Magnat Group to invest 50 million euros in Riga Port

  • 2006-09-27
  • Staff and wire reports
RIGA - The Latvian maritime shipping company, Magnat Group, is ready to invest 50 million euros in a multi-functional development at the Riga Free Port over the next five year period, announced a representative of Colliers International, the project's advisor, on Sept. 22.

"Thanks to the convenient geographical location and potential of Riga Free Port, the Veja Roze (Rose of the wind) project will enable Riga to compete with other Scandinavian and West European port cities such as Helsinki, Stockholm, Hamburg," said Mihails Morozovs, Colliers International's chief partner in the Baltic states.

According to the plan, project Veju Roze will be developed in several phases. A new wharf has already been constructed as part of the project in the Port Milgravis territory. The wharf is 154 meters long and 7.5 meters deep. Later its depth will be increased to 10.5 meters. It is planned that ships with up to 10,000 tons freight capacity will be able to dock at the wharf.
A 1,200 square meter office complex is due to be completed by the beginning of November, and the company hopes to start building the Magnat Business Center, the Riga Free Port's first office center, by this December. The total size of the business center is planed at 4,000 square meters, and construction should be completed by July 2007.

The project foresees open and closed storage facilities, a technology park, a logistics center, as well as communications, and heating and energy supply facilities at Port Milgravis. A similar complex of buildings is also planned for Port Magnat. Both ports' storehouses and production premises will be renovated, and trade and sports complexes will be built at Port Milgravis.
Magnat Group board chairman Aleksandrs Osipkovs explained during the conference that the project was aimed not only at attracting transit cargo, but other large companies that might develop their operations in Latvia due to the capacity of Veju Roze's storehouses and ports.

Magnat Group is currently handling timber, scrap metal, woodchip, metal and other cargo. According to the data provided by the Latvian business register, Magnat Group is owned by two private individuals from Latvia and has a share capital of 1.11 million lats (1.6 million euros). Last year, the company posted 572,800 lats in profit with a consolidated net turnover of 2.668 million lats.