We work for the future. The Port of Riga is open for cooperation. The Port of Riga is a modern, safe and environmentally friendly port.

Transcription

1 FREEPORT OF RIGA 43

2 We work for the future Leonīds Loginovs, Chief Executive Officer of the Freeport of Riga The Port of Riga is a modern, safe and environmentally friendly port. The Port of Riga is open for cooperation Riga is the Metropolis of the Baltics and the Capital of Latvia. Riga the biggest port in Latvia is the gate, road and window to the World. Port of Riga is open to everyone who comes with positive thoughts, constructive proposals and a desire to cooperate. Vessels have been calling at Riga for centuries. Riga has always been a special place with something to offer for everyone s taste. When I started working as the Chief Executive Officer for the Port of Riga in 1998 the turnover of cargo at the Port was just a little over ten million tonnes per year. Now it is close to forty million, and the Port does not intend to stop its further development. These are not empty words, unjustified illusions and unrealistic dreams. The success of the Port of Riga is based upon the many years of persistent work on the part of the Freeport of Riga Authority and the entrepreneurs located there. The main task of the Freeport of Riga Authority is to create a favourable environment for the operation of the port companies, to develop the infrastructure of the Port and, most importantly, to plan for the long term development of the port. It was several years ago when the experts of the Freeport of Riga Authority understood that the infrastructure of the Port should be prepared for receiving Panamax type vessels, therefore we made the timely decision to invest in the deepening of the fairway and the construction of deep water berths. This was a correct decision and investment, which has paid for itself with a surplus by now. The Port is serving an increasing number of heavy tonnage vessels, thus increasing the speed and capacity of transshipment. The success achieved by the Freeport of Riga is not by mere chance; this is the result of joint targeted work on the part of the experts of all the companies of the Port and the Port Authority attesting to our professionalism, competence and forethought. The structure of cargo at the Port of Riga is diverse allowing for splitting the risks in such a way that a decrease in demand for a particular type of cargo on the global market would not cause considerable loss for the Port as a whole. We position the Port of Riga as a top class player in the logistics chain for the transportation of cargo on the international market: a modern, safe and environmentally friendly port. We have large scale construction projects for new terminals, available space at the Port and knowledgeable experts. Therefore, we are prepared for new trends of market development and furthermore we are sufficiently flexible and able to adapt quickly to changes on the Freeport market, of Riga Authority new types of cargo and new flows of cargo. Kalpaka boulevard 12, Riga, LV-1010, Latvia The achievements belong to history, we work for Ph the future. Fax: info@rop.lv 1

3 The Port of Riga contributes to the development of the city Andris Ameriks, Chairman of the Board and Deputy Mayor of Riga Professional work guarantees safety Eduards Delvers, Harbour Master of the Port of Riga During the joint history of over 800 years the port has grown together with the city and the two have become inseparable The Port of Riga is the heart of the city. It occupies 11% of the territory of the city and is among those districts of the city with the fastest rate of growth comprising large scale business projects and a high degree of economic activity. Rhythmic operations of the Port both secure the growth of the Port itself and also encourages the development of the city and creates so many needed jobs. During the joint history of over 800 years the port has grown together with the city and become inseparable. I can assert that there is a mutually beneficial interaction between the Port and the city. The city understands the needs of the Port and supports its projects, and the Port Authority, in conjunction with the companies of the port, provide a considerable contribution to the economic activity of the city both by means of direct payments into its budget and also by encouraging economic activity in the city. A port with such dynamic operations allows the city to plan its long-term budget, to modernise its infrastructure and to develop into a modern logistics, business and cultural centre in Europe. The contribution made by the port in the promotion of tourism in this city cannot be underestimated; this has been planned and targeted work. The Freeport of Riga Authority is taking care of the provision of the infrastructure of the Port by deepening the fairway and constructing new berths and, in cooperation with the tourism experts of the city, it is actively engaging in the measures aimed at attracting cruise ships to the city. The increase in the number and the size of the cruise ships calling Riga is a natural result of this work. They bring tourists from all over the world and this undeniably provides income for the Port and the city thus making Riga into a favourite tourism destination. It is important to achieve a balance between the interests of the Port and the residents of the city in the course of planning the development of the city. Global experience shows that the cargo handling operations at ports are moved away from the city centre, and Riga is no exception in this respect. In the years to come, the port terminals will be moved to the deep water berths located closer to the mouth of the river, leaving the city centre for the development of business, culture, daily activities and entertainment. This is done for the sake of future of Riga and in thinking about the wellbeing of the city residents, about the environment and the ecology, about Riga as a future metropolis, about the Port of Riga as a modern port and an equal partner among other global ports. The captain is in command of a vessel, the Harbour Master is very often in command of several vessels at a time. A sense of responsibility and professional knowledge is required for complying with the most important task and requirement - navigation at the port must be safe in all weather conditions. I became a captain at the age of thirty-six and worked at the sea for forty-three years. I have led vessels from the shores of Cuba all the way up to Franz Joseph Land and I have got used to relying exclusively on myself and my team; therefore, being the Harbour Master of the Port of Riga and performing my official duties, I do not face any problems that cannot be solved. There is daily work which can cause also worries, of course. In order to ensure that all the issues can be solved in a timely manner, top class experts are employed at the Harbour Master's Office. The office is equipped with modern port equipment and the state-of-the-art communications technologies. As well, young experts, many of whom have graduated from the Latvia Maritime Academy and have gained a decent amount of experience at sea, are employed at the Harbour Master's Office. Now they perform official duties at responsible shore services, are familiar with modern technologies and are able to take action in the most complicated situations. The Port of Riga has undergone considerable change in recent years. It receives and services vessels of increasingly large size. Navigation safety is the first and the foremost criterion applied by captains of vessels for rating a port. This is the criterion for rating not only my professional competence, but also the competitiveness of the port. Therefore, the Harbour Master`s Office does whatever it can to make a customer feel welcome and to ensure that the best service is delivered to him. I am a professional, therefore my decisions are justified and based upon the experience, knowledge and facts instead of emotion. The Port of Riga is safe for navigation and I stand behind my words. Navigation safety is the first and foremost criterion used by captains of vessels for rating a port. This is the criterion for rating not only my professional competence, but also the competitiveness of the port. 2 3

4 Advantages of the Port of Riga Strategically convenient geographic position The location at the crossroads of convenient sea and land routes between the markets of the European Union, Russia and other countries of the Commonwealth of Independent States makes the Port of Riga an important component of the East-West cargo transportation corridor. Business competence in the transportation of cargo between the EU and Russia/ CIS The historical experience of cooperation with Russia and other CIS countries combined with the current integration with the European Union creates the specific advantage of the Port of Riga regarding the transportation of cargo between these markets. Multifunctional port with modern infrastructure Mutifunctionality in combination with modern infrastructure and port security allows the Port of Riga to respond flexibly to changes on the cargo transportation market and to adapt to new requirements imposed by markets and customers. High quality services The capacity of terminals, warehouses and open areas of the port, the technical and technological means as well as the road and railway infrastructure allow for the handling, storage and transportation all the types of cargo in a fast and efficient manner, saving the time required for handling cargo and cutting costs. Competitive fees and charges at the port The fees and charges at the Port of Riga comply with the current market situation; they are flexible, differentiated and competitive in comparison to the fees and charges of other ports in the Baltic region. Professional port management Highly qualified experts work at the Freeport of Riga Authority and they can ensure the fulfilment of the main task of the management - creating favourable operational conditions for customers of the Port, both by developing the infrastructure of the Port and by managing the operations of the Port. Favourable business conditions The Port of Riga is open to investors and new business projects by offering the longterm leases of land on favourable conditions, the regime of a free economic zone providing considerable tax reliefs, as well as the support by the Port Authority by developing the required public infrastructure. 4 5

