• 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 October 17

18:03 PGNiG and Venture Global LNG announce LNG Sales and Purchase Agreements for 2 million tonnes per year
17:46 The Freeport of Riga Authority continues to develop cooperation with China
17:22 Port Manatee enjoys record fiscal year with diverse growth
17:00 North Sea Port and Titan LNG successfully supply sea-going vessel with LNG fuel
16:55 33 LNG carriers and 8 gas condensate carriers with export cargo left port Sabetta in April-June 2018
16:24 Baku International Sea Trade Port launches two new tugboats
16:02 Hapag-Lloyd announces General Rate Increase for East Asia to Mexico, Central America, West Coast of South America, Caribbean & Panama trade
15:46 New BIMCO & IBIA Bunkering Guide available
15:23 NOVATEK and Fluxys plan to build an LNG terminal in Rostock
15:02 NYK develops original software that diagnoses combustion chamber problems
14:40 RF Government allocates RUB 8.4 billion for the Far East development
14:21 Scorpio Bulkers announces time charter-out agreements
14:03 CMA CGM implements Empty Repositioning Surcharge for exports from all Turkish ports
13:32 Ørsted contracts Van Oord for cable installation Borssele I & II
13:21 Throughput of Ukraine’s seaports in 9M’18 fell by 1.7% Y-o-Y to 95.9 million tonnes
13:04 CMA CGM to introduce new BAF on Asia-Africa trade
12:30 GTT and Dongsung Finetec sign a Memorandum of Understanding
12:02 Maritime and Port Authority of Singapore and partners sign MoU for 3D printing facility and applications in maritime sector
11:53 Identifying barriers to cutting emissions through just-in-time operations
11:27 Norddeutsche Reederei H. Schuldt joins V.Group
10:50 Brent Crude futures price down 0.09% to $81.34, Light Sweet Crude – up 0.06% to $71.88
10:42 CMA CGM to introduce new BAF on Europe-Africa trade
10:37 Damen Shipyards Galati hands over 74-metre fishery research vessel to Angolan government
10:27 Maritime Arctic Competence Center opens in Saint-Petersburg
09:42 KN invests in environmental protection measures
09:20 Baltic Dry Index is down to 1,578 points

2018 October 16

18:33 Maersk Line announces new FAK rates from Mediterranean to West and Central Asia
18:03 ABS holds two seminars at the 58th Genoa International Boat Show
17:55 Throughput of port Kaliningrad in 9M’18 grew by 5% Y-o-Y to 10.65 million tonnes
17:36 Wärtsilä opens the first International Maritime Cyber Centre of Excellence in the world
17:03 CMA CGM announces Overweight Surcharge on Asia and India to Africa trades
16:56 Wärtsilä launches Acceleration Centre in Singapore and partners with MPA and PSA Marine to develop IntelliTug
16:40 Throughput of port Vyborg in 9M’18 up 22% Y-o-Y to 1.33 million tonnes
16:21 Throughput of port Primorsk in 9M’18 fell by 11% Y-o-Y to 39.80 million tonnes
16:03 Höegh LNG announces amendment of the Höegh Gallant time charter
15:44 LUKOIL starts construction of facilities at Rakushechnoye field
15:22 Throughput of port Vysotsk in 9M’18 climbed by 6% Y-o-Y to 13.69 million tonnes
15:03 Avatar Logistics initiates cooperation with Sand & Grus AB Jehander and buys the vessel MS Jehander
14:41 Throughput of port Ust-Luga in 9M’18 declined by 5% Y-o-Y to 72.38 million tonnes
14:20 CMA CGM announces GRR from Far East to West Africa
14:03 Lithuanian Railways, Metrans and the Port of Hamburg strengthen relations
13:52 Throughput of Port St. Petersburg up 12% to 44.22 million tonnes in 9M’18
13:06 Scorpio Bulkers announces update on scrubbers
12:39 Project 22800 small missile ship Burya to be floated out on 23 October
12:13 Rolls-Royce and Intel announce autonomous ship collaboration
11:55 The Port of Riga outlines a vision for future development of Spilve Meadows
11:31 Ørsted selects GeoSea for Borssele 1 & 2 foundation and turbine transport and installation
11:14 Jan De Nul will dredge access channel to Guayaquil Port
11:11 RF Navy’s Baltic Fleet detachment completed tasks in Mediterranean Sea
10:59 Damen Maaskant Shipyards Stellendam celebrates 70 years and bids farewell to director Frits van Dongen
10:50 Detachment of RF Navy's Pacific Fleet completes visit to Republic of Korea
10:28 WMU holds needs assessment workshop in Jordan
10:02 Brent Crude futures price up 0.31% to $81.03, Light Sweet Crude – up 0.11% to $71.86
09:43 IMO ​pushing forward with tackling greenhouse gas emissions
09:17 Baltic Dry Index is up to 1,584 points

2018 October 15

18:23 MOL joins hands with partners to launch FOCUS project
17:59 Moscow to host a conference on construction of LNG-powered and LNG bunker ships on October 24
17:46 Algoma announces cancellation of Croatian newbuilds contracts
17:05 Klaveness Combination Carriers AS registered on NOTC
16:56 Tall ships arrive at Port of Ipswich as part of 'Race of the Classics'