JSC, “Lithuanian railways”

JSC „LITHUANIAN

RAILWAYS” -

IMPLEMENTER OF THE

PROJECTS

STRUCTURE OF THE COMPANY

Head office

Freight transportation directorate

Passenger transportation directorate

Railway infrastructure directorate

Rail Baltic project directorate

JSC Railway environmental center

Information technologies center

Representative offices in:

China

Russia

Belarus

Subsidiaries:

JSC Center of railway construction

JSC Vilnius locomotive repair depot

JSC Railway security

JSC Railway designing

JSC “Rail Baltic” construction Kazakhstan

ABOUT THE COMPANY

• JSC ,,Lithuanian Railways” – the largest transport and logistics company in

the Lithuania.

36

Freight Carrier

2015 year

48,1 mill. t

2015 year

4,2 mill. pass.

Passenger Carrier Railway network

1767 km

ABOUT THE COMPANY

• Experience – 150 years.

• 100% of the company's shares belong to the State.

• 10th place in EU by railways freight transportation volume (million ton-kilometers).

• Overall investment during last 10 years – 1.5 billion EUR.

2015 year

437 mill. EUR

2015 year

2,1 billion EUR

Employees

10,2 K

2015 year

Revenues Property

VILNIUS

Šiauliai

Tauragė

Panevėžys

Kaunas

Alytus

Utena

Turmantas

Pabradė

Kena

Stasylos

Senovė

Kybartai

Kazlų Rūda

Lentvaris

Kaišiadorys

Gaižiūnai Pagėgiai

Radviliškis

Obeliai

Joniškis Skuodas

Kužiai

Mažeikiai Bugeniai

Baltic sea

Vaidotai Marijampolė

Modernization of Kaunas station, bypass Palemonas

– Rokai – Jiesia and section Kaunas - Kybartai

signaling and power supply equipment

Road equipment modernization of Kaunas station,

bypass Palemonas – Rokai – Jiesia and section

Kaunas –Kybartai road equipment (stage I)

Installation of Traffic Control

Centre

Construction of the second track of

Vilnius bypass Kyviškės – Valčiūnai,

corridor IXB

Infrastructure restoration and modernization

(stage I) of the corridor IA section

Radviliškis – Pagėgiai – State border

Reconstruction of existing railway

section Kaunas (Palemonas) –

Gaižiūnai

Installation and modernization of Infrastructure

diagnostic systems

Reconstruction of road structures of

connecting railway line Klaipėda –

Pagėgiai

Modernization of the infrastructure of

connecting railway line Klaipėda –

Pagėgiai

Technical assistance (design) for track

modernization of section Vilnius – Kaunas

(speed up to 160 km/h) and for construction of

second track in the sections Kyviškės –

Valčiūnai and Pušynas – Paneriai

Technical assistance (design) for construction of

second tracks

Design and construction of an

intermodal terminal at the Vilnius

Public Logistics Centre

Design and construction of an

intermodal terminal at the Kaunas

Public Logistics Centre

Traffic safety program (upgrade of railway

emergency and crisis situations management

system )

Electrification of the Corridor IX, stage I. Design

Klaipėda

Construction of the second

track in the section Telšiai –

Dūseikiai


track in the section

Kūlupėnai – Kretinga

Accomplished projects


track in the section Pavenčiai

– Raudėnai

Construction of a new EU (1435 mm)

gauge railway line and modernization of

existing broad (1520 mm) gauge railway

line Šeštokai - Marijampolė;

Marijampolė - Kazlų Rūda – Kaunas

Modernization of existing EU (1435 mm) gauge

and dual (1435/1520 mm) gauge railway line

Polish/Lithuanian state border - Mockava;

Mockava – Šeštokai

ACCOMPLISHED INFRASTRUCTURE PROJECTS FOR FINANCIAL PERIOD

2007-2013

Reconstruction of the stations:

Draugystė;

Rimkai.

FREIGHT TRANSPORTATION BY RAIL PERSPECTIVES – 2030

East-West transit

North-South transit

Freight of local companies

50 mill. t

12 mill. t

60 mill. t

10 mill. t

The main freight flows

10 mill. t

Necessary capacities + 30 %

ES NVS

KENA Boundary station

KLAIPĖDA Sea Port

//upload.wikimedia.org/wikipedia/commons/8/80/LietuvosPlikasZemelapis.png

LITHUANIA – TRANSIT COUNTRY

EU CIS

Kena – unique gates between EU and CIS

Border crossing formalities according to all necessary EU rules takes only 30 min.

