The Freeport of Riga Authority investments in the construction of deep-water berths have paid off in less than a year

The construction of Žurku sala berth was set by a necessity – larger capacity ships with a draught up to 15 metres increasingly visited the Port of Riga. Mr Ainārs Šlesers, the Chairman of the Board of the Freeport of Riga Authority, indicates: “Already last year we realized that without deepening the port aquatorium and access routes, the expansion of the Port of Riga is limited. Being aware of the requirements of the terminal owners, the Freeport of Riga Authority made a decision to invest approximately 2 million Euros to build the first deep-water berth on Žurku sala, which would eneble the Panamax ships to enter the Port of Riga. Now we see that the investments have paid off at a record speed – in a year`s time the freight operators have paid more than two million Euros for exploitation of the mentioned infrastructure. It is only part of the amount that has increased the budget of the Freeport. Latvia has gained at least another 40 million due to the multiple effects. We must be aware that not only the Port and the port companies earn the money, but also the railway company Latvijas Dzelzceļš, road transport operators, catering and other service providers, civil servants; even the salary of Daugavpils switch-tender depends on the efficiency of the Port activity. I am of the opinion that if we did not have this berth, the freight turnover would be at least 2 million tonnes less. Moreover, we have been able to maintain the increase of the freight turnover, as well as attract new types of freight.” The Žurku sala berth is only a temporary solution whilst new terminals and berths have not been put into operation on Krievu sala. The construction of the Krievu sala project is what the port companies are expecting. One of the largest port companies is the concern Riga Commercial Port (RTO). Ralfs Kļaviņš, the Chairman of the Board of RTO, admits that work has become easier now and it is at least a kind of solution to avoid not fully laden ships. At present, Panamax ships are loaded in two locations – first, they are loaded with 60 thousand tonnes (draught restriction 14.4 metres) at the quayside berth; then with the help of pilots ships are re-berthed at Žurku sala where the ship is loaded with additional 12 to 15 thousand tonnes. On Tuesday, the Switzerland flag vessel Nyon was additionally loaded at the Žurku sala berth. Its dimensions: length - 230 m, beam - 32 m, draught - 14 m. The particular ship is loaded with 72 thousand tonnes of Kuzbass coal that in two weeks have been shipped by rail from the 4000 km far-away coalmines in Russia. The coal is reloaded into a ship in Riga, and further shipped to the Port of Rotterdam where they are going to be used at thermal power stations. It should be noted that coal is on top of the power industry market in Europe. The average price is 100 USD per tonne. A simple calculation reveals that the total freight value is 7.2 million USD. For its part, servicing only one ship brings in 720 000 USD to the economy of Latvia. Inter alia, coal is one of the least expensive freight types with the lowest added value. For its part, transit per tonne of containerized freight, cast iron, iron ore or raw sugar through the Port of Riga shall make approximately 10 Lats of added value.

The full loading of a ship takes three days, which is practically the same as in Rotterdam or any other European port. If a ship can be loaded in one location, the transshipment costs would be reduced and the ship loading rate would increase even more which affects the total ship service charge – the lower it is, the better the competitiveness of the Port of Riga. Ralfs Kļaviņš informs: “The first freights of cast iron and iron ore have been shipped; raw sugar freight attraction is planned as well. In the same way, the concluded cooperation agreements with freight owners testify that reception and shipment of mineral fertilizers should start from the new Uralhim terminal already next year. At the new terminal it is planned to handle 2.5 up to 3 million tonnes of freight already in the first round; but the second round will increase its capacity up to 5 million tonnes. I would like to mention that 100 new jobs are planned in the terminal.  These jobs will be paid  be at least at the average level of wages of those employed in fleet servicing, which is approximately 1000 Euros per month. (In 2008, the average docker wage was 1500 Euros). However, our capacity is limited as long as the new berths and terminals on Krievu sala are not put into operation. First, it will relevantly improve ’the living standard of Riga inhabitants as the coal terminals will be transferred away from the city centre and populated areas,  closer to the sea. Second, we will be able to service the already mentioned Panamax ships in a much easier, faster, and less expensive way. The Krievu sala project foresees construction of new berths with the total length of more than a kilometre and the initial depth of 15 metres; the total capacity planned - 20 million tonnes per year. The total costs of the project are 152.6 million Euros, of which 52% is the European Union funding. New terminals are planned not only on Krievu sala, but also in other locations on the left bank of the Daugava River and the northern part of Kundziņsala. “Our plan to double the freight turnover at the Port of Riga during the next five years, in fact, is a rather modest prognosis as already now the signed cooperation contracts and  protocols of intention with the potential freight owners reveal even a more rapid growth outlook, which will make the Port of Riga the leading   European logistics centre. The Port of Riga with deep-water berths will provide an opportunity for operators to choose more comfortable, less expensive and faster freight delivery through Riga rather than logistics routes through Rotterdam and other leading ports of Europe, used until now,” emphasizes A. Šlesers.

When inquired of the Natura 2000 status establishment for Irbe Strait impact on the Port of Riga development, A. Šlesers is harsh: “I strongly object the inclusion of Irbe Strait in Natura 2000, because we will not be entitled to decide what to do and how to work in the Gulf of Riga. You should understand – if all issues regarding the development of infrastructure be coordinated with EU then the first ones who will object to our port development will be the Estonians. The more restrictions to our port, moreover, the ones they can affect, the better the perspective to Estonian ports. I do not understand why we have to give something to neighbouring countries by rejecting the opportunity to increase our GDP?”

Ship dimensions

Panamax
Length: 225 up to 235 m
Beam: 32 up to 33 m
Draught: 13.7 up to 14.4 m
Deadweight: 65 000 up to 82 000 tonnes

Post Panamax
Length: 245 m
Beam: 40 m
Draught: 15 m
Deadweight: 95 000 tonnes