Χ. Vinis, ERGOSE: Projects with a total budget of 2.4 billion euro in Northern Greece
Christos Vinis, President & CEO of ERGOSE, analyses the projects expected to help develop the railway network of Thessaloniki and the target for further investments in the city’s network, stressing that “Thessaloniki has always been a pole of attraction for commercial and business activities from the Balkans”.
What are the current projects that are “running” and that will help the development of the railway network of Thessaloniki?
The projects currently underway are the modernisation of the main railway axis Patras – Athens – Thessaloniki – Eidomeni / Premachonas as well as the new railway line known as “Eastern Railway Egnatia”. The PATHE/P programme provides for the creation of a high-speed and high-capacity railway axis, equipped with modern remote-controlled signalling, telecommunications and electrification systems, which meet the modern needs and interoperability standards of European railways.
In addition, the full utilization of the Freight Centre built by ERGOSE in Thriasio Field is expected to give a significant boost to the development of freight transport. This is a project of great commercial character with secured funding. It is worth noting that through this project the operational upgrading of the Thessaloniki-Eidomeni line, which is one of the main commercial cross-border connections with the rest of Europe, will be achieved, strengthening the interconnection of the Greek railway network with that of the neighboring Balkan countries and promoting international transport by rail.
The Eastern Railway Egnatia concerns the construction of the new railway line Thessaloniki-Kavala-Xanthi (southern alignment) and the upgrading of the existing line up to Alexandroupolis, interconnecting the ports of Thessaloniki-Kavala-Alexandroupolis, creating a continuous flow of freight transport. Furthermore, the upgrading and doubling of the existing railway line from Alexandroupoli to Ormenio, which is being promoted, will connect the main ports of Northern Greece with the two Bulgarian ports in the Black Sea region, namely Burgas and Varna. The project will be undertaken by a subsidiary company that is currently being set up, making Northern Greece a focal point for the development of the railway network and, by extension, transport in general.
The combination, therefore, of the implementation of the eastern railway Egnatia with the upgrading of the connection to the northern border of the country at Eidomeni, Promachon and Ormenio, on the one hand upgrades Northern Greece, which had been lagging behind in terms of the railway network, and on the other hand creates a huge investment interest in the transport sector and the movement of goods with neighboring countries.
In addition to the cross-border and inter-regional railway projects involving Thessaloniki, the development of the city’s Western Suburban Railway network is also being accelerated, with an estimated budget of €20 million. At this stage, an update of critical design parameters of the project is being carried out to ensure synergy between the city’s public transport systems (existing and future) and the optimal way of tendering is being examined.
All the above-mentioned projects clearly upgrade the network of Thessaloniki.
What is the target for further investments in the railway network of the city and of Northern Greece in general, in terms of future projects? What is the plan for the connection to the port?
The interconnection of the railway network with the so-called critical infrastructures, ports, airports and industrial areas of the country is an urgent need and a priority of the utmost importance for ERGOSE, but also one of the key objectives of the strategic planning of the Ministry of Infrastructure and Transport for the transformation of Greece into a logistics hub. ERGOSE, moving towards the achievement of this goal, is implementing its development plan and is proceeding with projects with a total budget of €4 billion, with the projects to be implemented in Northern Greece having a total value of €2.4 billion.
These projects include, among others, the railway connection of the 6th pier of the Port of Thessaloniki, the connection of Alexandroupolis with Ormenio, the connection of Kavala with Thessaloniki and Toxotes via the southern alignment and the Eastern Egnatia. In the same context, in the rest of the country, projects such as the connection of the Attica airport “El. Venizelos” with the ports of Lavrio and Rafina and the railway interconnection of the new port of Patras. These are projects that transform the map of transport in Greece, give a boost to the economy and allow the Greek railways to make the necessary leap into the future for the benefit of society as a whole.
What would you say is the importance of Thessaloniki as a transit hub? How can this role be further supported?
