LogisticLogistic andand TransitTransit systemsystem inin LatviaLatvia

Andris Maldups Director of the Transit Policy Department

Nevember, 2009 as a natural bridge in EuroAsia traffic

1520mm

Common: thus there is no need: single infrastructure to spend time at bordercrossings single rolling stock to change wheels unified information exchange system to change the documentation to make customs clearance on the border single documentation Transport system of Latvia Cargo turnover in the ports of Latvia

Cargo turnover in Latvian ports 1996-2008 thousand of tonns

70000 63645 62434 60042 59497 57400 56915

60000 54755 52292 51843 52155 50690 49026

50000 45034

40000

30000

20000

10000

0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Railway cargo turnover

Railway cargo turnover 1996-2008 thousands of tonns

60000

50000

40000

30000

20000

10000 54861 48731 51058 52164 56061 48355 35264 37857 33208 36412 37884 40100 41018 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Transit cargo in the total Internal cargo turnover transported by Export 5% Import 2% rail 9%

Transit 84%

Total turnover~ 56.1 mill.t Transit via ports ~ 47.0 mill.t Comparison of major traffic routes

LATVIA 20 days

JAPAN

SOUTH CHINA KOREA

35 days

45 days

Transportation from China trough Kazahstan, Russia and Latvian ports may save at least 20 days in comparison with traditioanl sea routes Mainrailway corridors for Euro – Asia connections (OSJD) TEN –T axes to neighbouring countries

Transport policy document “Networks for peace and developmemt. Extension of the major trans-European transport axes to the neighbouring countries and regions” accent significant role of Latvia as a gateway between EU and Russia (and further Far Esat and Asia) – the only direct channel from and to Russia lies via Latvia! Multimodal transport coridors

Moscow 4 1 2 3

3 a 5

1. Western Еurope – Latvian ports – the Central regions of Russia 2. Central Europe – Latvian border – the Central regions of Russia 3. Latvian ports – Каzahstan – Northwetern China 4. Far East– Trans Siberian magistral – Latvian ports 5. Far East– Black sea – Latvian ports -Scandinavia Free ports and SEZ

Advantages: •80-100% rebate on real estate and corporate income taxes • VAT 0% for goods and services provided in free ports and SEZ • VAT, excise tax and customs duty exemptions on import for companies operating in free ports and SEZ • Application of 0% VAT to majority of services • Special procedure of paying customs duties, VAT and natural resources tax Latvia has three major ports - , , and Liepaja and seven minor ports - Salacgriva, Lielupe, Engure, Mersrags, Roja, Kolka and Pavilosta. Latvian ports offer: - Technical equipment for handling different cargo - Well developed transport infra-structure - Servicing ships in any weather conditions - Free space for development - Excellent conditions for the development of industrial and distribution parks Freeport of Ventspils

Deepest ice free port in the Multipurpose port with main commodities: liquid bulk – oil products, liquid chemicals dry bulk – potash, coal, grain, peat, woodchips general cargo – containers, Ro - Ro

Development of Ventspils Free Port is planned according to three main goals:

1. Retain and strengthen port’s current positions in liquid and dry bulk cargo markets 2. Diversification by development of new services in the port 3. Development of industrial activities in the port www.portofventspils.lv • • year • n20 14068 TEU 2008– In million tons were handled 28,57 In 2008 totalcapacityof The 10000 15000 20000 25000 30000 35000 40000 the Port reaches thePortreaches 5000 0 Cargo turnover in 2000-2008 0020 0220 0420 0620 2008 2007 2006 2005 2004 2003 2002 2001 2000

34755 of Ventspils Freeport

37937 80 milliontonsper

28704 of tonnsthousands

27316

27805

29863 The structure The of the turnover cargo of the Ventspils roll on/roll of; of; on/roll roll containers; 142.1 1355.1

29062 pertoleum products; 15029.6 other; 3024 31037 Freeport in 2008 timber; 377.6