5 REGULAR CONTAINER TRAINS TO AND FROM RIGA "RIGA EXPRESS" CONTAINER TRAIN (Riga Moscow) Scheduled container block train service Regularity: weekly Transit time: hours Capacity of the train: TEU Further deliveries to Kaluga and Yekaterinburg CONTAINER TRAIN "EURASIA 2" (Riga Central Asia) Transit time: 10 days Final destinations: Almaty, Bishkek, Tashkent, Dushanbe, Ashabat. Connection with the China - Central Asia container train with the route via the border points Dostyk and Horgos. Riga at the crossroads of transit routes The geographic location of the Port of Riga in the centre of the Baltic countries and at the crossroads of the major transit corridors East - West and North - South provides the fastest, safest and cheapest service to forwarders. The Port of Riga offers favourable sea and land connections. The regular container lines connect the Port of Riga with the biggest ports in Europe, and the regular container trains allow the delivery of cargo to Russia, Belarus, Ukraine, Kazakhstan, Uzbekistan, Afghanistan and China in a fast and efficient manner. RIGA Pori Ventspils Liepaja MOSCOW CONTAINER TRAIN "ZUBR" (Riga Minsk Illichevsk) A scheduled container train between Riga and Minsk with further deliveries via Orsha (Belarus) and Odessa (Ukraine) Transit time: 2d 18h (Riga Illichevsk) CONTAINER TRAIN "EURASIA 1" (Riga North Kazakhstan) Transit time: 6 days Final destinations: Astana, Pavlodar, Aksu. CONTAINER TRAIN "BALTIKA - TRANSIT" (Riga Almaty) Scheduled container block train service Regularity: two trains per week Transit time: 8 10 days BLOCK TRAIN RIGA - HAIRATON (AFGHANISTAN) (Riga Hairaton) Delivery of non-military goods to the US troops in Afghanistan Average transit time days Aarhus Klaipeda Teesport Sheerness Gent Rotterdam Antwerpen Bremerhaven Gdynia CZECH REPUBLIC Kaliningrad MINSK KALUGA YEKATERINBURG ASTANA PAVLODAR AKSU Odessa ILLICHEVSK Bucharest Baku DOSTYK HORGOS ALMATY BISHKEK TASHKENT Freeport of Riga Authority Director of Marketing Department Edgars Sūna: Teheran ASHABAT HAIRATON DUSHANBE The geographic location presents an important advantage to the Port of Riga under increasingly fierce competition. Within the current globalisation conditions, this is an essential prerequisite which allows the Port to develop not only as a convenient hub of transportation of cargo, but also as an important logistics and distribution centre ensuring the circulation of cargo to and from the European Union, Russia and China. REGULAR LINER SERVICES TO AND FROM RIGA CONTAINERSHIPS Riga Teesport Rotterdam Helsinki St. Petersburg Pori Klaipeda Aarhus Hamburg Sheerness Ghent CMA-CGM (FRENCH BALTIC LINE) Hamburg Bremerhaven Riga Klaipeda UNIFEEDER CONTAINER SERVICE Hamburg Bremerhaven Riga Klaipeda TALLINK (ro-pax) Riga Stockholm MANN LINES MULTIMODAL Riga Gdynia Rotterdam Hamburg/Bremerhaven Kaliningrad MEDITERRANEAN SHIPPING COMPANY (MSC) Antwerp Bremerhaven Riga Tallinn TEAM LINES Hamburg Riga Tallinn St. Petersburg AP MOLLER - MAERSK/SEAGO LINE Bremerhaven Klaipeda Riga Aarhus Gdansk Tallinn Riga Klaipeda 6 7

6 Geographic advantages of the Port of Riga Most convenient cargo transit corridors via the Port of Riga EAST - WEST CORRIDOR A unified railway network provides a direct link between the Port of Riga and the Trans-Siberian Railway. Railway haulage along the route "Far East - Europe" by using the Trans-Siberian Railway allow saving from 12 to 15 days en route in comparison to sea haulage. DIRECT AND FAST ACCESS TO IMPORTANT MARKETS Baltic countries - 7 million population Scandinavian countries (Finland, Sweden) 15 million population European region of Russia 100 million population Belarus 10 million population Ukraine 46 million population Kazakhstan 15 million population 1000 km 24 h 1500 km 48 h Russia Location within the European Union ensures direct access to the European markets, and being a part of the Trans-European Transport Network (TEN-T) presents considerable opportunities for the future development, considering the EU goal of creating new railbased logistics chains in order to ease the traffic on European motorways. RIGA MOSCOW The distance between Riga and Moscow is the shortest in comparison to other ports in the Baltic countries. This ensures the lowest costs in transporting cargo, which is an important precondition for providing a regular traffic flow of container trains between Riga and the Moscow region in Russia. Norway Sweden EAST - WEST CORRIDOR Finland Estonia Latvia RIGA 500 km 12 h MOSCOW RIGA MOSCOW Close proximity to Russia and other CIS countries provides fast and simple access to the rapidly growing markets of Russia, the rest of the CIS and Asian countries. The Port of Riga is the closest EU port to Moscow. This geographical advantage is supplemented by the historically established relations promoting the development of the Port of Riga as a transit centre. The railway infrastructure compliant with the Russian railway standard (1520 mm rail gauge), as well as the business competence, knowledge of the language and the experience of working on the Russian/ CIS markets. Location in the centre of the Baltic countries allows to use the Port of Riga as a convenient logistics and distribution centre for the Baltic countries, Scandinavia and the North-West part of Russia. Riga is the biggest city in the Baltic countries and this ensures the availability of the business infrastructure and high quality labour. EURASIAN TRANSIT CORRIDOR The geographic location, the required road infrastructure and the experience of providing transit transportation has allowed the Port of Riga to become an important logistics centre for transporting the cargo from China via Kazakhstan and Russia to the European Union. BALTIC SEA - BLACK SEA The "Baltic Sea - Black Sea" trade route has been known for more than 1000 years. The container train "Zubr" on the route from the Port of Riga to the Port of Illichevsk in Ukraine presents the beginning of a new logistics route for connecting Istanbul, Turkey, with Scandinavian and other European ports. NORTHERN DISTRIBUTION NETWORK Non-military cargoes for the US troops in Afghanistan are transported via the Port of Riga, and this is an attestation of the reliability, safety and service quality of the Port. The commercialisation of the Northern Distribution Network will provide new and sustainable flows of cargo through this transport corridor. The Netherlands Belgium France Mediterranean 8 9 Sea Denmark Germany Italy Baltic Sea Czech Republic Austria Poland Hungary Lithuania Belarus Romania BALTIC SEA - BLACK SEA EURASIAN TRANSIT CORRIDOR NORTHERN DISTRIBUTION NETWORK Ukraine ILLICHEVSK Black Sea Turkey Kazakhstan Georgia

7 Port infrastructure and services compliant with the top standards Freeport of Riga Authority Director of Shipping Department Kārlis Kleins: Navigation safety is among the most important issues in the focus of attention at the Port of Riga. The International Ship and Port Facility Security (ISPS) Code, the Maritime Policy of the European Union, Directives and Regulation of the European Parliament, as well as the Cabinet Regulations and Law of the Republic of Latvia are just some of the most important basic documents defining the standards of high safety requirements which the operations of the Freeport of Riga comply with. The Port of Riga has developed historically as a multifunctional port with a good infrastructure. The flexibility and the ability to adapt quickly in order to transship any kind of cargo, including non-standard, project and bulky cargoes, presents an essential feature of the port. The Freeport of Riga Authority is actively investing in the public infrastructure of the Port, and the port companies develop the port terminals in compliance with the market requirements and the state-of-the-art technologies in the industry. The Freeport of Riga Authority works in close cooperation with private service providers and state authorities, because high quality services can be provided to customers only through coordinated actions between the Freeport of Riga Authority, businesses of the Port and various national organisations, such as the Maritime Administration of Latvia, State Border Guard, Customs Administration, State Fire Fighting and Rescue Service, Nature Protection Board, and other involved services. Technical capabilities of the Port The throughput capacity of the Port of Riga equals 47 million tonnes per year, and taking into account the rapid development of TECHNICAL DATA OF THE PORT Total port area Port land area Port water area Total length of berths Maximum draft of vessels Maximum depth Services to Customers 6,348 ha 1,962 ha 4,386 ha 14.3 km 14.5 m 16.0 m At the Port of Riga, the customers not only have an access to any service they might require but also can choose among several companies - service providers. Operations of most of the companies are related to the traditional port functions, like transshipment of cargo, warehousing, ship SERVICES OFFERED BY LESSEES OF LAND (NUMBER OF COMPANIES) Loading / offloading of cargo (stevedoring services) 33 Storing of cargo (services of warehouses) 37 Customs warehouses 19 Forwarding of cargo 13 Production 9 Fuel supply to ships 3 Ships supply / servicing 5 Ship building and repair 5 Extra handling of cargo 6 Yacht and water transportation-based tourism 4 Lease of premises and berths 12 Fishing 1 Terminal projects 10 the Port, the capacity is expected to exceed 50 million tonnes per year within the near future. PORT INFRASTRUCTURE FIGURES Open storage areas 1,619,000 m 2 Covered warehouses 333,000 m 2 Capacity of refrigerated storage 46,600 m 3 Refrigerated storage (area) 15,623 m 2 Refrigerated storage (volume of cargoes) 13,500 t Capacity of dry bulk silos 250,000 m 3 Capacity of liquid bulk tank farm 391,500 m 3 agency, repair and supply. Some of the companies also provide services with added value, like handling, sorting and packaging of cargo etc. Furthermore, several production companies operate at the Port of which shipbuilding and fish processing companies account for the biggest operations. SERVICES OFFERED BY OTHER COMPANIES (NUMBER OF COMPANIES) Ship supplies / technical services / inspections 39 Cargo handling, registration, control etc. 17 Shipping agencies 28 Forwarding of cargoes 1 Transportation of cargoes 6 Passenger transportation 4 Hydrotechnical works 1 Tug services

