AS "LatRailNet" performs continuous monitoring of comparable and agreed key performance indicators (KPI) of the railway sector. Performance indicators have been selected from the Latvian National Development Plan 2021-2027 and the Transport Development Guidelines for 2021-2027, as well as expanded with a system of supporting indicators, which are used to evaluate the effectiveness of decisions of essential functions. In this section you can find information about:
Logistics performance index (LPI)
The Logistics Performance Index (LPI) assesses a country in six areas by trade partners – logistics professionals working outside the country to identify the challenges and opportunities a country faces in trade logistics. Covering 139 countries, the LPI measures the ease of establishing reliable supply chain links and the structural factors that make it possible, such as the quality of logistics services, trade and transport-related infrastructure and border controls. LPI helps developing countries identify where improvements can be made to increase competitiveness. Such policies include improving customs clearance processes and investing in infrastructure, implementing digital technologies and stimulating environmentally sustainable logistics by moving to lower carbon emissions and more energy efficient warehouses.
In 2023, with 4.3 points, Singapore got the highest LPI rating among 139 countries, while Finland got the second place with 4.2 points. In third place with the same number of points (4.1 points) were Switzerland, the Netherlands, Germany and Denmark.
Comparison of Logistics performance of the Baltic States
The latest data from the World Bank provides an insight into the Logistics Performance Index (LPI) 2023. After the evaluation, Latvia took the 34th position with 3.5 points (improving its position from 70th place in 2018 by 2.8 points), Estonia reached the 26th position with 3.6 points and Lithuania took the 38th position with 3.4 points.
Index of revealed comparative advantage of export capacity in the Baltic countries
These data reflect the indicators of the Index of revealed comparative advantage of export capacity in the Baltic States and refer to the country's ability to produce a certain good or service at lower opportunity costs than in other countries. This means that a country is relatively more efficient in producing that good or service compared to other countries.
As shown by the latest data compiled by the World Bank, in 2021 Latvia and the Baltics as a whole have a number of groups of products and products for which the revealed comparative advantage index value is =/< 1 and these products/products had the comparative advantage of exportability in the world market. Among the Baltic States, Latvia had the highest advantage index for wood and its products at 10.47, in Estonia 6.29 and in Lithuania 2.72. Latvia has a well-developed forestry sector and is one of the largest exporters of wood and wood products in the European Union. The Baltics still have a diversified and exportable agricultural sector. An equally high index in the export of vegetable products was 1.99 in Latvia and 1.98 in Lithuania, paying special attention to the export of grains, potatoes, vegetables, as a result of which the export index of the food industry and production in Lithuania was the highest at 2.44, followed by Latvia at 1.95, and the lowest was in Estonia at 1.08. The index of animal and livestock products is the highest at 2.64 in Lithuania. With an index of 1.39, Latvia was the leader in terms of exportability of metals and their products in the Baltic countries, while Lithuania showed the competitiveness of plastic and rubber products as well as chemical industry products.
Freight traffic by rail by group of goods (export/import)
- In 2023, the largest portion of freight transportation on the Latvian railway consisted of the transportation of agricultural products (27.8%), coke and petroleum products (16.5%), and food products (15.7%). The share of metal ores and other mining and quarrying products in the total volume of transported goods was 11.8%, coal, crude oil, and natural gas transportation accounted for 10.6%, and the transportation of chemicals and chemical products accounted for 7.5%. In 2022, the total volume of freight transported by rail was 21,305 thousand tons, whereas in 2023 it decreased to 15,446 thousand tons, which is a decrease of 27.5%. This significant reduction indicates substantial changes in the structure and volume of freight transportation. Notable changes are observed in the transportation of various types of cargo, with a particularly significant increase in the transportation of agricultural products by 52.3% compared to 2022, highlighting the role of this sector in rail transportation. The most dramatic decrease was in the transportation of coal, crude oil, and natural gas by 65.6%, as well as a 61.8% decrease in the transportation of timber products by rail.
- The volume of export transportation by Latvian railways decreased overall in 2023; however, significant differences are observed among different countries. In 2022, the volume of export transportation by railways was 3738.4 thousand tons, whereas in 2023, it decreased to 3499.2 thousand tons, which is a decrease of 6.4%. Russia and Lithuania stand out with an increase in transportation volume, while other countries, such as Ukraine and Estonia, experienced significant decreases. These changes reflect shifting market conditions and potential political and economic factors affecting railway export transportation. The export of goods transported by rail to Russia and Lithuania increased by 2.2% and 66.5% respectively in 2023. In the case of Lithuania, this increase is particularly significant. Positive changes were also experienced in exports to Kazakhstan and Tajikistan, with increases of 12.2% and 11.2% respectively. However, exports to Ukraine experienced a significant decrease in transportation by 77.3%, while Belarus, Estonia, Azerbaijan, and Uzbekistan saw significant decreases ranging from 19.2% to 57.5%.
- The total volume of railway import transportation to Latvia decreased in 2023 compared to 2022, reflecting significant changes in the market and possible economic and political factors. Changes in transportation volumes from different countries vary greatly. In 2022, Latvia imported 13,802.2 thousand tons of goods by railway, whereas in 2023, this volume decreased to 9,446.5 thousand tons, a decrease of 31.6%. This significant reduction indicates substantial changes in the structure and volume of import transportation. Russia and Kazakhstan, the two main sources of imports, experienced significant decreases in railway transportation volume, by 29.6% and 41.3% respectively. Imports from Lithuania and Belarus also decreased, by 15.7% and 34.3% respectively. Uzbekistan and Estonia stood out with an increase in transportation volume, by 12.7% and 110.7% respectively. In the case of Estonia, the increase is particularly significant. The import of goods transported by railway from Tajikistan, Kyrgyzstan, and other countries experienced significant decreases, ranging from 75.0% to 94.7%.