1. WE ARE REDUCING DISTANCES!

2. Presentation Outline
• Latvia in Brief
• Business card
• Port History
• Geographical Location
• Port Connections
• Port Infrastructure and Terminals
• Key Performance Indicators
• Port Development Strategy
• Investment Opportunities
• Port Authority
• Summary
2

3. Latvia
Latvia in Brief
• 64 000 square km
• Population 2,2 million
• GDP 20,15 billion EUR (2011)
• Transport and Communications sector
builds 13% of GDP (2011)
• Currency LVL (Lats),1 EUR = 0,7028 LVL
• 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
3

4. Business Card
Freeport of Riga in 2011
• By cargo turnover Latvia’s biggest port and the
third biggest port in the Baltic States (34 mln.t)
• Multifunctional port with cargo handling capacity
45 mln.t/year
• Fast growing port – annual growth rate +11.8%
• Port accounts for 5 200 direct and close to 15
000 indirect work places (railway, forwarding,
agencies, trucking, etc.)
• Total port revenues reached EUR 402 mln and
net profit EUR 46 mln (2010)
• Taxes paid into the state and Riga municipal
budgets - EUR 28 mln (2010)
www.freeportofriga.lv
4

5. Business Card
Freeport of Riga – 11% of the City Territory
Main infrastructure figures
Total port area 6 348 ha
Total berths length 13.8 km
Max. depth 16.0 m
Max. vessels draft 14.7 m
Legend
Port border line –––
Railway ---
Main roads –––
5

6. History
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
6

7. Location
Riga in the Network of Eurasian Transport Corridors
East-West transport
corridor
Riga as a part of the
North-South corridor is linked to the
transport corridor Trans-Siberian Railway
Easy access to the Haulage by the Trans-
corridor connecting Siberian Railway saves
Europe with the Middle transit time by 12-15
East days in route Far East –
Europe
7

8. Location
The Baltic Sea – a Region of Strong Port Competition
Turnover at ports
by country in 2011
RUS 185,4 mln t
LAT 67,4 mln t
LIT 45,5 mln t
EST 36,5 mln t
FIN 27,2 mln t
Eastern Baltic Sea Region
11 ports compete for cargo
to/from Russia
Total cargo turnover at the
ports of the Eastern coast of
Baltic Sea reached 362 mln t
in 2011
8

9. Location
Cargo Turnover at the Ports of the
Eastern Baltic Sea Region in 2011
Total cargo
turnover at the
Rīga
Latvia ports of EBSR -
22%18.6% 362 mln. t
Russia 185.4 mln.t
Finland Latvia 67.4 mln.t
7.5% Russia Lithuania 45.5 mln.t
Estonia 36.5 mln.t
51.2%
Estonia Finland 27.2 mln.t
10.1%
Lithuania
12.6%
9

10. Location
Cargo Turnover at the Ports of the Eastern
Baltic Sea Region (mln.t)
90
80 75 2009
70 Rīga 2010
60
60 22% 2011
50
40 36 37
34
28
30 22
20 16
13 13 11 9
10 5
1
0
Riga
HaminaKotka
Ust-Luga
Butinge
St.Petersburg
Kaliningrad
Tallinn
Klaipeda
Liepaja
Ventspils
Visock
Helsinki
Vyborg
Primorsk
Riga
10

11. Location
Dry Bulk Cargo Market
in the Eastern Baltic Sea Region in 2011
Vyborg
Helsinki 0.9% Dry bulk
1.2% Riga
Liepaja 23.3%
Total dry bulk
2.8% cargo turnover
Kaliningrad Klaipeda at the ports
3.4% 16.9% of EBSR
85.7 mln. t
Visock
3.7%
Tallinn
Ust-Luga
4.8%
15.9%
HaminaKotka
5.6%
Ventspils
St.Petersburg 12.8%
8.7%
11

12. Connectivity
Regular Liner Services
MSC MannLines Multimodal
Antwerp-Bremerhaven-Kaliningrad- Rotterdam-Gdynia-Kaliningrad-Riga
Riga-Gavle Containerships
CMA-CGM Riga-Klaipeda-Teesport-Rotterdam-
Hamburg-Gdynia-Riga Sheerness-Helsinki-St.Petersburg
Unifeeder Maersk
Hamburg-Bremerhaven-Riga-Klaipeda Bremerhaven-Klaipeda-Riga-
Team Lines Bremerhaven
Hamburg-Bremerhaven-Riga-Klaipeda Tallink (ro-pax)
Riga-Stockholm 12

