Baltic Region: business partnership 1520 and 1435

The III International Rail Business Forum "1520 Strategic Partnership: Baltic Region" opened on 17 October. One of the key events at the forum was the "Baltic Region: Business Partnership 1520 and 1435" plenary session, which was attended by heads of the railway industries of Russia, CIS and Baltic countries, businesses and financial institutions.

Latvian President, Andris Bērziņš, gave the welcoming speech at the opening of the forum, noting that “This is a very important time for Latvia and the Baltic States. After 150 years of railway operation, we were faced with the necessity of choosing a strategy for the future and paths for development. And it is down to professionals to solve to these issues; politicians must provide the right conditions for their successful implementation. A lack of coordination in the railway system can be very expensive. The very name of this forum – which implies a harmonisation of two systems – proves this. I am certain that your experience will help us to choose the best possible path – both individually and together!”  In conclusion, the President wished participants of the forum successful and productive cooperation for the future. 

Having the same track gauge as Russia and the CIS countries, Baltic railway companies comply with the technical specifications of two areas at the same time – 1520mm and 1435mm.

The Third Annual Baltic Regional Forum 1520 is intended to strengthen business links and increase the competitiveness of trans-European business in the global transport network. The success of cooperation between Eurasian railway systems depends on how quickly and effectively the following questions are addressed:
- the creation of a unified railway law
- the synchronisation of control systems and traffic safety
- electronic declaration and data exchange
- the unification of the rules for certification and technological regulation
- the harmonisation of technical requirements for rolling stock.

Representatives of national railway companies, private rail operators, cargo owners, equipment manufacturers, financiers and politicians all gathered in Riga to formulate a set of strategically important guidelines for cooperation in the 1520 and 1435 markets. And the opinion of every participant is of particular significance today.

More than three hundred participants representing 15 countries and about 150 companies were represented at the forum this year. This is a good sign, indicating that the urgency of today’s issues and the importance of discussions have not diminished. We hope that the forum will be a success.

President of Russian Railways, Vladimir Yakunin, opening the forum’s plenary session on the issues of partnership between the 1520 and 1435 business markets, declared that “... We all understand very well the purposes that have brought us here. After all, we share far more than just a standard 1520 gauge. We represent a unified rail system that has been in existence since the very first railway line was constructed between St Petersburg and Tsarskoye Selo some 174 years ago. So next year we will be celebrating the 175th anniversary of Russian Railways. Thus, we are united by history, by the railway tradition, and by the responsibility for passenger safety and timely delivery of goods.

There is a joke that goes ‘What’s the difference between the railway and politicians? Unlike politicians, the holy dream of every railway worker is to turn a curve into a straight line.’ But political support is very important for us and, in this respect, the visit of the President of Latvia to the forum is of particular importance.

Russian Railways has shown a steady increase in freight transportation in recent years, and today about 60% of the cargo base that enters Latvia comes either from Russia directly or is transited through Russia to Lativa.”

Vladimir Yakunin hopes that forum participants can, through productive discussions, develop solutions to further improve the competitiveness of rail transport!

Ugis Magonis, chairman of Latvian Railway, noted the increasing role of railways in the business of freight and passenger transportation. The new strategic vision outlined in the “White Paper” Transport Policy of the European Union, requires that, by 2030, 30% of total road freight should be shifted to rail and sea transport, which, according to Mr Magonis, “... imposes a great responsibility on us.”

Speaking about the importance of developing transport corridors, Mr Yakunin highlighted a number of particularly important points: “... We are witnessing tremendous changes that are now shaking the global economy. And the railway, as part of the economic system of nation-states and, at the same time, part of the global community of railways, experiences first-hand all the signs of both positive and negative changes. The downturn in the economy causes freight transportation problems. Similarly, economic growth contributes to the expansion of freight transportation. The Russian Prime Minister once said, ‘If you want to know the state of the Russian economy, just ask for a copy of the shipping report which is delivered to the President every day. ’ The development of regional and interregional rail cooperation is important but, in times of crisis, it acquires a particularly special meaning. Today, many politicians often speak of the need for transport corridors that would link the Pacific with the Atlantic. The idea of ​​the need to develop a corridor on the continent of Eurasia appeared long before the formation of the modern global economic system. A contributor to this process for the global movement of people, goods and freight is the railways. From this perspective, the development of cooperation within the framework of transport corridors that link east and west, north and south, is a priority for railways, including Russian and international railway associations, such as the Association of traffic on the Trans-Siberian Railway. These two factors leave their mark on the approaches to the development of regional and international cooperation. ”

However, railway presidents are united in the view that it makes no sense to invest in the development of those projects that, in financial terms, can become a burden and an obstacle to the development of other projects. This is why new routes should be created only with regard to the interests of cargo owners, shippers and consignees. In turn, cooperation between railways should develop simultaneously and in all directions. If a regulatory system reluctant to privatisation causes serious problems, then it is difficult to imagine what tensions will spring up next. It is thus imperative that we ensure the timely harmonisation of laws and control systems for rail transport.