8 Port Companies STEVEDORING AND LARGEST COMPANIES AT THE PORT 1 FREEPORT OF RIGA AUTHORITY 2 RIGA PASSENGER TERMINAL LTD 3 RĪGAS OSTAS ELEVATORS JSC 4 RIGA CONTAINER TERMINAL LTD 5 RIGA CENTRAL TERMINAL LTD 6 STREK LTD 7 FRIGO BALTIC LTD 8 MAN-TESS LTD 9 MAN-TESS TRANSIT LTD 10 RIGA CONTAINER TERMINAL LTD 11 SYSTEMS RECYCLING LTD 12 BMGS JSC 13 OVI LTD 14 WOODISON TERMINAL LTD 15 EKO OSTA LTD 16 STARTS-RĪGA JSC 17 VL BUNKERINGS LTD 18 JAUNMĪLGRAVIS OSTAS KOMPĀNIJA LTD 19 BLB BALTIC TERMINAL JSC 20 VEGA STIVIODORS LTD NEW PROJECTS 1 SYSTEMS TERMINAL LTD 2 FRIGO TERMINAL LTD 3 CARGO OBRUSTAG TERMINAL LTD 4 RIGA BULK TERMINAL LTD 5 TFS TRANS LTD 6 BSCT LTD 21 RIGA SHIPYARD JSC 22 PORT MILGRAVIS LTD 23 TERMINĀLS VECMĪLGRĀVIS LTD 24 RIGA UNIVERSAL TERMINAL LTD 25 ALPHA OSTA LTD 26 NESTE LATVIJA LTD 27 STATOIL FUEL & RETAIL LATVIA LTD 28 NAFTIMPEKS LTD 29 GAMMA-A LTD 30 MT OSTA LTD 31 P&B PORT LTD 32 PORT MAGNAT LTD 33 EXTRON BALTIC LTD 34 JP TERMINALS LTD 35 OSTA LEJASVOLERI LTD 36 LATVIJAS PROPANA GAZE LTD 37 KS TERMINAL LTD 38 LACON LTD 39 WT TERMINAL LTD 40 FREJA LTD 41 BOLDERĀJAS KUĢU REMONTA RŪPNĪCA LTD 7 NACIONĀLAIS KONTEINERU TERMINĀLS LTD 8 KUNDZIŅSALAS DIENVIDU PROJEKTS LTD 9 RIGA FERTILIZER TERMINAL LTD 10 KUNDZIŅSALAS ZIEMEĻU PROJEKTS LTD 11 ENERGO SG LTD 12 BALTIC OIL TERMINAL LTD 13 LD SISTEMS LTD cargo terminals dry bulk cargoes general cargoes liquid bulk cargoes containers passengers Services container warehouse production of fish products ship repair waste handling

9 The services offered to customers at the Port of Riga are characterised by speed, safety and competitive costs Speed Navigation Safety Freeport of Riga Authority, Director of IT Department Ansis Liepiņš: Information technologies are undergoing rapid development worldwide; therefore, the Freeport of Riga Authority is working towards the implementation of the modern technologies in the operations of the Port. We are members of the "European Port Community Systems Association" which unites the best and most competent technology experts of the ports industry developing and introducing the newest and most modern information systems for ports. Under the current conditions of globalisation, the speed of cargo transportation is viewed as an increasingly important factor; therefore, continuous improvements are implemented at the Port of Riga in order to speed up the handling of cargo. At private port terminals this is achieved by upgrading the equipment for handling of cargoes, introducing the state-of-the-art technologies and modern methods of customer service. The major contributions provided by the Freeport of Riga Authority for increasing the speed of cargo handling are as follows: deepening of the fairway and construction of deep water berths to allow the entry of increasingly large vessels into the Port and to ensure faster and more efficient offloading and loading, upgrading of the railway system of the Port and construction of new access roads to speed up the circulation of cargo to and from port terminals, introduction of e-administration at the Port of Riga and joining the EU Safe Sea Net system ensures optimum information exchange, more efficient performance of the settlement of documentation for cargo and decreases the time vessels stay at the Port. The Vessel Traffic Service Centre (VTSC) is responsible for ensuring the navigation safety at the Freeport of Riga. The communications equipment, the ship positioning and notification systems of the VTSC comply with the most modern technological achievements and are continuously upgraded. Portable mobile stations that are connected to the GPS system of the Port considerably improve the quality of the services provided by the Pilots Service. The four pilot vessels, the modern ice class tugboats and the icebreaker at the disposal of the Vessel Traffic Control Centre make the Port of Riga safe for navigation in the 24/7 mode 365 days a year. Regular hydrographic measurements in the aquatorium of the Freeport of Riga and at the berths are performed by hydrographic vessels carrying modern equipment. The icebreaker "Varma" guarantees safe and regular winter navigation at the Port of Riga. The ice class tugboats that are equipped in compliance with all the requirements set by the international conventions SOLAS and MARPOL can ensure safe entry to and exit from the Port of Riga, even for the largest vessels

10 Port Security Competitive costs Freeport of Riga Authority Chief of the Port Police Valdis Voins: In order to secure the continuous improvement of the security of the Port, we cooperate with authorities under the supervision of the Ministry of Internal Affairs, the State Revenue Service, the Maritime Administration of Latvia, the Food and Veterinary Service, the National Environment Service and other authorities. We are improving the skills of our employees and updating our technical equipment continuously. I can be satisfied with the performance of the Port Police because the navigation safety, the security of the Port, public order and control has improved since its establishment. At the Freeport of Riga, all the international requirements regarding the port security are observed, including the requirements of the International Ship and Port Facility Security (ISPS) Code and the International Maritime Dangerous Goods (IMDG) Code. Operations of the companies of the Port are performed on the basis of the plans for the protection of the port facilities and the compliance thereof is supervised by the Maritime Administration of Latvia. The handling and monitoring of dangerous and polluting cargo is done in compliance with the IMDG Code and the Cabinet Regulations of the Republic of Latvia. The terminals for the transshipment of dangerous and polluting cargo are supervised by the Maritime Administration of Latvia and the Port Police. The State Firefighting and Rescue Service performs annual certification with regard to the equipment of the port facilities and the compliance with fire safety requirements. The transportation of non military cargo via the Port of Riga for ensuring supplies to the NATO troops in Afghanistan serves as the best attestation of the security of the Port of Riga, the quality and speed of the provided services. A new structural unit - the Port Police - was established within the Freeport of Riga Authority in The main functions of the Port Police include taking care of the security in the vicinity of the Port, supervising compliance with the rules of the Port, supervision of the movement of persons, vehicles and cargo, as well as supervision of the safety of terminals and their conformance with the ISPS requirements. In order for the Port of Riga to be able to compete successfully with other ports on the Baltic Sea and to attract an increasing amount of cargo and number of customers, the port fees and charges are set based upon the market requirements. They are commensurable and competitive in comparison with fees and charges of other ports of the Baltic region. As with most of the ports worldwide, fees and charges at the Port of Riga are assessed based upon the gross tonnage of a vessel. The fees and charges of the Port of Riga are flexible and differentiated. Taking into account the goals of the port regarding the attraction of various types of cargo, as well as preservation of the environment, discounts on fees and charges at the port are applicable. The policy of setting fees and charges at the port is understandable and transparent to customers. Infrastructure lease fees at the Port of Riga are favourable for customers, and they contribute to the attraction of investment to the port. Freeport of Riga Authority Chief Accountant Līvija Andersone: We review the port fees and charges annually and update them taking into account the goals set by the Port, the market situation in the transport industry and the needs of our customers. Every project and every customer is special to us. Training in the mitigation of the consequences of an emergency in case of unexpected contamination is held twice a year. The Port Police has modern technological equipment at its disposal

