The Baltic Institute of Corporate Governance (BICG) organized a meeting with the Rail Baltica project team to discuss project management, challenges, and future priorities. The discussions emphasized the importance of Rail Baltica, as the project is now included in two significant European transport network corridors, ensuring a crucial connection with Ukraine. Moreover, the project is a strategic priority that will strengthen NATO’s transportation and national defense capabilities in the future.
BICG Vice President and Head of Latvia, Andris Grafs, stated: “Understanding the current challenges in the Rail Baltica project management model, particularly related to decision-making in the project, including the distribution of powers and responsibilities in project planning and implementation, it is important that all responsible parties make bold decisions that will improve both the management model and facilitate project implementation.”
During the meeting, it was noted that according to the European Transport Network development guidelines, which envisage the creation of a high-speed rail corridor between the Polish border and Tallinn, the Rail Baltica cross-border sections and the main route, connecting Estonia, Latvia, and Lithuania with Poland, must be built by 2030. “Considering the cost estimates for the Rail Baltica project in 2024 and the set implementation deadline, all three Baltic States have developed solutions for the first phase of construction. Currently, the main priority in Latvia is to reach an agreement with partners on the construction plan for the first phase of Rail Baltica, including prioritizing synergy with existing railway infrastructure,” noted RB Rail AS Board Member Kitija Gruškevica.
Gruškevica also mentioned that after 2030, the construction of the next phases of Rail Baltica will depend on the availability of funding. To maximize the socio-economic benefits for the Baltic region, it is crucial to build all the infrastructure elements planned in the Rail Baltica project, implementing the full scope of the project. However, considering the significant cost increases, a phased implementation of the project is necessary, setting priorities.
Currently, 278 km of the 870 km long main route is in the construction contract stage, and another 227 km of the main route is in the procurement phase. The construction of the main route is progressing at various development stages in all three Baltic States, and it is planned that in 2024 construction will be underway on 150 kilometers of the main route. “Despite the various challenges facing the project, this is significant progress as construction is taking place,” noted Gruškevica.
The discussions also highlighted the need to adapt the project’s financing model to better suit current needs and to explore new investment opportunities. Securing financing remains a key issue. “Currently, in collaboration with the Ministry of Finance and the Ministry of Transport, we are seeking solutions for attracting alternative financing while continuing discussions with the EU for further support,” emphasized Gruškevica.
The meeting also discussed Rail Baltica’s role in ensuring military mobility, particularly its importance in the NATO corridor. RB Rail AS Council Member Ģirts Rūda emphasized that “Rail Baltica is a significant project for both the Baltic region and the entire European Union. With effective management and financing, it can promote economic growth, support sustainability, and strengthen our position in Europe.”
It was also noted that collaboration between the public and private sectors, as well as strategic government decisions, will be essential to overcoming challenges and maximizing opportunities.