WE ARE REDUCING DISTANCES!
2
Latvia in Brief
• Territory~ 64 000 sq. km
• Population~ 2.0 million
• GDP- EUR 24.84 billion (estimate for Y2015)
• Tra...
3
Freeport of Riga in 2015
• Biggest port in the Baltic States by cargo
turnover (40.1 mln.t; -2.5%)
• Multifunctional por...
4
Freeport of Riga in 2015
Business Card
www.rop.lv
• Port accounts for ~5 000 direct work places
and up to ~15 000 indire...
5
Freeport of Riga- 11% of the City Territory
Business Card
Port border line –––
Railway - - -
Main roads –––
Legend
Total...
6
More than 800 Years of History
• 5th – 9th c – the River Daugava was used
as one of the oldest trade routes
• 12th c – f...
7
The Baltic Sea Region- Strong Port Competition
15 ports compete for cargo to/from
Russia, other CIS countries
In 2015 to...
8
Cargo Turnover at the Eastern Baltic Sea
Region Ports (mln.t, 2011-2015)
Port Performance
Ustj-Luga
Primorsk
StPetersbur...
9
Market Shares of the Baltic Ports in 2015
(percentage of the total of the countries)
Klaipeda
27%
Tallinn
16%
Ventspils
...
10
Dry Bulk Market at the Eastern Baltic Sea Region
Ports in 2015 (market share % of total segment)
Riga
22%
Ust-Luga
24%
...
11
General Cargo Segment at the Eastern Baltic Sea
Region Ports in 2015 (market share % of total segment)
StPetersburg
39%...
12
Total liquid bulk
market at the ports
of the Eastern
Baltic Sea Region
(EBSR) reached
208 mln.t
Liquid bulk
Primorsk
29...
13
Cargo Turnover at the Baltic States Ports in
2011-2015 (mln.t)
Rīga
22%
Rīga Klaipeda Ventspils Tallinn Silamae Butinge...
14
Regular Container and Ferry Liner Services
Connectivity
Containerships
Riga-Teesport-Rotterdam-Zeebrugge-
Lubeck-Helsin...
15
MSC
Unifeeder
Maersk
CMA-CGM
HapagLloyd
MannLines Multimodal
Containerships
Tallink (ro pax)
Regular container and
ferr...
16
Hinterland Connections- Dedicated Container Trains
Connectivity
Container train “Zubr”
(Riga-Minsk-Illichevsk)
Containe...
17
Dedicated Container Trains (1/4)
Connectivity
“Riga Express”
Riga – Moscow
• Scheduled container block
train service Ri...
18
Dedicated Container Trains (2/4)
Connectivity
“Baltika-Transit”
Rezekne – Almaty
• A scheduled block train
service
• Tw...
19
Dedicated Container Trains (3/4)
Connectivity
• A dedicated block train service
for the delivery of non-military
goods ...
20
Dedicated Container Trains (4/4)
Connectivity
• Scheduled container train
between Riga and Minsk
(Belarus), with furthe...
21
EMMA - Eurasian Multi-Modal Alliance
Connectivity
Since 2011 a joint venture EMMA was
established between Latvian forwa...
22
Port Infrastructure
Infrastructure
Total port area 6 348 ha
Port land 1 962 ha
Available land 445 ha
Total berths lengt...
23
Facilities for Cargo Handling
• Total cargo handling capacity
64 mln.t/year
• In 2015 cargo turnover- 40.1 mln.t
• Capa...
24
Port Companies Provide Diverse Services
In total 192 enterprises work at the Port of Riga,
of which:
92 companies are l...
25
Facilities for Dry Bulk Handling
• Total handling capacity 36 mln.t/year
• Main types of commodities:
coal, fertilizers...
26
Facilities for General Cargo Handling
• Total handling capacity 14 mln. t/year
• Main commodities:
containers, timber, ...
27
Facilities for Container Handling
• Total handling capacity 660 thous.TEU/year
• 3 terminals:
Baltic Container Terminal...
28
Facilities for Container Handling (1/3)
Baltic Container Terminal Ltd
(specialized container terminal)
Handling capacit...
