To increase the competitiveness of the Panevėžys region and retain young specialists, it is necessary to expand the Free Economic Zone (FEZ). The current FEZ territory is already 99% occupied, making expansion within the city limits impossible. The analysis revealed that the most strategically advantageous location for expansion is east of the city, where the “Rail Baltica” freight terminal is planned. This future infrastructure creates ideal conditions for the development of industry, logistics, and manufacturing facilities. The new FEZ will be able to leverage the full connectivity potential, as the “Rail Baltica” viaduct is scheduled for completion by 2026, and the freight terminal is set to begin operations by 2028.

After examining several alternative scenarios and conducting their financial analysis, the Innovative Industry and Manufacturing Park model was recognized as the best scenario. In this park, the main focus would be on research and development (R&D), in close cooperation with existing companies in the region. It is projected that the first phase of the new FEZ development will cover a 98.8-hectare territory.