11 Cargo handling Container cargo Largest handled vessel General cargo The intensity of transportation of general cargo via the Freeport of Riga is growing. The major types of general cargo include container cargo, timber, ro-ro cargo and frozen cargo which are transshipped at 20 terminals of the Port with the total handling capacity (except container cargo) amounting to more than 5 million tonnes per year. Three terminals are engaged in handling of containerized cargo at the Port of Riga The total container handling capacity at the port amounts to 600 thousand TEU. All the container terminals have a direct connection to the main rail routes provided by the internal access railways. Vessels with carrying capacities of up to 5,000 TEU can be handled at the container terminals. Reefer plugs for refrigerator containers are provided at all container terminals. All the required preconditions for enabling an even faster growth in volume of container cargo have been established at the Port of Riga. Latest technologies, state-of-the-art equipment for container handling, up-to-date systems of automated gates and automated registration provide a service level compliant with the market requirements. The status of the free zone exempts businesses from the necessity to undergo customs clearance for cargo, and the early notification of the entry of ships avoids unnecessary formalities at the port, loss of time and reduces the customers' costs. Considerable discounts of the port fees and charges are granted to regular container lines and their amount depends on the number of calls of the relevant line. EM PSARA (2012) Length (m) 206 DW 37,125 GT 32,903 Capacity (TEU) 2,785 Largest handled vessel POLA MED (2012) Length (m) 170 DW 29,324 GT 18,977 Cargo (t) 18,800 Type of cargo timber 18 19

12 Dry bulk cargo Liquid bulk cargo Largest handled vessel UBC ONSAN (2012) Length (m) 260 DW 118,590 GT 65,976 Cargo (t) 112,000 Type of cargo coal Riga is the biggest port for handling dry bulk cargo on the East shore of the Baltic Sea, and it handles roughly 24% of the dry bulk cargo in this region. There are 19 terminals for dry bulk cargo in the Port. The main types of commodities include coal, fertilizers, woodchips, ore and grain. The current handling capacity of the Port regarding dry bulk cargo is 25 million tonnes per year. Thanks to the timely performance of the harbour deepening projects and the construction of the deep water berths, the size of vessels carrying dry bulk cargo which can be handled at the Port of Riga has been increasing. Thus, the Port can also attract new types of cargo resulting in the continuous increase of the volume of dry bulk cargoes at the Port. At present the Port of Riga provides regular service to the Panamax type heavy-tonnage vessels. In order to minimise any possible harm to the environment, all the terminals for dry bulk cargo are equipped with up-to-date machinery and equipment for handling cargo. The process of handling of cargo complies with the environmental standards set by the EU and is subject to the environment management and monitoring system. DRY BULK MARKET ON THE EAST SHORE OF THE BALTIC SEA (2012) Riga 24.1 % Vyborg 1.1 % Helsinki 1.2 % Kaliningrad 3.1 % Visock 3.7 % Hamina / Kotka 4.5 % Liepaja 4.5 % Tallinn 4.5 % St. Petersburg 6.5 % Liquid bulk cargo accounts for almost 25% of the total turnover at the Freeport of Riga and oil products present the major type of cargo in this group. 10 companies are engaged in handling liquid bulk cargo at the Port of Riga, and their total handling capacity amounts to 10 million tonnes per year. Import and export operations with diesel, heavy fuel oil, jet fuel, kerosine and other fuels are carried out at the terminals for oil products. As oil products are included in the category of dangerous cargo, special attention is paid to the issues of safety and ecology. This is attested by the ISO certificate which has been received by most of the port terminals for liquid bulk cargo. Largest handled vessel NORTHERN BELL (2010) Length (m) 228 DW 83,651 GT 44,324 Cargo (t) 54,900 Type of cargo oil products Ust-Luga 18.8 % Klaipeda 15.7 % Ventspils 12.4 % Infrastructure and services for passengers Regular passenger transportation at the Freeport of Riga is provided by the Tallink ferry line with the daily ferry traffic on the Riga Stockholm route. More than 70 cruise ships call at Port of Riga during the cruise season from May to September. Ferries and cruise ships are received at four berths for passenger ships at the Freeport of Riga and the services are provided by Riga Passenger Terminal LTD. The location of the berths in the centre of the city present an advantage to the city visitors because the Old Town is situated just a couple of minutes walk away. Passenger ships with a maximum draft of up to 8.2 m and the maximum length of 290 m can be serviced in the city centre and bigger passenger ships can be received at the berth located at Krievu Island. Five yacht clubs operate at the Port of Riga and the range of services offered by them includes piers for yachts, anchoring of yachts for a season as well as necessary additional services. Largest handled vessel COSTA PACIFICA (2012) Length (m) 290 DW 12,395 GT 114,288 Number of passengers 3,

13 FREEPORT OF RIGA Transportation infrastructure of the Port Rail and land access roads are provided to the port terminals on both banks of the River Daugava. Almost 80% of cargo is transported to/from the Port by rail, the rest is transported by land. The Freeport of Riga Authority in cooperation with the municipality of Riga, the State JSC Latvijas Dzelzceļš (Latvian Railway) and port companies ensure the maintenance of the transportation infrastructure, its improvement and the construction of new railways and roads in the vicinity of the Port. Taking into account the fast development and the process of construction of new terminals, the Freeport of Riga Authority is investing a lot of funds into the construction of new access railways and roads as well as the construction of a new railway bridge. LEGEND Port border line Railway Railway lines to be constructed Port companies Territories of new terminals Turning basins Streets with main traffic Main roads Roads 22 Free territories for development Territories subject to further research 23

14 Successful business activities provide the basis for the achievements of the Port Business success stories Riga Commercial Port LTD - the company with the most dynamic growth The competitiveness of the Port of Riga is defined by the success of the companies operating within the vicinity of the Port, their ability to ensure continuous and fast turnover of cargo, as well as the ability of utilising the port capacities in a rational and considered manner. 70 business companies operate at the Port of Riga and are engaged in business operations that are directly related to the port functions in the leased premises. Other 10 new companies plan to start up their business in the years to come. These companies provide cargo handling, storage and processing services. There are also important production companies among those operating at the Port. Entrepreneurs who work at the Freeport of Riga are convinced that the Port of Riga opens up huge opportunities for operations because there is suitable infrastructure, available premises, the attitude of the Freeport of Riga Authority to the companies operating at the Port is targeted and provides encouragement for business. Riga Commercial Port LTD is the leading investor, developer and operator of port terminals and companies providing transit services in Latvia. It comprises several companies engaged in the provision of port terminal services, railway transportation of cargo, management of infrastructure and properties in the vicinity of the Port of Riga. The companies within the Riga Commercial Port LTD are important for ensuring the multifunctionality and the growth of the Port: Riga Central Terminal LTD is the biggest multifunctional stevedore company focused on handling of dry bulk cargo, general cargo and ro-ro cargoes. The terminal infrastructure, the cargo handling technologies and the modern equipment of the port allows the servicing of mini Capesize category vessels with the capacity of up to 85,000 tons. Riga Container Terminal LTD provides handling for containers, general cargo, heavy and large size cargo. The company specialises in the provision of Sea-Rail logistics solutions. Rīgas ostas elevators JSC - the only specialised terminal for handling and storing grain and grain products. Riga Fertilizer Terminal LTD - a new specialised terminal for transshipment and storage of fertilisers. Skonto Metals LTD - the biggest forwarder of dry bulk cargoes (coal) in Latvia. Riga Coal Terminal LTD - a new specialised coal terminal at the Port of Riga. Baltic Transit Service JSC - one of the biggest rail operators in Latvia. Riga Commercial Port LTD: The vision of the Riga Commercial Port LTD - to become the biggest independent transportation company in the Republic of Latvia. The mission of the Riga Commercial Port LTD is to maintain, develop and ensure the circulation of cargo on the scale of Eurasia by utilising the efficient and sustainable infrastructure at the Port of Riga with flexible and uniform inland and international transport solutions and services

15 STREK LTD personal attitude and professional work Naftimpeks LTD - high environmental standards STREK LTD is servicing Panamax type vessels, the volume of which has been increasing continuously at its berths. It is among the biggest stevedore companies at the Port of Riga in terms of the turnover of cargo. The volume of cargoes of this company exceeds 5 million tonnes per year. The growth and success of the company is based upon the personal attitude towards every customer ensured by its experienced manager and skilful experts as well as the direct contacts with partners - the owners of coal mines of Kuzneck basin in Russia and buyers in the Western countries which ensure the non-stop operation of the terminal. Naftimpeks LTD considers the safety of the transshipment operations of oil products as the most important principle upon which the operations are based; therefore attention is focused on the control of the quality of work, the monitoring of ground water and waste water and the control of the emissions in the air produced by polluting activities, education of staff and raising their awareness of the issues of the preservation and maintenance of the environment. The accessibility of the infrastructure that is compliant with modern requirements allows for the storage and transshipment of oil products of different kinds and volumes in technologically safe equipment, thus minimising the possible risk of leakage of oil products, and the arranged environment yields positive experiences for both the staff and visitors. Chairman of Board of Naftimpeks LTD Armands Sadauskis: High standards of security and environment - we have defined the viewpoint and attitude of the company towards the quality of transported cargo and the technical condition of the tankcars used for deliveries quite strictly. Director General of STREK LTD Mihail Ganev: The credit for the successful operation of the company should be given to the whole team, as it is ensured by the know-how of our staff and, of course, their loyalty to the employer

