Investments, Latvia, Legislation, Port, Transport

According to Loginovs, the Krievu Island terminal project was proposed in order to remove cargoes from downtown Riga and develop real estate projects on the vacant properties. However, due to the economic crisis, the initial plans failed. Now, these properties cannot be sold, therefore, business owners rather choose to continue operating in the current ports, instead of moving to new ones on Krievu Island. Business owners would have to invest large amounts of money into the new ports, however, neither they, nor the banks are ready to invest. Thus, the so-called "clash of interests" has begun.

Loginovs said that, regardless of everything mentioned previously, one of the stevedores – Strek – signed an agreement yesterday, while the other one – Rigas centralais terminals – does not wish to move, as it is not ready to invest.

Loginovs explained the situation using Ventspils as an example, where the construction of a new port cost a total of EUR 70 million. According to him, it is currently problematic to receive funding for such serious investments, as the banks are afraid to issue credits due to instability in Russian cargoes. For example, coal terminals in Ventspils and Tallinn are currently empty.

Loginovs said that none of the stevedores, who were ready to leave downtown Riga, intended to carry out transshipments. Their real intention was to sell properties in downtown Riga.