Commission Report (2002): Latvia

Subsections

• Progress since the last Regular Report
• Overall assessment
• Conclusions

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Chapter 9: Transport policy

Progress since the last Regular Report

During the last year, Latvia has made progress in aligning its legislation with the acquis, in particular in the fields of road transport. As regards implementation and enforcement, the strengthening of the administrative capacity of the Road Transport Administration has been put on track. On maritime safety, the detention rate of Latvian flag vessels continues to improve.

As concerns Trans-European Transport Networks, during last year investments in the main transport infrastructure corridors were reported to be EUR 121 million, of which about 26 % were covered by the national budget. Emphasis has been put on the rail network. The implementation of the first stage of the ``Via Baltica'' project was completed in November 2001.

With regard to land transport, legal alignment has progressed in the road transport sector. Latvia has fully aligned with the EC rules on weights and dimensions of vehicles and has continued to harmonize its legislation on the transport of dangerous goods. Latvia has also aligned with driving times and rest period rules and has provided for the installation of tachographs. In May 2002, the relevant road framework legislation was amended, providing the basis for completion of legal alignment with the acquis through the adoption of implementing legislation. In April 2002, Latvia ratified the INTERBUS Agreement on the international occasional carriage of passengers by coach and bus. Concerning administrative capacity in this area, the Road Transport Administration was slightly strengthened with additional staff. In June 2002 the Government adopted a ``Concept on Control in Road Transport`, establishing that the Road Transport Administration will be split into a Road Transport Inspectorate, responsible for checks in the road transport sector, and a Road Transport Agency, which will retain the function of licensing transport operators. It also makes provision for upgrading the technical equipment of control units (portable computers, communication devices, and an additional mobile weighing unit).

On railways, in the framework of the restructuring of the Joint Stock Company ``Latvian Railways'', a separate Passenger Transport Operator for inland transport, the subsidiary Joint Stock Company ``Passenger Train'', was established in January 2002. No further developments can be reported.

As to inland waterways transport, in June 2002 legislation was adopted to ensure recognition of boatmasters' certificates issued by other Member States.

No new developments are to be reported in the area of combined transport other than the adoption of the amendments to the Law on Carriage by Road.

Concerning air transport, Latvia had already aligned its legislation with a substantial part of the aviation acquis and in May 2002 amendments to the Law on Aviation were adopted transposing the computerised reservation system requirements.

In the area of maritime transport, in November 2001, Latvia acceded to the 1974 Athens Convention relating to the carriage of passengers and their Luggage by Sea and its Protocol of 1976, and in February 2002 to the 1924 International Convention for the Unification of Certain Rules relating to Bills of Lading, and its Protocol of 1968 and Protocol of 1979.

Concerning maritime safety structures, in January 2002, as a result of the restructuring of the Latvian Maritime Administration, the Maritime Rescue co-ordination Centre was transferred to the Latvian Navy (Coast Guard) of the Ministry of Defence. At present there are 108 employees in the Maritime Administration of Latvia. 14 inspectors in the Maritime Safety Inspectorate of the Latvian Maritime Administration perform the Flag State and Port State inspections.

According to 2001 statistics under the Paris Memorandum of Understanding, the percentage of Latvian flag vessels detained following Port State control was 5%, a further decrease compared to 7.6 % in 2000 and 14.6% in 1999. This compares with an average for EU-flagged vessels of 3.14 % in 2001. In May 2002 Latvia became a co-operative member of the Paris Memorandum of Understanding on Port State control.

Overall assessment

As regards Trans-European Transport Networks, Latvia should continue with the further modernisation and development of both priority transport infrastructure along transit corridor I, and the main transport infrastructure network. Special emphasis should be given to ensuring the necessary administrative capacity (both in qualitative and quantitative terms) to prepare for the significant investments that will be needed in road and rail infrastructure.

