“Finally putting an end to this after many years of dependence on transit of Russian origin is in the interests of Latvia’s security and growth,” Brishkens noted.
He said that at the meeting, the Ministry of Transport proposed five priority areas on how to specifically reorient the Latvian ports and logistics industry, namely: cargo flows and investments from allied countries, Latvian exports and domestic transportation, industrial development in ports/special economic zones, renewable energy projects resources and military mobility.
Commenting first direction – cargo flows and investments from allied countries – Brishkens noted that new cargo will not appear on its own, so Latvia will have to actively look for it.
“Over the past 12 years, I am the first Minister of Transport to approach the US Secretary of Transportation about US investment in Latvian ports. In recent years, the US has been making significant investments and supplies of industrial cargo to Central Asia, as well as to the Caspian Sea and Caucasus regions. For example “, the port of Riga is already using General Motors truck cranes to deliver goods to Uzbekistan. This is an opportunity for Latvia. We must actively lobby for our role in ensuring the interests of the United States – the benefits will be not only for the economy, but also for our security,” noted minister
In the near future, the minister is planning visits to Germany, Denmark and Belgium in order to search for new opportunities for cooperation. Brishkens noted that Latvian ports are currently not using their full potential to compete with large European ports.
“For example, if we compare the entire supply chain Hamburg-Prague and Riga-Prague, we have an advantage of 300-400 euros per container transported. This is a very important advantage that our southern neighbors have been enjoying for a long time,” said Briskens.
He emphasizes that if the Latvian economy currently receives about 17 euros per ton from the transit of low added value, then entering such supply chains with higher added value will at least double Latvia’s benefit. “Latvia must strategically look at the markets of North America, Western and Northern countries, as well as Central Asia,” Brishkens added.
In addition, ro-ro cargo transportation is a priority, including strengthening strategic cooperation with Stena Line and investing in the reconstruction of berths, which will allow larger vessels to be accommodated.
As second direction The minister noted Latvian exports and domestic transportation. Commenting on the situation of SJSC “Latvijas dzelzceļš” (LDz), which was affected by a significant reduction in the volume of Russian cheap cargo, he noted that it is logical to start with domestic cargo transportation, redirecting cargo from road transport to rail.
Briškens says Latvia has long invested huge amounts of European Union (EU) funds in cheap expansion of transit infrastructure, forgetting about the need to connect industrial parks with railways, as well as the creation of inland terminals.
“These mistakes must be corrected urgently. For example, we have begun cooperation with grain-growing cooperatives on the integration of grain elevators into the railway system, and will also begin negotiations with the Ministry of Agriculture for JSC Latvijas Valsts Meži to use the railway for its timber exports. Additionally, the Ministry of Transport will submit a proposal to the Cabinet of Ministers for the redistribution of EU funds for the creation of several inland intermodal terminals, or dry ports,” Briskens added.
He stated that the Ministry of Transport will support projects for the development of port areas to stimulate exports, specifically the projects of the Liepaja Special Economic Zone (SEZ) and the Ventspils Free Port to create drinking water terminals for export to the Middle East and other regions of the world.
Third, The Ministry of Transport is focusing on industrial development in ports/special economic zones. “The activities of ports should not be assessed only in tons transshipped. Already now, the industrial development of port areas is bringing more benefits to the national economy of Latvia,” notes Brishkens.
He said that in the industrial parks of the Liepaja and Ventspils ports there are already more than 50 factories in total. By supporting the further development of these industrial parks and the Spilve Industrial Park in the Freeport of Riga, it is possible to attract foreign investment and ensure the presence of new export-capable enterprises in Latvia.
Fourth direction – energy projects of renewable resources. The Minister emphasized that one of Latvia’s strategic priorities is to promote energy independence.
As Briskens notes, the company Van Oord Dredging and Marine Contractors BV has already signed an agreement with the port of Liepaja on the construction of a wind farm support base and a terminal for large cargo. Likewise, the Port of Ventspils is participating in the Elwind project. “Specifically, we are talking about the possibilities for the production base of wind turbine designs, their assembly and configuration,” the minister explained.
Briškens also emphasizes that Latvia can be powerfully positioned in converting produced energy into hydrogen, green ammonia and other production and storage of renewable energy products.
The Ministry of Transport supports the plans of Liepaja and Ventspils for the construction of hydrogen plants, and is also ready to participate in the development of the hydrogen economy of the future.
“The government must provide the necessary support to provide infrastructure and attract foreign investors. These investments will pay off in the form of good-paying jobs, increased tax revenues and achievement of climate goals,” the minister said.
Fifth direction is military mobility. Briskens notes that it is critical for Latvia to facilitate connectivity with allies in the West for the rapid delivery of military supplies to the Baltics, adding that railway and port infrastructure are an integral part of Latvia’s security architecture.
“It is necessary to develop port terminals in order to create as many places as possible in which any equipment – from semi-trailers to tanks – can be quickly unloaded and moved,” notes Briskens, adding that for the mobility of these goods it is necessary to adapt both the railway network and To this end, the Ministry of Transport actively cooperates with the Ministry of Defense.
#Ministry #Transport #directions #reorienting #ports #logistics
2024-03-28 21:31:50