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Decade of growth and development at the Port of Riga

Freeport of Riga record a decade of growth and development

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Decade of growth and development at the Port of Riga
Decade of growth and development at the Port of Riga. Image: Freeport of Riga
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As a new decade approaches, we would like to offer a summary of the most significant last decade’s events at the Port of Riga that contributed to its growth and ability not only to maintain, but also to strengthen its leading position in the Baltic region irrespective of the fierce competition. During this time, the Port Police was established, and its fleet was increased by incorporating several new pilot ships, ice class tugboats and an icebreaker. Furthermore, its shipping channel was deepened and widened allowing to service larger vessels and cruise liners.

We also managed to complete the largest and most important investment and infrastructure development project not only during the last decade, but also in the entire history of the port: construction of terminals at Krievu sala. Thanks to co-financing from the Cohesion Funds, all coal handling operations were transferred from the historic centre of Riga to newly constructed state-of-the-art and environmentally friendly bulk handling terminals at Krievu sala.

During the previous decade, port operators also made significant contribution to the development of infrastructure and overall competitiveness at the Port of Riga. In 2013, a terminal for bulk fertilizers and short-term storage was opened: Riga Fertilizer Terminal. The total value of this project was more than 60 million euro.

Moreover, Riga Bulk Terminal also invested tens of millions of euro in the development of a multi-functional and technologically intensive bulk cargo handling terminal that is believed to be the most advanced not only in the Baltic States, but also in Europe.

In 2017, Kundziņsala based TFS Trans logistics centre made impressive investment of more than 30 million euro in becoming the largest, most advanced and progressive terminal in the Baltic States and the second largest in Eastern Europe.

At the Port of Riga, the previous decade was marked with rapid development of industry: several extremely successful and rapidly developing companies implemented high quality manufacturing projects with impressive production capacities.

This period was very successful for RIKON JSC, a producer of portal cranes, which is one of the few companies that manufacture cranes for Northern ports which are suitable for operation in extremely low temperatures.

These cranes are made of a special grade steel and are fully functional event at temperatures that reach as much as 60 degrees Celsius below zero. Furthermore, a company called Madesta has become one of the largest producers of various types of containers: during the past year their production volume reached 25 thousand tons. At the Port of Riga, it manufactures large metal structures for oil, gas and bulk goods storage tanks and silos.

In 2014 and 2015, the Port of Riga had a record high cargo turnover: more than 40 million tons per year, allowing it to become the Baltic leader. Though this number has slightly decreased of late due to smaller volumes of coal and petroleum products, in 2018 it was still more than 36 million tons. The focus on new types of cargo and multi-functionality are the main factors that have allowed the port operators to successfully compete on the market and promptly respond to market changes.

Over the last ten years, significant changes have also affected the structure of cargo handled at the port, and its portfolio has become much more diversified. Its infrastructure and services have allowed to handle many types of consignments. During the last decade, the turnover of cargo at the Port of Riga has increased by 8% annually reaching ever new heights. Furthermore, since 2010 the volume of cereals and cereal products handled at the port has increased by almost five times becoming a significant new business direction for the port.

The Freeport of Riga is the largest port in Latvia. It is a multi-functional port with modern and safe infrastructure, where approximately 200 private operators, including 35 stevedore companies (cargo terminals), provide high quality services. At the same time the Freeport of Riga has been a strategic partner of NATO since 2009.

The Freeport of Riga Authority (FRA) manages the port, takes responsibility for the development of port infrastructure, security at the port, and lease of port infrastructure and land to private operators. FRA is an executive body that implements decisions of the Freeport of Riga Authority concerning development. FRA does not take active part in conducting business at the port. Its revenue is generated by port charges from serviced vessels, as well as rental fees for land and berths. FRA operates as a non-profit organization: its funds are used only for the management and development of the port.

Maritime

Jan De Nul successfully wraps up U.S. Coastal Virginia Offshore Wind project

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Jan De Nul successfully wraps up U.S. Coastal Virginia Offshore Wind project. Image: Jan De Nul
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Jan De Nul Group’s offshore installation vessels Vole au vent and Adhémar de Saint-Venant have left the United States after having successfully completed the installation of the Coastal Virginia Offshore Wind project.

Ørsted Wind Power North America LLC selected Jan De Nul Group to install a 12MW demonstrator Offshore Wind Farm, 27 miles off the coast of Virginia.

