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Port of Riga Presentation

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  • 1. WE ARE REDUCING DISTANCES!
  • 2. 2 Freeport of Riga in 2014 • Biggest port in the Baltic States by cargo turnover (41.1 mln.t; +15.8%) • Multifunctional port with cargo handling capacity 58 mln.t/year • Growth by segments: • dry bulk (+10%), • general cargo (+4.3%), • liquid bulk (+44.6 %) • Passenger traffic: 737 thous. passengers, including 60.8 thous. cruise passengers Business Card www.rop.lv
  • 3. 3 Freeport of Riga in 2014 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 (Y2013): • Net revenues EUR 620 mln • Net profits EUR 87 mln • Asset book value EUR 941 mln • Taxes into state and municipal budget EUR 42 mln • Investments EUR 183 mln
  • 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 18.2 km Max. canal depth 16.0 m Max. vessel draft 14.5 m Main infrastructure figures
  • 5. 5 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:
  • 6. 6 The Baltic Sea Region- Strong Port Competition 15 ports compete for cargo to/from Russia, other CIS countries In 2014 total cargo turnover at the Eastern Baltic Sea Region ports reached 389 mln t Eastern Baltic Sea Region Location RUS 223.5 mln.t EST 35.8 mln.t LAT 72.6 mln.t LIT 43.7 mln.t FIN 13.4 mln.t t* Cargo turnover at the Eastern BSR ports in 2014 (in thous.t by country) * Finland’s ports (Hamina/Kotka, Helsinki)
  • 7. 7 Cargo Turnover at the Eastern Baltic Sea Region Ports (mln.t, 2011-2014) Port Performance Primorsk StPetersburg Ustj-Luga Rīga Klaipēda Ventspils Tallinn Hamina-Kotka Visock Kaliningrad Helsinki Būtinge Liepāja Vyborg Sliiamae 2011 2012 2013 2014 90 80 70 60 50 40 30 20 10 0 Rīga
  • 8. 8 Market Shares of the Baltic Ports in 2014 (percentage of the total of the countries) Klaipēda 24% Tallinn 19% Ventspils 17% Būtinge 5% Silamae 5% Liepāja 3% Rīga 27% Port Performance
  • 9. 9 Regular Container and Ferry Liner Services Connectivity Containerships Riga-Teesport-Rotterdam-Lubeck- Helsinki-St.Petersburg-UstLuga-Pori- Klaipeda-Aarhus-Sheerness-Ghent CMA-CGM Hamburg-Bremerhaven-Riga-Klaipeda Unifeeder Container Service Rotterdam-Hamburg/Bremerhaven- Riga-Klaipeda-Gdaynia/Gdansk Tallink (ro-pax) Riga-Stockholm MannLines Multimodal Riga-St.Petersburg-HaminaKotka- Helsinki-Rotterdam MSC Antwerp-Bremerhaven-Riga-Tallinn Hapag-Lloyd AG Hamburg- Bremerhaven-Gdynia-Riga- St.Petersburg-Rauma-Gavle AP Moller-Maersk/SeagoLine Gdansk-UstLuga-Riga
  • 10. 10 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)
  • 11. 11 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
  • 12. 12 Port Infrastructure Infrastructure Total port area 6 348 ha Port land 1 962 ha Available land 445 ha Total berths length 13.8 km Max. canal depth 16.0 m Max. vessel draft 14.5 m Port Infrastructure
  • 13. 13 Facilities for Cargo Handling • Total cargo handling capacity 58 mln.t/year • In 2014 cargo turnover- 41.1 mln.t • Capacity utilization~ 71 % Infrastructure Open storage 1 783 362 m² Closed storage 358 988 m² Cold storage 15 623 m² Cold storage 13 500 t Dry bulk (silos) 255 000 m³ Liquid bulk tanks 350 000 m³
  • 14. 14 Port Companies Provide Diverse Services In total 195 enterprises work at the Port of Riga, of which: 95 companies are land lessees • 36 warehousing companies • 35 stevedoring companies- cargo terminals • 19 customs warehouses • 7 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
  • 15. 15 Facilities for Dry Bulk Handling • Total handling capacity 32 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
  • 16. 16 Facilities for General Cargo Handling • Total handling capacity 14 mln. t/year • Main commodities: containers, timber, ro-ro, refrigerated cargo • 21 terminals • Open storage 1 926 362 m2 • Closed storage 370 979 m2 • Refrigerated storage 25 500 t • Max draught at general cargo berth 10.3 m Infrastructure POLA MED (2012) Length 170 m DW 29 324 GT 18 977 Cargo – 19 thous.t timber Largest vessel handled
  • 17. 17 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 EM PSARA (2012) Length 206 m DW 32 903 GT 370 125 Capacity 2785 TEU Largest vessel handled
  • 18. 18 Facilities for Container Handling (1/3) Baltic Container Terminal Ltd (specialized container terminal) Handling capacity 450 000 TEU/year Turnover in (2013) 273 019 TEU Terminal area 55 ha Closed storage 14 000 m² Container ground slots 5 000 units Berth length 450 m Cranes on the quays 3 pieces Crane lift capacity 35 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 -13.5 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
  • 19. 19 Facilities for Container Handling (2/3) Rīgas Universālais termināls Ltd (multipurpose terminal) Container handling capacity 100 000 TEU/year Turnover (2013) 82 322 TEU Terminal area 22 ha Closed storage 20 000 m² 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
  • 20. 20 Facilities for Container Handling (3/3) Riga Container Terminal Ltd (specialized container-general cargo terminal) Container handling capacity 110 000 TEU per year Turnover (2013) 65 949 TEU (2013) 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
  • 21. 21 Facilities for Liquid Bulk Handling • Total handling capacity 12 mln.t/year • Main types of commodities: Fuel oil, gas oil, gasoline, jet fuel, kerosene, etc • 8 terminals • Tank farm- 434 thous.m³ • Max draught at liquid bulk berth 12.5 m Infrastructure Northern Bell (2010) Length 228 m DW 83 651 GT 44 324 Cargo 54.9 thous.t. gasoline Largest vessel handled