KENA

KLAIPĖDA

ŠEŠTOKAI

PASSENGERS CARRIAGE PERSPECTIVES - 2030 1. Servicing of transit passenger trains

2. Convenient connection by international routes:

Minsk direction;

In 2016: Vilnius-Minsk in 2 hours.

Warsaw / Berlin direction;

In 2015: „Rail Baltica“ European gauge to Kaunas.

Riga / Tallinn direction.

3. Carriage of passengers on domestic routes depends on the State policy dealing with the public transport organization and financing issues

Most promising railway routes:

Vilnius-Kaunas

Vilnius-Šiauliai-Klaipėda

1. „Rail Baltica“ project construction.

2. Electrification of the IXB (Kena – Klaipėda) transport

corridor in the section Kena – Radviliškis.

3. Construction of the second track and extension of the main stations of the IXB transport corridor.

THE MAIN STRATEGIC INFRASTRUCTURE DEVELOPMENT AIMS IN 2014 - 2020 YEAR

I stage

Construction works

have been started

II stage

Date of public procurement for

electrification works – 06/2016

III stage (FIDIC yellow

book)

Date of public

procurement – 02/2017

After 2014 – 2020 years till 2030 years.

Klaipėda Radviliškis

Kaunas Kaišiadorys

Kena

Vilnius

DEVELOPMENT OF THE IXB CORRIDOR, 2014 – 2020 YEAR

Electrification of the line Radviliškis – Klaipėda till 2030.

Planned electrification of the IXB transport

corridor (from Kena – N. Vilnia, Vilnius railway

junction, Kaišiadorys – Radviliškis, Šiauliai -

Radviliškis (Radviliškis yard) till 2020.

Existing electrified line N. Vilnia – Kaunas

IV stage (FIDIC

yellow book)

Date of public

procurement –

02/2017

Section Telšiai – Lieplaukė

Construction works have been

started

Vilnius bypass section

Pušynas – Paneriai

Procurement procedures

for construction works

almost completed

Pauostis yard

Date of public procurement

for construction works –

04/2016


tracks

Reconstruction of the station

To design electrification of the line PL/LT border-

Kaunas

Construction of the railways in section Jiesia-

Rokai-Palemonas

Expropriation of the land in section Palemonas -

LT/LV border

To design the railway line in section Palemonas -

LT/LV border

Construction of the railways (I stage, Palemonas-

LT/LV border)

Construction of the railways in section Kaunas-

Palemonas

"RAIL BALTICA" PROJECT IMPLEMENTATION PLAN IN LITHUANIA BY 2020

Construction of the embankment (55 km) and

related infrastructure

- operating line

- designed line

- expropriated land

- constructed embankment

Construction of the maintenance and repair

facility with relevant infrastructure (depo)

Implementation of the ERTMS (Level 2 base line 3

or higher) and related systems in the line PL/LT-

Kaunas

To prepare the technical documentation for the

upgrade of speed on the line PL/LT-Kaunas

To prepare the studies (archaeological,

maintenance depot)

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„RAIL BALTICA“

PROJECT DEVELOPMENT IN LITHUANIA. STAGE 1

THE SUCCESS STORY

13

PROBLEM:

VIA BALTICA overcrowded.

Heavy accidents almost everyday.

Press calls VIA BALTICA – „Death

Road“

SOLUTION:

Start to use „Rail Baltica“ ASAP:

- For container transportation;

- For semitrailers transportation

Kaunas

LV

PL/LT

Panevėžys

Rail Baltica project development in Lithuania

Šiauliai

Rail Baltica -1 AECOM study

Vilnius

Construction Stage 1

Max speed 120-160-240 km/h

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OUR MAIN CHALLENGES

1. „Rail Baltica“ is the bigest infrastructure project of Lithuania;

2. Extremely short time for implementation;

3. Necessity to split implementation in to the parts, to coordinate separate

Contractors;

4. Works to be done on acting railway line during the traffic breaks;

5. Necessity to coordinate technical parameters, time table, take in to account the

needs and wishes and find common solutions with Neighbour countries,

Municipalities, Private People, Companies, State institutions.

