Latvian state company Ventas osta will cease operations in Ventspils. The company functioned for four years, large amounts of money were allocated to finance its operations, but its original goals were never accomplished in the end.
Latvian Ministry of Transport decided to shut down Ventas osta’s economic operations for one year starting with the 1st of July 2024, as BNN was confirmed by the head of the ministry’s Communication Office Baiba Gulbe.
It was planned to liquidate the administrations of Riga and Ventspils freeports and replace them with state capital associations until the 31st of December 2023, but the Ministry of Transport asked the extend this term until the 30th of June 2024. Rīgas osta company was never founded in the end, but Ventas osta was. However, in the four years it remained active, the company failed to take over the functions of Ventspils Freeport Authority, as there were difficulties with the inventory of material, financial resources and liabilities of the sea port authority.
Ventas osta was founded in December 2019 to resolve the state of emergency that surfaced after the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury imposed sanctions on [ex-Mayor of Ventspils] Aivars Lembergs and four legal persons associated with him. This included Ventspils Freeport Authority. When the decision was made to found a separate legal entity to manage the port, OFAC lifted sanctions from Ventspils Freeport.
It was planned for Ventas osta to perform the functions of the sea port’s authority, but in the transition period it operated in parallel with Ventspils Freeport Authority. Ventas osta was supposed to take over the property, rights and obligations of the Freeport of Ventspils Authority in parts. The employees (specialists, technical staff, etc.) were supposed transfer to Ventas osta gradually as well.
However, practically nothing has been done in four years.
On the website of the Ministry of Transport, however, version 10 of the Action Plan approved in January of this year can be found with 13 points on how the acceptance – transfer – of the functions, rights, obligations and obligations of the administration of the freeport would take place. However, according to information provided by unofficial sources to BNN, there was not activity of this king on the part of Ventspils Freeport.
For Ventas osta, the main source of income was the four maintenance contracts signed by Ventspils Freeport with ship agencies. Thanks to the cooperation contract signed between Ventspils Freeport and Ventas osta at the end of March 2020, Ventas osta was able to operate with money from four ship agencies. This includes tonnage fees, canal fees, sanitary fees, pilot fees, bridge fees and port fees for the municipality. Ventas osta’s net turnover ranged from EUR 2.08 million in its primary operation year to more than EUR 3.13 million in 2023. A compilation of information from Ventas osta’s financial accounts for 2020, 2021, 2022 and 2023 shows that its administrative costs in four ears reached EUR 526 287. The sole board member’s wage was EUR 178 562, wages of council members was EUR 149 899, and other costs were EUR 19 978.
There is no clarity as to what will happen with the sea port reform at the moment.
The previous decision of the Saeima in regards to replacing Riga and Ventspils freeport authorities with state capital associations has lost political support. It seems Prime Minister Evika Siliņa’s government has no interest in the sea ports reform. The reform is not even included in the government’s declaration. Minister of Transport Kaspars Briškens has even mentioned at one point that he has plans to review the reform.
The Ministry of Transport notes that discussions about the future of the reform continue with sea port authorities, municipalities and port-based businesses and NGOs. The ministry also stresses that sea ports are an essential part of the Latvian transport and logistics system and therefore, in the context of the reform, they should be viewed together with the transport sector’s management reform and its models.