29
Facilities for Container Handling (2/3)
Rīgas Universālais termināls Ltd
(multipurpose terminal)
Container handling cap...
30
Facilities for Container Handling (3/3)
Riga Container Terminal Ltd
(specialized container-general cargo terminal)
Cont...
31
Facilities for Liquid Bulk Handling
• Total handling capacity 14 mln.t/year
• Main types of commodities:
Fuel oil, gas ...
32
Vessel Traffic at the Freeport of Riga
Performance
• Total number of vessel calls in 2015 reached 3 588
ships with tonn...
33
Cargo Turnover at the Freeport of Riga (mln.t)
Average annual growth rate (AAGR) 7.6%
Performance
2000 2001 2002 2003 2...
34
Inbound and Outbound Cargo in 2015
Performance
81% of cargo handled at the Freeport of Riga is transit traffic
35
Coal 36.3%
14 529 thous.t (-2.7%)
Oil products 26.3%
10 537 thous.t (+3.3%)
Timber 10.5%
4 211 thous.t (+7.5%)
Containe...
36
Passenger Traffic in 2015 (thous.)
• In 2015 passenger reached 526.2 thous. passengers,
including 69.2 thous. cruise pa...
37
Ferry Passenger Traffic at the Freeport of Riga
2006-2015 (thous.pax)
150
295
384
541
632
712 732
770
677
457
2006 2007...
38
Performance
Cruise passengers’ nationality breakdown
Cruise Passenger Traffic in 2015
Germany
42%
USA 15%
UK 8%
Finland...
39
Cruise Operating Partners in 2015
Performance
40
• Deepening of the fairway to 15–17m
• Land reclamation and development of new
territories for the construction of mult...
41
Deepening of the Fairway (1/6)
Development
Current depth of the fairway
42
Deepening of the Fairway (2/6)
Development
• 1st phase:
2012-2017: canal depth -15.5 m
• 2nd phase:
2014-2018: canal de...
43
Dry Bulk Complex on the Krievu sala Island (3/6)
• Project: “Relocation of Port Activities
from the City Center to the ...
44
Diverse Cargo Terminals on the Kundziņsala (4/6)
• Total area: 181 ha
• Project duration: 2010-2020
• Investment: EUR 4...
45
Diverse Cargo Terminals in Bolderāja,
Daugavgrīva and Voleri (5/6)
• Total area: 80 ha
• Project duration: 2010.-2020.g...
46
Investment Opportunities at the Freeport of Riga
• Long-term lease of land on attractive terms
(up to 45 years)
• 445 h...
47
Available Territories for Development
Investment
• Approx. 445 ha are presently
available for the development
of new fa...
48
Status of a Licensed Company and the
Free Zone Regime
Freeport status provides for substantial
tax reductions
• Status ...
49
Investment Climate in Latvia
• Business without borders: an EU member state
• Advantages and experience in working with...
50
Freeport of Riga Authority
Functions according to the Law on Ports:
• Landlord function (provision of infrastructure)
•...
51
Structure of the Board
State Commissioners
Riga City Council
Commissioners
Ministry of Transport
Ministry of Economy
Mi...
52
Structure of the Freeport of Riga Authority
Board of the Port
CEO
Legal department
Financial department
Marketing depar...
53
Our Vission and Mission
• customer`s port of choice because they value
our safe, efficient and competitively priced
ser...
54
Quality Management
• In 1999 Freeport of Riga Authority
introduced Quality Management
System (QMS)
• Certification acco...
55
Safety and Security
• Compliance with ISPS Code and other
international regulations
• Unified port security management ...
56
Freeport of Riga in the International Port Society (1/2)
• International Association of Ports and Harbors (IAPH)
• Inte...
57
Freeport of Riga in the International Port Society (2/2)
• Santander (Spain)
• Rijeka (Croatia)
• Le Havre (France)
• C...
58
Social Responsibility Projects
• Supporting and organizing of annual “Big
Latvian Clean-up” (Lielā talka)
• Activities ...
59
Environment Protection Activities (1/2)
• Certificate of Environment Management
System ISO 14001:2004
• Environment qua...
