LATVIA LOGISTICS POSSIBILITIES FOR BUSINESS

COOPERATION WITH DENMARK

ANDRIS MALDUPS

Director of the Transit Policy Department,

Ministry of Transport of the Republic of Latvia

OUTLINE

• General overview on cargo transit development

• Container train development

• Latvia – distribution center

• Road transport

• Aviation

• Format 16+1

LATVIA IN MULTIMODAL CORRIDORS

OUR TREASURE - 3 ICE FREE PORTS

Ventspils

Liepaja

Riga

Advantages: • Freeport statuss

• Tax advantages for investments

• Free land plots available

• Up to 17 meters deep

FREEPORT AND SEZ STATUS

Indirect taxes • Value added tax 100% • Excise tax 100% • Customs duty 100%

Direct taxes • Income tax 80% • Real estate duty 80-100%

Freeport and Special Economic Zone

status provides for substantial tax

reductions up to 55% of investments made:

CARGO TURNOVER in Latvian ports 2006-2016 (million t)

59.5 62.4 63.6

61.9 61.2

68.8

75.2

70.4 74.2

69.6

63.1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CARGO STRUCTURE in Latvian ports in 2016

chemicals 6%

coal 27%

other 7%

oil products 30%

turf 1%

ore 2%

containers 7%

building materials 1%

liquid gas 1%

grain 7%

roll on/roll of 4%

wood products 5%

metals 2%

SEA CONNECTIONS

Stena Line

Nynäshamn-Ventspils-Nynäshamn

Stena Line

Travemünde – Liepaja – Travemünde

Port of Riga Port of Ventspils Port of Liepaja

Containerships

Riga –Teesport – Thamesport - Rotterdam – Zeebrugge - Lubeck - Helsinki – St. Petersburg –Klaipeda – Aarhus

UniFeeder Container Service

Rotterdam – Hamburg/Bremerhaven – Riga – Klaipeda-Gdynia/Gdansk

X-PRESS container lines

Riga - Ust-Luga – Kotka – Helsinki – Tallinn -

Hamburg

Hapag-Lloyd AG

Gdynia – Klaipeda – Riga – Tallina – Rauma – Hamburg – Bremerhaven

Mediterranean Shipping Company (MSC)

Antwerpen – Bremerhaven – Riga – Tallinn

Maersk Line / Seago Line

Gdansk– Bremerhaven- Hamburg – Gdansk -Kaliningrad – Riga – Gdansk

Tallink

Riga – Stockholm

Other lines - OOCL, CSCL, Evergreen, etc. using services of common feeders

CONTAINERISED CARGO TURNOVER in Latvian ports 2006-2016 (TEU)

198,876

236,351

229,248

184,399

256,271

305,939

366,824

385,665 391,218

359,756

377,484

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

RAILWAY SYSTEM BENEFITS

Benefits:

• single infrastructure

• single rolling stock

• unified information

exchange system

• single documentation

There is no need:

• to spend time at border-crossing

• to change wheels

• to change the documentation

• to make customs clearance on the border

1520

1520 mm – common railway

gauge with Russia, Mongolia

and CIS countries

CARGO TURNOVER in Latvian railways 2006-2016 (million t)

48.7 52.2

56.1 53.7

49.2

59.4 60.6

55.8 57 55.6

47.8

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CARGO STRUCTURE in Latvian railways in 2016

Coal 34.14%

Oil and oil products 34.76%

Ferrous metals 3.75%

Grain 3.55%

Fertilizers 8.10%

Wood products 3.29%

Chemicals 2.78% Containers

1.40%

Other 8.23%

SPECIALIZED CONTAINER TRAINS

CONTAINER TRAIN BALTICA TRANSIT • Established in 2003

• Connects Baltics with Central Asia (Kazakhstan, Uzbekistan, Turkmenistan, Kirgizstan and Afganistan

• Operated by FESCO (LDz Cargo Logistika)

Advantages: • regular service 2-3 times a week • 13 years experience • collects cargo from all Baltic ports • short transit times • tracking and tracing online • electronic priarival declaration • simplified customs transit

procedures

Riga - Alma-Ata 12 days

Ashabad 18 days

Bishkek 13 days

Dushanbe 18 days

Tashkent 17 days

Hairaton 16 days

Next steps:

• Connections with China • Main market – Urumqi city and Xinjiang region • Distribution in the Baltics and Scandinavia

CHINA-EUROPE LAND CORRIDOR

• Delivery time 14 days

• North European market

• Regular service

• Low lead times

Advantages using China – Europe rail

• Track and trace systems

• Simple customs procedures

• Temperature - 25C to +25C

CHINA-EUROPE LAND CORRIDOR

YIWU-RIGA PILOT TRAIN

RIGA-KASHGAR PILOT TRAIN

NORTHERN DISTRIBUTION NETWORK

• Launched in 2009

• NDN has developed in to multimodal transport corridor using all transport modes:

rail, road, air, and sea

• Most of cargo were shipped for the US to Afganistan

• Since 2010 road transport has been involved on regular bases

• Since 2012 air transport has been involved on regular bases

• Riga including port and airport as the main

hub of the NDN

• Fully recognized by the US and NATO

partners

• Total cargo volumes trasshipped by NDN

reached 100 000 containers in June 2013

NORTHERN DISTRIBUTION NETWORK

• Launched in 2009

• Railway companies from 5 countries: Latvia, Belarus, Ukraine, Estonia and

Moldova

• operators: Latvia: LDz Cargo Loģistika SIA; Belarus: BELINTERTRANS (BTLC

State Enterprise), Estonia: AS EVR Cargo, Ukraine: UGCTS „Liski”,

Moldova: „ Union ekspeditie SRL „)