17

OUR ACHIEVEMENTS 2010-2015 (1)

Following completion of international public procurement tenders, contracts were signed with Consultants and Designers, who: -Completed and presented feasibility studies, which examined the possibility of splitting the entire line into separate railway sections; -Completed technical designs; -Obtained separated construction permits for each of the railway sections, which were based on the territory of one or few municipalities. Lithuanian Railways, through the Ministry of Transport and Communication of the Lithuanian Republic, coordinated the approval of technical solutions and planned work schedules with municipalities and other public institutions. If there was a necessity, the tripartite agreements were signed between the Ministry of Transport and Communication, individual municipalities and Lithuanian Railways for the implementation of the Rail Baltica project in the territory of the specific municipality.

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OUR ACHIEVEMENTS 2010-2015 (2)

The procurement of the construction works was executed through the international tenders. For some specific railway sections, in spite of an extremely important time factor, due to the excessive prices, which were included in the tender proposals, public procurement procedures were terminated and repeated (in some cases – up to 3 times). Proposals were evaluated based on the method of economic efficiency, combining the proposed shortest timeframe for the construction completion and the lowest price.

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OUR ACHIEVEMENTS (3)

After the completion of technical design and obtainment of the construction permits, between April and July, 2013, 11 construction contracts were signed with 5 main contractors (tender winners), who made use of over 30 subcontractors. Moreover, 6 additional contracts were signed to provide Technical supervision and supervision of technical design implementation. Lithuanian Railways (specifically "Rail Baltica" project directorate) conducted the function as the daily coordinator: - Construction works had to be carried out simultaneously in all the railway sections and only during the railway traffic breaks without the stopping the regular train traffic, construction work schedules were thoroughly coordinated with each of the contractors, Contractors capacity was verified on weekly basis (special films where produced to fix changes in construction works and discussed and improvement possibilities discussed with Contractors).

1. FEASIBILITY STUDIES AND TECHNICAL DESIGN WERE FINANCED

TEN-T program – 50%, remaining 50% by State budget and Lithuanian Railways (LG)

2. CONSTRUCTION WORKS: 2.1 For section from PL/LT border to Marijampolė

TEN-T – 27%, remaining 73% by State budget and Lithuanian Railways (LG)

2.2 For section from Marijampolė to Kaunas

Cohesion Fund – 85%, remaining 15% by State budget and Lithuanian Railways (LG)

Overall, “Rail Baltica” Stage 1 was financed from (in mln. EUR/ percent):

TEN-T – 21,4mln.EUR (7,1%) STATE BUDGET – 5,1mln. EUR (1,7%)

Cohesion Fund – 144,7mln. EUR (48, 1%) LG – 129,9mln.EUR (43,1%)

3. 2014-2020 EU financing period activities are financed 85% from Connecting Europe Facility (CEF) program and

remaining 15% by State budget and Lithuanian Railways (LG)

„RAIL BALTICA“ PROJECT FINANCING:

1. Contractors for feasibility studies and technical design of pre-assigned railways sections

were selected as the result of OPEN (INTERNATIONAL) PUBLIC TENDERS.

FEASIBILITY STUDIES

For section Šeštokai-Marijampolė was prepared by company Ernst & Young (GREAT

BRITAIN branch in Lithuania)

for section Marijampolė to Kaunas was prepared by company SYSTRA from FRANCE

SPECIAL PLAN for section from Palemonas to LT/LV border currently in prepartion by

AECOM (USA& GREAT BRITAIN branch in Lithuania)

2. TECHNICAL DESIGN

For section from Polish-Lithuanian state border to Mockava, technical design was prepared by a company

EPG (GERMAN branch in Lithuania)

For section from Šeštokai to Marijampolė was prepared by company SWECO (originated

from SWEDEN)

For section from Marijampolė to Kaunas, technical design was prepared by Kelprojektas

(LT,LV, EE investment company).

For section Palemonas – LT/LV border was prepared by ARDANUY Ingeniería (SPANISH

branch in Lithuania)

SECTION PL/LT STATE BORDER – KAUNAS CONTRACTORS FOR FEASIBILITY STUDIES

AND TECHNICAL DESIGN :

1. Contractors for construction works of pre-assigned railways sections were selected

as the result of OPENED (INTERNATIONAL) PUBL IC TENDERS.