60
Environment Protection Activities (2/2)
Major environment protection projects:
• Sanitation of Historically Polluted
Pl...
61
Competitive Advantages of the Port of Riga (1/2)
• Strategically well linked to economically
strong and developing area...
62
Competitive Advantages of the Port of Riga (2/2)
Advantages and experience in working with
Russia and the CIS
• The clo...
63
Thank you for your attention!
of 63

Port of Riga Presentation

Published on: Mar 4, 2016
Published in: Investor Relations      Business      
Source: www.slideshare.net


Transcripts - Port of Riga Presentation

  • 1. WE ARE REDUCING DISTANCES!
  • 2. 2 Latvia in Brief • Territory~ 64 000 sq. km • Population~ 2.0 million • GDP- EUR 24.84 billion (estimate for Y2015) • Transport and Warehousing sector builds 9.6% of GDP (Y2014) • Currency- EUR • Member of the EU and NATO since 2004 and the WTO since 1998 • 3 major ice-free ports and 7 small ports • 4 special economic zones Latvia
  • 3. 3 Freeport of Riga in 2015 • Biggest port in the Baltic States by cargo turnover (40.1 mln.t; -2.5%) • Multifunctional port with cargo handling capacity 64 mln.t/year • Growth by segments: • dry bulk (-2.0%), • general cargo (-12.4%), • liquid bulk (+3.3 %) • Passenger traffic: 526 thous. passengers, including 69.2 thous. cruise passengers Business Card www.rop.lv
  • 4. 4 Freeport of Riga in 2015 Business Card www.rop.lv • Port accounts for ~5 000 direct work places and up to ~15 000 indirect jobs in related industries (railways, forwarding, agencies, trucking, etc.) • Port’s total financial results (Y2014): • Net revenues EUR 398 mln • Net profits EUR 87 mln • Asset book value EUR 1 bn • Taxes into state and municipal budget EUR 41 mln • Investments EUR 107 mln
  • 5. 5 Freeport of Riga- 11% of the City Territory Business Card Port border line ––– Railway - - - Main roads ––– Legend Total port area 6 348 ha Total berth length 18.2 km Max. canal depth 16.0 m Max. vessel draft 15.0 m Main infrastructure figures
  • 6. 6 More than 800 Years of History • 5th – 9th c – the River Daugava was used as one of the oldest trade routes • 12th c – formation of the first settlements on the mouth of the River Daugava • 1201 foundation of Riga city by bishop Albert • 13th – 15th c prosperity as one of most important ports of the Hanseatic League • 18th –20th c the first Russian port in the Baltic sea and the largest export port • During the Soviet period important foreign trade port with intensive infrastructure development History
  • 7. 7 The Baltic Sea Region- Strong Port Competition 15 ports compete for cargo to/from Russia, other CIS countries In 2015 total cargo turnover at the Eastern Baltic Sea Region ports reached 398 mln t Eastern Baltic Sea Region Location RUS 230.7 mln.t EST 27.8 mln.t LAT 68.2 mln.t LIT 47.1 mln.t FIN 24.4 mln.t t* Cargo turnover at the Eastern BSR ports in 2015 (in thous.t by country) * Finland’s ports (Hamina/Kotka, Helsinki)
  • 8. 8 Cargo Turnover at the Eastern Baltic Sea Region Ports (mln.t, 2011-2015) Port Performance Ustj-Luga Primorsk StPetersburg Riga Klaipeda Ventspils Tallinn Visock Hamina-Kotka Kaliningrad Helsinki Butinge Liepāja Sliiamae Vyborg 2011 2012 2013 2014 2015 90 80 70 60 50 40 30 20 10 0 Riga
  • 9. 9 Market Shares of the Baltic Ports in 2015 (percentage of the total of the countries) Klaipeda 27% Tallinn 16% Ventspils 16%Butinge 6% Silamae 4% Liepaja 4% Riga 28% Port Performance
  • 10. 10 Dry Bulk Market at the Eastern Baltic Sea Region Ports in 2015 (market share % of total segment) Riga 22% Ust-Luga 24% Klaipeda 16% Ventspils 5% StPetersburg 8% Tallinn 3% Liepāja 4% Hamina-Kotka 5% Vysock 5% Kaliningrad 5% Helsinki 1% Vyborg 1% Silamae 1% Total dry bulk market at the ports of the Eastern Baltic Sea Region (EBSR) reached 106 mln.t Dry bulk Port Performance
