• 2016 August 4 14:19

    The Freeport of Riga: The State Audit Office approach assessing Krievu Sala project is short-sighted and bureaucratic

    The Freeport of Riga Authority says the State Audit Office in the preparation of a report on implementation of the project “The Krievu Sala Infrastructure Development for Relocation of the Port Operation from the City Center” has demonstrated absolutely formal approach, without taking into consideration the port’s and stevedores’ work specifics. One of the critical remarks, expressed by the Auditor General Mrs.Elita Krumina in response to the statement, distributed by the Freeport yesterday, stating that the FPR does not see and does not acknowledge any violations in implementation of the Krievu Sala project, is that the Freeport has inefficiently utilized resources by transferring the “open warehouse” from the project territory to the equivalent area on Krievu Island.

    “I want to emphasize that, first of all, we are talking not about the “warehouse” within the meaning of the State Audit Office, but about an open-space storage area – where various cargo such as lumber, construction materials, peat, etc. is placed, and then loaded on ships and transshipped to the designated ports in other countries. In the present case the stevedoring company has been working on the territory of the Krievu Island since the nineties, at that time due to the growing volume of freight it was possible to attract and handle additional cargo volumes. One of the main objectives of the Freeport is to promote transshipped cargo volume increase and not hinder the entrepreneur with all kinds of formal restrictions,”explains the Freeport of Riga CEO Mr.Leonids Loginovs.

    “Secondly - to anyone who understands business processes, it is clear that the company's downtime does not foster cargo volume growth and involvement of human and technical resources, which in turn results in loss of revenue, or actual losses. According to the State Audit Office, the Freeport should have taken this territory away from the stevedore before term during the Krievu Sala project development, not allowing the stevedoring company to handle cargo. The Freeport, in its turn, followed the logic of the economy - from 2009 to 2011, when the project documentation was elaborated, the preparations and planning activities were carried out, the stevedoring company was not prevented from continuing its operation on that territory, the certain part of which belonged to Krievu Island, in order to handle growing cargo volumes,” continues Mr.Loginovs.

    At the time when the construction of railway access tracks to the new berths was started on Krievu Island, the stevedoring company had to leave this area. With the aim to ensure the continuous operation of the successful merchant on this territory and not lose the increasing amount of cargo that would otherwise have gone to Tallinn port or Klaipeda port, it was decided to allot the equivalent area of 12 hectares at another location on Krievu Island to the company, and in compliance with the relevant laws and regulations to organize an identical cargo storage area. Consequently, the State Audit Office reproaches in regards of wasteful spending are absurd. The Freeport considers that there is no reason to talk about any losses - on the contrary, eliminating downtime and making it possible to run a successful company on that territory resulted in revenues from rental and taxes significantly exceeding the Freeport’s expenses due to relocation. For example, the turnover of the stevedoring company, working on the territory, from 2009 to 2010 increased by 323 thousand tons, the state budget has received additional revenues in the amount of nearly 4 million Euros, while the Freeport income has grown by almost 400 thousand Euros. Provided, the Freeport of Riga was guided by the principles of the State Audit Office, the mentioned funds would have been received not by the Latvian national budget, but would go to Estonia or Lithuania.




