Latvia and Lithuania are maritime countries and the maritime industry is very important to the economy of both countries. A target region where the project will be realized covers Klaipeda region in Lithuania and Kurzeme region in Latvia. In these areas the maritime activities are carried out effectively especially in Klaipeda, Liepaja and Ventspils ports. The competitiveness of port and shipping companies directly depends on a supply of the professional workforce which is continuously decreasing every year and affects negatively whole maritime sector. The constant renewal of the National, European and International Legal Acts, such as International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW 78/95), Directive 2001/25/EC of the European Parliament and of the Council On the minimum level of training of seafarers (2001/25/EC Directive) and others, state new requirements to education, certification and upgrade of qualification of Seafarers. International standards are the same for Latvia and Lithuania, but practical adjustment for both countries isnt going the same way. It causes a demand of cooperation to solve urgent maritime industry problems nationally in order to increase a supply of qualified human resources. Two educational institutions Lithuanian Maritime Academy (LMA) and Liepaja Marine College (LMC) had joined the efforts to solve human resource quality problems in marine industry in order to improve competitiveness of regions. These educational institutions the only state owned institutions in the target region having special programs (formal and informal) to prepare professional seafarers and upgrade their qualifications. The objective of the project is to improve the competitiveness of the maritime companies of the region by enhancing the competitiveness of marine engineers (the improvement of the maritime education and training and qualification upgrading systems of seafarers). The aim will be achieved by fulfilling infrastructure investments in LMA and in LMC and creating (updating) educational programs for both institutions according to International Legal Acts. The partners will examine each others experience in providing study programmes for students and qualification upgrading programmes for working seafarers (Marine Engineers), particularly using simulator to train practical skills, and using good practice of partners will update parts of formal study programmes and update informal educational programs, which are urgent to ensure conformance of Lithuanian and Latvian systems of education and training of seafarers qualification with International Legal acts (STCW78/95). By improving maritime education and training, qualification of seafarers and their career possibilities it is possible to improve the safety at sea, enhance employment of seafarers and competitiveness of maritime sector in the Baltic sea region. Achievements: 2 articles in press about project start, 1 Train the Trainer course for Lithuanian and Latvian lectures, 5 programmes of subjects as a part of study programme for Marine Engineers and 5 programmes of upgrading qualification of seafarers were updated/developed, 1 Seminar in LT and 1 Experience Exchange visit in LV, Engine room laboratories renovated in LT and LV, purchasing of specialized equipment and software, preparation of handbook in LT and LV, pilot training for Marine Engineers in LT and LV