13. Connectivity
Hinterland Connections
Dedicated Container Trains
Container block train
“Riga Express”
(Riga-Moscow) Container train
“Baltika-Transit”
(Riga-Almaty)
Container train “Zubr”
(Riga-Minsk-Illichevsk)
Block Train
(Riga-Hairaton)
13

14. Connectivity
EMMA - Eurasian Multi-Modal Alliance
Eurasian Multi – Modal Alliance
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
14

15. Infrastructure
Port Infrastructure
Port Infrastructure
Total port area 6 348 ha
Port land 1 962 ha
Available land 445 ha
Total berths length 13,8 km
Max. depth 16 m
Max. vessels draft 14.7 m 15

16. Infrastructure
Facilities for Cargo Handling
• Total cargo handling capacity
45 mln.t/year
• Total turnover 34.07 mln.t in year 2011
• Capacity utilization 76 %
Warehouses 180 000 m²
Open storage 1 797 000 m²
Cold storage 13 000 t
Tank farm 350 000 m³
16

17. Infrastructure
Port Companies
33 stevedoring companies
28 ship agencies
37 companies provide different
facilities for cargo warehousing
16 companies operate customs warehousing
7 companies provide different
added value services
12 companies offer cargo forwarding services
17

18. Infrastructure
Facilities for Dry Bulk Handling
• Total handling capacity 25 mln.t
• Main types of commodities:
coal, fertilizers, woodchips, ore, grain
• 19 terminals
• Max draught at dry bulk berth 14.7 m
Largest vessel handled
Nord Pisces (2011)
Length 249.9 m
DW 114 135
GT 63 864
Cargo 93.5 thous.t. coal
18

19. Infrastructure
Facilities for Liquid Bulk Handling
• Total handling capacity 10 mln.t
• Main types of comodities:
Fuel oil, gas oil, gasoline, jet fuel, kerosine, etc
• 10 terminals
• Tank farm – 350 thous. m³
• Max draught at liquid bulk berth 12.5 m
Largest vessel handled
Northern Bell (2010)
Length 228 m
DW 83 651
GT 44 324
Cargo 54.9 thous.t. gasoline
19

20. Infrastructure
Facilities for Container Handling
• Total handling capacity 480 thous. TEU
• 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 9350 m²
• Crane productivity
25-30 cont.mov./hour Largest vessel handled
• Max draft at container EM Athens (2010)
berth13.5 m Length 207 m
DW 32 350
GT 25 294
Capacity 2503 TEU
20

21. Infrastructure
Facilities for General Cargo Handling
(excluding containers)
• Total handling capacity 5 mln. t
• Main types of commodities:
timber, ro-ro, refrigerated cargo
• 20 terminals
• Refrigerated storage 13 000 t
• Max draught at general cargo berth 10.3 m
Largest vessel handled
Whitewood (2009)
Length 159 m
DW 14 825
GT 12 582
Cargo – 11 thous.t timber
21

22. Performance
Vessel Traffic at the Freeport of Riga
• Total number of vessel calls in 2011 reached
3913 with tonnage 45.1 mln.t GT
• In August 2011 the Freeport of Riga served the
largest cargo vessel in the history of the port –
the bulker m/v Nord Pisces
Length 249.9 m, DW 114 135, GT 63 864,
cargo – 93.5 thous.t coal
Calls by types of vessels in 2011
Calls mln. GT
Dry bulk vessels 1867 5.5
Tankers 667 15.9
Container ships 509 9.1
Passenger ships 426 7.1
Bulkers 349 6.9
Others 95 0.6
22

23. Performance
Cargo Turnover at the Freeport of Riga (mln. t)
40 Total
Liquid Bulk
35 34.1
General Cargo
29.6 29.7 30.5
30 Dry Bulk
25.9
24.0 24.4 25.4
25 21.7
18.1
20
14.9
13.4
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
• Average annual growth rate 9.1%
23

