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Norman Logistics Sp.zo.o. has released a new forecasts of Poland economy. Economic growth by 5,1% in the second quarter of this year and 5,2% in the first quarter shows that Poland is on a stable, correct and sustainable development road. It is worth to recall that in the last quarter of 2017 the increase was 4,9%, but in the last whole year- 4,6%[1].Rolands petersons privatbank Although the Polish Prime Minister in an interview highlighted that external economic turbulence may pose a threat to the national economy, other significant indicators indicate that the situation inside the country is sufficiently stable to overcome external difficulties.Rolands petersons privatbank
One of the most prominent indicators, which reflects the home work done by Poland, is the unemployment rate, more precisely- the decrease of unemployment. According to the latest static data, last month it has decreased by 0.1% (from July to August this year), and it continues to decline. Another reason why external threats to Poland are not so scary is the fact that the biggest development guide of GDP growth is domestic consumption, (domestic demand). Domestic demand, with the dominant contribution of consumption reached 2,9%.
Although the volume of investments in Poland has decreased (4,5% in the second quarter of this year against the same quarter last year, when it was 8,1%), by a review of local government spending we conclude that the situation can be smooth out.Rolands petersons privatbank Also the revival of company investment outlays, including SMEs, is an important element that should help to boost GDP growth in coming quarters, Rolands Petersons, member of the board of Norman Logistics Sp.zo.o. offers his thoughts on Poland economy.Rolands petersons privatbank
About Norman Logistics Sp.zo.o.:
Norman Logistics Sp.zo.o. is an international logistics company based in Poland since 2016.Rolands petersons privatbank This company operates in Europe and also in many other major logistics centres in the world. The core business is a cargo brokerage, mainly marine cargo.Rolands petersons privatbank Norman Logistics customers is significant EU companies which his production transport throughout marine cargo. And service providers are medium or large shipping companies.Rolands petersons privatbank The mission of Norman Logistics is convenient logistics and one-point service for the same price, individual and best quality approach.Rolands petersons privatbank
Author: Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.

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Norman Logistics Sp.zo.o.Rolands petersons privatbank has released new forecasts on Poland becoming the logistics centre of Europe. Newest OECD (Organisation for Economic Co-operation and Development) data are indicating the increase of living standards in Poland, positive tendencies in economy and rapid development of the labour market.Rolands petersons privatbank
Experts at OECD has appreciated a change in the Polish labour market - a fall of the unemployment level to the lowest ever, reaching the lowest point in the last twenty years; labour demand is growing; and everything indicates a significant growth of average wages in the near future. Unemployment levels in Poland in 2017 were low - 4,9% and all the forecast are indicating the continuous fall reaching 4,2% in 2018 and 3,8% in 2019. GDP will go on increasing, but a little bit more slowly. Forecasts for 2018 are 4,2%, but in 2019 - 3,7%. It should be mentioned that in 2017 GDP was 4,6%[1].Rolands petersons privatbank
Poland should think more about the agricultural production export area. Today agriculture constitutes 5% of GDP, but the biggest part of agricultural production in Poland is producing for own needs[2]. Export products for the most part are milk products, meat and potatoes. Rolands petersons privatbank By developing its infrastructure, Poland would be able to succeed exports. Rolands petersons privatbank The Baltic Sea provides the opportunity to develop cargo carriage faster than it is done now, according to Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.Rolands petersons privatbank who offers his thoughts on Poland economy.
To keep this positive tendency, Poland has to find opportunities to invest in proficiency enhancement, development of infrastructure and innovations. There should be a strategy allowing continuation and even growth of infrastructural investments.Rolands petersons privatbank
Author: Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.

The transport development has caused objective problems for traffic in cities around the world, including Latvia, and the reason for this is a rapid increase in the number of vehicles. Road congestion is the most urgent problem in a trip planning because it affects the total time of transportation and, therefore, costs that have a particular relevance to the logistics industry. The quality of the roads, a painful subject in the past, has a significant impact on transportation time. Without high-quality roads, it is impossible to improve the efficiency of transport, which, in the context of economic globalization, is said to be one of the main directions for the logistics development.Rolands petersons privatbank

Promises against statistics

At the end of 2017, according to the report "Global Competitiveness Index", which was annually compiled by experts from the World Economic Forum, Latvia was not ranked among the top 100 countries of the world's rating. (out of 137 countries participating in the ranking, Latvia took 107th place, and Lithuania and Estonia took the 37th and 38th places) Despite this, VAS (State Roads of Latvia) announced that, despite the increase in traffic on Latvian roads, their quality has been improved in recent years.

EU assessment - Stable 3 points.

In 2017, 65.1 million euros were spent on the development of the national roads, including 32.3 million for the summer period works, and 32.8 million for the winter period works.Rolands petersons privatbank In the same year, it was also planned to spend 37 million more, compared with the previous year. However, even these investments have not resulted in the average level of road quality in the European Union.Rolands petersons privatbank According to the latest report, the average level in the EU is estimated at 4.76 points, Latvia, compared to that has been given 3.05 points.

