The Freeport of Riga Authority Plans to Achieve Cargo Amount of the Previous Record Year

Chairman of the Board of the Freeport of Riga Authority Ainārs Šlesers explains: “I am satisfied with the results, though in general this year has been very difficult for our state. Recession of economics took place in the said period of time resulting in a 20% decrease of GDP which is a simply tragic index. I, as Chairman of the Board of the Freeport of Riga Authority, defined a task for myself: to continue the commenced processes and ensure that the amount of cargos shipment of the Riga Port is in the level of previous year. I would like to note that year 2009 was a record year at the Freeport of Riga – cargo turnover of almost 30 million tons was achieved. Yet, due to the great frost, the beginning of this year was unfavorable for navigation also in the Baltic Sea and the Gulf of Riga, therefore in January, as compared to previous period of account, cargo turnover in the Riga Port decreased by 15%. However, until the middle of this year we have managed to even up the decrease of the beginning of year, and currently the turnover in the Riga Port is almost the same as in the first six months of year 2009. We plan to maintain current tendencies until the end of the year, and, as per cargo turnover, year 2010 will be equivalent to year 2009. If we compare these numbers with the 20% decrease of GDP, then we can assess the results of the Freeport of Riga Authority as more than just good.”

One of the factors promoting increase of cargo amount is deepening of the port aquatorium and ship passes which allows to service also ships of Panamax type at the Riga Port. “We allocated additional financing for deepening of port also in June, as a result record high financial resources will be invested in deepening of the port this year. I think that it is the deepening of port that has allowed us to maintain good cargo turnover. I would like to note that from one ton of cargo transshipped in the Riga Port on average 10 to 15 euro remain in the state. If we make simplified calculations, then from the operation of the Freeport of Riga approximately 400 million euro a year remain in Latvia.”

The passenger port has also been deepened, and this summer we will welcome liners in Riga that have never been here before. It shows the significant role of the port also in development of tourism.

The commenced projects are being continued: work on EU co-financed project of Krievu Island, National container terminal project, as well as several other private partnership investment projects that will be implemented by cargo owners seeing long-term business possibilities in Riga. One of the examples is the contract concluded with Uralhim on construction of a new terminal in the Freeport of Riga. “Unfortunately, we cannot influence the terms of project coordination procedure, which are established by the national legislation. We will be able to plan a more rapid increase of cargo turnover when the new terminals are ready. Uralhim terminal plans a turnover in the amount of 2 million tons in the first phase, but in the second – already of up to 5 million tons,” states the Chairman of the Board.

The Freeport of Riga Authority pays greater attention to international cooperation which has already resulted in specific interstate contracts and letters of intent. “It is highly important to establish long-term cooperation with CIS states and entrepreneurs of Russia, including Moscow. The fact that Belarus does not have its own port, but has a big amount of export goods which could be very significant to the Riga Port should be used. I had the opportunity to meet with Mr. Primakov both in Moscow and Riga, and his wish to cooperate with Latvia not only in the field of industry and trade, but also cargos shipment is very significant to Latvia. I have met also with other business representatives and politicians, and negotiations show that very successful cooperation could form, thus strengthening the positions of the Riga Port in the Baltic Sea Region. Our aim is to double the cargo turnover in the Riga Port within five to six years.”