28570 metals; 15.7 metals; coal; 4460 fertilizers; 2673.6 petroleum; 1492.1 Freeport of Ventspils

o Ferry lines:

Operated by Scandlines: o Ventspils – Nīneshamn (Sweeden) 5 times per week o Ventspils – Rostock (Germany) 6 times per week

Regular container operator Maersk in Operated by SSC Ferries collaboration with Teamline is calling o Ventspils - Ventspils freeport Mintu (Sāremā Estonia) 4 times per week Rotterdam - Hamburg - St,Peterburg – Ventspils – Rotterdam NNVT – Nord Nathie Ventspils terminal

o Capacity up to 400 000 TEU o Multi purpose: 36 Ha o Concession: 30 years o Quaylength: 1000m/draft 14m o Container crane: 60T/reach 37m o Rail-mounted crane: 35T o Mobile Gottwald crane: 100T/reach 44m o Rail connected o Distribution warehouse Seaward expansion of the Ventspils Free Port developing container and general cargo transshipment possibilities

• The largest port in the Baltic Sea region with total territory of 6433 ha

• The shortest distance from EU to CIS countries Riga – Moscow 940km

• Multifunctional port, handling all types of cargo except crude oil

• Navigation available all year round

Development of the Freeport of Riga is focused on the following:

• Construction of a new container terminal with capacity of 1 000 000 TEU

• Construction of a new terminal for general and dry bulk cargo of size 65 ha

• Reconstruction of exsisting and building of a new railway access to the port terminals

• Available land sites 450 ha

www.freeportofriga.lv CARGOCARGO TURNOVERTURNOVER ININ 20082008

Cargo turnover in port of Riga 2000-2008 thousands of Containerized cargo turnover in port of Riga 2000- tonns 2008 (TEU)

30000 250000 25000 200000 20000 150000 15000

10000 100000

5000 50000 13352 14884 18108 23991 24429 25357 25933 29566 21722 84928 101077 132109 121784 152166 211840 210953 176826

0 168978 2000 2001 2002 2003 2004 2005 2006 2007 2008 0 2000 2001 2002 2003 2004 2005 2006 2007 2008

The structure of the cargo turnover of the Freeport of Riga in 2008

timber; 2040.5 other; 3860 fertilizers; 1944.2 conatainers; metals; 19.3 1912.9

roll on/roll of; 650

petroleum; 5358.7 coal; 13776.2

ININ 20082008 FREEPORT FREEPORT OFOF RIGARIGA HANDLEDHANDLED 29,5729,57 MLN MLN TONSTONS OFOF CARGOCARGO Riga freeport o MSC Line (Antwerp– Riga–Kotka-Helsinki Tallinn) o Maersk Sealand (Bremerhafen– Riga –Kotka– Rauma-Bremerhafen) o French Baltic Line (CMA-CGM) (Riga–Hamburg-Klaipeda) o Unifeeder Container Service (Bremerhafen - Hamburg – Riga - Klaipeda) o Team Lines (Hamburg-Bremerhafen-Riga- Klaipeda) o Containerships (Rotterdam-Teesport –Klaipeda - Riga) o Inter Marine Container Lines (Hamburg- Gdyn-Gdansk– Riga) Freeport of Riga

The new container terminal

The new dry bulk & general cargo terminal

The new bridge for the Available territories container terminal for new business activities

The new railway access Port of Liepaja

•Max draught (m) – 9.5 •Max length (m) – 225

•Total port territory (ha) - 1182 - Land area (ha) - 372 - Water area (ha) - 810

•Non - freezing port all year round. •Open for navigation 24 hrs a day •Secure ship traffic co – ordination equipment and pilot/ tugboat services •Developed transport infrastructure •Diversified port services •Free territories for Greenfield investments •17 stevedoring, ships’ agent, forwarding and chartering companies. 1000 1500 2000 2500 3000 3500 4000 4500 5000 1000 2000 3000 4000 5000 6000 7000 8000 500 0 0 Containerized cargo turnover in port of Liepaja 2000-2008 (TEU) 0020 0220 0420 0620 2008 2007 2006 2005 2004 2003 2002 2001 2000 0020 0220 0420 0620 2008 2007 2006 2005 2004 2003 2002 2001 2000 3278 2965 Cargoturnover in port of Liepaja 2000-2008 2276 3260 2798

