Political disputes stall reforms: Latvia’s ports face long-term crisis

The decline in cargo volumes at Latvian ports since 2019 has led to a loss of 1.7 billion euros in value-added products and around 400 million euros in lost direct tax revenue, Economy Minister Viktors Valainis emphasized during a discussion, noting that the state has failed to act as a responsible steward of port development.

The discussion on port development and management, organized on the 28th of August by the Latvian Stevedoring Companies Association, highlighted the strategic importance of ports and shed light on challenges created by the geopolitical situation. Participants included representatives of all parliamentary factions, the ministers of transport and economy, officials from the municipalities of Riga, Ventspils, and Liepāja, port authorities, social partners, as well as a representative of Latvian Railways.

The debate took place as the Saeima and Cabinet of Ministers resumed work after the summer break, with the draft amendments to the Ports Law expected to be reviewed in September. However, there is currently no consensus—neither within the coalition nor the opposition—regarding the draft’s content or a nationwide strategy for port development.

During the debate on the most effective port governance model, Linda Liepiņa, chair of the Latvia First faction, and Edgars Tavars, chair of the United List (Latvian Green Party, Latvian Regional Alliance, Liepāja Party), argued that the governance model of Liepāja port should be adopted for Riga and Ventspils as well, since it has proven effective under Latvian conditions. The Latvian Stevedoring Companies Association supports this view, stressing the need for an experience-based and sustainable governance solution. The Latvian Employers’ Confederation also highlighted

the importance of involving local businesses in drafting port strategies.

The issue of cross-sectoral cooperation in the development of ports and the broader transport and logistics sector was also raised. Rinalds Pļavnieks, board member of Latvian Railways, called for a unified vision among the Ministries of Agriculture, Economy, and Transport to increase domestic cargo volumes. Liepāja’s mayor, Gunārs Ansiņš, stressed the need for synergy between the Ministries of Finance, Economy, and Transport, since cross-sectoral cooperation creates greater added value than isolated initiatives. Riga Port CEO Ansis Zeltiņš underlined that uncertainty in port governance has now lasted seven years and remains the ports’ greatest challenge. Transport Minister Atis Švinka also stressed the need for clarity, noting that active cooperation with businesses and other sectors, along with completing governance reforms, are the key tasks needed for the sector to overcome the crisis and grow.

The Latvian Stevedoring Companies Association emphasized that ports are not solely a Transport Ministry matter—they also impact the economy, employment, defense, and climate policy. The association pledged to continue close cooperation with state institutions and social partners to find sustainable solutions. In its view, only joint action will allow Latvia’s major ports and railways to overcome the crisis and make a significant contribution to the national economy and regional development.

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