RIGA - Regional DHL shipment processing and logistics center will be built at the Riga international airport in a year, the airport's representatives reported.
International airport Riga, DHL Latvia and Castor Construction real estate developer have signed a cooperation agreement on construction of a new shipment processing and logistics center. The floor space of the new logistics center will be 4,500 square meters.
DHL Express will move to the new terminal at Riga Airport and will have a new sorting facility that will allow for more efficient shipment handling, thus ensuring faster and more convenient delivery of shipments to customers. As part of its efforts to reduce CO2 emissions, energy-efficient solutions are planned at the new terminal, including the company's intention to supplement its fleet with electric vehicles.
Ilona Lice, Riga Airport Chairperson of the Board, said that the new DHL cargo logistics center will ensure a stable long-term air cargo flow at Riga Airport.
"Considering the rapidly changing dynamics of air cargo shipments, the main and decisive role in attracting and developing the international cargo logistics solution at Riga Airport is the development of low-cost infrastructure, high quality of services, clear and simple customs procedures, and added value that based on innovations can be created by cargo companies and regulatory authorities. The main task of the Airport is to provide an appropriate infrastructure and a favorable platform for cooperation, which will facilitate the entry of new cargo carriers and increase the turnover of air cargo,” she said.
Transport Minister Talis Linkaits (New Conservative Party) noted that DHL's choice to build its regional cargo logistics center in Riga is an evidence to the high competitiveness of our Airport and the ability to attract leading international logistics players.
Meanwhile, Krists Ezerins, Operations Director at DHL Latvia said that it is expected to invest EUR 12 million in the facility. "E-commercialization of the economy and logistics are interlinked and we take this into account when investing in an automated sorting line that will optimize and speed up the sorting process. The agreement with the investor for the lease of the terminal has been concluded for a period of 10 years, with an option to extend it to 15-20 years. This is an important year for DHL, we just celebrated the 50th anniversary of DHL's founding and 25 years of its operations in Latvia. The company continues to grow and a new, efficient, modern work environment is a great gift that will benefit both our employees and customers,” he said.
Currently, the volume of air cargo transportation in Latvia consists of four business lines: export and import of high value-added goods, mail and e-commerce, transit air cargo handling and non-military cargo transit to Afghanistan for the needs of the International Security Assistance Force (ISAF).
As already reported before, in 2018 the volume of cargo handled at Riga Airport increased by 10.4 percent, exceeding 27,000 tonnes. During the first nine months of this year, Riga Airport has handled almost 20,000 tonnes of air cargo - half of the entire air cargo volume in the Baltics.
DHL Latvia last year posted EUR 30.478 million in turnover, down 1.4 percent from a year ago, while the company's profit was EUR 161,162 in contrast to loss a year ago. DHL Latvia, registered in 1995, belongs to German Deutsche Post Beteiligungen Holding.