Cargo delivery route Delivery time

Tallinn -

Odessa/Chornomorsk

83 hours or 3 days 11

hours

Riga -

Odessa/Chornomorsk

66 hours or 2 days 18

hours

Odessa/Chornomorsk

- Riga

63 hours or 3 days 15

hours

Odessa/Chornomorsk

- Tallinn

83 hours or 3 days 11

hours

CONTAINER TRAIN ZUBR

Main facts and advantages:

• Route: Tallinn – Riga – Minsk – Kiev –

Odessa/Chornomorsk (Estonia – Latvia – Belarus –

Ukraine);

• Possible cargo deliveries from/to Scandinavian

countries via Latvian ports and Tallinn port and

from/to the Caucasian countries and Turkey via

Ilyichivsk and Odessa ports;

• The train carries 20, 40 and 45 feet universal and

special containers;

• Fixed and reliable transportation rates. Delivery time;

• Convenient service from door to door, necessary

equipment and additional services like customs

formalities, documentation handling, cargo tracking

and tracing.

• Black sea region: Turkey, Georgia, Azerbaijan and connections over Caspian sea to Kazahstan and

Turkmenistan

• On the north – Baltic and Scandinavian countries: Latvia, Lithuania, Estonia, Finland Sweden,

Denmark, Poland and Germany

Main markets for Development:

CONTAINER TRAIN ZUBR

CONTAINER TRAIN - RIGA EXPRESS

• Since 2010 private rail operator SRR started weekly container service on

the route Riga – Moscow

• Full package of services such as rail transportation, customs clearance,

door to door deliveries, FCL, LCL and project cargo transportation included

• Fast and fixed/predictable transit time, average

railway transit time from Riga Port to Moscow is 72

hours, depending on the railway traffic (Moskva

Tovarnaya Oktabrskaya r/w Station)

• Crossing borders with no queues

• Customs clearance of the whole rain directly on the

railway station takes 24 – 36 hours with no need for

warehouse

• Immediate unloading on arrival

• No weight limits

• No truck demurrage

• Door-to-door deliveries

Advantages:

CONTAINER TRAIN RIGA EXPRESS

DISTRIBUTION Services:

Transshipment;

Consolidation;

Repackaging of

goods;

Customs clearance;

Storage of customs

goods and EU

goods;

Monitoring the status

of cargo.

48 hours

distribution of goods to

stores and retail chains of

Northern Europe

26.4 million consumers

DISTRIBUTION SERVICE

26,4 million consumers reachable within 48 hours

• Latvia is perfectly located to provide logistic and

distribution services in Baltics and Scandinavia;

• Within 24 hours goods can be delivered to any

customer in the Baltic states and even till Helsinki,

Stockholm and Warsaw;

• In 48 hours we provide deliveries to any consignee

within Scandinavia with total consumer market 26.4

million people;

• We can use any type of transport: road, rail, sea and

air;

• Wide range of customs warehouses, logistic centers,

forwarding companies available.

Import through customs warehouses:

• Entry of goods into the EU without paying customs duty and VAT on the borders

• Transportation under customs control to the customs warehouses or free zones in

Latvia

• Storage of goods under customs control (selling and buying operations allowed)

DISTRIBUTION SERVICE

ROAD TRANSPORT

• Developed road transport sector in Latvia.

• Complies with all necessary international rules and procedures

• Modern road transport fleet

• Both: bilateral permits and ECMT permits available

• Easy transportation within European Union

ROAD TRANSPORT

RIGA – A REGIONAL

LEADER IN AVIATION • Government of Latvia owns 100% RIX

• Aviation – a strategic industry for Latvia

• Pax growth (2004-2016): 1M → 5,4M

• Geographic advantage / Hub-and-spoke strategy / Gateway to Single European Sky

• Infrastructure development

• New pax terminal, support infrastructure

• Cargo aviation

• Strategic investor for airBaltic

ROAD TRANSPORT

CARGO OPERATIONS AT RIGA AIRPORT

Cargo market share in the Baltics 7 cargo airlines

4 warehouse operators

20+ Thousand tonnes annually

Route Flight No Days of the

Week

Departure

UTC Arrival UTC

IST -RIX 6573 4 11:00 13:35

RIX -IST 6573 4 15:05 16:50

IST -RIX 6577 6 11:00 13:35

RIX -IST 6577 6 15:05 16:50

CARGO ROUTE A330-200F

ROAD TRANSPORT

CARGO OPERATIONS AT RIGA AIRPORT

Airlines providing cargo operations at Riga airport E-commerce partners

ROAD TRANSPORT

CARGO OPERATIONS AT RIGA AIRPORT

Airport charges comparison for B747- 8F

MTOW 448t (€)

airBaltic – Latvian national airline

State holds 80.05% of shares

7th largest Regional airline in Europe

(according to «Airline Business»)

World`s most punctual airline in 2014 and

2015 (accorging to OAG aviation data

monitors)

Around 60 destinations

New fleet - Bombardier CS 300

AIR BALTIC

FORMAT 16+1

LITHUANIA • 2016 –1st Transport Ministers' Meeting and Business

conference in Riga, May 16-17

• 2016 – Prime Ministers Summit in Riga, November 5-6

• 2017 – 1st Focal Point meeting

Cooperation format between China and 16 Central and Eastern European countries

Latvia has established a Secretariat

on Logistics Cooperation between

CEEC and China and performs

functions of coordination in the field

of logistics format 16 + 1

Web-page: www.ceec-china-logistics.org

CONTAINER TRAIN ROUTES

THANK YOU FOR YOUR ATTENTION!

www.sam.gov.lv