  • 11. 11 General Cargo Segment at the Eastern Baltic Sea Region Ports in 2015 (market share % of total segment) StPetersburg 39% Klaipeda 13% Helsinki 12% Tallinn 8% Rīga 7% Hamina-Kotka 6% Kaliningrad 5% Ustj-Luga 5% Ventspils 3% Liepāja 2% Silemae 0% Vyborg 0% Total general cargo market at the ports of the Eastern Baltic Sea Region (EBSR) reached 85 mln.t General cargo Port Performance
  • 12. 12 Total liquid bulk market at the ports of the Eastern Baltic Sea Region (EBSR) reached 208 mln.t Liquid bulk Primorsk 29% Ustj-Luga 28% Ventspils 7% Tallinn 6% Vysock 6% Riga 5% Klaipeda 5% StPeterburg 5% Butinge 4% Silamae 2% Kaliningrad 2% Hamina-Kotka 1% Liepāja 0% Port Performance Liquid Bulk Market at the Eastern Baltic Sea Region Ports in 2015 (market share % of total segment)
  • 13. 13 Cargo Turnover at the Baltic States Ports in 2011-2015 (mln.t) Rīga 22% Rīga Klaipeda Ventspils Tallinn Silamae Butinge Liepāja 2011 2012 2013 2014 2015 40 35 30 25 20 15 10 5 0 Port Performance
  • 14. 14 Regular Container and Ferry Liner Services Connectivity Containerships Riga-Teesport-Rotterdam-Zeebrugge- Lubeck-Helsinki-St.Petersburg- Klaipeda-Aarhus CMA-CGM Hamburg-Bremerhaven-Riga-Klaipeda Unifeeder Container Service Rotterdam-Hamburg/Bremerhaven- Riga-Klaipeda-Gdaynia/Gdansk Tallink (ro-pax) Riga-Stockholm MannLines Multimodal Riga-Helsinki-HaminaKotka-UstLuga- Klaipeda-Rotterdam MSC Antwerp-Bremerhaven-Riga-Tallinn Hapag-Lloyd AG Hamburg- Bremerhaven-Gdynia-Riga- St.Petersburg-Rauma-Gavle Maersk/SeagoLine Gdansk-UstLuga-St.Petersburg-Riga
  • 15. 15 MSC Unifeeder Maersk CMA-CGM HapagLloyd MannLines Multimodal Containerships Tallink (ro pax) Regular container and ferry liner services Regular Container and Ferry Liner Services Connectivity
  • 16. 16 Hinterland Connections- Dedicated Container Trains Connectivity Container train “Zubr” (Riga-Minsk-Illichevsk) Container train “Baltika-Transit” (Riga-Almaty) Block Train (Riga-Hairaton) Container block train “Riga Express” (Riga-Moscow)
  • 17. 17 Dedicated Container Trains (1/4) Connectivity “Riga Express” Riga – Moscow • Scheduled container block train service Riga – Moscow • Regularity: weekly • Transit time: 48-72 hours • Train: 80-100 TEU • Customs clerance: 24-36 h (whole train) • Operator: SRR, Logistic Operator
  • 18. 18 Dedicated Container Trains (2/4) Connectivity “Baltika-Transit” Rezekne – Almaty • A scheduled block train service • Two container trains per week • Transit time 8-10 days • 20 188 TEUs in 2010
  • 19. 19 Dedicated Container Trains (3/4) Connectivity • A dedicated block train service for the delivery of non-military goods to the US troops in Afghanistan • Service started in February 2009 • Average transit time 10-11 days Block Train Riga – Hairaton
  • 20. 20 Dedicated Container Trains (4/4) Connectivity • Scheduled container train between Riga and Minsk (Belarus), with further deliveries via Orsha (Belarus) and Odessa (Ukraine) to Illichevsk (Ukraine) • Transit time: 2d 18h (Riga- Illichevsk) • Operator: LDZ Cargo Loģistika (in Latvia) Container train “Zubr” Riga-Minsk-Illichevsk
  • 21. 21 EMMA - Eurasian Multi-Modal Alliance Connectivity Since 2011 a joint venture EMMA was established between Latvian forwarder SRR and French logistics group GEFCO for services to/from Riga to/from Central Asia Eurasian Multi – Modal Alliance
  • 22. 22 Port Infrastructure Infrastructure Total port area 6 348 ha Port land 1 962 ha Available land 445 ha Total berths length 18.2 km Max. canal depth 16.0 m Max. vessel draft 15.0 m Port Infrastructure
  • 23. 23 Facilities for Cargo Handling • Total cargo handling capacity 64 mln.t/year • In 2015 cargo turnover- 40.1 mln.t • Capacity utilization~ 63 % Infrastructure Open storage 1 760 362 m² Closed storage 353 424 m² Cold storage 15 623 m² Cold storage 13 500 t Dry bulk (silos) 311 000 m³ Liquid bulk tanks 502 063 m³ Maximum vessel size: Width 44 m Length 295 m Draft 15 m
