trend for the reduction in freight.
Ayia Pocha, who is in charge of LDz development projects, told us about her company's current and future infrastructure projects.
Infrastructure development is a priority, a strategic trend for Latvijas dzelzceļš. It is solving the main problem of how to increase the capacity of the East — West corridor, also raising generally its reliability and safety. Reconstruction of infrastructure provides considerable savings in operating costs, reduces the the company's expenses and enables the formation of lower tariffs.
The infrastructure reconstruction and upgrade will not only enable the company to gradually increase traffic speeds, but will also increase the turnover from the current 55 million tons to 70 million tons per year. All projects should be accomplished by 2015, which will increase the throughput up to 85 million tons per year.
A considerable growth in cargo turnover is possible after implementing such projects as the construction of the second track on the section from Riga to Krustpils in the main East – West corridor; from the station Indra to the state border on the route to Belarus; and also when Riga railway junction is developed, which means the construction of new stations, connecting paths, bridges and new routes bypassing the historical city center. Financing of these projects is complex. Thus, in addition to the state's and own funds, a large amount of EU funds is involved in financing LDz.
All major infrastructure modernisation and reconstruction projects have already entered their implementation stage, others are scheduled to be started by the end of this year or within a few next years. However, so far it is decided to freeze the € 96.4 million restoration of the Rail Baltica high-speed railway tracks on the territory of the republic until 2011, due to the economic situation.
A few major projects will be completed on the Latvian railway by the end of 2009. Among them is the replacement of rail turnouts in the East - West corridor. Work commenced in 2003, total investment is € 35,2 million, including co-financing of the European Cohesion Fund (which is used for almost all rail infrastructure projects in Latvia) amounted to € 26.4 million. The second largest project is the modernisation of the axle box overheating warning system in the main corridor, which costs € 15.1 million (European co-financing amounted to € 11.3 million, and funds from the state budget amount to more than € 3.8 million).
Among the most large-scale projects which is to be commissioned by the end of 2010 is the modernisation of the € 93 million train control in the East-West corridor, which is co-financed by the Cohesion Fund at € 65.5 million. This project is implemented in two stages, after a special competition for the right to carry out and supervise works for each stage. Following the plan, the whole of old equipment has been replaced with modern systems based on microprocessor technology, highly reliable and advanced. It will improve throughput and ensure rail traffic safety.
Another important € 89.4 million project is to be realised next year, with € 46.5 million co-financing for the reconstruction of tracks in the East-West corridor. By the time when all projected works are finished, new mainline tracks will be mounted over 260 km; 52 km of them will be ready in 2010. But today, as they say in the company, € 19.2 million have to be found in the LDz's budget in order to complete this project.
The company plans to implement its 2010 infrastructural issues by the principle of priorities, because there is quite a lot of facilities which require upgrading or reconstruction. Thus, first of all, it is necessary to build the second track for the section Riga – Skriver on the route from Riga to Krustpils, in order to increase the capacity of East-West corridor to 85 million tons of cargo annually. A final decision regarding the financing of this asset is expected now, and the company intends to announce a competition next year, and to conclude a € 96.2 million construction contract with € 67.6 million co-financing from the Cohesion Fund.
Also, the work to develop Riga junction is to be started. It includes several major construction stages on the left and right banks of the Daugava River. The Bolderaya station is to be reconstructed first of all, where the alarm system in the section from Zasulauks to Lachupe should be upgraded in both directions, and the number of tracks should grow from 5 to 10, for which LDz will allocate € 17 million from its budget.
It is expected, that after such reconstruction, a new station Bolderaya-2 and the connecting tracks to the terminal in the port of Riga on the Krievusala island (which costs € 35 million) will be built. A half of the amount will be available from European funds. Of course, railwaymen are implementing the projects related to the construction of rail infrastructure and port systems together with experts from the port of Riga, which, in their turn, are predicting the construction of new terminals in future; it will increase the cargo turnover.
As regards the projects which are now under discussion, and which can be implemented only if funds are available, here the next stage of the Riga Railway Junction Development from 2010 to 2011 sees the € 7 million construction of the station Riga-Port, with connecting routes to the Kundzinsala island; and upgrades in Skirotava station as well.
Thus we see that the company is using the period of the economic crisis for development. It finalises current projects and initiates new ones, in order to develop the railway infrastructure in Latvia. Today the options for the construction of railways from the center of Riga to the capital's airport are also studied, and on November 3, 2009 a competition was launched for the right to study the Ldz network electrification opportunities.
By Natalia Don
