Tallinn-Warsaw Freight Corridor: Railway, Road and Sea Transport Comparison Prof. Olli-Pekka Hilmola Lappeenranta University of Technology, Kouvola Unit Prikaatintie 9, FIN Kouvola, Finland

Current Situation with Infra and Environmental Payments: Tallinn-Warsaw

Freight using road transport: Without any additional vignette or toll cost in Finland, Estonia and Latvia In Lithuania vignette system costs 20 € per day (if purchased one day), 6 € per day (if purchased one month), and approx. 5 € (annual) In Poland new viaTOLL system charges approx € per km driven (3rd of July onwards) Additional costs of 5-6 € €/km × 320 km = € per semi-trailer truck

Freight using sea transport (Gdynia): Low Sulphur Surcharge/MARPOL (2007, convention, 73/78): € per semi-trailer Polish new viaTOLL system: 0.05 €/km × 374 km = 18.7 € per semi-trailer Additional costs: € per semi-trailer

Freight using railway transport (960 Gross Ton Freight Train): Finland: 2.1 € per km (~15 %, if 100 % then 14 € per km) Estonia, Latvia and Lithuania: 6.5 € per km (100 %) Poland: 3.5 € per km (~90 %) Additional costs of 859 km × 6.5 € /km km × 3.5 €/km= 6868 € for the whole train (corresponds to 230 € per semi- trailer, if whole train is having 100 % fillrate, 30 semi-trailers) Source (access fees):Thompson, Loius S. (2008). Railway Access Charges in the EU: Current Status and Developments Since OECD / International Trasport Forum.

Near Future of Infra and Environmental Payments: Tallinn-Warsaw

Freight using road transport: Maybe Latvia and Estonia start to use similar system with Lithuania (Vignette): additional costs 5-6 € per semi-trailer × 2 = € per semi-trailer Road is eligble to pay from CO 2 emissions (25-45 € per ton): € Total costs of the future: € per semi-trailer

Freight using sea transport (Gdynia): Low Sulphur Surcharge/MARPOL, 2015 (convention, 73/78): € per semi-trailer Polish new viaTOLL system: 0.05 €/km × 374 km = 18.7 € per semi-trailer Additional costs: € per semi-trailer

Access Charges of 960 Gross ton Freight Train in Europe Source (access fees):Thompson, Loius S. (2008). Railway Access Charges in the EU: Current Status and Developments Since OECD / International Trasport Forum.

Ratio of 960 Gross ton Freight Train and 590 Gross Ton Intercity Passenger Train in Access Charges Source (access fees):Thompson, Loius S. (2008). Railway Access Charges in the EU: Current Status and Developments Since OECD / International Trasport Forum.

Freight using railway transport (960 Gross Ton Freight Train): Finland: ~15 % (2.1 € per km) is covered with access fees, then 100 % results to 14 € per train km Sweden: ~5 % (0.3 € per km) with 100 % it is 6 € per km New total costs (with Swedish prices, lower): 7356 € (245 € per semi-trailer) Railways also cause CO2 emissions (20 % with electricity as compared to trucks): € per semi-trailer Total costs of the future: € per semi-trailer What if real price of access fee is 10 € per km? Source (access fees):Thompson, Loius S. (2008). Railway Access Charges in the EU: Current Status and Developments Since OECD / International Trasport Forum.

Stevedoring Strike in Finland (4.March-22.March.2010) Is this our future after MARPOL sulphur surcharge implementation during year 2015?...and will we act in retrospect to the forthcoming major changes?  How we could lower access fee for freight in railway network and simultaneously improve current ”old alignment” readiness and state to serve freight flows?

Russian Dimension:Trans-Siberian Railway Pricing Change (...and collapse of Finnish volume) Source (access fees):Tsuji, Hisako (2007). International Container Transport on the Trans-Siberian Railway in : The End of Finland Transit and Expectations Regarding Japanese Use. Erina Report, Vol. 73, May, pp

Japan Experienced Similar Shoot-and-Collapse Two Decades Earlier (at TSR, reasons the same)

...if Additional Transportation Costs Increase, We Need to Incorporate Rail Baltica in These Four Themes