The Coastal Virginia Offshore Wind project, owned by Dominion Energy, is based on an Ørsted design and is only the second offshore wind farm in U.S. waters, after the 30MW Block Island Wind Farm, commissioned in 2016 at 3 kilometres off the coast of Rhode Island. Moreover, the Coastal Virginia wind farm contains the very first offshore wind turbines in U.S. Federal Waters.

“This contract is another important milestone for Jan De Nul’s international expansion in offshore wind farm construction”, says Philippe Hutse, Offshore Director of Jan De Nul Group. “After having expanded into Asia with the completion of the Formosa 1 Phase 2 project and with two further offshore wind projects under construction in Taiwan, Changhua OWF and Formosa 2 OWF, we are proud to have been able to support Dominion Energy and Ørsted in the U.S.”

Jan De Nul scope

The scope for Jan De Nul Group included the transport and installation of both offshore foundations and wind turbines, as well as the procurement and installation of the scour protection. Each foundation is composed of a monopile and transition piece.

Peter De Pooter, Manager Offshore Renewables at Jan De Nul Group, concludes: “This project is of great importance for Jan De Nul Group as it has given us the opportunity to work with local, state and federal government agencies in the U.S. and allowed us to familiarize ourselves with the construction of U.S. offshore wind farms.”

Jan De Nul’s offshore jack-up installation vessel Vole au vent delivered the installation works and was assisted by the multipurpose vessel Adhémar de Saint Venant to perform the scour protection works.

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New mega crane arrives at PSA Halifax

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New mega crane arrives at PSA Halifax. Image: Pexels
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Halifax, Nova Scotia – Continuing with the development of the South End Container Terminal, PSA Halifax, operator of the south-end facility, welcomes another major piece of superstructure with the arrival of a new Super-Post Panamax ship-to-shore container gantry crane.

Able to lift cargo more than 51 metres (170 feet) from the ground and with outreach of 66 metres (217 feet) that can span across 24 containers, this is the largest ship-to-shore crane in Eastern Canada. The arrival brings the total compliment of SPPX quay cranes at PSA Halifax to five. 

With a terminal area of 32 ha, a quay length of 1,045m and a depth of 16.5m, PSA Halifax is the only Canadian port in Eastern Canada that can accommodate Ultra-Class Container Vessels. According to Kim Holtermand, CEO and Managing Director, “PSA Halifax is investing in larger equipment in line with the growing dimensions of the vessels. With ships of more than 14,000TEU capacity arriving at the Terminal, the new crane ensures that PSA Halifax has capable equipment for today and for the future.” 

Through strategic planning and investment, the Halifax Port Authority is nearing completion of a deep- water berth extension that will meet the growing deployment of the Ultra-Class Vessels. “The Port of Halifax recently welcomed our first vessel over 14,000 TEU, and we anticipate receiving the first 15,000+ TEU vessel in the coming months. The arrival of this new crane at PSA Halifax is a significant piece of the overall strategy to ensure the Port of Halifax remains an efficient and reliable deep-water international gateway,” said Captain Allan Gray, President and CEO, Halifax Port Authority. “I congratulate the entire team at PSA Halifax for all of the work and planning that went into making this event a reality.” 

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VPI Logística awards the four plots of the Logistics Activities Zone

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VPI Logística awards the four plots of the Logistics Activities Zone. Image: Port Authority of Valencia
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The Board of Directors of Valencia Plataforma Intermodal y Logística  has approved the award of four blocks or plots of land in the Logistics Activities Zone to the companies Grupo Raminatrans, QA Pimba, MSC and Medlog Iberia, firms that submitted their bids and opted for surface rights to develop their business projects in the logistics platform facilities.

The award of VPI Logística (a company in which the Port Authority of Valencia holds a 98.4% stake) is conditional on the completion of the work and the reception of the land conditioning by the City Council of Valencia.

With this award, a further step has been taken towards activating a strategically important logistics infrastructure for the city of Valencia, the region of Horta, and for the Port of Valencia.

The Special Plan of the ZAL was promoted, approved and signed in December 2018 by the vice Ministry of Housing, Public Works and Territorial Planning of the Generalitat Valenciana; which introduced important environmental and mobility improvements, with respect to the previous project.

The Port Authority of Valencia has highlighted the importance for the awarded companies to be able to start developing their projects in the LAZ, an initiative that will serve as a stimulus for the reactivation of the economy and the creation of employment with the execution of the works carried out by the four awarded companies to develop their logistics and business projects and the development of their operational activity.

