International Internet Magazine. Baltic States news & analytics
Sunday, 29.05.2016, 04:59
Latvian ports can count on 5-10% increase in cargo volumes after Russia joined WTO
If the world's ninth largest economy becomes part of the organization that regulates international trade, also in regard to customs and railroad tariff matters, it is clear that trade volumes will grow, which will have a positive effect on the development of Latvian ports. So far, different railroad tariffs have been applied to Latvian ports, said Leiskalns, writes LETA.
He also pointed out that Russia subsidizes and influences its ports, since its transport sector is based on political decisions. "However, if Russia does not artificially affect cargo handling and sets its tariffs in accordance with WTO procedures, the country's accession to the WTO will benefit us," explained Leiskalns.
The question, however, is to what extend the Latvian railroad infrastructure is ready to cope with such an increase in cargo volumes. Railroad capacity is a tad too small and bottleneck issues arise in several sections. This means that the railroad must develop its cargo transportation options to Latvian ports much faster, admitted Leiskalns.
After 19 years of negotiations, Russia finally concluded its accession process and joined WTO earlier this week.