Rakvere cityIndustrial area

Rakvere city is divided into 19 districts.Rakvere is based on three neighboring district – The old town, the city center and Õpetaja Heinamaa. In the northern part of the city of Rakvere the railway is surrounded either living and industrial areas (Moonaküla, Lilleküla, Kukeküla) or mostly industrial, transportation and storage areas (Lennuvälja, Roodevälja).

Other parts of the city are mainly living orgreen areas(Tammiku, Palermo). Forcommercial land purpose areas mainlyreserved for the comprehensive plan are theRoodevälja district near to the Vaala shoppingcentre, Lennuvälja district and the southernside of the Mõisavälja district. The mainmanufacturing lands are reserved outside ofthe city centre- Seminari/Paemurru, Mõisavälja,Lennuvälja ja Roodevälja district

At times a small-scale production is allowed as

a secondary function on other areas.Airfield industrial area is 2000 m north fromcity center and bounded with Raudtee, Arknatee, Nortsu tee and Papiaru streets.

Airfield industrial area is 2000 m north fromcity center and bounded with Raudtee, Arknatee, Nortsu tee and Papiaru streets.

Rakvere airfield industrial area surface is about 34 ha.

In Table 4.2.1. are the largest currently operating companies in the industrial area who have direct beneficiaries of the project. Sphere of influence of an industrial area by the large companies (indirect beneficiaries - the transport and logistics through the territory of the industrial site, as well as the possible formation of clusters) have listed in Appendix 2 conducting cost-effectiveness analysis

In conclusion, the airfield industrial area of Rakvere town has characteristic location near the rapidly evolving enterprises in the region, the proximity of the necessary inputs and the many different levels of compliance and the existence of sufficient large plots. The plots are not encumbered by existing buildings. Land ownership is clear, there are necessary documents of the development and adopted detailed plan.

Location in the centre of county Reconstructed infrastructure Good logistical position of the highway (Tallinn-Narva), railroad and

port of Kunda Good labor force potential in urban and in near rural municipalities Perspective of bring one of railway line to industrial park Perspective of developing airport for serving enterprises Existing neighborhood of the Estonian energy and natural gas

distribution network Possibility of developing the industrial park area existing residential

areas and residential land to allow the relocation of labor The business environment in addition to a quality living environment Opportunity to provide affordable and cheaper production costs,

while logistically well-located plots (eg Harju county companies)

Strenghts 1. Large enough labor force in Rakvere city and with neighboring

municipalities, about 35 000 people. 2. Kauba streets railway viaduct building project is finished, it will create

real opportunities to connect uninterrupted the north and south of Rakvere with railway (project is financed by the Cohesion Fund, as well as the requested funds for construction from the Cohesion Fund).

3. City of Rakvere has beneficial logistical location (nearby the Tallinn-Narva high quality highway, Pärnu- Rakvere highway)

4. Railway connection (Tallinn-Peterburg) 5. Possibility to connect industrial area with Tallin-Peterburg railroad and

Rakvere-Kunda railway section with minimal costs. 6. Rakvere is county centre, atractive for enterprises, existence of associates 7. Ownership of the land is clear- Land belongs to the city government 8. If the area will be introduced rapidly on the market we’d be advantaged

to be first in the region

9. City of Rakvere has an attractive living environment, a good social infrastructure, leisure facilities, educational facilities and so on.

10.City has Rakvere Vocational School, West-Viru College, Rakvere Learning Center of Mainor College

11. There is a flight path that after the reconstruction can be used by industrial serving businesses air transport

12. Port of Kunda locates about 30 km from Rakvere 13. There is enough electrical capabilities, sufficient conditions for

enterprises to supply electrical power is established 14. The area has a full opportunity to supply gas to the enterprises of

industrial park (developing the Estonian Gas) 15. Freshly built city of Rakvere comprehensive plan, which preceded by

several comprehensive studies. There is a detailed plan and supporting development plans

16. There are enough available plots in different sizes

Weaknesses 1. Within and partly outside the industrial park access roads and

communication networks are incomplete and do not satisfy demands of the enterprises.

