Transport and logistics opportunities in Latvia

An Expert's View about Sales in Latvia

Last updated: 14 Mar 2011

Latvia has the highest net cash flow from trade in transport services, mainly due to the transit flow of oil and related products by railways and pipeline.

Sector briefing Transport and logistics sector opportunities in Latvia Why Latvia? The transport and logistics sector plays a key role in the Latvian economy due to the country's location. Latvia has the highest net cash flow from trade in transport services, mainly due to the transit flow of oil and related products by railways and pipeline. Freight shipments from Russia and other CIS countries to the West is the core of the transit industry. About 90 per cent of transit traffic goes to seaports. Rail is the second dominant form of transport, and is mainly oriented towards transit freight. Roads play an important role for freight turnover, but truck transport is mainly seen in short hauls. Analysing Latvia?s transit corridor website. The ?Doing business? guide for Latvia at the State level, it must be noted that Latvia gives an overview of the economy, business as a priority recognises the development of an culture, potential opportunities and an effective, secure, multi-modal, balanced, introduction to other relevant issues. environmentally friendly and competitive transport system. The main goal for the sustainable development of Latvia?s transport ?The main goal for the sustainable is to fully integrate Latvia?s transport development of Latvia?s transport infrastructure with the Trans-European multi- is to fully integrate Latvia?s modal transport system (TEN-T). transport infrastructure with the Sources: World Bank and Ministry of Transport Trans-European multi-modal of Latvia. Find general information about transport system (TEN-T).? Latvian market conditions on the UKTI UK Trade & Investment Sector briefing: transport and logistics sector opportunities in Latvia 30% at its home base in Riga last year (2009), Opportunities and earned record profits of EUR 20 million. The following are priorities for the Transport Since the Riga International Airport has already Sector in Latvia: reached its design capacity limits, airBaltic has decided to build a brand new terminal with a ? Investment in the elements of TEN-T floor space of 58,000 m2 ? one which will be ? Ensuring stable growth of volume of able to handle up to 15 million passengers a transit freight year. Total investment is expected to amount ? Development of distribution and to more than EUR 92 million. Investment will logistics centres come from the private sector, and the project ? increase value-added cargo will require no funding or guarantees from the state. airBaltic will negotiate with their partner Over 1996-2001, Latvia invested almost EUR for this project - Turkish TAV Airports Holding 370 million in TEN-T transport infrastructure, Inc - on the construction and operation of the and has allocated approximately EUR 500 terminal. The airline is also negotiating with million for the period of 2002-2010, half of several banks on project financing, and a which is for roads. tendering process for architectural design has been recently been launched (Source: Ministry According to the EU, the main goal that must of Transport, Latvia; airBaltic). be achieved in the use of these funds is to promote a balanced development of the EU If you have any questions on opportunities in regions. Therefore the resources of EU funds Latvia above, get in touch with one of the UKTI are to be invested in projects that promote the contacts listed at the end of this report. growth of the whole country, by integrating Latvia?s transport infrastructure in the united Business opportunities are added daily to the EU transport system. In the field of transport, UKTI website. These leads are sourced by our with the resources of the ISPA and Cohesion staff overseas in British Embassies, High Funds, development of infrastructure included Commissions and Consulates, across all sectors in the TEN-T is supported: major State and in over 100 markets. Search for business motorways, East ? West railway corridor, the opportunities on the UKTI website, or register Rail Baltica route, and the three largest ports to receive regular updates. and airports. ERAF funds will be invested in the development of infrastructure, which is outside the TEN-T network. The importance of attracting freight from Asia and the Far East is widely recognised, and Latvia is well placed to serve as a distribution centre for cargo from Asian countries (e.g. China, Korea) - not only for the Baltic States, but also for Russia and the CIS countries. This position is assured by Lativia?s advantageous geographical location, its modern, well- equipped port terminals, state support for the development of infrastructure to logistic centres, qualitative operated customs warehouses and tax concessions. Among several airports operating in Latvia, Riga International Airport (VAS "Starptautisk? lidosta "R?ga") is the largest. Over recent years, it has joined the group of fastest growing airports in Europe, experiencing a passenger increase of 10.2% last year (2009). It expects a 15% increase this year (2010). The national air carrier, airBaltic, achieved an increase in passenger numbers by more than UK Trade & Investment Sector briefing: transport and logistics sector opportunities in Latvia Major events and activities UKTI contact April 2011 Anete Bluma Exhibitions Motorcycle and Baltic Boat Show Market Advisor will take place at Kipsala International UK Trade & Investment st Exhibition Centre, Riga, in 1 ? 3rd April 2011. British Embassy Riga 5 J.Alunana Street April/May 2011 Riga LV 1010 The sixth International exhibition of Transport Latvia and Logistics 2011 will take place at Kipsala Tel: +371 67774709 International Exhibition Centre, Riga, on 28 Fax: +371 67774707 April ? 01 May 2011. Email: April/May 2011 The sixth specialised exhibition for automotive repair tools, service equipment, automotive parts, maintenance means and accessories Automechanics 2011 will take place at Kipsala International Exhibition Centre, Riga, on 28 April ? 01 May 2011. For details on more events, use the events search on the UKTI website or register to receive regular updates. New export events are added daily. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SMEs) to attend trade shows overseas. UK Trade & Investment Sector briefing: transport and logistics sector opportunities in Latvia Next steps - How UKTI can help This work is available via our Overseas Market British companies wishing to develop their Introduction Service (OMIS), a chargeable business in the Latvian market are advised to service which assists British-based companies undertake as much market research and wishing to enter or expand their business in planning as possible in the UK. UKTI?s team in overseas markets. Latvia, with its wide local knowledge and experience, can provide a range of services to To find out more about commissioning this British-based companies wishing to grow their work, or accessing other UKTI services and business in global markets. specialist advice, contact your local UKTI office. This can include: ? Providing market information ? Validated lists of agents/distributors ? Key market players or potential customers ? Establishing whether potential contacts are interested in working with you. ? Arranging appointments ? Organising seminars or other events for you to meet contacts and promote your company UK Trade & Investment Sector briefing: transport and logistics sector opportunities in Latvia
Posted: 29 September 2010, last updated 14 March 2011