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)
• Transport and Warehousing sector gives
9.1% of total added value (Y2016)
• 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 2
Latvia
3. Freeport of Riga in 2016
• The second biggest port in the Baltic States
by cargo turnover (37.1 mln.t)
• Multifunctional port with cargo handling
capacity 63 mln.t/year
• Serviced 3,521 ships with a tonnage of 43.7
mln.GT
• Passenger traffic: 582 thous. passengers,
including 71.4 thous. cruise passengers
• Port accounts for ~5 000 direct work places
and up to ~15 000 indirect jobs in related
industries (railways, forwarding, agencies,
trucking, etc.)
3
Business Card
4. 4
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 21.0 km
Max. canal depth 16.0 m
Max. vessel draft 15.0 m
Main infrastructure figures
5. The Baltic Sea Region- Strong Port Competition
5
15 ports compete for cargo to/from
Russia, other CIS countries
In 2016 total cargo turnover at the
Eastern Baltic Sea Region ports
reached 400 mln t
Eastern Baltic Sea Region
RUS- 236.6 mln.t
EST 26.4 mln.t
LIT 49.4 mln.t
FIN 25.0 mln.t
Cargo turnover at the
Eastern BSR ports in 2016
(in thous.t by country)
* Somijas ostas
(Hamina/Kotka, Helsinki)
Location
LAT- 63.1 mln.t
6. Cargo Turnover at the Eastern Baltic Sea Region
Ports (mln.t, 2012-2016)
6
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
2012.g. 2013.g. 2014.g. 2015.g. 2016.g.
In 2012-2016 cargo turnover in the region increased by 9%
Port Performance
Riga is the fifth largest port with share of 9.3%
7. Change of Market Shares
7
Igaunija
7.4%
Somija
6.5%
Russia
51%
Estonia
11%
Latvia
18%
Lithuania
12%
Finland
8%
2012
Russia
59%
Estonia
7%
Latvia
16%
Lithuania
12%
Finland
6%
2016
Port Performance
9. General Cargo Segment at the Eastern Baltic Sea Region
Ports in 2016 (market share % of total segment)
9
Port Performance
Igaunija
7.4%
Somija
6.5% StPetersburg
40%
Klaipeda
14%
Helsinki
12%
Tallinn
8%
Riga
8%
Kotka/Hamina
6%
Kaliningrad
4%
Ust-Luga
4%
Ventspils
3%
Liepaja
1%
Sillamae
0.2%
Vyborg
0.1%
Total general cargo
market at the ports of
the Eastern Baltic
Sea Region (EBSR)
reached 86 mln.t
General cargo
10. Liquid Bulk Market at the Eastern Baltic Sea Region
Ports in 2016 (market share % of total segment)
10
Port Performance
Igaunija
7.4%
Somija
6.5%
Primorsk
32%
Ust-Luga
31%
Klaipeda
5%
Vysock
5%
Ventspils
5%
Tallinn
5%
Butinge
5%
Riga
4%
StPetersburg
3%
Sillamae
2%
Kotka/
Hamina
1.6%
Kaliningrad
1.2% Liepaja
0.2%
Helsinki
0.1%
Vyborg
0.02%
Total liquid bulk
market at the ports of
the Eastern Baltic
Sea Region (EBSR)
reached
208 mln.t
Liquid Bulk
11. Cargo Turnover at the Baltic States Ports in
2012-2016 (mln.t)
11
Rīga
22%
Port Performance
Klaipeda Riga Tallinn Ventspils Butinge Sillamae Liepaja
2012 2013 2014 2015 2016
Riga – the second biggest port with share of 27.0%
12. Market Shares of the Baltic Ports in 2016
(percentage of the total of the countries)
12
Port Performance
Igaunija
7.4%
Somija
6.5%
Klaipeda
29%
Riga
27%
Tallinn
15%
Ventspils
14%
Butinge
7%
Sillamae
4%
Liepaja
4%
13. Regular Container and Ferry Liner Services
13
Connectivity
Containerships
Riga-Teesport-Thamesport-Rotterdam-
Zeebrugge-Lubeck-Helsinki-
St.Petersburg-Klaipeda-Aarhus
UniFeeder Container Service
Rotterdam-Hamburg/Bremerhaven-
Riga-Klaipeda-Gdaynia/Gdansk
X-Press Container Lines
Riga – Ust-Luga – Kotka – Helsinki –
Tallinn – Hamburg
Mediterranean Shipping Company
(MSC)
Antwerp-Bremerhaven-Riga-Tallinn
Hapag-Lloyd AG
Gdynia – Klaipeda – Riga – Tallinn–
Rauma – Hamburg – Bremerhaven
Maersk Line / Seago Line
Gdansk – Bremerhaven – Hamburg –
Gdansk – Kaliningrad – Riga
Tallink (ro-pax)
Riga-Stockholm
15. 15
Port Infrastructure
Infrastructure
Total port area 6 348 ha
Port land 1 962 ha
Available land 445 ha
Total berths length 21.0 km
Max. canal depth 16.0 m
Max. vessel draft 15.0 m
Port Infrastructure
16. 16
Facilities for Cargo Handling
• Total cargo handling capacity
64 mln.t/year
