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Barents Freeway project, Results Jorma Leskinen 18.11.201 4

Barents Freeway project, Results Jorma Leskinen 18.11.2014

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Jorma Leskinen

Barents Freeway project,Results

18.11.2014

Barents Freeway project contents

Barents transport strategy Transport infrastructure projects -update Cargo flow model development Air taxi pilot Railway pilots

- Salla – Kandalaksha- Rovaniemi – Kirkenes- Nikel – Kirkenes- Kolari – Svappavaara

Procurement of equipment in Russia

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Barents Transport Strategy

Common approach to the transport system development Common strategic objectives for development Better integration of the Barents Region with

- the European TEN-T network- the Eurasian road, rail and maritime corridors

Improvement of accessibility to reduce border constraints Cross-border transport routes to be highlighted nationally Better integration of logistic systems between countries Attention to the maintenance of the existing infrastructure Authorities at all levels encouraged to cooperation …

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Air Taxi pilot

Urgent need to improve internal flight connections in the Barents Region has been recognized

Air Taxi systems are in use in USA and elsewhere Three alternative models of operation were introduced Some potential was

found also in the Barents Region, but a thorough market analysis is needed before the next steps

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Nikel – Kirkenes railway study

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Nikel – Kirkenes railway

Total of 56 km of new railway

31 km in Russia, 25 km in Norway

Total cost 2400 M€ (cost level of 2025 icluding interest)

60 % of the costs on Norwegian ground

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Nikel – Kirkenes railway

Benefit / cost ratio is 1.1, so it is economically viable The vast majority of the benefits go to Russian consigners The majority of freight from Russia is coming via Trans-

Siberian railway and going to Europe and America The freight to Russia is machinery from Europe Also some imports and exports of food LNG transports were not included in the model NSR was taken as it was in 2012 (open 4…5 months)

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Salla-Kandalaksha railway pilot

(Rovaniemi-) Salla (FIN) – Kandalaksha (RUS)- seems feasible, but is very sensitive to increasing of Russian railway freight unit cost- majority of costs and benefits are Russian

80 km new railway 180 km of reconstruction Total cost 1000 M€

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Kolari-Svappavaara railway pilot

Kolari (FIN) – Svappavaara (SWE) (-Narvik(NO))- seems economically feasible (if the congestion problems between Kiruna and Narvik have been eliminated)

- the only freight would be products from iron mines 147 km new railway Total cost 1500 M€ Iron mining is

presently in economicaldifficulties

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Kemijärvi - Kirkenes railway pilot

(Rovaniemi- ) Kemijärvi (FIN) – Kirkenes (NO)- benefit / cost ratio 0.8, not economically viable

- freight would be mostly exports from Northern Finland 456 km new railway Total cost 2500 M€ LNG transports and

opening new mines in the region mightimprove theviability

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Conclusions

Regional cross-border flight connections must be developed None of the studied new railways are likely to be built in the

near future The impact of the NSR needs to be studied further with

several ice scenarios and LNG transports included

The next step within BEATA will be a deeper analysis of the JBTP transport corridors concentrating on the present roads

This will be done under Finnish chairmanship of BEATA by September 2015

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Jorma Leskinen 12

THANK YOU FOR YOUR ATTENTION!

[email protected]

3.11.2014