TALLINN - Higher transit tariffs introduced by Latvijas Dzelzcels (Latvian Railway) from the start of the year have made middlemen in the transit of Belarus oil products opt for the Ventspils port over Tallinn.
The daily Postimees reported that Ain Kaljurand, board chairman of Port of Tallinn, said the situation was worrying because the shipment of oil products from Latvia had almost come to a halt. "It's a very serious blow for us because we used to get more than 10 percent of our oil transit via Latvia, mostly oil products from Belarus," he said.
Products of Lithuania's Mazeikiai refinery sold in Estonia also arrive via Latvia, and the increase in rail tariffs certainly is having an effect on their price, Kaljurand added.
He said the Latvians had cleverly made use of their position to favor their own ports. "This is a vivid example of how the struggle for market is going on here," he said.
The Latvian step has not had a significant impact on the general cargo volumes at Port of Tallinn, though. In January the port company posted a 21 percent increase in cargoes over January 2005, with cargoes during the month totaling 3.5 million tons according to tentative figures.
"Alternative channels have to be sought for Belarus oil," Kaljurand said. "One of the options is to bring oil here via Russia. That requires a special agreement with Russia, and I hope that such an agreement will come to light."
Transit goods shipped to the Port of Tallinn through Latvia in 2005 amounted to 3.2 million tons. In all, 39.5 million tons of cargos passed through the port during the year, including transit cargos in the amount of 33.5 million tons.
The Port of Tallinn is the largest port in the Baltics in terms of cargo handled, while Ventspils is the second largest.