4318 thousands of tonns 2652 4857 2764 4474 3144 4508 7809

4001 Port ofLiepaja 7665 4039 4227 4187 containers; 36.1 containers; products; 522.9 products; containers; 36.1 containers; 1000 1500 2000 2500 3000 3500 4000 4500 5000 petroleum petroleum 500 products; 522.9 products; 0 The structureof the cargo turnover of the portof Liepaja in petroleum petroleum 0020 0220 0420 0620 2008 2007 2006 2005 2004 2003 2002 2001 2000 petroleum; 274.4 petroleum; The structure of the cargo turnover of the port of Liepaja in

2965 Cargo turnover in port of Liepaja 2000-2008 petroleum; 274.4 petroleum; other; 974 other;

3260 974 other;

4318 thousands oftonns metals; 498.8 metals; metals; 498.8metals; 4857 2008 2008 4474

4508 timber; 463.1timber; 4001 timber; 463.1 timber; grain; 1418.2 grain;

4039 1418.2 grain;

4187 Port of Liepaja

Future priorities:

o Deepening up to 12,5 meters

o Establishing of container block trains

o Creation of 2 new container terminal: 50 ha and 30 ha

www.liepaja-sez.lv Opportunities for investment in logistics and distribution services Baltica - Transit

Regular container train bring containers ut to five time per week between Baltic ports and Central Asia (Kazakhstan, Uzbekistan, Kirgizstan, Turkmenistan)

Baltica - Tranzit 2003 - 2008 (TEU)

21749 25000

20000 16019

15000 10139 6949 10000 4364 5000 1297

0 2003 2004 2005 2006 2007 2008

Next step is to prolong this line and to connect it with China. Both governments and private operators of Latvia, China and Kazakhstan are working on the development of this route. New project “ZUBR”

Route: Riga – Minsk (colecting cargo also from Estonia and other Latvian ports, in future extension to Ukraine) Operator: LDZ Cargo Logistika Ltd. Transport chain from China to EU 从中国至欧盟的运输链

Test train has been launched (96 TEU) 25.04.2008. (China) – 06.05.2008. (Riga) – 08.05.2008. (Hamburg)

10 days transit time from Dostyk to Riga terminal 从多斯提克至终点站里加运输时间为期10天 14 days transit time from terminal Urumqi to door Central EU 从终点站乌鲁木齐至中欧运输时间为期14天 Transport mode index: 运输方式索引 CN-KZ by rail (switch gauge: Alashankou-Dostik) 从中国至 哈萨 克斯坦用 火车 运输（在 阿拉 山口与多 斯提 克之间转 轨） KZ-RU-LV by rail (gauge 1520mm) 哈萨克斯— 坦俄罗斯—拉脱 维亚用火 车运 输（轨距1.52米） 为

LV-CZ/NL by truck 拉脱维亚—捷克/荷兰用 重 型卡车运 输 LV-EU by seafreight 以海运方 式从 拉脱维亚 至欧 盟 Development of Riga International Airport

6 000 000 6 000 000 5 000 000

5 000 000 3 691 000 3 160 945 4 000 000 2 495 020 3 000 000 1 878 035 2 000 000 1 060 426 711 753 622 647 633 322 1 000 000

0 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 70 direct destinations from Riga Development of Riga International Airport

Transfer and Transit passengers 2006 2007 2008 2009 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 July May April June March August January October February November December September 24 hours concept Thank you for your attention!

www.sam.gov.lv www.transport.lv