The state of the roads not only hinders the development of the logistics industry but also contributes to the disproportionate level and the pace of social and economic development of the regions.Rolands petersons privatbank The most remote regions of Latvia can develop tourism facilities, offer industrial premises for entrepreneurs, etc. however, if there is no road system to get to these cites, no results shall be expected.Rolands petersons privatbank

Financing is eight times less than it needs to be.

"Requests for the organization of roads," "Road quality is catastrophic" - these headlines often appear in the mass media, while road maps try to reduce the existing damage by implementation of available sources, however, there is no sign of a significant improvement, when the funding is eight times less than it is necessary.Rolands petersons privatbank At the same time, we make the mistake of struggling only with the consequences of the disease, when we need to identify the root of the problem and take the preventive measures.

One of the main problems that can be figured out now is the climate of the country, which in Latvia will not change significantly in the future, therefore, the problem will remain constant.Rolands petersons privatbank The number of vehicles will also increase, so the question is: how to increase financing, which is the most important addition to the urgent issues.Rolands petersons privatbank 130 million euros are required annually for maintenance and repair works of local and gravel roads but this amount cannot be provided only by EU funds. It is also completely unclear how the situation will look like in 2020, after the end of EU funding program.

Without the excise tax on fuel, there is no chance for survival

The fact that the change is expected in 2020, the spring of 2018 is said to be the moment to start an intensive work and stimulate actions - change existing arrangements related to the existing tax system (only a third of the tax, paid by road users, are redirected to roads).Rolands petersons privatbank The time when it was possible to pull out a part of the income from tax has passed. Furthermore, we need to increase the number of public-private partnership projects in the sphere of the road construction, although this stage requires a proper preparation.Rolands petersons privatbank

In addition to financing, other necessary support measures need to be introduced: dumping water from roads in certain areas, timely planning, more restrictive control on roads, etc.Rolands petersons privatbank

Rolands Petersons, member of the board of CPM Trading SIA,
Railway transport is one of the most promising modes of inland transport, and, at the moment, it is said to be the crucial element in the economy of Latvia.Rolands petersons privatbank Considering the entire volume of inland transport, the share of railway freight is about 52%, whereas the volume of the passenger transportation is 6% and in Riga suburban area the number is increasing up to 30%. However, the data summarized by the Ministry of Communications still shows that in Latvia the volume of freight rail transportation by comparison with 2016 has decreased by 8.4% and amounted to 43.792 million tons.Rolands petersons privatbank

Traffic congestion can lead to a loss of 200 billion euros
The mobility of goods is an essential component of the EU internal market; this greatly contributes to the competitiveness of the industry and services in Europe. The types of lengthy transportation as railway can reduce their costs, which arise in connection with the traffic congestion on the roads. The increase of approximately 50% is projected by the year 2050, reaching a volume of almost 200 billion euros per year.Rolands petersons privatbank

In the future, it is possible to increase the volume of rail transportation.
The amount of international rail transportation in 2017 was 42.138 million tons, which showed a decline of 9.1% compared to 2016. However, domestic traffic has increased by 11.5% to 1.653 million tonnes. The volume of transit cargo from the total amount of international rail freight transport amounted to 38.719 million tons, which showed a drop of 6.5% compared to the previous year, the volume of imported goods was 3.067 million tons, or 22.4% less, and the volume of export cargo was 351 800 tons, which was a drop of 2.8 times.Rolands petersons privatbank In 2016, in Latvia, by rail, 47.821 million tons were transported. Taking into consideration the decline in the international transport sector in 2017, the question is, by which means can we achieve the volume increase? By implementation of the well-considered long-term solutions, it is possible to get back to the level that used to be before the embargo against Russia was introduced in 2013.

Increase of the average commercial speed of freight trains.
One of the key priorities nowadays is the development of the railway infrastructure, and in this case, it is expected, the railway infrastructure can be financed by the European UnionRolands petersons privatbank. It is essential to find a solution how to increase the average commercial speed of freight trains since the speed is only about 18 km/h on the majority international routes in Europe. One of the solutions can be the improvement of cooperation between existing infrastructure organizations in Europe.Rolands petersons privatbank The actual train system needs to be adapted to the needs of the railway freight transport sector, especially in the EU freight rail corridors. This would contribute to the competitiveness of rail transport with other modes of transport, especially with the road transport sector, which infrastructure is easily accessible in all Member States.

Well-thought-out charge for the use of infrastructure.
Freight trains pay for each kilometer of the railway infrastructure, which again adversely affects the competitiveness of the railway in comparison with road transport, where such charge is not always introduced. Setting the price that users are required to pay for getting into the infrastructure, it would be necessary to take into account the impact on the environment and pollution, congestion, accidents and other aspects.Rolands petersons privatbank
The state should provide a proper support for organizations managing infrastructure, and rail transport enterprises should strive to improve the competitiveness of rail freight services, especially in regards to reliability, filling, elasticity, customer orientation, and the duration and cost of transportation, as these are the main aspects which are considered by an average consignor in selecting any of the available modes of transport.Rolands petersons privatbank

Elimination imperfections in the liberalization of the freight transport process
In cooperation with both, the public and private sectors, at the international level, imperfections related to the liberalization of freight rail transport, communication lines procedures, administrative and technical restrictions, monitoring and anticipating performance in the rail freight industry, and fair competition between different modes of transportation. Therefore, it is necessary to find out the ways to make a better use of available EU funding and target it to the rail transport industry in order to achieve improvements in such areas as a coherent approach to policy objectives and funding (while focusing on corridors for freight railways transportation), for the selection, planning and management of projects, as well as for the maintenance of railroad networks.