Thessaloniki has always been a pole of attraction for commercial and business activities from the Balkans, with an important transit and geostrategic position. Its port in particular can be a central pillar of development and trade for the region, but also for the entire Balkan peninsula and the wider region of South-Eastern Europe and the Eastern Mediterranean. Thessaloniki has the potential to become the second most important port for the development of the country’s export activity, after Piraeus. A key condition for achieving this is to improve its interconnectivity. This will help Thessaloniki to become a catalyst for the development of the wider region and improve the country’s position on the international trade map.
More broadly, for Greece’s rail network, what is the plan? What is the strategy to further support the role of rail?
Rail transport plays an important role in the development of the economy of any modern country and in Greece there is much room for improvement in this direction. However, a basic prerequisite is the existence of infrastructure, i.e. a modern and functional network. ERGOSE has undertaken the task of completing the modernisation and extension of the country’s railway network. Starting from the immediate needs, which concern the completion of railway system and infrastructure upgrading projects, it is moving on to extension projects – interconnecting remote areas and critical facilities with the country’s railway network. In addition, a project of major importance of general economic and social significance and a high priority in ERGOSE’s development planning is the interconnection of Greece with the Balkans and Europe through the railway network. This is a project which changes the map of the transport chain in the country.
How have ERGOSE’s operations and investments been affected by the pandemic and lockdown?
As an organization, we are monitoring developments and making sure that we prepare in good time. By mobilising the relevant directorates, we have immediately and effectively developed a specific pandemic response plan, on the one hand to protect the health of our employees and public health and, on the other hand, to ensure the continuity of the company’s operations. By strictly adhering to all protective measures with the full contribution of all our employees, we have managed to stay committed to achieving the goals we had set for 2020. Fully aware of the importance of our mission, we know that we must limit as much as possible the impact of the pandemic on the implementation of projects. Indeed, as is logical, the particular circumstances of the pandemic have created delays in the timetable for the implementation of the projects. However, we ensured that the process of adapting the company’s operations to the new teleworking standards was carried out in the shortest possible time.
You became CEO of ERGOSE in the autumn of 2019. How are the goals you had set and what is your vision?
Since I took office, together with the new management of ERGOSE, we have focused our efforts to solve issues and problems that for many years have been an obstacle to the progress of the projects. To this end, very quickly, we drew up and implemented an ambitious action plan based on two axes. Firstly, the completion of ongoing projects and the launch of new ones as soon as possible and, secondly, the modernisation of ERGOSE in order to enhance the company’s efficiency in all phases of the production of railway projects.
Focusing on improving the quality of corporate processes, we created “Price Standard Libraries” for those groups of rail operations where there were no approved tariffs, such as rail systems. In this way we ensured standardisation of prices, which results in more complete tender documents, with all the time, cost and quality benefits for the development of projects, as well as enhancing transparency. With a view to mapping and evaluating procedures to enhance efficiency, we are working with the Technical Advisor appointed by the Ministry of Infrastructure and Transport. This is an important initiative of the political leadership, which is in full swing and, when completed, will contribute to increasing the rate of production of railway projects.
In addition, aiming to modernize the company, we are proceeding with the digital transformation of ERGOSE, having already contacted the National Documentation Centre for the digitization of ERGOSE’s archive.
At the same time, we have been working from day one to complete the projects. We have promoted the launch of tenders and the completion of tender documents for projects, while the design and maturation of new projects is progressing with the adoption of new, modern tools and methods for tendering, such as competitive dialogue. These actions aim to speed up the implementation of projects in all phases, from design to tendering and construction.
Having identified the problems that were causing delays in the completion of projects, we are providing solutions and moving decisively to implement our mission. Our vision is to unlock the potential of ERGOSE in order to complete the modernization and expansion projects of the country’s railway network, which will generate the necessary added value for the Greek railways and the wider transport sector in our country.
