In reliance on Russian transit
Latvian Railway services over 70% of Russia transit via Latvian ports. In 2008, Latvijas Dzelzcels expects to raise its throughput to 55 million tonnes with over a half falling on Russian cargo. Besides, the management of Latvian Railway plans cargo diversification with a spesial focus on containerized cargo coming particularly from China.
Latvijas Dzelzcels plays an important role in delivery of cargo to the ports of Latvia. In 2007, it carried 51.2 million tonnes of cargo with 44.5 million tonnes handled in the ports. According to Ugis Magonis, BOD chairman of Latvijas Dzelzcels, the year of 2005 was a record breaking period for the company as Russia terminated pipeline transportation of oil to Ventspils. The railway’s total throughput amounted to 54.9 million tonnes including 46.6 million tonnes transshipped via the ports.
Mr. Magonis said in the 2-month period of 2008 the volume cargo transportation grew by 30%. Total growth is expected to make 12% in 2008. Russian export cargo accounts for 54.1% of total volumes, while the back cargo flow is not large. About one third of total volume falls on Byelorussian cargo. It should be also noted that 60% of Russian cargo transit Byelorussia.
The structure of Russian import via Latvian ports is as follows: coal accounts for 30.8% of total volumes transported by Latvian Railway and some 10% of turnover falls on Russian crude and oil products. “We would like to diversify the flows and to add containerized cargo,” Ugis Magonis said. “In the future we plan to transport containers from China,” he added.
As of today container transshipment is not well developed in Latvia. There is one container terminal in Riga – Baltic Container Terminal and there is a plan to build a container terminal of Russia’s National Container Company in Riga port. In general, Latvian Government has set itself a task to raise container transshipment to 5-7 mln TEU per year.
Railway transportation of containers grew from 32,622 TEU in 2006 to 55,334 TEU in 2007 (+70%) including 23,205 TEU handled in the ports. Container train Baltic-Transit started operation in 2004. It transports cargoes coming to the ports of the Baltic Sea: Tallinn (Estonia), Riga and Ventspils (Latvia), Klaipeda (Lithuania) and Kaliningrad (Russia). The wagons are made into trains at Russia-Latvia border near Rezekne, from which the trains go to Kazakhstan. In 2007, the number of containers transported by such trains doubled from 10,139 TEU to 21,749 TEU. “Today it is only one-way transportation of cargo. There is no back cargo flow but we hope to make it a loop train having included Chinese cargo,” Mr. Magonis said. He also noted the first test train had already come from China to Riga.
Meanwhile, further growth of cargo turnover may result in exhaustion of railway capacity hence there is an investment plan aimed at the capacity increase to 90-100 million tonnes within 2007-2013. Large-scale works are to be carried out in the port of Riga as part of its terminals is to be transferred closer to the mouth of Daugava thus requiring construction of new tracks and stations. When increasing the capacity Latvia still counts on transit cargo. “We hope Russia will have more cargo than its port will be able to handle,” Ugis Magonis said. According to him, Europe allocates some EUR 114 million for modernization of railways, while state budget is to allocate some EUR 100 million.
Mariya Mokeicheva
Latvijas Dzelzcels plays an important role in delivery of cargo to the ports of Latvia. In 2007, it carried 51.2 million tonnes of cargo with 44.5 million tonnes handled in the ports. According to Ugis Magonis, BOD chairman of Latvijas Dzelzcels, the year of 2005 was a record breaking period for the company as Russia terminated pipeline transportation of oil to Ventspils. The railway’s total throughput amounted to 54.9 million tonnes including 46.6 million tonnes transshipped via the ports.
Mr. Magonis said in the 2-month period of 2008 the volume cargo transportation grew by 30%. Total growth is expected to make 12% in 2008. Russian export cargo accounts for 54.1% of total volumes, while the back cargo flow is not large. About one third of total volume falls on Byelorussian cargo. It should be also noted that 60% of Russian cargo transit Byelorussia.
The structure of Russian import via Latvian ports is as follows: coal accounts for 30.8% of total volumes transported by Latvian Railway and some 10% of turnover falls on Russian crude and oil products. “We would like to diversify the flows and to add containerized cargo,” Ugis Magonis said. “In the future we plan to transport containers from China,” he added.
As of today container transshipment is not well developed in Latvia. There is one container terminal in Riga – Baltic Container Terminal and there is a plan to build a container terminal of Russia’s National Container Company in Riga port. In general, Latvian Government has set itself a task to raise container transshipment to 5-7 mln TEU per year.
Railway transportation of containers grew from 32,622 TEU in 2006 to 55,334 TEU in 2007 (+70%) including 23,205 TEU handled in the ports. Container train Baltic-Transit started operation in 2004. It transports cargoes coming to the ports of the Baltic Sea: Tallinn (Estonia), Riga and Ventspils (Latvia), Klaipeda (Lithuania) and Kaliningrad (Russia). The wagons are made into trains at Russia-Latvia border near Rezekne, from which the trains go to Kazakhstan. In 2007, the number of containers transported by such trains doubled from 10,139 TEU to 21,749 TEU. “Today it is only one-way transportation of cargo. There is no back cargo flow but we hope to make it a loop train having included Chinese cargo,” Mr. Magonis said. He also noted the first test train had already come from China to Riga.
Meanwhile, further growth of cargo turnover may result in exhaustion of railway capacity hence there is an investment plan aimed at the capacity increase to 90-100 million tonnes within 2007-2013. Large-scale works are to be carried out in the port of Riga as part of its terminals is to be transferred closer to the mouth of Daugava thus requiring construction of new tracks and stations. When increasing the capacity Latvia still counts on transit cargo. “We hope Russia will have more cargo than its port will be able to handle,” Ugis Magonis said. According to him, Europe allocates some EUR 114 million for modernization of railways, while state budget is to allocate some EUR 100 million.
Mariya Mokeicheva