Unsinkable Ventspils
Despite general economic decline and considerable fall of cargo traffic, throughput of Ventspils Free Port decreased by only 3% in the first quarter of 2009. It proved to be possible only owing to implementation of a number of new stevedoring projects in the port and intensive attraction of extra cargo flows.
For the last eight years the port’s throughput fluctuates around 30 million tonnes with the structure staying almost unchanged – liquid bulk cargo accounting for 63%, dry bulk – for 30% and general cargo – for 7%. From 2003, when pipeline delivering oil from Russia to Ventspils Nafta was closed, the share of liquid bulk cargo fell by 5% but the share of general cargo increased correspondingly. In 2009, the port plans to reach the same throughput as last year.
There are 11 specialized terminals in the port of Ventspils. They handle a wide range of cargoes – from petrochemical goods to coal and woodchips.
Such a wide diversification of the port’s client base enabled Ventspils to preserve the throughput results at the level of the previous year while the majority of terminals in the Baltic region demonstrated a steeper decline.
One of the key factors contributing to the result was the launch of the first phase of coal handling terminal in December 2008. The project itself is a unique one and is worthy of a deeper attention. Unlike, speaking gently, unsuccessful startups – Baltic Juice terminal and Ventspils Grain Terminal, the Coal Terminal demonstrates stable operation and is getting ready for further expansion.
The first phase of the Baltic Coal Terminal was commissioned in late 2008. Investment into the project totaled EUR 78 mln. Total appraised value of the entire project (2 phases) is EUR 130 mln. However the value is likely to decrease a little amid the general crisis.
Two companies own the terminal - Indtek Baltic Coal representing the interests of Zarechnaya mine (Kuzbass), from the Russian side, and Ventspils Tirdzniecibas osta specializing in transshipment of general and loose cargo in Ventspils port, from the Latvian side.
It is the only covered coal terminal in the Baltic region. The closest analog with similar technological equipment is in the portSt. Petersburg but it specializes in transshipment of mineral fertilizers (Baltic Bulker Terminal).
The terminal’s technical characteristics are quite impressive – it can simultaneously accept 300 wagons. The terminal is fitted with facilities for warming up the cars in winter, automatic tipping devices, aspiration and dust suppression systems. There is also a complex for crushing and purification of coal from ferromagnetic particles. A covered warehouse where up to 210,000 tonnes of coal may be placed, offers separate storage of large coal shipments for up to three clients at one time.
A system of covered conveyor galleries is over 2.5 kilometers in length altogether. Coal is loaded on Capesize vessels with maximal deadweight of 120,000 tonnes. Design capacity of the terminal is 6 million tonnes of coal per year. As of the beginning of May, the terminal handled 610,000 tonnes of coal which is not the limit. Introduction of the second phase envisages doubling of the capacity, both accepting, warehousing and berthing.
One of the port’s competitive advantages is the profit of the companies operating in Ventspils. Ventspils being a free port is entitled to provide preferences related to profit and real estate tax. A licensed company with investments totaling LTL 1 mln, profit of LTL 1 mln and LTL 1 mln of real estate, the profit tax would total 15% and real estate tax - 1% while the port of Ventspils sets it at the level of 5% and 0.2% respectively.
A company saves LTL 108,000 in Ventspils FEZ. It is just an assessment but it characterizes the port’s advantages. It is enough to mention that profit tax in Russia is 24%, real estate tax – 2.2%. There are no free ports in the country.
Despite the difficult situation in Latvia and in the world, Ventspils stevedores are optimistic about the future and are flexible when responding to changing circumstances. One of the key advantages of the port and the terminals is a possibility to undertake reasonable compromise decisions providing their customers with more favorable terms as compared with those of their rivals. Besides, the lowest port charges at the Eastern shore contribute additionally to the port’s attractiveness.