RIGA - A consortium of investor led by Norwegian company EBO is investing 400 million euros in a massive new business park near the Riga Airport.
As The Baltic Times went to press on Sept. 24, construction workers were preparing to lay the foundation stone for the business park. The immense park, named Rixpark after the airport's IATA code, is not due to be fully completed until 2020.
"Business parks next to airports are growing rapidly across Europe, and Latvia's case is special thanks to the ideal synergy of location and business culture. We are investing, because we believe in the development of Latvia and the airport," Rixport Managing Director Petter Lundeby was quoted by the Baltic News Service as saying.
A slew of different companies have already taken a hand in the project. Norway's EBO Invest is to provide funding for the Rixport project, which is developed by EBO subsidiary "Rixport." The project's partners include Riga Airport, Inspiration Riga and Norway's Griff Arkitektur.
DnB Nord Banka provided initial funding for launching the project. Arhiidea drew the construction plan, while NCC builders are carrying out construction works.
BNS reported that the business park will be composed primarily of office buildings and will also house a number of prestigious hotel chains.
The business park will also include parking facilities, a green area, and various services, entertainment and retail outlets. The area will also become host to a large new conference and exhibition center, and there are plans to eventually build an aviation museum.
According to the data from the Latvian business register, Rixport 's established in March 2006 's has a share capital of 1.406 million lats (2 million euros) and is owned by several major Norwegian companies.
Riga is the largest airport in the Baltic states by passenger numbers and a fully state-owned company.
Last year, Riga Airport served 3.161 million passengers, up 26.7 percent from 2006. The company generated 20.8 million lats (29.58 million euros) in sales in 2007 's up 27.9 percent year-on-year 's and earned 2.8 million lats in un-audited profit, growing threefold over the course of the year.
NATIONAL IMPERATIVE
The start of construction on the new business park came just weeks after Transport Minister Ainars Slesers said business surrounding the airport represents Latvia's best hope of escaping the current economic crisis.
"The aviation industry will be Latvia's chance," the minister told journalists after a Sept. 9 aviation conference.
"Riga airport will surely be like Latvia's Nokia 's a mechanism to create new business, and attract passengers and customers to Latvia's market. The more direct routes are open, the sooner Riga will strengthen its positions as an international flight center, international business and tourism center," he said.
Rixport director Ilmars Samsonovs agreed with the minister, saying that the new business park and increased turnover would result in "more income" for the country.
"The country and the city will receive more income both in terms of taxes and economic activity," he said.
Slesers also expressed high expectations for the future development of the airport.
"We have ambitious plans. Next year, when there is crisis in Europe, we plan to reach the highest increase in turnover of passengers. We will reach 5 million passengers next year, and this year we will serve about 4 million people," he said.
