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Baltic States– Are These Unknown Countries in Europe?

The headlines dominate others. Who actually knows these languages, these cultures? Today, we want to look at the possibilities to open different perspectives to provide material for discussion.

Why are many roads in Latvia in such bad condition? For several years now, road users are complaining about the increasing neglect of the maintenance of the roads in Latvia. A journalist, Antra Egle, revealed the backgrounds for the magazine IR. The lifetime of a road in the Baltics is about 20 years, after this time the road has to be completely renewed. In Latvia, many roads have seen no complete renovation since 30-40 years. Why do neighbors, Lithuania and Estonia, maintain a better road network?

Every year in the spring, when the receding frost bursts open the pavement, new discussions begin in the public and media. The biggest problems for roads are the different weather conditions in a short period of time. It often rotates between frost and thawing. For example, in the winter of 2012/2013, it occurred over eighteen times. So, how do the neighboring countries handle this similar situation? In Latvia, they pay only 50% of the construction cost by themselves and engage 50% from the European Union. In Lithuania and Estonia, they pay 75%-80% of the costs by themselves and engage only 25-20% from the European Union.

According statements of the Road Administration, 80% of the revenues from the gasoline tax flow directly into the road budget in Lithonia (in Estonia 75%). Until now, the European Union has invested 3.14 billion Euros in Estonia, 830 million Euros in Lithuania, and 825 million Euros in Latvia.

“The former Prime Minister, Einars Repše, has changed a similar funding system in favor of roads 10 years ago”, states Egle. “Now the Latvian Transport Ministry is working closer together with the Road Administration to direct budgetary constraints of the corresponding tax revenue. But not only funding shortage has been identified as a disadvantage to the Latvian road construction. Also the road quality continues to stay behind standards."

“The cheaper the material for the lower base course is, the more expensive the repair can be,” quotes Ainārs Paeglītis, a scientist at the Riga Technical University. Occasionally it’s a sloppy construction, which requires a complete renovation of the road after 5 years.”

Our dealer from Latvia and Estonia is the company Kuppari Trade OÜ, which was established in 2002. Starting in 2005, MOBA Mobile Automation became a partner of Kuppari Trade OÜ. In an interview, the General Director, Ardi Kardanik told us:

“The beginning was not easy, but thanks to MOBA’s excellent team of Leander, Erik, and Sascha, they helped us improve greatly and made us professionals in the Baltic States’ market. Our main ranges are still the MOBA-matic and the MOBA 4 Sonic-Ski, which show excellent results all over the market. Just as liable is the GS-506 on graders. One of our first experiences and jobsite was Ämari Air Base, co-financed by the Republic of Estonia and NATO. Our best asphalt project result ever seen in the Baltic States. The Baltic States investment for road construction has been increased 2.5 times between 2010-2015, compared to 2005-2010. It almost remains the same level the next 5 years. Therefore, roads have become newer and smoother even if our market barriers of innovation mainly lack funds due to the cost of the cheapest procurements.”

erik-geis 10.02.2016 3 4732
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  •  mdeleroi: 
     
    Thanks for sharing this information!
     
     18.02.2016 
    1 point
     
  •  nikgiehl: 
     
    Great report! Nice to see, that a lot of your customers are already working with the MOBA 4 Sonic-Ski!
     
     15.02.2016 
    0 points
     
  •  bmarx: 
     
    Nice info. Helps to understand the main driving forces in this market.
     
     11.02.2016 
    0 points
     
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