Rail Baltica joint venture RB Rail AS presents the second edition of the digital newsletter “Rail Baltica in Economic Focus” aiming to provide the most recent insights on trends and correlation with Rail Baltica project. Rail Baltica in Economic Focus: No. 2, 2023.
“The inaugural newsletter highlighted turbulences in construction market and navigated through changes in passenger and freight transportation. Continuing to follow macroeconomic development trends and Rail Baltica being part of the picture, it is with great satisfaction that we introduce the second edition of the newsletter, aimed at consistently keeping our partners and project enthusiasts well-informed and engaged,” says Kristīne Malnača, Head of Global Project Strategy and Economics Department at RB Rail AS.
The second edition includes Rail Baltica experts’ insights on the following topics:
Understanding the needs of future passengers
This article is about the evolving needs of passengers in future, emphasising the shift toward appreciation of “time well spent” when people are travelling. This particularly applies to Generation Z. The article highlights the role of technology in facilitating productive commutes, as well as the need to align rail services with digitally native expectations.
Fluctuations in the cost of materials and construction: Mid-term trends holding steady
Fluctuating prices for construction materials and energy resources can lead to cost increases and delays. It is vital to monitor such changes, particularly when dealing with megaprojects such as Rail Baltica, so as to ensure cost management, risk reduction, timeline adherence, contracts and communication with stakeholders. 2023 producer price indices for materials and energy show consistent midterm trends, sometimes featuring steady increases or decreases. Regional differences among the Baltic States in terms of price trends and complex material cost dynamics are identified.
Rail transport volumes in the Baltic States
The significance of the Baltic rail network in the transportation of transit goods has changed during the past decade. This has to do with changes in consumer behaviour, business growth, e-commerce and energy priorities. This article examines the changing landscape of cargo rail traffic in the Baltic States, focusing on how these shifts have affected transportation patterns. Amidst all this, the role of rail in inland freight traffic is undergoing transformation throughout the region. The article explores the shifting trends and what they mean for rail transportation in the Baltic States.
Communication with the market helps to minimize the risks ahead
Large scale infrastructure projects are not isolated from macroeconomic and geopolitical shocks which may result in cost overruns, delays, failed tenders, and other potential problems. In this article we focus on communication with the supply market as one of the risk mitigation measures . Engagement with suppliers through surveys and interviews allow to receive first-hand information and thus support informed decision making.
The aim of “Rail Baltica in Economic Focus” is to inform and to engage Rail Baltica partners, suppliers, and followers so that they are well informed about the progress that is being made in the project, as well as the potential of the project for serving as an engine for economic growth in the region. It brings together key contributors such as Rail Baltica strategy experts, transport economy analysts, logistics specialists and other experts in the industry.
Rail Baltica in Economic Focus: No. 2, 2023.
To subscribe to future editions of the newsletter, please visit our website at www.railbaltica.org/newsletters.