16 Baltic Container Terminal LTD the leader in the field of new technologies Riga Universal Terminal LTD a clear vision for future The specialised container terminal Baltic Container Terminal LTD (BCT) is a leader in the field of introducing innovative technologies at the Port of Riga and in the Baltic region as a whole. An innovative operating system of gates was developed by this company and introduced at the terminal. In 2012, with the assistance provided by the funds from the European Union, the BCT also introduced a computerised system for handling rail and sea cargo allowing full automation of the procedure of receipt and transfer of containers. The new integrated system has reduced the costs of business operations, increased the capacity and security of handling and complies with the requirements of the ISPS Security Code. Riga Universal Terminal LTD which handles container cargo, frozen food cargo, firewood, timber, wood chips and wood pellets and is the only company providing the service of a freezer storage at the Port is among the companies with the fastest growth rate. By studying and analysing the customers' wishes, introducing modern technologies, improving the organisation of work, as well as encouraging the education and motivation of its staff, the company ensures a high quality of services and is able to increase the volume of handled container, non-standard and frozen cargoes. Chairman of Board of Riga Universal Terminal LTD Jānis Kasalis: Our operational strategy attests that we can utilise the advantages of our industry and the possibilities provided by the Port of Riga. We are strictly following the tested principle: it is easier to overcome any stresses on the market and all the types of crisis if the risks are diversified and there is a clear strategy for development. B.L.B. Baltic Terminal JSC - safety and quality B.L.B. Baltic Terminal JSC is among the biggest stevedore companies of the Freeport of Riga and it is mainly engaged in the transshipment of oil products and chemicals. The company has achieved the top performance results in the area of liquid bulk cargo. The management of the company is aware that the company will only be able to continue and even expand its successful operations if it complies with the highest European safety standards. Taking care of the quality of the environment, the refurbishment of the terminal equipment and waste treatment facilities is carried out, measurements of the air quality are performed in order to determine the concentration of sulphur dioxide, nitrogen dioxide, benzene, toluene and other substances. Executive Director of Baltic Container Terminal LTD Aldis Zieds: Continuous introduction of new technologies ensures the implementation of the goal of our company the provision of efficient service to our customers. From a theoretical point of view, a berth, a crane and an area for storing cargo is required in order to be able to load containers; however, for this place to become a terminal one should add the planning of handling of cargo, technologies, electronics and all other details which can only be provided by a modern container terminal. B.L.B. Baltic Terminal JSC President Igors Sidorovs: Our company operates in compliance with the requirements of the ISPS code which attests the high safety standards and excludes the possibility of unauthorised access to vessels, port facilities and prohibited areas or even causing accidental damage to the infrastructure of the terminal

17 Riga Shipyard JSC - the biggest employer Riga Shipyard JSC is among the oldest and biggest shipyards in the Baltic Sea region providing services to customers from Scandinavia and Europe. The shipyard has built ice class tugboats for the needs of the Freeport of Riga, and it is also building coast guard ships for the Latvian Naval Forces. Riga Shipyard JSC is the biggest employer at the Port of Riga employing more than 3000 ship-building experts. Riga Shipyard JSC provides high quality, short terms for repair and building of ships at competitive prices and consistently follows the basic condition of the corporate policy - the satisfaction of the customers' requirements because the customers' interests are most important. GAMMA-A LTD - high quality products and international appreciation GAMMA-A LTD produces high quality canned products. Its range of products consists of 140 various types of canned products including smoked Baltic herring, sardines, mackerel, herring, sardinella, sprats pate, cod liver and Riga sprats which are especially famous. The company produces 6 million cans of fish products per month, and this production intensity is possible thanks to the operation of the in-house metal processing workshop which supplies the factory of canned fish and also offers other services of manufacturing of metal goods. Chairman of Board of GAMMA-A LTD Aivars Lejietis: We sell our products in 36 countries worldwide and we are always prepared to face new challenges. Our products which have received high appreciation on international fairs and trade exhibitions and which always receive gold medals are continuously opening up new sales markets for us. Systems Recycling LTD - a multimodal terminal The SYSTEMS group consists of the companies Systems Logistics LTD, Systems Recycling LTD, Systems Terminal LTD and Systems EKO LTD which perform the operations of the multimodal terminal - transshipment of cargo to railway cars and trucks, warehousing and storage of containers, as well as other port services. Chairman of Board of Systems Recycling LTD Ivars Vallis: Chairman of Board of Riga Shipyard JSC Vasilijs Melniks: We are proud that by our work we can contribute to the strengthening of the leading position of the Freeport of Riga in the Baltics. In the very near future, our work will be based upon the state-of-the-art technologies and electronics, therefore we are training experts for this work. These will be the top level professionals who will work with the most modern tools and manufacture products under the brand "Made in Latvia"

18 Port of Riga attractive to passengers and cruises The number of passengers served at the Freeport of Riga has increased more than 30 times during the past ten years. The success in attracting passenger and cruise ships was secured by the suitable infrastructure of the port, attractive pricing policy and active marketing strategy. The number of passengers has been increasing rapidly since 2006 when the "Tallink" ferry line started the regular passenger transportation on the Riga-Stockholm route. At present this company performs 90% of the passenger transportation at the Port of Riga. The number of passengers serviced by "Tallink" has been increasing annually since the beginning of its operation. More and bigger cruise ships are calling to the Port of Riga every year; they get moored in the very centre of the city from where it is just a short walk to the historic centre of the city - the Castle of Riga, the beautiful parks of the city and the Art Nouveau streets. People representing more than 100 nationalities who are passengers of cruise ships visit the Port of Riga and the city every year, most of them are Germans, Americans, Swedes and the Britons. This growth in the area of the passenger transportation has been possible thanks to the investments by the Freeport of Riga Authority in the infrastructure and the serious marketing work. The resolution on promoting the development of the passenger transportation at the Freeport of Riga by introducing discounts to cruise ships which was adopted in 2007 has also played a very important role. The promotion of the recognition of the Port of Riga and the city as an attractive destination on the cruise routes is also among the important tasks of the Freeport of Riga Authority. The membership in the international «Cruise Europe» organisation, the participation in the major industry conferences, trade fairs and exhibitions, individual work with cruise lines has helped to achieve considerable increase in the number of cruise passengers in Riga. It is not the Freeport of Riga Authority alone who is responsible for provision of good service to cruise ships and their passengers at the Port of Riga; their success also depends on the high quality and coordinated operations of all the players involved in this process. The Freeport of Riga Authority is responsible for the attraction of cruise ships and their safe arrival to the Port. Other players get involved afterwards, including private port terminals providing the reception of the ship and its passengers, tourism companies offering excursions, transport companies providing transport services, shipping agents, ship supplies companies, etc. The quality of service provided by all the companies will determine whether cruise ships and mainly passengers are satisfied and are willing to return again. In order to improve the quality of service and to make the Port of Riga even more attractive to customers, the Freeport of Riga Authority has initiated a project for the development of new berth for passenger vessels. Freeport of Riga Authority Head of Marketing Communications Division Kristiāna Esta: Cruise lines assumed the risk of not being understood when they first included Riga in their cruise offers. Due to the historical location of the passenger terminal of the Port, cruise ships need six hours to reach the berth and another six hours to reach the sea on their way back. In this situation, serious marketing work needed to be carried out for proving to cruise lines that the offer of Riga was worth the time and money spent. Now we can be satisfied that we have managed to find the right arguments and right focuses, which is attested to by the fact that we see cruise ships brining thousands of foreign tourists at the Port of Riga increasingly often