Not only update, but also regularly support
It is essential to take to the new level not only the quality of the services provided to carriers and shippers of rail freight but, in general, to improve the competitiveness of rail freight transport; infrastructure managing organizations should not only update and modernize the railway network but also to regularly support it.Rolands petersons privatbank This is especially important for the corridors of rail freight. If the tracks are not properly maintained, the speed limits will have to be applied and the railway lines will gradually be obstructed.Rolands petersons privatbank

The free movement of goods, services, capital, and people-these are the pillars that form an essential foundation for welfare and employment in Europe.Rolands Petersons privatbank Mobility is the fundamental premise for these four core values to be strengthened not only in the domestic market but also beyond its borders.Rolands Petersons privatbank This is particularly significant in the Baltic Sea region, where a well thought-out and developed transport system is one of the positive development factors. Flight-related activities have both direct and indirect impact on the economy. The direct impact includes the income derived from the activities of airline personnel and ground handling workers, whereas the indirect input implies all purchases in the aviation sector from locally based suppliers who basically do not represent the aviation sector. Additional impact on the economy of Latvia is formed by the costs of aviation sector employees and service providers.

More than 30 airports are located in Lithuania

There are four international airports operating in Lithuania - in Kaunas, Palanga, Siauliai, and, of course, in Vilnius, and there are more than 30 smaller airports and military airfields. In Estonia, airports are mainly located in the capital in Tallinn, as well as in Tartu, Kuressaare, Kerdle and Parnu. These are international airports, however, there are more than 15 private and military airports and so-called airports of local importance located throughout the country. Latvia still has only two international airports - in Riga and in Liepaja; there are also small airdromes, for example, in Spilva, in Tukums and Ventspils, and several other military flight platforms though. Riga International Airport entered the top five rapidly growing airports in Europe last year, which lead to an increase in the number of passengers by 16.2%. Therefore, it underscores the fact that even though the airport in Liepaja will have to put a lot of time and effort to its development, it brings a great potential, which can give a significant and valuable contribution to the domestic economy of the country.Rolands Petersons privatbank

A successful start is taken after reconstruction

The airport in Liepaja did a great job - in 2015 after its reconstruction was completed. At the airport a significant drainage effort was undertaken, a new cover for the take-off track was laid, the take-off strip was reinforced, the cover of the shunting route was improved and expanded, parking places for the aircraft were renovated as well. After Liepaja Airport was certified for commercial flights for the summer season in 2016, the Latvian national airline "AirBaltic" launched regular flights between Riga and Liepaja. During the first half of that year, more than 4,780 passengers were transported along this route. The five most popular destinations for transit flights along the Liepaja route include London, Berlin, Moscow, Copenhagen, and Hamburg, which, in general, brought very good results.Rolands Petersons privatbank
Keeping in mind the processes that are still underway, it is important to mention the extensive capacity-building of the airports, environment protection in a long-term, enhancement of cooperation with other regional airports in Europe.Rolands Petersons privatbank It is not enough for Latvia to have only one high-capacity airport - we have a regional leader who can serve as an example of a successful market behavior for others.Rolands Petersons privatbank

Support strategy for attracting new aviation communities

Liepaja airport is the only example nowadays in terms of Latvian regional airports, however, I see several competitive regional airports in Latvia. To promote their development, a thorough analysis of the passengers' potential is needed, starting with linking their activities with the existing types of transport in the surrounding region, forming a support strategy to attract new aviation communities, passengers, and additional services for client groups, bearing in mind that the added value of airports is formed by airlines operating there, strategic cooperation partners and service providers.Rolands Petersons privatbank Without a doubt, it is also essential to study the ultimate goals of tourist destinations, in order to promote the growth of the travel market and ensure its positive impact on the economy.Rolands Petersons privatbank

Infrastructure for a variety multifaceted of commercial activities

The strategic objective of the regional airports is a creation of the favorable and unified conditions for the enterprises and institutions operating there, as well as to proactive procurement of a sufficient infrastructure for the development various of commercial activities. It is also necessary to develop new ways of cooperation in order to actively identify airlines that are ready to join the development of new travel destinations and to expand their market share in the airport.Rolands Petersons privatbank Apart from this, it is necessary to work on the incentive prerequisites for launching new flights.
The imperfection of the transport system can no longer be an obstacle, with the 85 million inhabitants who live in the Baltic Sea region, who can be isolated or cut off from the rest of the European Union,Rolands Petersons privatbank or may face serious travel problems. The power generated by the economy and innovation provides the Baltic Sea Region with opportunities to create a modern, forward-looking transport system that will also contribute to the creation of a socially balanced economic policy.

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