State investment to passenger and industrial shipping in the rivers may not pay dividends

Lithuania does not exploit the full potential of inland waterways, identified the National Audit Office having evaluated the development of inland waterways and their infrastructure in Lithuania. The audit revealed that due to lacking systematic approach towards this type of transport, public institutions lag behind making strategic decisions on long-term development directions in this branch. Therefore passenger and industrial shipping does not take place in Lithuanian rivers, while State investment to upkeeping the waterways in rivers does not render the expected return. In 2005-2008 alone almost LTL 76 million was used for river ways. Currently 98 per cent of all the waterways passengers and 85 per cent of cargo in Lithuania are transferred from Klaipėda to Neringa via the Smiltynė Ferry Terminal.


According to Rasa Budbergytė, head of the NAO, the fact that less than 1 per cent of the cargo is transferred via inland waters shows that State investment into the development of inland waterways still do not give the expected effect. "Failing to set national long-term development priorities, which would give clarity and allow to attract private investors, as well as encourage development of tourism and creation of new jobs, the real threat arises that passenger and industrial shipping in rivers will not basically occur, and the State investment will not pay dividends," said the Auditor General.

The audit detected that Inland Waterway Sector Development Strategy, as well as Development Programme of National Inland Water Transport (until 2025) are not yet drawn up. Without these documents, which have to set long-term priorities, it is not clear which river ways will be developed, what will be their depth, where quays for industrial and passenger ships, petrol stations and other infrastructure will be built. The infrastructure is needed to fully integrate river ways with other types of transport, as well as to join the European river ways system. Not being able to forecast passenger and cargo flows, the private sector does not invest into the development of the fleet and infrastructure, limiting the investment to only recreational shipping.

In Lithuania there is no financing system for inland waterways; charges or other ways of payment for using the inland waterways are not established. Therefore over 99 per cent of inland waterways development and maintenance works are financed from the State Budget and European Union funds.

The National Audit Office recommended the Government to approve strategic documents defining the long-term development of inland waterways and to appoint institutions responsible for their implementation.


Full  report  is  available in Lithuanian: Evaluation of Operation and Maintenance of Inland Waterways