In the road sector Latvia is well advanced in terms of legal alignment with the relevant acquis. Further efforts are still to be made in the transposition of technical rules (speed limitation devices, driving licenses) and the fiscal acquis, as well as in the implementation of social rules (admission to the occupation, and driving times and rest periods) particularly in the domestic sector. On the administrative side, it is now important that the Concept on Control in Road Transport is turned into concrete action to improve controlling capacity and reform the institutions responsible for control of road transport operations. The ensuing institutional reform of the present road authorities has to meet the need for an operational and efficient structure, with adequate financial means and significantly increased controlling capacity, covering also control at premises.

Regarding rail transport, considerable further efforts are needed to allow for implementation of the revised railway acquis. Legislative alignment also needs to be completed as regards requirements on interoperability of both high-speed train systems and conventional railways, and in this context particular attention has to be paid to the criteria for appointing the notified bodies. The restructuring and modernisation of the sector should continue. In the framework of the restructuring of the Joint Stock Company ``Latvian Railway'', the creation of a number of separate companies (infrastructure manager, freight operator) is pending. The capacity of the technical railway inspectorate, the regulator and other railway administrations needs to be strengthened.

Even though inland waterways in Latvia are of limited local importance, Latvia needs to align its legislation with the remaining relevant acquis.

On combined transport, legal alignment needs to be completed.

As regards air transport, the legislative framework in this sector is largely aligned with EC requirements; however, the legal basis and the status of the independent aviation accident investigation body are still pending and its administrative capacity needs strengthening. Latvia should continue to progressively incorporate the Joint Aviation Requirements.

For maritime transport, the adoption of the two framework laws and of the ensuing implementing legislation are still pending. On maritime safety, there is already alignment or partial alignment in the area of reporting requirements for ships carrying dangerous goods, reduced charges for vessels with segregated ballast tanks, passenger ship safety and Port State control. Further legislative work is needed on Flag State inspection, classification societies and marine equipment measures. On the administrative side, measures should be taken to strengthen administrative capacity in the field of maritime transport safety in order to further improve the Flag State performance of the Latvian fleet.

Conclusions

In its 1997 Opinion, the Commission concluded that Latvia was making noteworthy progress in assimilating the acquis in the transport field, particularly that of air transport. Provided efforts (also as regards the effective implementation of the acquis) were made in the goods-by-road, (access to profession, weights and sizes, road tax), shipping (safety) and rail (public service and standardisation of accounting procedures) sectors, the transport industry was unlikely to pose any major difficulties as regards the assimilation of the acquis relating to the single market. By contrast, Latvia was advised to improve its administrative structures, including inspection bodies such as those responsible for safety, as soon as possible.

Since the Opinion, Latvia has made steady progress in aligning legislation. Its legislation in the transport sector is now to a great extent in line with the EC acquis; the relevant framework laws (with the exception of maritime transport) are in place and only a limited amount of implementing legislation remains to be put into practice. However, implementation of the maritime safety acquis needs continued attention. In addition, the administrative capacity is being strengthened.

Negotiations on this chapter have been provisionally closed. Latvia has been granted transitional arrangements regarding the introduction of the financial standing criterion for domestic road transport operators (until 31 December 2006) and the installation of tachographs for vehicles registered before 1 January 2001 and exclusively operating on the domestic market (until 31 December 2005). Latvia has agreed to a transitional arrangement put forward by the EU concerning the gradual reciprocal access to the cabotage market in the road haulage sector. Latvia is generally meeting the commitments it has made in the accession negotiations in this field.

In order to complete preparations for membership, Latvia`s efforts should now focus on: accomplishing transposition and implementation of the fiscal and social/technical acquis in the road sector, the further legislative alignment in the rail and maritime sector and strengthening the administrative capacity in road, rail and air transport. Particular attention will need to be paid to further strengthening the administrative capacity in the field of maritime transport safety and improving the flag state performance of the Latvian fleet.

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