2. These Contractors were selected:

2.1 Sections Lithuanian-Polish border- Mockava and

Mockava-Šeštokai (incl. Šeštokai Railway station)

UAB GELEŽINKELIO TIESIMO CENTRAS;

2.2 Section Šeštokai-Marijampolė (incl. Marijampolė Railway station)

AB KAUNO TILTAI (JSC with Polish) AND UAB MITNIJA (JAP*)

2.3 Section Marijampolė-Kazlų Rūda and Mauručiai- Jiesia

AB PANEVĖŽIO KELIAI

2.4. Section Kazlų Rūda-Mauručiai AB EUROVIA LIETUVA AND EUROVIA C.S. a.s. (JAP*) (shareholders from Czech Republic

and France)

2.5. Section Jiesia-Kaunas UAB HIDROSTATYBA AND UAB Šilutės automobilių keliai (JAP*)

*JAP- joint activity partners

SECTION PL/LT STATE BORDER – KAUNAS CONSTRUCTION WORKS

CONTRACTORS:

1. Total value of contracts signed is more than € 300 Million;

2. Implementation of the project in numbers:

2.1. Executors : 5 Contractors, more than 30 subcontractors;

1.000 staff employed;

700 units of different mashines;

2.2 trackbed, tracks: eguipped 229 km of trackbed;

built abt. 127 km of European gauge track (1435 mm width);

reconstructed abt. 106 km of existing 1520 mm width gauge;

2.3. reconstructed, equiped or built : 19 bridges;

108 switches;

40 crossings;

95 culverts;

6 railway stations;

20 platforms;

4 viaducts;

24 232 m noise fences;

115 263 m protective fences;

85 909 m water drenage system;

2.4. Other important numbers: during implementation used

30.000 tons of different type of metals;

800.000 tons of crushed rock;

1.500.000 tons of earthwork (abt. 20.000 vagons = train lenght abt. 260 km)

SECTION PL/LT STATE BORDER – KAUNAS IN NUMBERS:

All tenders were announced through electronic information system of Public Procurement Office.

An access to the tender documents through:

http://ted.europa.eu; https://pirkimai.eviesiejipirkimai.lt, Www.litrail.lt

Opened tenders were performed in TWO stages:

STAGE 1: During the first stage Contractors were verified how they meet qualification requirements

set in tender documents (no debts to Social security office and tax office, provided guarantees and insurance

required by tender, declaration about company’s CEO&Accountant, certificate about company‘s management

and environmental management quality systems, etc. )

There were requirements to the Contractors companies as well their staff:

- Contractor had to have permit for construction works within Lithuania,

- To obtain local registration of Value Added Tax account;

- Contractors , attending the tender were qualified only those holding valid qualification

- Certificate to construct exceptional significance constructions (issued by Lithuanian Construction Products

Certification Center) and had a proof that succesfully constructed at least 1 structure of exceptional significance.

- Company’s average construction works turnover in last 5 years had to be equal or exceeding value required in tender

documents;

SECTION PL/LT STATE BORDER – KAUNAS MAIN

QUALIFICATION FOR TENDERS` PARTICIPANTS (1):

http://ted.europa.eu/

https://pirkimai.eviesiejipirkimai.lt/

http://www.litrail.lt/

http://www.litrail.lt/

Not only , Contractors, but Subcontractors attending these tenders also had to

meet criteria set by Lithuanian Public Procurement Law and tender documents,

particulary for those whoes share in construction works offered for tender exceeded

10 % of total Construction works.

Also, there are specific requirements to both Contractors and Subcontractors

to their leading specialists in terms of certification and experience.

For each group of works there are obligation for Contractors to pre-assign specialists

those who should meet certain tender criteria. These were:

1. Exceptional significance construction manager, main requirements to hold valid

exceptional significance certificate, at least 3 years experience (from at least 10 years

overall experience in construction field) in heading construction of works of exceptional significance

in railway and heading for at least 1 construction of exceptional significance structure.

2. Exceptional significance specialized construction managers, main requirements to hold valid exceptional

significance certificate, at least 2 years experience (from at least 10 years overall

experience in specialized ) in heading works of exceptional significance in that specialized field ( signaling, electrification,

environment protection, etc.)

In this stage also duration of construction works announced.

SECTION PL/LT STATE BORDER – KAUNAS MAIN

QUALIFICATION FOR TENDERS` PARTICIPANTS (2):

STAGE 2. After investigation of qualification is completed and then total price offered

for tender by Contractor is announced and detailed works quantities sheets are

provided for verification.

For construction works tenders:

90 were given for the contract TOTAL PRICE offered and

10 for the TIME CRITERIA Contractor took responsibility to complete entire works

(For technical design tenders 80 and 20 accordingly)

EVALUATION OF TENDER RESULTS

Based on results of offers provided by Contractors in STAGES 1 AND 2 calculations

are produced and winner of tender announced, based on the Contractor’s offer which

generated highest number of scores.