  • 24. 24 Port Companies Provide Diverse Services In total 192 enterprises work at the Port of Riga, of which: 92 companies are land lessees • 35 stevedoring companies- cargo terminals • 35 warehousing companies • 17 customs warehouses • 10 productions companies • 3 ship repair and building services 74 companies are various services provides based on agreements with the FRA 26 shipping agencies Port Community
  • 25. 25 Facilities for Dry Bulk Handling • Total handling capacity 36 mln.t/year • Main types of commodities: coal, fertilizers, ore, grain, woodchips • 21 terminals • Max draught at dry bulk berth 14.5 m Infrastructure UBC ONSAN (2012) Length 260 m DW 118 590 GT 65 976 Cargo 111.7 thous.t. coal Largest vessel handled
  • 26. 26 Facilities for General Cargo Handling • Total handling capacity 14 mln. t/year • Main commodities: containers, timber, ro-ro, refrigerated cargo • 22 terminals • Open storage 1 760 362 m2 • Closed storage 353 423 m2 • Refrigerated storage 13 500 t • Max draught at general cargo berth 11.7 m Infrastructure POLA MED (2012) Length 170 m DW 29 324 GT 18 977 Cargo – 19 thous.t timber Largest vessel handled
  • 27. 27 Facilities for Container Handling • Total handling capacity 660 thous.TEU/year • 3 terminals: Baltic Container Terminal Ltd, Riga Universal Terminal Ltd, Riga Container Terminal Ltd • All terminals are directly linked to the main rail routes • Container ground slots- 9 350 units • Crane productivity 25-30 cont.mov./hour • Max draft at container berth 13.5 m Infrastructure MSC SABRINA (2015) Length 243 m DW 43 078 GT 35 598 Capacity 3 074 TEU Largest vessel handled
  • 28. 28 Facilities for Container Handling (1/3) Baltic Container Terminal Ltd (specialized container terminal) Handling capacity 450 000 TEU/year Turnover in (2015) 231 939 TEU Terminal area 55 ha Closed storage 22 092m² Container ground slots 5 000 units Berth length 450 m Cranes on the quays 4 pieces Crane lift capacity 45 t/crane Crane productivity 25 cont. moves/hour www.bct.lv • BCT is located centrally within the port and has a direct access to the Daugava River (where depth of navigation canal is -14.0 m) and is equipped with a direct link to the railway infrastructure • Status of a licensed free zone company (no need for customs clearance of cargo) • BCT is a “pioneer “ among others in the Baltic in the implementation of latest IT solutions in terminal operations Infrastructure
  • 29. 29 Facilities for Container Handling (2/3) Rīgas Universālais termināls Ltd (multipurpose terminal) Container handling capacity 100 000 TEU/year Turnover (2015) 92 614 TEU Terminal area 41 ha Closed storage 32 379m² Container ground slots 2 000 units Berth length 1 920 m Crane productivity 22 cont. moves/hour www.ruterminal.lv • RUT is one of the largest and fastest growing stevedoring companies in the port with business areas in the handling of various dry bulk and general cargoes (timber, construction materials, containers, etc.) • Status of a licensed free zone company (no need for customs clearance of cargo) Infrastructure
  • 30. 30 Facilities for Container Handling (3/3) Riga Container Terminal Ltd (specialized container-general cargo terminal) Container handling capacity 60 000 TEU per year Turnover (2015) 30 688 TEU (2015) Open storage 68 000 m² Closed storage 19 000 m² Container ground slots 2 350 Berth length 430 m Cranes on the quays 1 mobile, 2 potral Crane lift capacity 42-104 t/crane Crane productivity 25 cont. moves/hour www.rigact.lv • 100% of RIGACT equity holder is RIGA COMMERCIAL PORT (RTO), LLC • RIGACT goal is to provide its customers complex cargo processing solutions for the transportation between EU and Russia, Middle Asian region • RIGACT specializes in “Sea–Rail” container handling operations Infrastructure
