The Freeport of Riga Authority in 2016 Improved Financial Performance

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According to the preliminary financial data in 2016 the Freeport of Riga revenues exceeded expenditures by 13 million EUR. The said amount is by 1 million EUR  more than operational performance indicators of 2015. The FPRA’s  excess of revenues over expenses is invested into maintenance of the Riga port infrastructure.

The preliminary financial results as of 31 December 2016 show that the FPRA’ s  operating income in 2016 was 50.2 million euro, which is by 3.3 million less than in 2015. Due to the fact that more than 80% of the FPRA revenues are generated by the port dues and charges, collected from the vessels, accommodated at the port, the decrease in revenues reflects the real situation at the Riga port, where cargo turnover last year dropped by 7.5%.

Furthermore, in 2016 the FPRA expenditures (production costs) decreased by 2.6 million EUR compared to the previous year and reached the amount of  29.8 million EUR. The significant reduction of expenses also provides an increase in excess of revenues over expenditures. The excess funds are reinvested by the FPRA into the Riga port infrastructure - real estate, floating craft and technological equipment. In 2016 the biggest amounts were invested into berths, jetties and shore reinforcement - 13,9 million EUR, into  fairway dredging - 6.9 million EUR and into railway infrastructure - 3.4 million EUR.