FOR 2014-2020 TENDERS FINANACED FROM CEF QUITE A SIMILAR

CRITERIA EXPECTED TO BE IN USE!

SECTION PL/LT STATE BORDER – KAUNAS

COMPLETION OF TENDER (3)

CONTRACTORS FOR WORKS FOUND HISTORICAL REMAINS

2013-10

2014-05

2015-05

AFTER COMPLETION IN 2015

“RAIL BALTICA”. STAGE 1: IN 2015 100 % OF WORKS WERE COMPLETED!

LITHUANIA

MADE IT ON

SCHEDULE!

FUTURE OF RAILWAY

INFRASTRUCTURE

PROJECTS

Embankment construction ~ 55 km

(including bridges, viaducts, culverts,

passings)

Preliminary start date for construction –

07/2018

PL/LT – Kaunas (completed)

Palemonas 0 km

~ 55 km

Construction of 1435 mm

3 km railway line and a

partial 1435 mm yard

construction

Preliminary start date for

construction – 04/2018

~ 3 km

CONSTRUCTION OF THE SECTION KAUNAS (RRT)-PANEVĖŽYS-LT/LV BORDER

2007 - 2013

Expropriation of the land

in section Palemonas -

LT/LV border

Preliminary start date of public


To design the railway line

in section Palemonas -

LT/LV border (FIDIC

yellow book) (168 km)



Technical designing and

construction of the 1435 mm gauge

railway infrastructure maintenance

depot in Kaunas railway node


procurement for technical design –

09/2016

To prepare the studies:

- Archaeological - preliminary start date

of public procurement – 07/2016

- Maintenance depot - preliminary start

date of public procurement – 01/2018

KAUNAS NODE

Kaunas Public Logistic Center

Kaunas Kaunas bypass

Kaunas – Palemonas construction (10 km)


procurement for construction works –

04/2016 (upon receipt of the construction

permit)

Jiesia – Rokai construction (5 km)

Public procurement procedures almost

completed, works will start – 07/2016

Rokai – Palemonas construction (8 km)


procurement for construction works –

04/2016 (upon receipt of the construction

permit)

ALTERNATIVES

LT/PL state border

Alternative # 1 (2011, AECOM) – P2/F1 new electrified

double track with ERTMS.

Alternative # 2 – Upgrade of the existing line up to P2/F1

electrified double track with ERTMS.

Indicators Alternative #1

(AECOM)

Alternative

#2

Difference

(#1 - #2)

Investment cost, EUR 875,2 mill. 666,8 mill. 208,4 mill.

Total length (passenger) in section PL/LT –

Kaunas, km 88,5 km 99,7 km - 11,2 km

Average theoretical travel time, min 26,9 min 34,9 min - 8,0* min**

Total value of passenger travel time

savings during the project reference

period (value of time saving forecasted

volume for 30 year), discounted, EUR

17,2 mill. - 17,2 mill.

(-) Loss, which is generated for each of the

travel time minute saved (evaluating only

initial investment and travel time savings),

EUR

- 191,6 mill. - - 191,6 mill.

(208,4 - 17,2)

Operating costs (for 30 year),

undiscounted, EUR

254,1 mill. (with

existing line) 169,7 mill. 84,4 mill.

* investment amount to shorten the travel time per one travel minute - 26,1 mill. EUR

** Average theoretical travel time in route Warsaw (Bialystok) – Kaunas - 165 min, so 8 min. is just ~ 4,8 proc. time of

this route.

Jiesia

Mockava

Šeštokai

Mauručiai

Jiesia

Vinčai

Rokai

Marijampolė

Kazlų Rūda

Jiesia Rokai

Kaunas Railway infrastructure adaptation in the line PL/LT-Kaunas for

train traffic code P2, F1

Kalvarija

2014-2020

Speed increase activities in the line PL/LT-Kaunas for train traffic code

P2, F1 (intermediate phase traffic code P4, F1):

ERTMS (Level 2 base line 3 or higher) and related systems.

Preliminary start date of public procurement – 03/2017.

Feasibility study for the line PL/LT-Kaunas speed upgrade (current

line upgrade and analysis of a new line alternative).


Spatial plan preparing for section PL/LT – Kaunas (according to

feasibility study analysis).


Preparation of technical design for electrification.


2021-2025

Railway infrastructure adaptation in the line PL/LT-Kaunas for train

traffic code P2, F1 (stage 2)

After preparation of the feasibility study, works will be detailed.

THANK YOU FOR YOUR ATTENTION

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JSC, “Lithuanian railways”