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|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.
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. Rolands Petersons minicredit
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. 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. 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. Rolands Petersons minicredit
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. 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.
Financing is eight times less than it needs to be. Rolands Petersons minicredit
\"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. 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. Rolands Petersons minicredit
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. 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. 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 Rolands Petersons minicredit
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). 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 minicredit
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.
|Norman Logistics Sp.zo.o. Rolands petersons cpmtreding 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 cpmtreding
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.Rolands petersons cpmtreding 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%<>].
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<>].Rolands petersons cpmtreding Export products for the most part are milk products, meat and potatoes. By developing its infrastructure, Poland would be able to succeed exports. 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. 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. Rolands petersons cpmtreding There should be a strategy allowing continuation and even growth of infrastructural investments.
Author: Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.