  • 31. 31 Facilities for Liquid Bulk Handling • Total handling capacity 14 mln.t/year • Main types of commodities: Fuel oil, gas oil, gasoline, jet fuel, kerosene, etc • 10 terminals • Tank farm- 502 thous.m³ • Max draught at liquid bulk berth 15.0 m Infrastructure RIVERSIDE (2015) Length 250 m DW 115 406 GT 62 856 Cargo 66.4 thous.t. gasoline Largest vessel handled
  • 32. 32 Vessel Traffic at the Freeport of Riga Performance • Total number of vessel calls in 2015 reached 3 588 ships with tonnage 44.6 mln. GT Calls mln. GT Dry bulk vessels 1 539 6.54 Tankers 753 9.64 Container ships 564 6.91 Passenger ships 246 9.29 Bulkers 410 11.64 Others 76 0.63 Calls by types of vessels in 2015
  • 33. 33 Cargo Turnover at the Freeport of Riga (mln.t) Average annual growth rate (AAGR) 7.6% Performance 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 13.4 14.9 18.1 21.7 24.0 24.4 25.4 25.9 29.6 29.7 30.5 TOTAL Liquid bulk General Dry bulk 40 35 30 25 20 15 10 5 0 34.1 35.536.1 41.1 40.1
  • 34. 34 Inbound and Outbound Cargo in 2015 Performance 81% of cargo handled at the Freeport of Riga is transit traffic
  • 35. 35 Coal 36.3% 14 529 thous.t (-2.7%) Oil products 26.3% 10 537 thous.t (+3.3%) Timber 10.5% 4 211 thous.t (+7.5%) Containerized cargo 9.5% 355 241 TEU (-8.3%) Chemicals (fertilizers) 6.6 % 2 585 thous.t (+1.5%) Grain and grain products 2.6% 1 057 thous.t (+37.3%) Performance Main Types of Cargo in 2015
  • 36. 36 Passenger Traffic in 2015 (thous.) • In 2015 passenger reached 526.2 thous. passengers, including 69.2 thous. cruise passengers Performance 815 195 247 442 503 691 764 776 900 800 700 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 837 738 526
  • 37. 37 Ferry Passenger Traffic at the Freeport of Riga 2006-2015 (thous.pax) 150 295 384 541 632 712 732 770 677 457 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 TALLINK passengers (thous.pax) • TALLINK ensures passenger service in route Riga-Stockholm; • TALLINK accounts for 85% of total passenger traffic in the port; 700 600 500 400 300 200 100 0 Performance
  • 38. 38 Performance Cruise passengers’ nationality breakdown Cruise Passenger Traffic in 2015 Germany 42% USA 15% UK 8% Finland 4% France 4% Italy 3% Spain 3% Austria 2% Canada 2% Switzerland 2% Others 15%
  • 39. 39 Cruise Operating Partners in 2015 Performance
  • 40. 40 • Deepening of the fairway to 15–17m • Land reclamation and development of new territories for the construction of multifunctional dry bulk terminals on the Krievu sala • Modernization of the port’s railway network, construction of a new railway bridge to Kundziņsala • Reconstruction of the port’s breakwaters (moles) Private Investments • Oil products terminal in Bolderaja • Liquified natural gas (LNG) terminal in Daugavgriva • Various terminals (fertilizer, grain, container and logistics park) on the Kundziņsala • Terminal for production and handling of bioethanol in Voleri Development Projects (2010 - 2020) Development Total port investment portfolio 1.1 bln EUR • Port Authority`s Investment 300 mln EUR • Private investment 845 mln EUR Port Authority`s Investments 40 5 1 2 3 7 8 4 6 3 1 2 3 4 5 6 7 8
  • 41. 41 Deepening of the Fairway (1/6) Development Current depth of the fairway
  • 42. 42 Deepening of the Fairway (2/6) Development • 1st phase: 2012-2017: canal depth -15.5 m • 2nd phase: 2014-2018: canal depth -17.0 m Widening of the canal from present 100m to 135-165 m Planned investment ~ EUR 80 mln Two-phase development:
  • 43. 43 Dry Bulk Complex on the Krievu sala Island (3/6) • Project: “Relocation of Port Activities from the City Center to the Krievu sala island” • Project duration (construction works): 2012-2018 • Investment: EUR 126 mln. • Territory: 56 ha • Capacity 17-22 mln tons/year • 4 berths of 1180 m total length Development