19 Licensed business operations at the Freeport of Riga Freeport of Riga Authority, Director of Legal Department Anita Valle: The long-term contracts on the lease of land and port berths are of particular importance for customers. They attest to the sustainable development of the Port and increase the trust by investors as well as their willingness to invest in the projects of the Freeport of Riga. We see our task as the creation of the conditions which ensure that the customer does not have the least doubt about the Port of Riga being its best cooperation partner. Freeport of Riga offers an environment favourable to investment The Freeport of Riga is open to investments in all kinds of business operations - including the companies engaged in transshipment, storage and handling of cargo, as well as the establishment of production companies. Business activities related to sea transportation enjoy special encouragement - these are stevedore services, warehouses, logistics and distribution centres, as well as manufacturing where ready products and/or raw materials are received or sent by sea. The Freeport of Riga Authority promotes the development of new business and investment projects at the Port by creating a stable and predictable environment, supporting private businesses, developing the public infrastructure of the Port and taking care of the security of the Port. Business and investment opportunities: At the Freeport of Riga there are free available territories with the total area of 445 ha and these are offered to investors for implementing the most diverse projects. Moreover, investments in the existing terminals of the Port are possible. Entrepreneurs can plan their business operations long-term because the land at the Port may be leased for a term of up to 45 years with more favourable conditions. The lease payment for the land is linked to the cadastral value of the land and amounts to just 1.5% - 5% of this value per year. The minimum lease payment for the land is set for the companies that attract outgoing or incoming sea cargo, thus contributing to the turnover of cargo at the Port. As the terms of the lease of land and the payment rates are not subject to change, the business environment is stable and predictable. The possibility of benefitting from considerable tax relief if the company engages in licensed business activities without free zone regime or in licensed business activities in the free zone regime, presents one of the most important features of the business climate of the Freeport of Riga to investors. The free zone regime is beneficial to companies engaged in the transit of cargo. The status of licensed business activities serves as the basis for benefiting from the reliefs of direct and indirect taxes based upon the Law on «Application of Taxes in Free Ports and Special Economic Zones». Income tax 80% Property tax % The total amount of the relief of direct taxes may reach 50% of the amount of the investment implemented in the vicinity of the Port ENTERPRISE Registered with the Commercial Register of the Republic of Latvia APPLICATION The application and required documents for submission to the Freeport of Riga Authority for receiving the authorisation for licensed business operation at the Freeport of Riga (see the list at LICENSED BUSINESS OPERATIONS IN THE FREE ZONE REGIME STATEMENT Statement in the application that the company would like to engage in licensed business operations under the free zone regime REFERENCE A reference issued by the Customs Board of the State Revenue Service on the compliance of the company premises for the introduction of the free zone regime. RESOLUTION Resolution of the Board of the Freeport of Riga Authority based upon the submitted business plan and the evaluation of the company according to the uniform methodology CONTRACT A signed contract with the Freeport of Riga Authority on the performance of licensed business operations at the Freeport of Riga. AUTHORISATION The authorisation issued by the Freeport of Riga Authority for the performance of licensed business operations under the free zone regime for a period of 5 years INVESTMENT Implemented investment in compliance with the business plan submitted to and approved by the Freeport of Riga Authority RELIEF OF DIRECT TAXES RELIEF OF INDIRECT TAXES VAT 100% Customs duty 100% Excise tax 100% Natural resources tax (if compliance with the criteria is ensured) LICENSED BUSINESS OPERATIONS WITHOUT THE FREE ZONE REGIME RESOLUTION Resolution of the Board of the Freeport of Riga Authority based upon the submitted business plan and the evaluation of the company according to the uniform methodology CONTRACT A signed contract with the Freeport of Riga Authority on the performance of licensed business operations at the Freeport of Riga. AUTHORISATION The authorisation issued by the Freeport of Riga Authority for the performance of licensed business operations without applying the free zone regime for a period of 5 years INVESTMENT Implemented investment in compliance with the business plan submitted to and approved by the Freeport of Riga Authority RELIEF OF DIRECT TAXES Income tax 80% Property tax % The total amount of the reliefs of direct taxes may reach 50% of the amount of the investment implemented in the territory of the Port 34 35

20 PRIORITY INVESTMENT PROJECTS OF THE FREEPORT OF RIGA AUTHORITY FOR ENSURING FURTHER DEVELOPMENT OF THE PORT Reconstruction of the fairway with a depth of up to 17 m. Construction of multifunctional terminals for bulk cargo at Krievu Island Upgrading of the railway network of the Port and construction of a new railway bridge Port is preparing to face new challenges The rapid development of the Port of Riga is based upon its multifunctionality and the ability to respond to changes on the markets of destination and origin of cargo in a flexible manner. Moreover, the future plans of the port are based upon the maintenance of its multifunctionality. The dynamic development of the market and the increasing competition of ports in the Eastern region of the Baltic Sea forces us to look for possibilities in attracting new types of cargo to the Port of Riga Reconstruction of the fairway The deepening of the Port has a decisive impact upon its further development and the maintenance of the competition of the Port. The global trends in the business of transportation of cargoes require the use of increasingly big vessels in order to ensure that transportation of cargoes is becoming faster and more efficient. Therefore, the Port has to be prepared for accepting bigger vessels. The EU co-funding will be attracted while maintaining the existing groups of cargo. The investment portfolio of the new projects of the Port is made up by the investment of the Port Authority and private investment. Both the investments by the Port Authority in the public infrastructure and the investment by the companies of the Port have a common goal - adaptation to the development of the market and the customers' requirements. to the project of reconstruction of the fairway of the Port, and the total costs will amount to approximately 100 million. Following the reconstruction, the Panamax type vessels with the draft of up to 15 m will be able to call to the Port of Riga securely. The implementation of this project will ensure that the Port of Riga will be able to serve any vessel that can navigate in the Baltic Sea. Development of infrastructure at Krievu Island for the transfer of the port operations from the city centre According to the project the port operations should be transferred from the city centre to the vicinity of Krievu Island which is closer to the estuary of the Daugava. The implementation of the project will be mutually beneficial for both the city, as it will remove industrial operations from the city centre, and for the Port, as it will allow performance of transshipment of cargo faster and servicing of bigger vessels at more modern deep water berths. The project of construction of multifunctional terminals for dry bulk cargo at Krievu Island is the biggest project of this type in the Baltic countries. The project provides The goal of the development of the railway network of the Port of Riga is to provide the required railway infrastructure within the territory of the Port to the increasing flow of cargo. Considerable investments by the Port Authority are directed towards the upgrading of the existing railways and the construction of new railways. A new railway bridge is also being for the construction of new berths with the total length of 1180 m and the depth up to 17 metres. The project is funded by the Cohesion Fund of the European Union and the resources of the Freeport of Riga Authority. Within the framework of the project the Freeport of Riga Authority will construct port infrastructure in the vicinity of Krievu Island - berths, access roads and railways will be constructed, water supply, sewage and telecommunication networks will be installed. Private companies will build and equip terminals for handling of cargo with a planned total capacity of 22 million tonnes per year. Development of the railway infrastructure of the Port constructed for ensuring service to the capacities of the new terminals at Kundzinsala Island. The development plans of the State JSC Latvijas Dzelzceļš (Latvian Railway) company also provide for the reconstruction of stations of Riga railway network and the connecting railways to the rest of the Latvian railway network with the intention to serve the Freeport of Riga. Freeport of Riga Authority Director of Environment and Development Department Inita Luna: The goal of the Freeport of Riga Authority is to develop the Port to secure it is prepared to face new market challenges and customers' demands without causing harm to the environment and the quality of life of residents of the city at the same time. The new projects of the Port will enhance the capacity of the transshipment of cargo, the navigation safety and the quality of handling of cargo of the Port of Riga. At the same time, the transportation will be balanced across both banks of the Daugava, the transportation of cargo close to the centre of Riga will be minimised and the new terminals equipped with modern technologies will contribute to the improvement of the environment quality