2. The runway location does not comply with planning and airfield is not certified.

3. May not be enough skilled workers to meet the needs of new enterprises

4. The existing same high crossing in the area prevents the automobile transport

5. Sets certain restrictions on near located residential development, the production activities of noise, pollution, etc.

6. Industrial area development and marketing has been uneven, there is no project manager

Opportunities 1.To be ready for the economic downturn to increase and to meet the

needs of new business investments 2. Recovery of inflow of foreign investments and credits, the demand for

industrial real estate grows 3. Change of Tallinn-Narva highway to become two-way (Viitna bypass will

be completed in the coming years, the planned amendment of the Tallinn-Narva highway two-way) improves the road connecting with Tallinn and Narva, wich increases enterprises interest in the Lääne-Viru County industrial real estate

4. Development of Sõmeru Näpi-crossing lines near by airfield industrial park. Designing of Rakvere- Haljala highway to 2 +2 direction.

5. Better use of railway infrastructure for freight transport. 6. As a result of building Viru Centre of Excellence in city of Rakvere,

business sector and research and educational institutions closer cooperation, the creation of highly qualified new jobs

7. Good indicators from the perspective of labor of labor market pressure index

8. Construction of railway viaduct at Kauba street, near to the industrial park in near years improves the highway transportation options.

9. The establishment formation of an aerodrome offers new opportunities for small aviation-related enterprises, small aircraft storage and repair opportunities

10. Introduction of historic 1930th-century Estonian army barracks incubation centers with Viru Centre of Excellence

11. Course of the renovation project of Papiaru can improve transport connections direction of Narva, Pärnu direction, which can dramatically reduce transportation costs

Threats

1. In surrounding industrial areas emerge a greater volume of free surfaces as a result of existing businesses closure. The demand for undeveloped plots may fall as a result.

2. Industrial park development can not raise sufficient financing. Planned work will begin, but they can not be completed

3. Mainly in Ida-Viru County they actively develop new and existing industrial areas, which may reduce the demand for plots of an airport industrial park

4. Young people leave in search of better work opportunities to capital city and to foreign countries

5. The economic environment is unstable for companies, it prevents the investment decisions and taking risks

6. Continued conservatism of financial institutions prevents the companies in their investments plans to carry out

7. Major investments in neighboring counties may draw the educated skilled workers

8.Regional Policy of the Republic of Estonia, wich doesn’t see Rakvere as a powerful attraction.Certain portions of public services, medical services, etc.. provision is base for the major centers.

Business expected:

Based on the technical characteristics of an industrial area ofairfield, it is suitable for large-scale production of buildingmaterials, food processing, metal and wood industries, as wellas the smaller the chemical industry, machine and mechanicalengineering, and logistics companies. Airfield industrial park issuitable for enterpises who have an opportunity to transporttheir products with small cargo aircraft and use the services ofairport on the industrial park territory for that (in particularelectronics and appliance industries).

Table 7.1. Suitable industrial enterprises for the area by business sectors

Benefits of the region:Infrastructure: Roads and streets are in normal condition. The location of the plot has a very good connections from the infrastructure part (the main transit route.).  

Logistics Kunda port 28 km Loksa port 68 km Sillamäe port 90 km Tallinn-Narva mnt ja Pärnu-Rakvere-Sõmeru mnt (highway):Tallinn - 100 km Narva – 120 km

Suppliers nearby

Contacts for more information:

1. Toomas Varek - Mayor, tel. +372 322 5872, +372 51 77 566, e-mail:

toomas.varek@rakvere.ee

2.Inge Peebu– specialist in development, tel. +372 322 58 88, + 372 53 43 49 44, e-mail:

inge.peebu@rakvere.ee       

Professional consulting services for businesses, local municipalities, foundations and third sector parties.

Manager and entrepreneures consultant, Tea Treufeldt

tea@arenduskeskus.eeDevelopment specialist, Andres Ojanurm

ar@arenduskeskus.ee

Phone nr: + 372 32 58 028www.arenduskeskus.ee