  • 44. 44 Diverse Cargo Terminals on the Kundziņsala (4/6) • Total area: 181 ha • Project duration: 2010-2020 • Investment: EUR 460 mln • 10 terminals with diverse profiles: Dry bulk (incl. fertilizer, grain products) handling Multimodal container complex Multifunctional (incl. refrigerated food) cargo complex General cargo (incl. Ro-Ro) handling terminal Logistics and industrial park Development
  • 45. 45 Diverse Cargo Terminals in Bolderāja, Daugavgrīva and Voleri (5/6) • Total area: 80 ha • Project duration: 2010.-2020.g. • Estimated investment: EUR 385 mln • 3 terminals with diverse profiles: Dark oil products handling Production and handling of bioethanol (biofuel) Handling of liquefied natural gas (LNG) Development
  • 46. 46 Investment Opportunities at the Freeport of Riga • Long-term lease of land on attractive terms (up to 45 years) • 445 ha of land available for development • Status of a licensed company and free zone regime allows to receive tax relieves • Freeport Authority assistance in the development of private terminal infrastructure • A favorable investment climate in Latvia Investment
  • 47. 47 Available Territories for Development Investment • Approx. 445 ha are presently available for the development of new facilities (distribution, logistics, warehousing, etc.) Available territories
  • 48. 48 Status of a Licensed Company and the Free Zone Regime Freeport status provides for substantial tax reductions • Status of a licensed company allows to receive direct tax relieves • Licensed company fulfilling certain requirements of the Free zone regime can receive both direct and indirect tax relieves • Licenses are issued for 5 years by the Freeport of Riga Authority Investment Direct taxes Income tax 80 % Real estate duty 80-100% Indirect taxes Value added tax 100 % Excise tax 100 % Customs duty 100 % Tax relieves:
  • 49. 49 Investment Climate in Latvia • Business without borders: an EU member state • Advantages and experience in working with Russia and the CIS • A highly skilled and multilingual workforce • Easy to set up and manage business • Equal rights and benefits for both foreign and local investors • Opportunities to qualify for funding from the EU`s Structural Funds Investment
  • 50. 50 Freeport of Riga Authority Functions according to the Law on Ports: • Landlord function (provision of infrastructure) • Ensuring of navigation safety • Maintenance of hydrotechnical structures • Maintenance of navigation channel • Enforcement of port regulations • Levying of port fees and charges • Issuing freeport licenses • ISPS Code implementation Port Authority
  • 51. 51 Structure of the Board State Commissioners Riga City Council Commissioners Ministry of Transport Ministry of Economy Ministry of Finance Ministry of Environmental Protection and Regional development Chairman of the Board City Council City Council City Council Port Authority
  • 52. 52 Structure of the Freeport of Riga Authority Board of the Port CEO Legal department Financial department Marketing department Port police Deputy CEO Shipping department Harbor master International affairs department Public relations department Total staff – 405 employees Port Authority Environment and development dep. IT department
  • 53. 53 Our Vission and Mission • customer`s port of choice because they value our safe, efficient and competitively priced services • multifunctional port which fully exploits the benefits of Freeport status and demonstrates sustainable economic success • socially and environmentally responsible port which is adaptable and able to respond to global trends and the changing needs of customers. Port Authority We will continue to develop the Freeport of Riga as a leading port of the Baltic States and as a source of real prosperity for Latvia. Our Mission: We aim to develop the Freeport of Riga as:
  • 54. 54 Quality Management • In 1999 Freeport of Riga Authority introduced Quality Management System (QMS) • Certification according to the international standardization system ISO • Quality management standard ISO 9001:2008 • In 2005 the FRA implemented ISO 14001:2004 Port Authority
