Baltic Security Boost Creates Project Cargo Boom

By Luke King

From Issue 5, 2025 of Breakbulk Magazine

(5-minute read)

The Baltic states severed their last energy link to Russia in February 2025, switching from the Soviet-era BRELL system that had connected Estonia, Latvia and Lithuania to Moscow’s grid for nearly 80 years. But for the project cargo sector, the real story lies in the complex logistics operations that made this historic disconnection possible, and the wave of security-driven infrastructure investments now reshaping the region’s transport landscape.

This transformation reflects a much larger shift across the region. The three Baltic states have pledged to reach 5% of GDP in defense spending, with significant funding allocated to logistics infrastructure, mobility corridors and cybersecurity systems covering roads, ports and critical cables.

The Ukrainian war has accelerated this activity, with officials across the Baltic states recognizing that infrastructure resilience is now inseparable from national security. Projects that might once have been planned over decades are being fast-tracked, creating urgent demand for specialized transport and logistics services.

As one EU diplomat involved in the synchronization process told the Financial Times: “With Russia, you never know. It is one of the thoughts and scenarios that could happen: They could cut us off.” That uncertainty has become a powerful driver of investment.

Complex Cargo, Critical Mission

At the heart of Lithuania’s grid synchronization effort was the delivery of a 260-tonne synchronous condenser to the Neris substation near Vilnius — a rotating machine crucial for stabilizing voltage and frequency as the country prepared to integrate with continental Europe’s power network. The project, commissioned by Siemens Energy for Lithuania’s transmission system operator Litgrid AB, required one of the most complex multimodal transport operations ever executed in the Baltic region.

When the war in Ukraine disrupted the original transport plan, which had relied on a Russian rail wagon, German freight forwarder Rolf Riedl, a member of The Heavy Lift Group, needed to completely redesign the logistics strategy.

The solution involved disassembling a unique Ukrainian girder railcar, something that had never been attempted before, shipping it by barge to Rotterdam, then by sea to Klaipeda on a BigLift vessel, before reassembling it for the condenser’s final overland journey to the substation.

The cargo was subsequently moved by Goldhofer axle trailer (20 axles, three-file) and transported by road to the Neris substation site. The final overland leg, carried out in June last year, required substantial infrastructure adaptation: one bridge was reinforced with a flyover system and a traffic detour was created to maintain public safety, while a second bridge was strengthened using a steel plate overlay.

“This was a highly complex project, and one of significant strategic importance for Lithuania,” said Iris Katrin Muellejans, managing partner at Rolf Riedl, a company founded by her late father, the heavy lift legend Rolf Riedl.

She told Breakbulk: “Traditional routes and methods were no longer viable due to geopolitical constraints. We had to engineer entirely new solutions, working with partners across multiple countries while maintaining the highest safety standards for critical infrastructure components.”

The operation required custom lifting beams fabricated within a week, extensive testing to validate load-securing systems, and even the construction of a full-scale dummy condenser for simulation purposes. “The level of engineering complexity was unprecedented,” Muellejans added.

“We coordinated with stakeholders across Germany, Belgium, Ukraine, Romania, Norway, the Netherlands, Estonia, Czech Republic, Poland and Lithuania, and with partners including Prime Logistic Group, Jurtransa, Kaarlaid, LTG Cargo and LTG Infra. “This project truly demonstrated both the challenges and opportunities that security-driven infrastructure developments present to our sector.”

Rolf Riedl’s partnership with Estonian logistics specialist Kaarlaid has been central to multiple critical deliveries across the region, including synchronous compensator installations at three Estonian substations: Püssi (2023), Kiisa (2024), and Viru (2024).

The Püssi delivery was particularly significant as the first of nine compensators installed across the Baltics, establishing the technical and logistical framework for frequency stability as the region prepared to leave the Soviet-era grid system.

Ports Prepare for Oversized Opportunities

The ripple effects of the region’s security transformation are now visible across Baltic ports, which are adapting their infrastructure to handle increasingly complex project cargo requirements.

In Latvia, the Port of Ventspils has begun work on an oversized cargo logistics corridor, modifying three key road junctions between the port and the national highway network to accommodate convoys up to 100 meters in length. While port officials don’t specify military objectives, their emphasis on handling large convoys points to broader strategic considerations beyond commercial shipping.