  • 22. 22 Vessel Traffic at the Freeport of Riga Performance • Total number of vessel calls in 2014 reached 3 797 ships with tonnage 48.4 mln. GT • Compared to 2013, the number of vessel calls declined (-1.4%) but gross tonnage increased (+2.3%) Calls mln. GT Dry bulk vessels 1709 7.43 Tankers 746 9.00 Container ships 564 7.12 Passenger ships 347 13.33 Bulkers 369 11.00 Others 62 0.46 Calls by types of vessels in 2014
  • 23. 23 Cargo Turnover at the Freeport of Riga (mln.t) Average annual growth rate (AAGR) 8.4% Performance 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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
  • 24. 24 Inbound and Outbound Cargo in 2014 Performance 77% of cargo handled at the Freeport of Riga is transit traffic
  • 25. 25 Coal 36.4% 14 935 thous.t (+6.4%) Oil products 24.8% 10 205 thous.t (+45.2%) Containerized cargo 10.1% 387 603 TEU (+1.7%) Chemicals (fertilizers) 6.2 % 2 546 thous.t (+80%) Timber 5.1% 2 892 thous.t (0.5%) Other cargoes 15.5% Dry and liquid bulk, general cargoes Performance Main Types of Cargo in 2014
  • 26. 26 • 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 26 5 1 2 3 7 8 4 6 3 1 2 3 4 5 6 7 8
  • 27. 27 Deepening of the Fairway (1/6) Development 16 m 13.5 m 12.5 m 10 m Current depth of the fairway
  • 28. 28 Deepening of the Fairway (2/6) Development 17.0 m 15.5 m 12.5 m 10 m • 1st phase: 2012-2014: 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 100 mln Two-phase development:
  • 29. 29 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): 2012-2014 • Investment: EUR 126 mln. • Territory: 56 ha • Capacity 17-22 mln tons/year • 4 berths of 1180 m total length Development
  • 30. 30 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
  • 31. 31 Diverse Cargo Terminals on the Kundziņsala (5/6) Development Kdz.sala Northern Project, Ltd. 59 ha Riga Fertilizer Terminal, Ltd. 41 ha National Container Terminal, Ltd. 36 hа Kdz.sala Southern Project, Ltd. 22 hа
  • 32. 32 Diverse Cargo Terminals in Bolderāja, Daugavgrīva and Voleri (6/6) • 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
  • 33. 33 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
  • 34. 34 Recent Investment Projects (during 2013-2014) Foreign direct investments in terminals & takeovers • Riga Universal Terminal acquired by PORTEK (Singapore), which is a subsidiary of MITSUI (Japan) • Riga Fertilizer Terminal- a new fertilizers handling terminal was opened at the end of 2013; co-owner URALCHEM FREIGHT LIMITED (Russia) • Riga Bulk Terminal- a new agri- and other bulk terminal was opened in the beginning of 2014; co-owner RusAgroTrans (Russia) New liner services to/from Riga • Container carrier HapagLloyd started a regular liner service in route Hamburg–Bremerhafen-Riga-Muga- Klaipeda-Gdina since April 2014 Investment
  • 35. 35 Available Territories for Development Investment • In total approx. 500 ha are available for the development of new facilities (distribution, logistics, warehousing, etc.) Available territories
  • 36. 36 Available Territories- Spilve Meadows Investment • 445 ha are available for the development of new facilities (distribution, logistics, warehousing, etc.) Available territories
  • 37. 37 Available Territories- Kundziņsala Investment • Approx. 4.5 ha are available in the residential area for the development of new facilities (distribution, logistics, warehousing, etc.) Available territories
  • 38. 38 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:
  • 39. 39 Status of a Licensed/Free Zone Regime Company Requirements for the licensed/free zone regime and application of tax reductions: • Land lease agreement with the FRA (a set of documents, including a Business Plan to be submitted) • Licensed/free zone regime agreement with the FRA • Certificate of a licensed/free zone company (gives a right to apply reductions on the indirect taxes) • Investment agreement with the FRA for the planned investments into the infrastructure (investments according to the Business Plan and will be fixed for the calculation and application of reductions on direct taxes) • Permit to apply direct tax reductions • Max. accumulated direct tax recovery rates: • Large companies- 35% • Medium companies- 45% • Small companies – 55% Investment
  • 40. 40 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
  • 41. 41 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
  • 42. 42 Thank you for your attention!
  • 43. 43 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
  • 44. 44 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
  • 45. 45 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 – 385 employees Port Authority Environment and development dep. IT department
  • 46. 46 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
  • 47. 47 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
  • 48. 48 FRA’s performance in 2013 Port Authority According to the Annual Report of the FY 2013 (approved in July 2014): Total staff of the FRA- 385 employees Indicators Y2013 Y2012 Net revenues (mln.EUR) 49.79 51.49 Net surplus-profit (mln.EUR) 9.91 15.36 Asset book value (mln.EUR) 342.01 297.53 Equity 263.60 257.23 Investments (mln.EUR) 71.33 20.57
  • 49. 49 FRA’s Income Composition in 2013 Port Authority 83% 8% 3% 2% 1% 1% 2% Port dues Lease of berths Lease of land Security Lease of tugs Railway services Other income
  • 50. 50 Port Authority FRA’s investment composition 20% 4% 6% 70% 0% Dredging Quays, moles, embankment enforecments Railways Krievu sala Project Other investments Total investments by FRA reached EUR 71 mln during 2013