21 Freeport of Riga Authority elaborates sustainable development strategy of the Port Functions The Freeport of Riga Authority administers the operations of the Port in compliance with the principles of good management, in a professional and modern manner. The Authority is not involved in cargo handling operations, instead it is responsible for the leasing of the land and infrastructure of the Port to private companies, maintenance of the public infrastructure and the port security. This "landlord" model of the port management complies with the principle of operation of most European ports and attests that the management of the Port of Riga complies with the general trend in Europe. STRUCTURE OF OWNERSHIP OF THE LAND OF THE TERRITORY OF THE PORT State-owned 40.7 % OPERATION OF THE FREEPORT OF RIGA AUTHORITY IS REGULATED BY: «Law on Ports» of the Republic of Latvia (1994) «Law on the Freeport of Riga» (2000) Law on «Application of Taxes in Free Ports and Special Economic Zones» (2002) Regulations of the Freeport of Riga Authority (2012) The Port of Riga was founded as a legal entity in 1992 following the restoration of the independence of Latvia. At the present moment, the legal status and the operational principles of the Freeport of Riga is defined by several regulatory enactments. The Board of the Freeport of Riga is the highest decision-making body of the Port; there are eight Board members of whom four are officials of the local government and four are representatives of the Ministry of Economics, Ministry of Finance, Ministry of Transport and Ministry of Environmental Protection and Regional Development appointed by the Cabinet of Ministers. Implementation of the Board resolutions is ensured by the executive body, OUR VISION i.e., the Freeport of Riga Authority managed by Chief Executive Officer. This management model ensures that the interests of both the state and the local government are complied with in the course of development of the strategy of the port and organising the operative activities of the Port. The Freeport of Riga Authority does not receive any funding from the state or the municipal budget. The operations of the Authority are funded by the port fees and charges paid by the vessels which are serviced at the Port of Riga and the lease payments for the land and berths paid by the companies operating at the Port. The Port Authority may use the financial resources at its disposal exclusively for the management and development of the Port and its infrastructure. We want the Freeport of Riga to be our customer s port of choice because they value our safe, efficient and competitively priced services. We aim to build on our success as a multifunctional port which fully exploits the advantages of a Freeport status and demonstrates sustainable economic growth. Our vision is a socially and environmentally responsible port which is adaptable and able to respond to global trends and the changing needs of customers. We see the Port actively engaging in and supporting the local community and growing in line with sustainable development criteria. FUNCTIONS OF THE PORT AUTHORITY: lease of the land and infrastructure provided under the possession of the Port (landlord function), ensurance of navigation safety, maintenance of the fairway and hydrotechnical structures, enforcement of the Port regulations, levy of port fees and charges, issue of permits for licensed business operations at the territory of the Port, implementation and control of the ISPS Code. Quality management The Quality Management System of the Freeport of Riga Authority was certified according to ISO 9001 in 1999 and the Environment Management System was certified according to ISO in This attests to the compliance with the principles of good management, the efficiency of operations and the responsibility towards the customer. In order to improve the quality of Investments In the course of implementing the strategic goals of the development of the Port, the Freeport of Riga Authority has directed the biggest investment to services provided by the Port of Riga, the Port Authority has set the goal in order to encourage the implementation of the ISO Quality Management Systems in Port companies as well. Quite a few companies of the Port of Riga operate ISO Quality Management Systems increasing the trust by customers to an individual company and the Port as a whole. the deepening of the fairway, reconstruction of the railways at the Port, construction of new berths and maintenance of hydrotechnical structures. Unregistered 28.4 % owned by natural and legal entities 7.8%, owned by Riga City Council 23.0 % owned by the Freeport of Riga Authority 0.1% The land belonging to the Port which has been transferred under the possession of the Freeport of Riga Authority is owned by the state and the municipality. INVESTMENTS BY THE FREEPORT OF RIGA AUTHORITY ( ) Million EUR Deepening of the fairway 44 Reconstruction of railways 21 Hydrotechnical constructions 12 New berths 11 New buildings, constructions 9 Other investments 7 Reconstruction of roads 3 Total

22 Social responsibility Freeport of Riga Authority, Director of Public Relations Department Anita Leiškalne: We can be satisfied with the dialogue with the public within the project "City & Port Integration". The Port Authority is organising awareness raising events in order to ensure that residents of the city know what is taking place at the Port, how and why. The Port Authority, in turn, learns about the worries of residents who live close to the Port. We have learned that communications with people can be ensured best via the associations of residents. The Port of Riga Authority has established good cooperation with the Vecmilgravis Development Association and we hope that this positive example will be followed also by residents of other districts close to the Port. Coexistence of the Port and the people is increasingly being based on mutual understanding and dialogue. When every resident of Riga is proud of living in the city with such a big, modern and environmentally friendly port,we can be satisfied that our work has been fruitful. The Freeport of Riga Authority is aware that a large industrial site as a port has considerable impact upon the quality of the environment and the lives of people, as well as causing additional burdens on the city infrastructure. Therefore, the social responsibility measures of the Freeport of Riga are focused mostly on the minimisation of the environment and social risks caused by the intense activity of the Port. The social activities of the Freeport of Riga Authority follow three major directions: improvement of the quality of the environment, encouragement of the cooperation between the residents of the city and the Port, support to maritime education and the promotion of the seafaring profession. Environmental protection The operations of the Freeport of Riga Authority in the field of the environment quality was certified according to ISO environment management system in Within the framework of this system, the Freeport of Riga Authority performs regular monitoring measures of the air, soil and groundwater, above the ground water and the population of the water birds in the vicinity of the Port. The operations of the companies at the port are supervised in compliance with the competence of the Authority, the territory is surveyed and the terminal of dangerous cargo is controlled on regular basis. The use of environmentally friendly technologies, as well as the upgrading of the equipment for preventing and elimination of pollution at the port terminals is encouraged. The official duties of the Port Police which was established in 2011 include the control over the protection of the territory of the Port against pollution and the monitoring of the elimination of consequences caused by pollution in the vicinity of the Port. Besides the implementation of continuous measures for the control, preservation and improvement of the environment, the Freeport of Riga Authority also invests in large-scale environment projects: a railway noise abatement panel wall was built at the residential district of Daugavgriva in 2005, the waste water treatment plant of the Port was reconstructed in 2008 and the recovery of the polluted locations at Sarkandaugava is being implemented using the financial support by the government of Switzerland. The high standards of preservation of the environment and the green thinking of the Freeport of Riga Authority are attested also by the involvement in the initiative "Green Award Foundation" by offering lower port fees to the vessels certified by this Foundation, the annual support to the, the bird observation tower opened at the Milestibas Island and the vacuum solar collectors installed on the roof of the building of the Freeport of Riga Authority. In the result, the Freeport of Riga is among the greenest ports in Europe where modern port terminals, handling of dangerous cargo and large scale development projects of the Port are good neighbours with birds' nesting places, rare species of plants, the Seaside Nature Reserve, the beach of the Gulf of Riga, architectural monuments of national importance and "Natura 2000" areas. Cooperation between the residents of the city and the Port The support for the operation of the Port by the city and its residents is among the preconditions for successful development of the Port. Therefore, provision of information to the residents of the city, in particular, the people who live in the area of the port and nearby, on the activities of the Port, its plans for future, new projects and their impact upon the welfare of the residents of the city is among the social responsibility tasks of the Freeport of Riga Authority. The Port Authority aims to assure that a successfully operating port benefits not only the Port itself and its businesses and these benefits are gained also by the national economy, municipality and every resident of the city. Good circulation of information, transparent decision-making process and active dialogue allows us to find solutions to any problems experienced by residents in the result of the operation of the Port. Cooperation with the residents of the city is also encouraged by various educational and entertaining activities - the embankment festival, events for children, regular schoolchildren's field trips to the Vessel Traffic Control Centre. Also bigger projects are implemented in the areas close to the Port in order to improve the well-being of people, like construction of children's playgrounds, improvement of the beach, installation of the noise abatement panels along the railway, etc. The Port Festival which has become a tradition by now and is an event during which the Freeport of Riga Authority speaks to all the residents of Riga and its guests. This is an annual festival that takes place in August at the same time as the Riga Festival. Every year the residents and guests of Riga can enjoy various concerts, a festival of street music, canal regatta and a basketball tournament Competition between the river banks lasting for 24 hours during this festival. The merging of the energies provided by the daily heartbeat of the business of the Port and the city create a very special synergy of Riga which cannot be described in words and which fascinates both the residents of the city and its numerous multinational guests. Support for maritime education and promotion of the seafarer's profession Maintenance of traditions, national heritage and support for maritime education confirms that the Port is open not only for business activities, but also willing to contribute to the creation of permanent human values. The Port Authority honours the maritime history by promoting the operation of maritime museums, publications of historical maritime studies and production of TV broadcasts. Thinking about the training of young experts, the Port Authority provides support to maritime education in Latvia. Various projects with the Latvian Maritime Academy and Liepaja Maritime College as well as the youth competition Enkurs (Anchor) are being supported. In cooperation with the port professionals and representatives of the academic circles, the Freeport of Riga Authority has founded the "Bank of Ideas for the Port's Development" within the framework of which creative project contests are held in economics, transport and logistics, engineering and maritime sectors

