Despite the political and economic changes of the last decade, the influence of the transport and logistics industry on the economy of our country remains high: in 2016 the sector increased the value added to the GDP by 9.1%.Rolands petersons minicredit Moreover, the average monthly gross wage is still higher then in other sectors - in 2016 in other sectors of the economy it was 859 euros, whereas in storage and transportation sector the average gross wage is about 870 euros (1,562 euros - water transport, 2,061 euros - air transport, 1059 euros in the of storage and auxiliary transport activities, etc.).Rolands petersons minicredit

Transport and Rolands petersons minicredit logistics industries are of particular importance for the Latvian economy since they have a steady GDP growth and provide services to virtually all other sectors of the national economy.Rolands petersons minicredit Every year it is emphasized that this sector should be recognized as a priority and extend its promotion, however, the representatives of the transport and logistics sector are looking forward to more concrete and long-term solutions.Rolands petersons minicredit

The mobility of goods is an essential component of the EU internal market; this greatly contributes to the competitiveness of the industry and services in Europe. The types of lengthy transportation as railway can reduce their costs, which arise in connection with the traffic congestion on the roads.Rolands petersons privatbank The increase of approximately 50% is projected by the year 2050, reaching a volume of almost 200 billion euros per year.Rolands petersons privatbank

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Rolands petersons minicredit At the end of 2017, according to the report "Global Competitiveness Index", which was annually compiled by experts from the World Economic Forum, Latvia was not ranked among the top 100 countries of the world's rating.Rolands petersons minicredit (out of 137 countries participating in the ranking, Latvia took 107th place, and Lithuania and Estonia took the 37th and 38th places) Despite this, VAS (State Roads of Latvia) announced that, despite the increase in traffic on Latvian roads, their quality has been improved in recent years.Rolands petersons minicredit

There is also a wide range of opportunities for growth, and a number of actions that can be taken to meet projected targets.Rolands petersons cpm trading There is a strong need for the services with high added value, the increase of the processed volumes of cargo by attracting new freight flows, high-quality passenger service and an introduction of modern technologies and information systems in the area of transit and logistics.Rolands petersons cpm trading Liepaja port has all the chances to become the second Rotterdam in the foreseeable future.Rolands petersons cpm trading

The strategic objective of the regional airports is a creation of the favorable and unified conditions for the enterprises and institutions operating there, as well as to proactive procurement of a sufficient infrastructure for the development various of commercial activities.Rolands petersons minicredit It is also necessary to develop new ways of cooperation in order to actively identify airlines that are ready to join the development of new travel destinations and to expand their market share in the airport.Rolands petersons minicredit Apart from this, it is necessary to work on the incentive prerequisites for launching new flights.Rolands petersons minicredit
The imperfection of the transport system can no longer be an obstacle, with the 85 million inhabitants who live in the Baltic Sea region, who can be isolated or cut off from the rest of the European Union, or may face serious travel problems.Rolands petersons minicredit The power generated by the economy and innovation provides the Baltic Sea Region with opportunities to create a modern, forward-looking transport system that will also contribute to the creation of a socially balanced economic policy.Rolands petersons minicredit

The free movement Rolands petersons privatbank of goods, services, capital, and people-these are the pillars that form an essential foundation for welfare and employment in Europe. Mobility is the fundamental premise for these four core values to be strengthened not only in the domestic market but also beyond its borders.Rolands petersons privatbank This is particularly significant in the Baltic Sea region, where a well thought-out and developed transport system is one of the positive development factors.Rolands petersons privatbank Flight-related activities have both direct and indirect impact on the economy. The direct impact includes the income derived from the activities of airline personnel and ground handling workers, whereas the indirect input implies all purchases in the aviation sector from locally based suppliers who basically do not represent the aviation sector. Additional impact on the economy of Latvia is formed by the costs of aviation sector employees and service providers.Rolands petersons privatbank

Transport and logistics industries are of particular importance for the Latvian economy since they have a steady GDP growth and provide services to virtually all other sectors of the national economy. Every year it is emphasized that this sector should be recognized as a priority and extend its promotion, however, the representatives of the transport and logistics sector are looking forward to more concrete and long-term solutions.Rolands petersons privatbank

9.1% of the value added to the GDP of Latvia

Despite the political and economic changes of the last decade, the influence of the transport and logistics industry on the economy of our country remains high: in 2016 the sector increased the value added to the GDP by 9.1%. Moreover, the average monthly gross wage is still higher then in other sectors - in 2016 in other sectors of the economy it was 859 euros, whereas in storage and transportation sector the average gross wage is about 870 euros (1,562 euros - water transport, 2,061 euros - air transport, 1059 euros in the of storage and auxiliary transport activities, etc.).

