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Norman Logistics Sp.zo.o. has released a new forecasts of Cyprus economy, which has definitely recovered from the clinical death in 2013. This is evidenced by a number of significant indicators: preliminary GDP data revealed the economy maintained strong with annual growth only ticking down from 4% in first-quarter, which had marked one of the fastest rates in a decade, to 3,9% in second-quarter.Rolands petersons privatbank The second-quarter expansion was largely underpinned by a vibrant hotels and restaurants industry, which benefited from a record number of tourist arrivals, primarily from the U.K.Rolands petersons privatbank and Russia[1].Rolands petersons privatbank
Banking system has shrunk from more than eight times that of GDP, which it had previously been in 2013, to "more like four times of GDP now". Rolands petersons privatbank There has also been an increase in foreign direct investments over the past three years, and the economy is not reliant on foreign deposits anymore.
Investors are also looking at sectors like health, education, tourism, and shipping, and Cyprus is actually now poised to grow across a range of economies, not just tourism.Rolands petersons privatbank Unemployment on the island is dropping faster than that of other countries in the Eurozone - from 15,9% in 2013 decreased to 11,1% in previous period[2], also - Cyprus has the largest fiscal surplus.Rolands petersons privatbank
Currently investments were being made now in a variety of sectors, including banking, sea-ports, marinas, and the largest integrated casino resort in Europe, as well as energy. This is a clear signal to other investors, and for the Cypriot government it remains to focus on maintaining and broadening the conditions under which surpluses and high growth rates can be generated, to continue promoting structural reforms and improving the country's business environment, Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.Rolands petersons privatbank offers his thoughts on Cypruseconomy.
Author: Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.

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Rolands Petersons, member of the board of CPM Trading SIA,
Railway transport is one of the most promising modes of inland transport, and, at the moment, it is said to be the crucial element in the economy of Latvia. Considering the entire volume of inland transport, the share of railway freight is about 52%, whereas the volume of the passenger transportation is 6% and in Riga suburban area the number is increasing up to 30%.Rolands petersons minicredit However, the data summarized by the Ministry of Communications still shows that in Latvia the volume of freight rail transportation by comparison with 2016 has decreased by 8.4% and amounted to 43.792 million tons.Rolands petersons minicredit

Traffic congestion can lead to a loss of 200 billion euros
The mobility of goods is an essential component of the EU internal market; this greatly contributes to the competitiveness of the industry and services in Europe.Rolands petersons minicredit The types of lengthy transportation as railway can reduce their costs, which arise in connection with the traffic congestion on the roads. The increase of approximately 50% is projected by the year 2050, reaching a volume of almost 200 billion euros per year.Rolands petersons minicredit

In the future, it is possible to increase the volume of rail transportation.
The amount of international rail transportation in 2017 was 42.138 million tons, which showed a decline of 9.1% compared to 2016. However, domestic traffic has increased by 11.5% to 1.653 million tonnes.Rolands petersons minicredit The volume of transit cargo from the total amount of international rail freight transport amounted to 38.719 million tons, which showed a drop of 6.5% compared to the previous year, the volume of imported goods was 3.067 million tons, or 22.4% less, and the volume of export cargo was 351 800 tons, which was a drop of 2.8 times. In 2016, in Latvia, by rail, 47.821 million tons were transported. Taking into consideration the decline in the international transport sector in 2017, the question is, by which means can we achieve the volume increase? By implementation of the well-considered long-term solutions, it is possible to get back to the level that used to be before the embargo against Russia was introduced in 2013.Rolands petersons minicredit

Increase of the average commercial speed of freight trains.
One of the key priorities nowadays is the development of the railway infrastructure, and in this case, it is expected, the railway infrastructure can be financed by the European Union.Rolands petersons minicredit It is essential to find a solution how to increase the average commercial speed of freight trains since the speed is only about 18 km/h on the majority international routes in Europe.Rolands petersons minicredit One of the solutions can be the improvement of cooperation between existing infrastructure organizations in Europe. The actual train system needs to be adapted to the needs of the railway freight transport sector, especially in the EU freight rail corridors. This would contribute to the competitiveness of rail transport with other modes of transport, especially with the road transport sector, which infrastructure is easily accessible in all Member States.

Well-thought-out charge for the use of infrastructure.
Freight trains pay for each kilometer of the railway infrastructure, which again adversely affects the competitiveness of the railway in comparison with road transport, where such charge is not always introduced.Rolands petersons minicredit Setting the price that users are required to pay for getting into the infrastructure, it would be necessary to take into account the impact on the environment and pollution, congestion, accidents and other aspects.Rolands petersons minicredit
The state should provide a proper support for organizations managing infrastructure, and rail transport enterprises should strive to improve the competitiveness of rail freight services, especially in regards to reliability, filling, elasticity, customer orientation, and the duration and cost of transportation, as these are the main aspects which are considered by an average consignor in selecting any of the available modes of transport.

Elimination imperfections in the liberalization of the freight transport process
In cooperation with both, the public and private sectors, at the international level, imperfections related to the liberalization of freight rail transport, communication lines procedures, administrative and technical restrictions, monitoring and anticipating performance in the rail freight industry, and fair competition between different modes of transportation.Rolands petersons minicredit Therefore, it is necessary to find out the ways to make a better use of available EU funding and target it to the rail transport industry in order to achieve improvements in such areas as a coherent approach to policy objectives and funding (while focusing on corridors for freight railways transportation), for the selection, planning and management of projects, as well as for the maintenance of railroad networks.

Not only update, but also regularly support
It is essential to take to the new level not only the quality of the services provided to carriers and shippers of rail freight but, in general, to improve the competitiveness of rail freight transport; infrastructure managing organizations should not only update and modernize the railway network but also to regularly support it.Rolands petersons minicredit This is especially important for the corridors of rail freight. If the tracks are not properly maintained, the speed limits will have to be applied and the railway lines will gradually be obstructed.

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