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International Internet Magazine. Baltic States news & analytics Wednesday, 17.06.2026, 21:06

Latvijas dzelzcels could lose one-fifth its cargo if Krievu Island is not developed in Riga

Alla Petrova, BC, Riga, 26.01.2012.Print version
If the Freeport of Riga does not implement its infrastructure development project on Krievu Island in the Daugava River in the nearest future, the state-owned joint-stock railroad company Latvijas dzelzcels (LDz) and the port could lose 11 million tons or one-fifth of LDz annual cargo. The clients will turn to the Port of Murmansk and develop their terminal there, LDz President Ugis Magonis points out in an interview with the business information portal Nozare.lv.

Magonis explains that the competition in coal transportation among various ports is fierce, and the new terminal on Krievu Island is needed to attract more cargo, writes LETA.

The terminal could ensure 11 million tons of cargo, including three to four million tons of additional cargo. If the project is not implemented, the clients could take their cargo to Murmansk.

LDz president emphasizes that the situation could become serious if the project's implementation remains shrouded in uncertainty over the next six months, considerably affecting LDz operations.

As reported, on December 12, the Procurement Monitoring Bureau banned the Freeport of Riga Authority from signing an LVL 88.71 million contract with company BMGS S on infrastructure development on Krievu Island in order to move port activity further away from Riga center.

The total project cost is estimated at about LVL 105 million, of which approximately LVL 52 million could be covered by the European Union's co-funding.

The bidders included the companies BMGS S, Josef Mobius Bau-Aktiengesellschaft and Aarsleff – Merko.

The Procurement Monitoring Bureau made the decision following a complaint filed by Josef Mobius Bau – Aktiengesellschaft, according to the bureau's official website.

According to the competition charter, the winning bidder would have to dredge deeper the port's access canal, build wharves, new access roads on Krievu Island, a new railroad track, the island's sewerage system, telecommunication systems, gas supply network, external power lines, several buildings and others.






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