  • 55. 55 Safety and Security • Compliance with ISPS Code and other international regulations • Unified port security management system, including • Electronic notification system (ENS) unique in Eastern Europe • Up-to-date video surveillance system of the water area introduced in 2010 • Unified and complex system of safe cargo handling compliant with international regulations • Secure provision of winter navigation • Port Police of Riga established in 2011 Port Authority
  • 56. 56 Freeport of Riga in the International Port Society (1/2) • International Association of Ports and Harbors (IAPH) • International Association of Cities and Ports (IACP) • International Harbormaster Association (IHMA) • International Federation of Hydrographic Societies (IFHS) • European Sea Port Organization (ESPO) • Cruise Europe (CE) • Baltic Ports Organization (BPO) • Latvia – China Business Council • International Port Community Systems Association (IPCSA) • Coordinating Council on Trans-Siberian Transportation • World Free Zones Organization (WFZO) • German-Baltic Chamber of Commerce in Latvia Port Authority Membership in Professional Associations:
  • 57. 57 Freeport of Riga in the International Port Society (2/2) • Santander (Spain) • Rijeka (Croatia) • Le Havre (France) • Casablanca (Morocco) • Santos (Brazil) • Miami (USA) Port Authority Sister Ports:
  • 58. 58 Social Responsibility Projects • Supporting and organizing of annual “Big Latvian Clean-up” (Lielā talka) • Activities within the framework of “City & Port Integration” project • City festival with port organized events, e.g. concert, regatta in the city canal, basketball tournament, etc. • Social activities in the neighboring areas of the port - festivities, activities for children, port trips etc. • Equipment of children's playground in Vecmīlgrāvis • Construction of the bird observation tower on Island Mīlestības saliņa • Support to the maritime education in Latvia and promotion of seafarer`s profession Social Responsibility
  • 59. 59 Environment Protection Activities (1/2) • Certificate of Environment Management System ISO 14001:2004 • Environment quality monitoring system – regularly air, soil and underground water monitoring • Green award incentives - reduction on port dues to sea-going vessels certified by the Green Award Foundation • Conservation and maintenance of specially protected natural areas Social Responsibility
  • 60. 60 Environment Protection Activities (2/2) Major environment protection projects: • Sanitation of Historically Polluted Places in Sarkandaugava (ongoing, with Swiss government support) • Reconstruction of sewage treatment plant (completed 2008) • Railway noise protection walls along Daugavgrīva residential area (completed 2005) Social Responsibility
  • 61. 61 Competitive Advantages of the Port of Riga (1/2) • Strategically well linked to economically strong and developing areas • Multifuncional port with powerful infrastructure • Flexible and competitive port charges • High-quality services • Professional port authority with clear vision for port`s development • Favourable business conditions: • The status of a Free Economic Zone • Long-term leasing of land on attractive terms • Available land for development Summary
  • 62. 62 Competitive Advantages of the Port of Riga (2/2) Advantages and experience in working with Russia and the CIS • The closest EU port to Moscow • European Union border with Russia • Excellent rail connections with the standard Russian 1520 mm rail gauge • Improoving railway tariffs and easy border crossing procedures • Business competence, language knowledge and experience in Russia/CIS markets Summary
  • 63. 63 Thank you for your attention!

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