24. Performance
Inbound and Outbound Cargo in 2011
78% of cargo handled at the Freeport of Riga is transit traffic
24

25. Performance
Main Types of Cargo in 2011
Coal 39.6%
13 496,9 thous.t (+17%)
Oil products 22.1%
7 518,9 thous.t (+15%)
Timber 11.7%
3 982,8 thous.t (-11%)
Containerized cargo 9.3%
302 973 TEU (+19%)
Chemicals (fertilizers) 5.0%
1 713,6 thous.t (+25%)
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26. Performance
Ferry Passenger Traffic
• Tallink provides daily passenger connection
from Riga to Stockholm
• Number of Tallink passengers increased by
10% in 2011
Tallink passengers (thous.)
700 712
600 632
541
500
400 384
300 295
200 150
100
0
2006 2007 2008 2009 2010 2011
26

27. Performance
Cruise Passenger Traffic (1/2)
• Cruise season of 2011 brought to Riga 69
cruise ships and 63 527 cruise passengers
• Number of cruise calls is expected to increase
by 43% (97 calls) in 2012
• Number of cruise passengers is expected to
grow by 27.8% (81 200 passengers) in 2012
27

28. Performance
Cruise Passenger Traffic (2/2)
Cruise passengers’ nationality breakdown 2011
Austrian Others
1% 19%
Italian German
2% 33%
Spanish
2%
French
3%
British
3% Finnish American
4% Swedish 17%
16%
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29. Development
Development Projects (2010 – 2020)
6
Port Authority`s Investments
5 1
•
1 Deepening of the fairway to 15 – 17m
•
2 Multifunctional dry bulk terminals
on the Krievu sala
3
• Modernization of the port’s railway network
•
4 Construction of a new railway bridge 2
7
Private Investments 3
•
5 Oil products terminal in Bolderaja 8
•
6 Liquified natural gas (LNG) terminal in 3
Daugavgriva
•
7 Terminals on the Kundziņsala island
(fertilizer, container, grain and logistics park) 4
•
8 Terminal for production and handling of
bioethanol
Total port investment portfolio 1.1 bln EUR
• Port Authority`s Investment 300 mln EUR
• Private investment 757 mln EUR
29

30. Development
Deepening of the Fairway (1/2)
13.5 m 12.5 m 10 m
16 m
Current depth of the fairway
30

31. Development
Deepening of the Fairway (2/2)
15 m 10 m
12.5 m
17 m
Two-phase development:
• 1st phase:
2012-2014: canal depth -15m
• 2nd phase:
2014-2018: canal depth -17m
Widening of the canal from existing
100m to 135-165m
31

32. Development
Dry Bulk Complex on the Krievu sala Island
• Project: Relocation of Port
Activities from the City Center to
the Krievu sala island
• Project duration: 2009-2013
• Investment: EUR 153 mln.
• Territory: 56 ha
• Capacity 17-22 mln tons/year
• 4 berths of 1180 m total length
32

33. Development
Diverse Cargo Terminals on the Kundziņsala (1/2)
• Total territory: 181 ha
• Project duration: 2010-2020
• Investment: EUR 239 mln.
• 5 terminals with different profiles:
containers, cold stores, fertilizer
terminal, grain terminal, logistics park
33

34. Investment
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
34

35. Investment
Available Territories for Development
Available territories
• Approx. 445 ha are presently
available for the development
of new facilities
(distribution, logistics, wareho
using, etc.)
35

36. Investment
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
Tax relieves:
Direct taxes
Income tax 80 %
Real estate duty 80-100%
Indirect taxes
Value added tax 100 %
Excise tax 100 %
Customs duty 100 % 36

37. Investment
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
37

38. Port Authority
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
38

39. Port Authority
Our Vission and Mission
We aim to develop the Freeport of Riga as:
• 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.
Our Mission:
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.
39

40. Port Authority
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
40

41. Port Authority
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
41

42. Port Authority
Freeport of Riga in the International Port Society (1/2)
Membership in Professional Associations:
• 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)
42

43. Port Authority
Freeport of Riga in the International Port Society (2/2)
Sister Ports:
• Santander (Spain)
• Rijeka (Croatia)
• Le Havre (France)
• Casablanca (Morocco)
• Santos (Brazil)
43

44. Social Responsibility
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
44

45. Social Responsibility
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
45

46. Social Responsibility
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)
46

47. Summary
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
47

48. Summary
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
48

49. Thank you for your attention!
49