Strategically placed for trade with Europe
INFRASTRUCTURE THANKS TO THE MODERNIZATION OF VENTSPILS, LATVIA HAS TAKEN ADVANTAGE OF ITS POSITION AND NOW PROVIDES A SHORT TRANSIT ROUTE FOR OIL AND OIL PRODUCTS FROM RUSSIA TO EUROPEAN MARKETS

VENTSPILS has transformed in the last 10 years to become a modern, progressive city. The city council is working to provide added value for transit passing through

Latvia has adeptly exploited its strategic geographic location with the development of a strong transit infrastructure. Transit now accounts for nearly 20% of Latvia's GDP and the country is the regional leader in terms of cargo transit turnover. The country's oil transit corridor is comprised of pipelines, railway networks, oil and oil product transshipment terminals and ports. The volume of transit cargo through Latvian ports is greater than the combined volumes of the Baltic ports of Lithuania, Estonia, Finland and Russia. Additionally Latvia's three major ports, all of which have free port status, are ice-free throughout the year. The port of Ventspils is the largest in the Baltic region and the route through Ventspils is one of the shortest transit routes from Russia to European markets. Because of its geographic location, climatic conditions, and well-equipped facilities, Ventspils is the most universal transshipment point for oil and oil products in the Baltic. The total volume of transshipped cargoes in 2001 was 37.9 million tons, of which 15 million tons were crude oil and 13.7 million tons oil products.

IGORS SKOKS President of Ventspils Nafta: capacity has increased thanks to state-of-the-art equipment

The largest transshipment terminal of crude oil and petroleum in the port of Ventspils is the joint-stock company Ventspils Nafta, which has been operating in the Baltic region since 1961. The company's main activities include the receipt and transport of crude oil and petroleum products by pipeline and railway, the loading and dispatching of crude oil and oil products by ship, and the receipt and dispatch of gasoline. Ventspils Nafta also has a controlling interest in the group that operates Latvia's oil transit corridor, including part ownership of Latvia's oil and petroleum product pipelines. Ventspils Nafta President Igors Skoks says that the terminal's facilities and those of the port are state-of-the-art. He explains, "We have fully reconstructed the company, updating and modernizing our equipment, and in the last few years, we have increased our capacity significantly. Five years ago the total volume was about 4277 barrels of total output. Now it is 1.2 million and we have possibilities for a further increase in the future if needed. Also, together with the port authority, we have invested in deepening the port's shelf bottom so it accommodates not only smaller ships, but also large ones that are going on north."

AIVARS LEMBERGS Chairman of Ventspils City Council and Ventspils Free Port

Aivars Lembergs is chairman of both Ventspils City Council and Ventspils Free Port. He comments on the transformation of Ventspils over the last 10 years, which has gone from being a polluted industrial town to a clean, modern and progressive city. "10 years ago, Ventspils was in a very difficult position but radical changes have taken place; mainly as a result of retraining our people," he explains. "At the time, we looked at each sector separately and selected the leading country in the world for that respective sector. We then established contacts with that particular country's institutions to ask for training support. We certainly acquired the best education. All of this training provided us with opportunities and another chance at investing the resources at our disposal in the right way. As a result, we have steadily moved upwards in our development." Mr. Lembergs says that Latvia needs large-scale investment projects now in value-added production. He explains, "Basically the transit going through Ventspils needs to have added value; the idea being to import raw materials, process them here, and then export them–somehow improving on the goods while they are here. We are currently working on several projects."