• 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.




2019 January 21

09:40 Throughput of port Kaliningrad in 2018 grew by 2% Y-o-Y to 14.05 million tonnes
09:19 Baltic Dry Index is up to 1,112 points

2019 January 20

16:08 Subsea 7 acquires multi-purpose offshore construction and dive support vessel
15:03 TEPCO and Ørsted sign MoU to work jointly on offshore wind projects
13:51 Major contract for JSS awarded to Montreal-based company
12:42 Huntington Ingalls Industries to acquire Fulcrum IT Services
10:47 Algoma provides update on status of fleet renewal

2019 January 19

16:19 Ocean Yield acquires Suezmax tanker Milos for $56.0 million
15:16 Evac expansion continues with acquisition of UK service company Transvac Systems
14:02 Deltamarin contracted to continue with Titanic II project
12:51 SGRE launches 10 MW offshore wind turbine
11:44 Algoma increases its interest in the ocean self-unloader Pool

2019 January 18

18:06 North Carolina Ports sets new record in 2018
17:47 Freight turnover of Neva-Metal (Saint-Petersburg) in 2018 climbed by 3% Y-o-Y to about 3.2 million tonnes
17:25 Okskaya Sudoverf obtains patent for state-of-the-art pontoons
17:06 Hamburg prepares for ‘Hard Brexit’
16:44 Throughput of port Primorsk in 2018 fell by 7% Y-o-Y to 53.48 million tonnes
16:23 GTT receives a new order from SHI to design the tanks of two LNG carriers on behalf of Gaslog
16:20 NOVATEK elects new Board of Directors
15:56 Throughput of port Vyborg in 2018 grew by 25% Y-o-Y to 1.93 million tonnes
15:33 Stena Line’s first new generation ferry ‘floats’ in China
15:21 Bunker sales at the port of Singapore in 2018 fell by 1.7% Y-o-Y to 49.8 million tonnes
15:03 Panama Direct service CMA CGM to resume weekly rotations
14:47 Throughput of port Vysotsk in 2018 climbed by 7% Y-o-Y to 18.79 million tonnes
14:33 GranIHC appointed contractor for Equinor’s Peregrino Phase II Project
14:19 Port of Ust-Luga handled 98.72 million tonnes in 2018, down 4% Y-o-Y
14:03 Algoma Central Corporation increases its interest in ocean self-unloader Pool
13:50 18 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on January 17-18
13:35 Throughput of the Port of St. Petersburg in 2018 up 11% Y-o-Y to 59.32 million tonnes
13:18 CMA CGM unites its Containerships and MacAndrews brands
13:11 Vladimir Putin supports Government’s proposal on expanding Far East Ministry’s functions with Arctic issues
12:49 Throughput of port Kavkaz in 2018 grew by 11% Y-o-Y to 49.276 million tonnes
12:26 MV Werften purchases Neptun Ship Design
12:08 Sakaide shipyard holds naming ceremony for new LNG carrier jointly owned by NYK and JERA
11:38 PGNiG SA signs agreement for oil and gas exploration and production in UAE
11:14 Remote pilotage to be allowed in Finland
10:47 Free zone status is a crucial advantage for the future development of the Freeport of Riga
10:06 Ice restrictions at the port of Ust-Luga come into effect on January 31
09:42 Brent Crude futures price up 0.9% to $61.73, Light Sweet Crude – up 1.09% to $52.64
09:20 Baltic Dry Index is up to 1,077 points

2019 January 17

18:13 PORT OF KIEL presents annual results 2018
17:51 Ice restrictions at the port of Primorsk come into effect on January 25
17:28 Global Ports sets up a common service call centre
17:09 EFIP welcomes and supports the European Parliament position on the Connecting Europe Facility for 2021-2027
17:05 North Sea Port monitoring the Brexit closely
16:44 ABP invests £700K to boost storage at Port of Ipswich
16:27 Global fuel market: still many uncertainties in both demand and supply
16:22 CMA CGM announces FAK rates from ISC to North Europe and the Mediterranean
16:05 OCEAN Alliance extends duration of OCEAN Alliance to ten years
15:42 COSCO SHIPPING Ports signs agreement with PSA to add two new berths at the terminal in Boao, Hainan
15:31 Liebherr supports the 6th International Forum of Dredging Companies as its Sponsor
15:02 Ocean Yield ASA agrees to acquire a modern Suezmax tanker for a consideration of USD 56.0 mln
14:02 SEACOR Marine enters agreement to acquire three additional platform supply vessels from affiliates of COSCO Shipping Group
13:49 Throughput of Chinese ports grew by 4.2% to 9.22 billion tonnes in 2018
13:32 Jensen Maritime provides design for Shaver Transportation’s new tugboat
13:14 OOCL rolls out third phase of Ocean Alliance product refinements
12:50 Baltic Ports Organization’s schedule for 2019 is set
12:38 Port of Los Angeles breaks all-time cargo record in 2018
12:26 Qatar accedes to load lines convention
12:01 Sunseeker International and Rolls-Royce to present first production yacht with MTU hybrid power in 2020