RIGA - Riga's vice mayor Ainars Slesers (Latvia's First Party/Latvia's Way) says investment of up to several hundred million lats will be invested in the Freeport of Riga over the next few years, reports news agency LETA. Slesers, who is also the port's board chairman, estimates that the port's turnover volumes will increase from the present 30 million tons to 50 million tons a year within four years' time. To reach this target, money will be invested by the state, with the help of the European Union's structural funds, along with investment by the private sector.
Slesers said that he is "perplexed why development of ports has not been set as a priority in Latvia." In a simplified view the development prospects, he expects that "The state will exit the [economic] crisis if the ports are given priority. This is one of the businesses that continue successful development at this time, and money must be invested in ports to promote their development." The vice mayor also said that ports do not receive enough co-financing from the state for utilization of EU funds.
"Ports provide jobs to thousands of people, and to even more thousands in other, related sectors, for instance, the railroad," said Slesers. Analysts estimate that the state earns 10 lats (14.2 euros) per each ton handled at Latvian ports, and that once turnover from the Freeport of Riga is increased, the state will be earning 500 million lats a year from the port.
Plans are to construct many new terminals at the port, with improvements made to port infrastructure, says Slesers. The port also will be gradually moved away from downtown Riga, further out towards the coast. Prospective investors from the C.I.S. countries will be targeted to attract more cargo and investments to the port.
Freeport of Riga CEO Leonids Loginovs said that environmental protection will be high on the agenda of the port's development, and environment-friendly projects will be implemented.
Speaking of Kundzinsala residents, Slesers stressed that residents in this area will not be forced to leave, but the port will be cooperative if anyone wishes to sell their property, at a reasonable price, and move elsewhere. He says that "Now is a good time to buy an apartment somewhere else."