• In 2016 cargo turnover- 37.1 mln.t
• Capacity utilization ~ 59 %
Infrastructure
Open storage 1 872 842 m²
Closed storage 370 736m²
Cold storage 15 623 m²
Cold storage 14 000 t
Dry bulk (silos) 359 800 m³
Liquid bulk tanks 502 063 m³
Maximum vessel size:
Width 44 m
Length 295 m
Draft 15 m
17. 17
Port Companies Provide Diverse Services
In total 198 enterprises work at the Port of Riga,
of which:
98 companies are land lessees
• 35 stevedoring companies- cargo terminals
• 35 warehousing companies
• 17 customs warehouses
• 8 productions companies
• 3 ship repair and building services
73 companies are various services provides based on
agreements with the FRA
29 shipping agencies
8 companies - tugboat un bunkering services
Port Community
18. • Total handling capacity 35 mln.t/year
• Main types of commodities:
coal, fertilizers, ore, grain, woodchips
• 21 terminals
• Max draught at dry bulk berth 14.5 m
18
Infrastruktūra
UBC Onsan (2012)
Garums (m) 260
DW 118 590
GT 65 976
Krava- 112 tūkst.t ogļu
Lielākais kuģis
Facilities for Dry Bulk Handling
19. • Total handling capacity 6 mln t/year
• Main commodities:
Timber, RoRo, metals, refrigetared saldētās kravas
• 20 terminals
• Refrigetated storage capacity – 14 500 t
• Max draught at general cargo berth– 13,2 m
19
Infrastruktūra
POLA MED (2014)
Garums (m) 170
DW 29 324
GT 18 977
Cargo – 22.4 thous.t timber
Lielākais kuģis
Facilities for General Cargo Handling
(excluding containers)
20. 20
MSC ALEXA (2016)
Garums(m) 244
DW 50 855
GT 42 307
Ietilpība (TEU) 3 300
Largest vessel handled
• Total handling capacity 660 thous.TEU/year
• 3 terminals:
Baltic Container Terminal Ltd, Riga Universal Terminal
Ltd, Riga Container Terminal Ltd
1 terminal with additional capacity : MAN-TESS Tranzīts
Ltd. (50 thous. TEU/year)
• 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 11.7 m
Facilities for Container Handling
Infrastructure
21. Container turnover at the Freeport of Riga
2000-2016 (in mln t)
21
With an average growth rate 10% per year
container volume in the reviewed period has increase five times
Performance indicators
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
4.14.1
22. 22
Facilities for Container Handling (1/3)
Baltic Container Terminal Ltd
(specialized container terminal)
Handling capacity 450 000 TEU/year
Turnover in (2016) 261 709 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
23. 23
Facilities for Container Handling (2/3)
Rīgas Universālais termināls Ltd
(multipurpose terminal)
Container handling capacity 100 000 TEU/year
Turnover (2016) 95 047 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
24. 24
Facilities for Container Handling (3/3)
Riga Container Terminal Ltd
(specialized container-general cargo terminal)
Container handling capacity 60 000 TEU per year
Turnover (2016) 29 181 TEU
Open storage 68 000 m²
Closed storage 19 000 m²
Container ground slots 2350
Berth length 430 m
Cranes on the quays 1 mobile, 4 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
25. 25
STI OXFORD (2016)
Garums(m) 256
DW 109 999
GT 64 705
Krava– 104,9 tūkst.t. dīzeļdegvielas
Lielākais kuģis
Facilities for Liquid Bulk Handling
Infrastructure
• 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
26. 26
• In 2016, the total number of vessel calls at the
Freeport of Riga reached 3 521 ships with total
tonnage of 43,7 milj. GT;
• The largest vessel handled UBC ONSAN (length
260m , breadth - 43m, draft- 14,5m, GT 65 976,
cargo 111,7 thous.t coal)
• The largest cruise ship COSTA PACIFICA
(length 290m, draft 8.3 m, GT 114 147)
Number GT mln.t
Dry bulk/gen-cargo vessels 1 531 5.94
Tankers 653 7.45
Container vessels 568 8.02
Bulkers 387 11.54
Passenger ships 260 9.80
Others 115 0.96
No of vessel calls (by type of ship)
Vessel Traffic at the Freeport of Riga
Performance
27. 27
With an average growth rate of 5.9% per annum
the cargo turnover in the reviewed period has tripled
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2000.g.