23 Freeport of Riga Authority, Director of International Relations and Administrative Department Irina Gorbatikova: The Freeport of Riga Authority stays actively involved in international organizations in order to participate in the elaboration of sustainable policy of ports thus ensuring that the discussion of issues essential for port business takes place on a professional level and receives expert recognition before they are reviewed by the European Commission or the International Maritime Organisation (IMO). It is our aim to promote operative circulation of professional information and to ensure that the interests of the Port of Riga are taken into account. International cooperation Membership of international maritime and port organisations provides an opportunity for broader international activities and cooperation agreements with Santander, Rijeka, Le Havre, Casablanca and Santos ports helps to create new trade links, to develop the business and to secure the information exchange. THE FREEPORT OF RIGA AUTHORITY IS AN ACTIVE MEMBER OF INTERNATIONAL ORGANISATIONS: International Association of Ports and Harbors (IAPH) International Association of Cities and Ports (IACP) International Harbour Masters Association (IAPH) International Federation of Hydrographic Societies (IFHS) European Sea Ports Organisation (ESPO) Cruise Europe (CE) European Port Community Systems Association (EPC SA) Baltic Ports Organisation (BPO) 42 43

24 History of the Port of Riga XIII CENTURY XVI CENTURY Year 1201 is deemed to be the year of the official foundation of Riga and Bishop Albert is deemed to have been its founder. In the 13th century, the Town Council of the City signed agreements on the mutual trade and exchange of goods with Eastern principalities and Hanseatic towns, thus becoming an important international port of the period and a member of the Hanseatic League. The Livonian War between the Union of Lithuania and Poland, Sweden and Russia broke out in 1558 and the Port of Riga was destined to become the prize for the winner. These were hectic times for the city under the siege of hostile forces. The victory of the Poles in 1581 put an end to this. 391 sailing vessels called at the Port of Riga in However, the Polish rule decreased the competitiveness of the port due to the high taxes. XIV CENTURY XVII CENTURY Riga was under the rule of the Livonian Order. The power of the Hanseatic League was consolidated and the Baltic Sea used to be referred to as the Hanseatic Lake. The principal port of Riga was XV CENTURY This is the beginning of the era of large scale sea transportation. The demand for grain and timber increased manifold. Spars presented the most valuable commodity for export. The Port of Riga had moved to the Daugava, leaving the source of located at the mouth of the River Ridzene, at the Lake of Riga, and it was used for exporting mainly wax, flax, hemp, timber and fur. the River Ridzene for berths for small sailboats and for the wintering of ships. Salt, herring, cloth, metal products and colonial goods topped the list of commodities imported by Riga. The Polish-Swedish war broke out in 1600 and was an attempt to gain influence over the the Baltic Sea. Frequent attacks by Swedish blocked the Port and restricted trade. Finally, Swedish succeeded at breaking the resistance of the residents of Riga in the decisive fight over Riga in On average XVIII CENTURY 300 sailing ships called at the Port of Riga every year. The flow of goods from the East increased; however, due to high customs duties a certain portion of cargo was transferred to the ports of Kurzeme and Prussia. The Russian Tsar Peter I declared war on Sweden in The key to the city of Riga was gained by Count Sheremetyev in Targeted engineering works were carried out during the 18th century aimed at adjusting the river bed of the Daugava. The deepening of the river and the protection of the city against the spring flood presented the main reasons for initiating the construction of dams. The first lighthouse was constructed at Daugavgriva in 1788, which replaced a bonfire on a log-tower. The first school of navigation was founded. The principal port of Riga was located at the mouth of the River Ridzene, at the Lake of Riga in the XIV century, and it was used for exporting mainly wax, flax, hemp, timber and fur

25 XIX CENTURY XXI CENTURY At the turn of the century the navigation at the Port of Riga got risky due to the silting of the fairway. The external trade of the city was fully dependent on dredging. The funding for this was provided mainly by the merchants or the Committee of Riga Stock Exchange and the state-of-the-art engineering ideas as well as technologies of the period were applied. The first steamer Oscar called at the Port of Riga in The construction of the Eastern pier started in 1850; the Western pier was constructed during the period from 1881 to 1885, and the Sea Gate of Riga gained its present XX CENTURY In the beginning of the 20th century Riga was the biggest Russian port for exporting timber and ranked the third biggest port in the Tsarist Russia as to the total volume of external trade. In order to increase the capacity of the port, in 1901 the government of Russia decided to build the Eksportosta. The first freezer was opened at Andrejsala in 1902 and the Riga Freight Station was put in operation a year later. The first power plant in the city began operations at Andrejosta in In 1914, shortly before the First World War the second railway bridge across the Daugava was opened. The evacuation of the factories, ships and port equipment of Riga to Russia was started in The Republic of Latvia was proclaimed in 1918, and the first ship hoisted the red-white-red of Latvia on Christmas Eve that year. The Peace Treaty between Latvia and Russia was signed in 1920 and the restoration of look. The telegraph line Riga-Bolderaja was started in A gas-operated lighthouse was lit on the Eastern pier and the railway line Riga-Daugavpils was started in 1861, the railway line Riga-Tsaricina and the railway bridge across the Daugava was opened in Thus, the links between Riga and Russian markets and sources of raw materials were established. The Port of Riga bought its first icebreaker in An elevator and a railway access to it was opened at Andrejosta in The extended borders of the Port were approved on the 31st May the economic operations started. The icebreaker Krisjanis Valdemars was put in operation in Great Britain and Germany were the main trading partners of Latvia at that time. The Soviet regime was proclaimed in Latvia in The Second World War broke out in 1941and suspended the logical development of the Port of Riga for the long period of the Soviet rule. One of the biggest container terminals in the USSR was built at Kundzinsala, a berth and infrastructure for exporting liquid gas was constructed, the Riga Passenger Terminal and Zvejas osta at Rinuzi was commissioned during Soviet times in the beginning of the 1980-ies. On 4 May 1990, the Supreme Council of Latvia adopted the Declaration of Independence and a new page of development was started in the history of the Port of Riga. There are short-term, stable and permanent values. Centuries replace one another. Every new century brings something new, puts forward its requirements and sets its rules. As well, crises come and go. Everything is subject to change, except for one thing which is maintained as a constant value - Man. "I did not come to work as the CEO of the Port to please everybody, I came here to work," says the CEO of the Freeport of Riga. "One s work is my measure of the worth of one's life," says the Master of the Freeport of Riga. "The Port of Riga - this is my life," says the manager of a company operating at the Port. "It is very important for me that I do my job as it should be done," says a worker at the Port. Everything is calm at the Port. The everyday rhythm of ongoing work. The city is asleep and is not even aware of the fact that work never stops at the Port because cargo needs to be loaded or unloaded in a fast and safe manner at a high level of quality. These are the specifics of the work at the Port and it is appreciated by customers. The growth in the volume of cargo at the Port of Riga continues year by year, new technologies are introduced and environmentally friendly projects are implemented. The Port of Riga is developing new contacts with owners and buyers of cargoes. Everything possible is being done to ensuring that the Port of Riga becomes the transportation logistics centre in the Eastern Coast region of the Baltic Sea. Work at the Port of Riga continues

26 Contribution to the economy of Latvia by Freeport of Riga The Port of Riga is open for cooperation More than 100 companies operate at the Freeport of Riga based upon contracts on the lease of land. The companies of the Freeport of Riga jointly with the Freeport of Riga Authority provide approximately 5000 permanent jobs. Based upon a contract with the Freeport of Riga Authority, services at the Port of Riga are provided by approximately 100 companies. A tonne of transshipped cargo at the Port of Riga provides an average revenue of EUR 2.4 to the companies involved in the chain of handling and transportation of cargo. By transshipping 36 million tonnes per year, the port operations create a surplus value amounting to more than EUR 86 million per year within the chain of handling and transportation of cargo. One tonne of transshipped cargo at the Port of Riga secures revenues of EUR 1.65 to the state budget from the operation of the companies involved in the operation of the port and transportation of cargo. By transshipping 36 million tonnes per year, more than EUR 59 million are transferred to the state budget. A tonne Riga of is transshipped the Metropolis cargo of the at Baltics the Port and of the Riga Capital secures of Latvia. the revenues Riga of the EUR 0.88 to the budgets of municipalities biggest port from in the Latvia operation is the gate, of the road companies and window involved to the in World. the operation of the port and transportation of cargo. By transshipping 36 million tonnes per year, more than EUR 31 million are transferred to the municipal Port of Riga budgets. is open to everyone who comes with positive thoughts, constructive proposals and a desire to cooperate. The tax payments made by the companies at the Freeport of Riga and the Freeport of Riga itself to the central Vessels budget have and been the municipal calling at budgets Riga for exceed centuries. EUR Riga 45 million has always per been year. a special place with something to offer for everyone s taste. Railway cargoes which are forwarded to the Port of Riga and received from the Port account for ~50% of the turnover of cargo for State JSC Latvijas Dzelzceļš (Latvian Railway). Freeport of Riga Authority Kalpaka boulevard 12, Riga, LV-1010, Latvia Ph Fax: info@rop.lv