Ainars Slesers: "We shall take cargoes from Scandinavians and our other neighbours … "
15.06.2009 (14:31)
"If an event is held more than three times, it means, that it has found its niche," with these words Vice-President of the Eurasian Transport Union, Yuri Shcherbanin, characterized the 12th International Conference "TransBaltica2009: 5 years in EU", which took place recently in Riga.
It has already become traditional that each spring "TransBaltica" is organized by RMS-FORUM, a company which is well known in Latvia. This event brings together many participants to the Latvian capital. They are influential players in the transport sector, officials and businessmen; not only from the Baltics, but also from Russia, Kazakhstan, Belarus and other states. In addition to the usual forms of presentations at such a regional event: i.e. speeches made by experts from transport ministries; reports by leading port and railway companies; exchanges of experience by Customs Officers working at the Russian-Latvian and Belarusian-Latvian Customs Points and reports about the situation in the Latvian economy, many participants at this conference spoke more sharply and openly about the problems and issues in the transit sector. For example, how the Baltic States show their readiness to accept and handle cargoes from Kazakhstan and other countries of the East, but sometimes only in words instead of in deeds. This was noted by Valery Gulbas, Extraordinary Economic Adviser of Administration of the President of Kazakhstan in Latvia. In practice, Latvian railway infrastructure is ready to receive a lot of cargoes, but another matter is the shortage of specialized rolling stock for container traffic in this region in future, and the shortage of logistical centres. It is also necessary to make further improvements to the Baltic ports, such as deepening the channel in the Port of Liepaja from 9.5 to 12 metres, Administrative decisions are also necessary to develop the territory of Riga Harbour. It all requires more activity, and also larger investment from port managements. The European Union (EU) gave priority to the modernization and further development of the transit infrastructure in the so-called Northern Axis, the Ventspils-Riga-Moscow corridor. Therefore huge sums from European funds are being allocated for this and other projects. The State Secretary of the Latvian Transport and Communications Ministry, Nils Freivalds, spoke about this in his report. But simultaneously, in the opinion of the market participants, the realization of these transport projects has started to stumble these days because the Latvian Government has refused to participate in the co-financing of these projects, explaining that there is an absence of budgetary funding. As is known, European funds cover 75 to 85 % of the necessary sum for this project.
N.Freivalds emphasized that the Latvian Ministry of Transport and Communications has accepted the Republic’s Strategy of Active Development of Transit Sector. "Among our main problems is the removal of bureaucratic obstacles. Businessmen should be able to work here developing our ports and the whole transit corridor, and to have export guarantees," the official summarized. The new approach, an active position and gradual simplification of legislation will probably allow businessmen to feel more comfortable in Latvia in future.
Evgeni Tikhonov, Head of the Trade and Economic Department of the Russian Embassy in Latvia, expresses the opinion that if the Republic is interested in the development of, for example, its port business and inflows of foreign investment, then it is necessary to develop the infrastructure and to create an attractive investment policy. On the other hand, what kind of development of new moorings and terminals can take place there if even the territory of the Port of Riga is not clearly defined according to the City’s Development Plan? This prevents the leasing of new land. (It is possible that such a legal restrictive mechanism is beneficial to some influential groups.)
"Political stability and the absence of bureaucratic barriers is the basis for Russian investment to arrive in Riga harbour," the diplomat noted, and added that Russian exporters are interested in cooperation, but a tax policy has to be worked out for the ports, as well as discounts and the opportunity to obtain controlling stakes of shares. Similar measures can guarantee that Russian and other businessmen will stay in long-term projects and contracts, to provide Baltic countries with stable freight traffic. Certainly, as is known, it is not profitable for the transit complex to forget about good neighbourliness and the political basis for cooperation between states …
During the five years of Latvia’s stay in the EU, a lot has been done in the sphere of cargo customs registration and EU - Russia border crossing documentation. This was evident from the capacious report of Mr Vladimir Ivin, the Head of Russian Federal Customs Service Analysis Department, in which he named completed projects: the legislative and material arrangements of check points, and the unification and harmonization of Russian Federation and EU customs procedures. And as regards preliminary declaration of cargoes before crossing the EU – Russian border, Mr. Ivin noted that so far this part is incomplete. Customs employees often fill documents by hand. As a result, overland cargo border crossing is not becoming faster, and in some cases, even slower.
The Conference “TransBaltica2009: 5 years in EU” was divided not only by the place where it was held (this year for the first time it was held in Riga and in Liepaja), but also by the range of questions touched on. On the one hand participants summarized the results of the republic’s five years stay in the EU when the transit business was developed and shaped, and on the other hand - during the economic collapse we see that redistribution has literally started in the spheres of influence in the transport sector. The example of the Baltic countries region shows that we become witnesses to how the crisis brings redistribution to the market, and how the tariff struggle to attract cargoes is developing between ports and railways. Today Estonian and Lithuanian Railways are really feeling the shortage of Russian cargoes, whilst here in Latvia the fall from the beginning of 2009 was only a few percent. In these new conditions many will have to leave, but the strongest will stay. The auto-transport business in the Baltics has felt the changes since last summer and many companies have already left the market.
Market participants mentioned changes in the schemes of activities in ports, on railways and in the car business. The new methods to struggle for cargoes are: initiative, a lowering of tariffs, the most beneficial cargo trans-shipment arrangements, discounts, improved quality of service, well-calculated logistics and a stabilized political background.
The Deputy of Seim, Ainars Slesers, a former Latvian Minister of Transport and Communications, noted that the world crisis must be used to redistribute not only the Baltic, but also the Scandinavian market. "We shall take away a share of cargo from the Scandinavians and from our nearest neighbours. Our plans are very aggressive. We shall create such conditions that the Port of Riga will become the centre of container transport, and Ventspils the centre for trans-shipment of bulk-oil cargoes." Is it too arrogant? Yes but the provincial airport which was supervised by this former minister, has turned into a transit one and takes the leading position in passenger transport in Europe today. By the way, Mr. Slesers was always a pragmatist and emphasized the importance of beneficial cooperation between nearby neighbours. The status of the transit country dictates the action!
Natalia Don
Print version
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