2001.g.
2002.g.
2003.g.
2004.g.
2005.g.
2006.g.
2007.g.
2008.g.
2009.g.
2010.g.
2011.g.
2012.g.
2013.g.
2014.g.
2015.g.
2016.g.
Total
Liquid bulk
General cargo
Dry bulk
41.1
37.1
Cargo Turnover at the Freeport of Riga (mln.t)
Performance
28. 28
78% of cargo handled at the Freeport of Riga was transit cargo
Saņemtās
10,2%
Nosūtītās
84,7%
Sent by
ships…Received by
ships
11%
Sent
32 891 thous.t.
Transit
81%
Transit
50%
Received
4 179 thous.t.
Inbound and Outbound Cargo in 2016
Performance
29. 29
Coal 35.9%
13 292 thous.t (-8.5%)
Oil products 21.9%
8 166 thous.t (-23.1%)
Containerized cargoes 10.9%
385 937 TEU (+8.6%)
Chemical fertilizers6.6 %
2 812 tūkst.t (+8.8%)
Timber products 6.4%
2 624 thous.t (-5%)
Agribulk and products 3.5%
1 300 thous.t (+23.6%)
Other (bulk/general) cargoes 13.0%
58%
Performance
Main Types of Cargo in 2015
31. Regular Ferry traffic (2007-2016)
31
• Tallink ensures daily passenger traffic in route
Rīga-Stockholm;
• Tallink ensures 88% of total passenger flow at
the Freeport of Riga
295
384
541
632
712 732
770
677
457
510
0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Passenger traffic in route Tallink (thous.pax)
Performance
32. 32
In 2016, cruise passengeres to riga arrived from
111 countries
Germany
38%
USA
19%
Great Britain
6%
Australia
4%
Italy
3%
Israel
3%
Austria
3%
Spain
2%
Switzerland
2%
Canada
2%
Russia
2%
France
2%
Finland
2%
Mexico
2%
Others
10%
Performance
Cruise Passenger Traffic in 2016
34. 34
Development Projects (2010 - 2020) (1/2)
Development
Port Authority`s Investments Total port investment portfolio 1.1 bln EUR
• Port Authority`s Investment 300 mln EUR
• Private investment 845 mln EUR1
Reconstruction of the fairway
1
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)
2
2
3
3
3
44
35. 35
Development Projects (2010 - 2020) (2/2)
Development
Private Investments
Terminal for production and handling of
bioethanol in Voleri
Oil products terminal in Bolderaja
Liquified natural gas
(LNG) terminal in
Mangalsala
Various terminals (fertilizer, oil product,
grain, container and logistics park) on the
Kundziņsala
5
5
6
6
7
7
8
8
37. 37
Deepening of the Fairway (2/5)
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:
38. 38
Dry Bulk Complex on the Krievu sala Island (3/5)
• Project: “Relocation of Port Activities
from the City Center to the Krievu sala
island”
• Project duration (construction works):
2012-2018
• Investment: EUR 134 mln.
• Territory: 56 ha
• Capacity 17-22 mln tons/year
• 4 berths of 1180 m total length
Development
39. 39
Multipurpose dry bulk/general cargo complex
(capacity 17 mlnt/year) EUR 152 mln.
Investments by Port Authority
Dry Bulk Complex on the Krievu sala Island (3/5)
40. 40
Diverse Cargo Terminals on the Kundziņsala (4/5)
• 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
41. 41
Diverse Cargo Terminals in Bolderāja,
Daugavgrīva and Voleri (5/5)
• 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
42. 42
Mineral fertilizers terminal (capacity: 2 mln.t/year)
EUR 66 mln.
Investments: Port Terminals
TOP-3: “Riga Fertilizer Terminal”
43. 43
Largest in the Baltic States
multifunctional general cargo terminal EUR 36 mln
TOP-3: “TFS Trans”
Investments: Port Terminals
44. 44
TOP-3: “Riga Bulk Terminal”
Dry bulk/ agri-bulk terminal (capacity:1.5 mln.t/year)
EUR 21 mln.
Investments: Port Terminals
45. 45
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
46. 46
Available Territories for Development
Investment
• Approx. 445 ha are presently
available for the development
of new facilities (distribution,
logistics, warehousing, etc.)
Available territories
47. 47
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:
48. 48
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
49. 49
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
50. 50
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
51. 51
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
52. 52
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:
53. 53
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
54. 54
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
55. 55
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
• European Port Community Systems Association (EPCSA)
• Coordinating Council on Trans-Siberian Transportation
• World Free Zones Organization (WFZO)
• German-Baltic Chamber of Commerce in Latvia
Port Authority
Membership in Professional Associations:
56. 56
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:
57. 57
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
58. 58
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
59. 59
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
60. 60
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
61. 61
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
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
