Cargo, Good for Business, Latvia, Port, Transport, Woodwork
International Internet Magazine. Baltic States news & analytics
Friday, 22.01.2021, 01:51
Port of Riga Rapidly Increases Volume of Handled Wood Pellets

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Several factors contributed to this impressive outcome.
First, there was high demand for Latvian granules in the main markets of
Western Europe. The demand was fuelled by the global trend of substituting
fossil fuels with renewables, including wood pellets. Of late, the demand has
also been fuelled by seasonal factors, namely, people are stocking up on fuel
for the next winter season.
Second, Latvia has also managed to increase production and
export volumes significantly, which was facilitated by the availability of raw
materials and decrease in prices. “Currently, there is smaller demand for
Latvian timber in Scandinavian markets. This benefits the local pellet
producers, who can now operate their facilities at maximum capacity. Thus, they
can also sell more and meet demand in export markets,” explains Atis Šulte,
Business Development Director of Rīga Universālais terminālis LLC, which
operates from the Port of Riga.
In the Port of Riga, wood pellets are handled by nine
companies. The share of Rīgas Universālais terminālis LLC is more than
65%. Of late, the company has made significant investments in deepening and
lengthening its berth and introducing advanced loading technologies. This makes
it possible to receive and service large Panamax type vessels, which is very
important in the case of wood pellets. “To optimise costs, our customers rely
on ever larger vessels. It is possible to cut per tonne costs if the ships are
larger and can accommodate more. We have to meet customer requirements and be
able to service these ever larger vessels in suitable berths,”underlines Atis
Šulte.
The third largest terminal as to the volume of wood pellets
at the Port of Riga is a family owned company B Port LLC, which took
over the land of the port and its berths in Mangaļsala on the right bank of
River Daugava seven years ago. This company handles grain, peat, fertilisers
and timber, though a half of its volume is generated by wood pellets. Since
starting at the Port of Riga, B Port LLC managed to increase the volume
of handled pellets more than tenfold. “At the very beginning, we handled 20,000
tonnes of pellets per year. But now we can deal with the same amount in only a
month,” explains Artūrs Batraks, the Director of B Port LLC. The
company is also positive about the future growth of this group of cargo. “So
far, we have seen that this sector is growing consistently. There are many
customers, and they are even queuing up for warehouse space,” continues Artūrs
Batraks.
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