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Tuesday, 23.04.2024, 11:19
Klaipeda’s Ambitions Target Smart Industry, IT, and Seaport Expansion
Before 2015, Klaipeda was constantly ahead of Kaunas in GDP per capita;
however, due to the 2015-2016 crisis and the reduction of transit scale to
Eastern European countries, the GDP has not recovered yet and Klaipeda remains
the third-richest city in Lithuania. On the other hand, Klaipeda and Kaunas
were the major contributors to the positive economic statistics in Lithuania as
a whole, following the general downturn of the economy in the European Union
and Germany specifically.
Despite that, Žygimantas Mauricas, the Chief Economist at the Luminor bank,
said that Klaipeda has a good opportunity to shoot forward, matching what
Vilnius and Kaunas did a decade ago and between 2014 and 2015, respectively. To
do it successfully, however, the port city should not only hold course where it
is strong (the port and industry) but also look for opportunities to grow when
it comes to exporting high added-value services.
“The main problems Klaipeda faces, the lack of infrastructure and talent,
can also be reframed as opportunities,” Ž. Mauricas said. “For example, Vilnius
and Kaunas have a lot of people living there as well and employees working in
the high added-value sector. This means that these cities enjoy great
flexibility while hiring and firing people. Also, Vilnius and Kaunas are more
accessible to investors because they have more business centres. I think that
Klaipeda’s business leaders should unite, possibly even make a va bank decision
to invest in specific business centres, all to provide a ready space for new
companies. The engine of industry in Klaipeda is very strong, but providing an
extra push by creating an ecosystem of businesses, academics and talent is also
very important when looking for new avenues of growth.”
Simas Simanauskas, the Director of Klaipėda ID, the agency aimed at
developing the city, assured everyone that the port city took the first steps
towards realizing their ambitious “Klaipeda 2030” strategy. Throughout the next
decade, the plan aims to create 25,000 new jobs, attract 1.5 bn EUR in
foreign direct investment, see 2,000 companies established in the city and
attract 40,000 new people to relocate there. According to S. Simanauskas, 4,500
new jobs were created in Klaipeda in 2019, the city’s population has also grown
in population for the first time since 1996. Preliminary data suggests that
3,000 people moved to Klaipeda in 2019.
“Education remains our biggest priority,” S. Simanauskas said. “We
understand that the city will not meet its goals without a strong foundation of
higher education. This is why we are working with various educational
institutions, reviewing study programmes, aiming to adjust them according to
the needs of modern businesses. We also united all institutions of higher
learning in Klaipeda and created a common marketing programme with the aim of
working together to increase the number of students in Klaipeda instead of
viciously competing for every single one of them. On the other hand, we wish
our graduates to be able to find gainful employment in a company from the
services sector, which has experienced the fastest growth (12%) in the city for
a couple of years now. Klaipeda was the first city in Lithuania to offer a
financial incentive to set up and expand service centres by compensating a
share of the rent in exchange for the vow to keep the jobs that are being
created. This year, we aspire to offer more tools to integrate returning
Klaipeda citizens, keep the foreign students working here after graduation, and
create an attractive space for specialists from abroad.”
Eimantas Kiudulas, the CEO of the Klaipeda FEZ, chipped in, saying that the
FEZ has been experiencing a real transformation throughout the past decade as
well. Starting as a traditional manufacturing zone, the FEZ now has around 10
research centres and laboratories, which increase the added-value of the
companies operating them at the FEZ.
“In the past, the FEZ was sold to investors as a convenient infrastructure
package and a way to pay less for labour,” E. Kiudulas said. “Today, investors
are much more interested in the community and talent, which can not only
manufacture but develop products as well. I can only rejoice that the new
investors entering the FEZ are researchers and developers who employ the
greatest minds in Klaipeda first and manufacturers second. Some of the examples
of this concept in action are GRH International, a company from Monaco, which
makes modern construction materials and the company which makes Dancer electric
buses and embodies the concept of a Lithuanian success story.”
On the other hand, Klaipeda has always been and will remain a port city.
The State Seaport of Klaipeda feels that it has outgrown its shirt and is ready
for further expansion.
Vidmantas Paukštė, the Director of Infrastructure and the Acting Director
General of the Klaipeda Seaport Authority, said that the port plans to invest
600 mln EUR into deepening the port, improving navigation and expanding the
territory (excluding the outer port). These expansion projects would allow the
port to service the biggest of ships, stay current to the present trends in the
industry and help to increase the market competitiveness of exporters from
Klaipeda and Lithuania overall.
“Everyone can import wares from, say, China; however, by improving the
competitiveness of the Lithuanian logistics sector and making it cheaper,
Lithuanian products could become much more competitive in the market,” V.
Paukštė said. “This is why we have started preparing for the port expansion and
hope to continue improving Klaipeda’s competitiveness.”
Mindaugas Kulbokas, the head of Research & Analysis at NEWSEC, an
international real estate consultancy company, wished Klaipeda boldness when it
comes to carrying out big-scale real estate projects, which could act as a
magnet for people and businesses.
“Currently, Klaipeda is not a place you choose to invest in naturally,” M.
Kulbokas said. “With that said, there is potential for 130-140 thousand square
meters of office space in the city, according to our calculations. I fervently
hope that the city institutions will support exceptional ambitious projects
like the idea for the multi-functional complex at the mouth of the Danė river.
On the other hand, the Lighthouse project, which was successfully developed in
Klaipeda commercially successful and, I believe, will inspire other investors.”
The first-ever event “Klaipeda for Business” was organized by Klaipeda ID,
Klaipeda FEZ and the representatives from the Port of Klaipeda.
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