Liepaja September Liepaja September 2008 Restructuring of the Finnish Road Administration Jukka Hirvelä, DG Finnra

Liepaja September The Road Sector in Finland Public roads managed by Finnish Road Administration (Finnra) - client organization Finnra’s annual budget about € 1 billion (2007) Personnel 890 (+ 44 temporary) Head office, 9 district offices, 4 traffic centres The total road network of 454,000 km made up of - Public roads, 78,000 km (20%) City streets, 26,000 km (6%) Private roads, 350,000 km (73%) - 104,000 km (27% of network) owned and maintained by road cooperatives

Liepaja September Outlook for Road Infrastructure Development Explanation of Transport Policy Investment programme 15 years = OK, achieves a long term perspective Many projects concentrated in 2011 Main lines of Transport policy = funding for carriageway maintenance, road safety, climate change and public transport are good in themselves, but “soft”/political expressions Two PPP -targets, congestion and road charging investigations Road Maintenance Funding Additional funding for the framework period (5 years) 72 M€ Additional funding to ensure forest industry management (+ 45 M€) Gravel road network will be in good condition, problems with the condition of paved roads and bridges as well as with investments in basic road maintenance Cost increases over 100 M€ and additional funding 72 M€/in 5 years

Liepaja September

5 Government Departments and Agencies Finnish Road Administration Finnish Rail Administration Finnish Rail Agency Finnish Maritime Administration Finnish Civil Aviation Authority Finnish Vehicle Administration Finnish Institute of Marine Research Finnish Meteorological Institute Finnish Communications Regulatory Authority State-owned Enterprises Finnish Civil Aviation Administration Finavia Finnish Shipping Enterprise Finstaship State Pilotage Enterprise Finnpilot Ministry of Transport and Communications 2008 State Corporations including Destia and VR-Group are managed by the State Ownership Management Unit.

Liepaja September Finnra

Liepaja September OWN WORK BALANCING WORK LOAD COST EFFICIENCY COMPETITION STUDIES TO OPEN COMPETITION Authority Org. Design Construction Maintenance Internal Services RWA Finnish Road Administration Minor works by private contractors, balancing own workload by private contractors Minor purchases on open market Comparing own prices/ contractor prices, search for effective operations Increasing purchases on open market Submitting own work to competition in minor scale Tendering own work to external market Increasing purchases on open market Finnish Road Enterprise 1950s1960s1970s1980s Finnra’s Development Steps Destia LTD Towards a traffic system Regional development 2008/2010 TRANSPORT INFRASTRUCTURE AGENCY - Roads - Rails - Waterways

Liepaja September Earlier MINTC reforms

Liepaja September MINTC reforms Some Conclusions Separating client and producer functions Privatizing of production functions when possible Smaller and more independent client organizations

Liepaja September Operational Development Outlook for Finnra 2010 Development of Regional Administration Two large multi-sector authorities established for the regions from the beginning of 2010 One formed from the road regions, environmental centres as well as employment and business centres (Businesses, transport and natural resources) 9-15 units The other from discontinued regional government and other units Significant requirements for improved productivity Establishment of a Transport Infra Agency Finnra, Finnish Rail Administration and Finnish Maritime Administration to become a single authority Better view of the development of the transport system + requirements for productivity improvements (supply services, bringing together procurement skills) Political decisions planned for October 2008, implementation in 2010 Establishment of a Transport Safety and Security Authority Vehicle Administration, Finnish Civil Aviation Authority and Finnish Rail Agency combined and the Finnish Maritime Administration’s vessel safety responsibility and staff + a few people from Finnra (tunnel safety) into the same organisation

Liepaja September New government agencies TRANSPORT INFRASTRUCTURE AGENCY TRANSPORT SAFETY AND SECURITY AGENCY Finnish Rail Administration Finnish Rail Agency Finnish Maritime Administration, production Finnish Vehicle Administration Finnish Civil Aviation Authority Ministry of Transport and Communications The R&D operations of the agencies will be examined separately Governance of the new authorities New authorities and their formation Today’s authorities Finnish Maritime Administration Finnish Road Administration, State Provincial Offices, Transport Administration

Liepaja September