Economic engine

In this regard, it should be noted that the Ministry of Transport reported last week that the Public Business Land Entity approved on June 23rd the contract file for the works for the municipal reception of the LAZ of Valencia, for an amount of 5.3 million euros and an execution period of 10 months. For the Ministry of Transport, “with the execution of these works and their municipal reception, an area that will be an economic engine for the whole region will be consolidated for the city”.

This project contemplates the repair and tuning of the sewage system, pavements and paving, gardening and irrigation and lighting in the Logistics Zone so that the facilities of this logistics platform are fully operational before the landing of the awarded companies.

Projects awarded

73.4 million, an investment that will create 1,518 jobs (188 direct and 1,330 indirect). The planned investment and employment are in line with the estimates made by the PAV and are in line with the jobs that this type of activity generates in other port logistics areas.

The companies that will set up in the LAZ of the port of Valencia have undertaken to hire long-term unemployed people and people at risk of social exclusion. In all cases, the business projects have a strong ecological component, either through the installation of complex energy saving systems and photovoltaic plants or through the commitment not to contract electricity supply from fossil fuels.

The first 4 companies in the LAZ

The Valencian company Raminatrans Group has committed to an investment of 9.21 million euros to build a logistics warehouse to temporarily manage customs warehouses, order preparation, packaging and labelling of goods. This warehouse will cover an area of 15,496 m2 on a plot -the F2 in the LAZ plan- of 24,863 m2, that is, the facility will occupy 62% of the area it is intended for.

Raminatrans Group is evaluating the impact of its project in terms of employment in 50 direct jobs and another 150 indirect ones. In its offer, Raminatrans is committed to hiring in the neighbourhoods near the LAZ and to guaranteeing gender equality in its hiring with parity between men and women.

The company also undertakes to collaborate with local NGOs and will use the association Enkadena, a temporary employment agency that employs former prisoners in the area, to offer jobs. Raminatrans has named its plan for the LAZ as “Project Zero” since it will be a building with zero CO2 emissions.

For its part, the also Valencian company QA Pimba plans to invest 8.63 million euros to build a 21,512 m2 building on plot G2. With these figures, the percentage of occupation of this plot is 64%. In terms of jobs, the project of QA Pimba expects to generate 53 direct jobs and 180 indirect ones.

In its business project, QA Pimba is committed to prioritizing employment for residents in the area of the LAZ and to developing a CSR policy committed to its closest environment. In environmental matters, the company details investments in solar, thermal and photovoltaic energy and commitments to reduce CO2.

Regarding MSC, its project includes an investment of 19.86 million euros for the construction of a 20,200 m2 warehouse to be located on plot A2, which represents 60% of the location of this plot. MSC’s project envisages the creation of 60 direct jobs and 500 indirect ones. In the socio-economic field, MSC is committed to hiring 2% of the employment it generates among people at risk of social exclusion or long-term unemployed.

In the environmental field, it proposes to strongly promote the electric vehicle in its facilities and to install 5,050 solar energy generating units that will allow an annual saving in emissions of 785 tons of CO2 per year. The installed power of its photovoltaic plant will be 1,662 Kwp, which will generate 2,040,825 Kwhp per year.

The highest investment offered for a plot of land in the LAZ is proposed by MEDLOG, a business extension of the MSC group. This company has offered an investment of 35.76 million euros for the installation of a logistics warehouse specialized in cold container transport for frozen and refrigerated products. The announced employment is 25 direct jobs and 500 indirect jobs. The company will build a 25,400 m2 warehouse on plot B2 of the Logistics Zone, which will occupy 65% of its 39,600 m2 plot.

MEDLOG is committed to carrying out 2% of its contracts among the group of long-term unemployed or people at risk of social exclusion who live in the area of the LAZ; and as an environmental approach, this company announces that it will request electricity supply from companies that guarantee that the origin of the contracted energy does not generate contaminating emissions; that is, from sources that do not generate CO2.

At the same time, MEGLOG is offering to build its own photovoltaic power plant in its premises in the Logistics Zone by installing panels with a power capacity of 2,093 Kwp, for which it will install 6,343 photovoltaic units or modules, capable of generating a saving of 1,074 tonnes of CO2 per year. All the warehouse machines, forklifts, vehicles, etc. will be electric. With these measures, the company aims to obtain BREAM certification.

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