The €100,000 upgrade comes as the port handles increasingly large wind turbine components, including 87-meter blades, the largest ever processed at any European port. “With this project, Ventspils is taking a significant step forward in strengthening its position as a key player in the development of both offshore and onshore renewable energy parks in the Baltic states,” said Igors Udodovs, acting CEO of the Freeport of Ventspils.

Lithuania’s Port of Klaipėda is positioning itself as a critical gateway for the region’s security-driven infrastructure build-out, backed by more than €300 million in new investment. Projects include the reconstruction of 453 meters of quay on the Smeltė Peninsula to support the handling and assembly of offshore wind turbines, upgrades to rail and road links serving the port, dredging of access channels, and the planned development of a 100-hectare southern expansion.

Sustainability features prominently, with shore-power systems for vessels under installation and the Baltic states’ first green hydrogen production facility under construction. Together these works reflect Klaipėda’s growing role as a hub for complex multimodal operations that security and energy projects increasingly demand. The port’s enhanced capabilities proved crucial in the Neris substation project, where specialized equipment and coordination with Klaipėda Western Shipyard enabled highly complex transfer operations.

Estonia’s Port of Paldiski, meanwhile, has emerged as a critical facility for wind energy logistics, according to regional specialist CF&S Group. Paldiski serves the nation’s largest wind farm, Sopi-Tootsi, and is expanding its capacity with new quay infrastructure. CF&S, a major logistics provider for renewable energy projects in the Baltics, has carried out hundreds of wind-related moves since 2001, with particularly strong activity since 2022.

“We are expecting the development of onshore wind farms to continue until 2030 at minimum,” Tiit Arus, board member and CEO of CF&S Estonia, told Breakbulk. “The renewable energy boom is creating sustained demand for specialized logistics services across the region.”

CF&S has historically provided heavy transportation services to Central Asia countries including Kazakhstan, Uzbekistan and Turkmenistan, largely relying on their specialized railway fleet. However, as Arus notes: “Because of the Ukrainian-Russian war, transit via the Baltics is not happening much anymore, but we have continued to provide services for our customers via different transit corridors instead. Today, we’re mostly operating overland via Georgia, Türkiye and China.”

Private Sector Joins Security Push

It’s not only state-owned entities like ports that are responding to the regional security challenges. Private logistics companies across the region are making significant investments in resilience and autonomy, recognizing that energy security has become a competitive advantage.

Estonian logistics firm Via 3L recently completed a major renewable energy project at its Lagedi complex in Harju County, installing 1,280 solar panels and a 2.15 MWh battery system. The investment enables the logistics facility to operate independently for at least 24 hours during power outages or several days in sunny conditions.

“The off-grid capability of the entire solution is an important aspect,” said Urmas Uudemets, CEO of Via 3L. “Should there be a problem with the security of electricity supply, the battery capacity is such that the entire logistics center’s daily demand can be covered from storage, and work will not stop for a moment.”

The timing of Via 3L’s project is significant, coming just as Estonia joined its Baltic neighbors in disconnecting from the Russian grid and the company’s investment in energy autonomy reflects a broader trend among logistics providers who recognize that operational continuity has become a critical service differentiator.

The system enables Via 3L to produce more than 65% of its electricity needs while providing price stability for customers through strategic energy storage and grid arbitrage. For a logistics company handling temperature-sensitive goods and operating under tight delivery schedules, such resilience capabilities are increasingly valuable to clients concerned about supply chain disruptions.

For logistics companies willing to navigate the technical and regulatory complexities of security-sensitive projects, the Baltic transformation represents a significant growth opportunity.

The successful delivery of Lithuania’s synchronous condenser demonstrated both the challenges and rewards of this new operating environment. With proper planning and international coordination, even the most complex security-critical projects can open doors to an expanding market for specialized logistics services.

Want to know where the project cargo market is heading? At Breakbulk Americas 2025, shippers will share their insight at the “Inside the Project Pipeline: Shipper Market Outlook” main stage session on Wednesday, Oct. 1 from 1:45pm-2:30pm.