Port of Riga Presentation

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Port of Riga Presentation

  1. 1. WE ARE REDUCING DISTANCES!
  2. 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. 3 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
  4. 4. 4 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
  5. 5. 5 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
  6. 6. 6 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
  7. 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. 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. 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. 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. 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. 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% Helsinki 0% Port Performance Liquid Bulk Market at the Eastern Baltic Sea Region Ports in 2015 (market share % of total segment)
  13. 13. 13 Cargo Turnover at the Baltic States Ports in 2011-2015 (mln.t) Rīga 22% Riga Klaipeda Ventspils Tallinn Silamae Butinge Liepaja 2011 2012 2013 2014 2015 40 35 30 25 20 15 10 5 0 Port Performance
  14. 14. 14 Regular Container and Ferry Liner Services Connectivity Containerships Riga-Teesport-Thamesport-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. 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. 16 Hinterland Connections- Dedicated Container Trains Connectivity Container train “Zubr” (Riga-Minsk-Kiev- Odessa-Illichevsk) Container train “Baltika- Transit” (Riga- Kazakhstan/ Central Asia) Container train “EURASIA 1” (Riga-Polotsk- Aktobe – Central Asia) Container block train “Riga Express” (Riga-Moscow)
  17. 17. 17 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
  18. 18. 18 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
  19. 19. 19 Port Companies Provide Diverse Services In total 194 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 28 shipping agencies Port Community
  20. 20. 20 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
  21. 21. 21 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 (2014) Length 170 m DW 29 324 GT 18 977 Cargo – 22.4 thous.t timber Largest vessel handled
  22. 22. 22 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 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 13.5 m Infrastructure MSC SABRINA (2015) Length 243 m DW 43 078 GT 35 598 Capacity 3 074 TEU Largest vessel handled
  23. 23. 23 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
  24. 24. 24 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
  25. 25. 25 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 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
  26. 26. 26 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
  27. 27. 27 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 Bulkers 410 11.64 Passenger ships 246 9.29 Others 76 0.63 Calls by types of vessels in 2015
  28. 28. 28 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
  29. 29. 29 Inbound and Outbound Cargo in 2015 Performance 81% of cargo handled at the Freeport of Riga is transit traffic OUT 89,2% IN 10,2%
  30. 30. 30 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
  31. 31. 31 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
  32. 32. 32 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
  33. 33. 33 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%
  34. 34. 34 Cruise Operating Partners in 2015 Performance
  35. 35. 35 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
  36. 36. 36 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. 37 Deepening of the Fairway (1/5) Development Current depth of the fairway
  38. 38. 38 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:
  39. 39. 39 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
  40. 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. 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. 42 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
  43. 43. 43 Available Territories for Development Investment • Approx. 445 ha are presently available for the development of new facilities (distribution, logistics, warehousing, etc.) Available territories
  44. 44. 44 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:
  45. 45. 45 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
  46. 46. 46 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
  47. 47. 47 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
  48. 48. 48 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
  49. 49. 49 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:
  50. 50. 50 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
  51. 51. 51 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
  52. 52. 52 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:
  53. 53. 53 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:
  54. 54. 54 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
  55. 55. 55 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
  56. 56. 56 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
  57. 57. 57 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
  58. 58. 58 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
  59. 59. 59 Thank you for your attention!

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