2018 February 24

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2018 February 22

18:25 European Commission fines maritime car carriers, parts suppliers in three separate cartel settlements
18:11 Port of Gdansk expects multimilloin investments
17:51 Port of St. Petersburg bunker prices edge up (graph)
17:35 Russia’s antitrust regulator gives Transneft green light on Novorossiysk Commercial Sea Port deal
17:02 Maersk Line announces an increase in FAK rates from Far East to North Europe
16:02 The tall ship that harnesses the wind to recharge its batteries
15:29 Port of Tallinn opens passenger terminal A renovated arrivals hall
15:13 MABUX: Bunker market may continue moderate upward evolution next week
15:02 GoodBulk announces delivery of two Capesize vessels
14:40 New product tanker of RTS27M series Balt Flot 20 takes to the water at Krasnoye Sormovo Shipyard
14:02 European Commission issues decision concerning the Violation of European Antitrust Law
13:35 Vostochny Port JSC picks contractors for coal transfer stations Phase 3 project
13:32 HMM reaches over 10,000 TEU in terms of volume of its US Premium Service
13:02 Boskalis receives EUR 300 million Letter of Award for Singapore Finger Pier 3 development
12:24 Northwest Seaport Alliance container volumes decline in January
12:17 Bunker prices in Far East seaports close the week flat
12:12 Rolls-Royce to supply propellers and mission bay technology for UK Royal Navy’s Type 26 Global Combat Ship
10:41 Crude oil futures prices fell 0.81% to $64,89 in London, in New York – by 1.07% to $61,02
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09:18 Waterborne passenger traffic in Ukraine plummets 44.4% in January
09:13 Baltic Dry Index gains to 1146 points
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08:17 World port accelerator programme PortXL to be launched in Singapore

2018 February 21

19:06 Russia’s State Duma set to change tariff policy to lend a helping hand to inland water transport
18:07 ONE, OOCL and SACO Shipping use booking tool eBooking
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17:06 Project to map ocean floor by 2030 now operational
16:52 Rosterminalugol export coal terminal handles 3-millionth tonne YTD
16:22 Zelenodolsk Shipyard to host keel-laying of 11th Buyan-M class corvette, Feb. 23
15:03 Launching of RST27M Balt Flot 20 at Krasnoye Sormovo Shipyard slated for Feb. 22
14:14 NGO Shipbreaking Platform publishes list of ships dismantled worldwide in 2017
13:18 ATOMFLOT says Russia needs nine more icebreakers for the Northern Sea Route by 2025
13:01 Clarksons Platou collaborates with Maersk Line to provide shipping services in Egypt
12:43 Big Port of St. Petersburg imposes ice restrictions in the harbour effective as of March 7, 2018
12:31 Castellammare Di Stabia starts slipway works on the multipurpose amphibious unit
12:10 Rosterminalugol transferred over RUB 1.5bn of taxes to different budgets
12:01 Panama Canal hosts Cheniere Energy to discuss LNG’s Future at the waterway
11:25 MOL car carrier rescues castaways in the North Atlantic Ocean
10:53 Crude oil futures prices edge down 0.8% to $64,73 in London and 1% to $61,17 in New York
10:46 Sovcomflot and Shell ink time-charter agreements for Aframax LNG-powered duo
10:35 Vostochny Port obtains ISO 14001:2015 certificate
09:48 Port of St. Petersburg bunker prices move upward
09:26 Baltic Dry Index rises 2.76% to 1117 points

2018 February 20

18:37 Time is running out to register for the Dangerous Goods: New Requirements for Transportation Conference, March 1, 2018
18:31 Russian association of fishery businesses call to revise a 'fishing quotas per a keel' terms
18:06 AVANZA completes a successful trial with Daikin Reefer
17:38 The Maritime CIO Forume Cyprus 2018 to be held in Limassol, March 27
17:03 DNV GL issues over 50,000 electronic certificates
16:55 RIMS secured a further class approval from Korean Register of Shipping for the use of drones during surveys
16:39 Taganrog Commercial Sea Port spent $156 000 on environment protection in 2017
16:34 Wärtsilä and Maersk Drilling create a joint 25-year strategy for thruster services to increase uptime and reduce costs
16:04 Post-Brexit port health border disruption still a major concern for British ports
15:34 Goltens teams up with Yara Marine on SOx scrubbers
15:21 Taganrog Sea Commercial Port earmarked $74,4 to support social programmes in 2017
15:04 US Navy awards concept design contract to Fincantieri to evolve FREMM into FFG(X)
14:32 Port of Marseille Fos traffic up 8% in 2017
14:02 The largest vessel enters Busan Port since its opening