No While Latvian officials are trying to demonstrate that they are not interested in cooperation with Russia, the facts suggest the opposite.
Against the background of how transit from Russia decreased, the Latvian ports were forced to desperately fight for the rest of the cargo flow. Thus, the Ventspils port reduced transshipment by 41%, the port of Riga – by 25.2%, the port of Liepaja – by 22.7%.
The representative of the Liepaja Special Economic Zone, Uldis Khmielevskis, said that the port had to attract new cargo due to a “slight drop” from January to April 2020. He attributed this to a reduction in anthracite transshipment. In addition, the Liepaja Bulk Terminal, a grain transshipment company, handled 4.8% less cargo in the first four months of this year than a year earlier.
The terminal encountered problems after Russia introduced quotas for grain export, explains Yury Matveev, board member of the Liepaja Bulk Terminal. Liepaja port expects to retain the transshipment of Russian grain, because the necessary infrastructure has been built here for this. However, competition with other ports is increasing.
“We are much more interested in transit cargo from Russia, because there is serious competition in Latvia”, – Matveev says.
He also said that about ten terminals were engaged in grain in Riga, in their place in Liepaja – only three. Riga had more opportunities, it was geographically closer to any point, and those 200 kilometers to Liepaja were also reflected in the price. Of course, it was not easy for them to maintain their positions.
The situation is exacerbated by the crisis of the Latvian railway, where since last year there has been a shortage of cargo transportation. Because of this, the operator reduces staff and reduces financial investments. The consequence of this may be a change in tariffs or conditions, Matveyev continues.