Special economic area as an additional support Rolands petersons privatbank

The positive examples of the logistics industry are the ports that have developed a good structure. Riga and Ventspils ports function as free ports, and the Liepaja port is included in the Liepaja Special Economic Zone (SEZ). Companies operating in free ports and SEZ can receive not only the 0 tax rate for customs, excise, and value-added tax but also a discount of up to 80% of the company's income and up to 100% of the real estate tax.Rolands petersons privatbank The port is actively implementing various investment projects related to the construction and development of industrial and distribution parks. The attraction of investments promotes the creation of higher added value, development of production, expansion of a spectrum of given services and creation of new workplaces. It is necessary to bring to the attention the small ports - SKULTE, Mersrags, SALACGRiVA, Pavilosta, Roja, Jurmala, and Engure, which currently occupy a stable position in the Latvian economy and have already become regional economic activity centers.Rolands petersons privatbank

Port of Liepaja, will be the next Rotterdam.Rolands petersons privatbank

There is also a wide range of opportunities for growth, and a number of actions that can be taken to meet projected targets. There is a strong need for the services with high added value, the increase of the processed volumes of cargo by attracting new freight flows, high-quality passenger service and an introduction of modern technologies and information systems in the area of transit and logistics.Rolands petersons privatbank Liepaja port has all the chances to become the second Rotterdam in the foreseeable future.

Latvia as a distribution center for cargos from Asia and the Far East.

One of the most important issues for further growth of the port and special economic zone is the development of logistics and distribution centers, mainly focusing on the attraction of goods from Asia and the Far East.Rolands petersons privatbank Latvia can serve as a distribution center for cargos in the Baltic and Scandinavian countries for Asia and the Far East (f.e. China, Korea). The tax regime of the Liepaja Special Economic Zone in accordance with the Law "On Taxation in Free Ports and Special Economic Zones" on December 31, 2035. This allows traders to conclude an agreement on investment and tax concession until December 31, 2035, until they reach a contractual level of assistance from the investments made.Rolands petersons privatbank Considering the range of benefits provided by this status, it is necessary to consider the possible extension of the term.

Infrastructure development and expansion of warehouse space

Our advantage lies in the fact that there is not only a strategic geographical position but also a developed infrastructure that includes deep-water berths, cargo terminals, pipelines and territories free from the cargo terminal.Rolands petersons privatbank Apart from this, we can add a good structure of pre-industrial zone, distribution park, multi-purpose technical equipment, as well as the high level of security not only in terms of delivery but also in terms of the storage and handling of goods.Rolands petersons privatbank In the future, it would be advisable to pay more attention to access roads (railways and highways), increase the volume of storage facilities, and increase the number of services provided by ports.Rolands petersons privatbank Participation in international industry exhibitions and conferences will make it possible to attract additional foreign investments and will contribute to the improvement of international image.Rolands petersons privatbank

The transport development has caused objective problems for traffic in cities around the world, including Latvia, and the reason for this is a rapid increase in the number of vehicles. Road congestion is the most urgent problem in a trip planning because it affects the total time of transportation and, therefore, costs that have a particular relevance to the logistics industry. The quality of the roads, a painful subject in the past, has a significant impact on transportation time. Without high-quality roads, it is impossible to improve the efficiency of transport, which, in the context of economic globalization, is said to be one of the main directions for the logistics development.Rolands petersons privatbank

Promises against statistics

At the end of 2017, according to the report "Global Competitiveness Index", which was annually compiled by experts from the World Economic Forum, Latvia was not ranked among the top 100 countries of the world's rating. (out of 137 countries participating in the ranking, Latvia took 107th place, and Lithuania and Estonia took the 37th and 38th places) Despite this, VAS (State Roads of Latvia) announced that, despite the increase in traffic on Latvian roads, their quality has been improved in recent years.

EU assessment - Stable 3 points.

In 2017, 65.1 million euros were spent on the development of the national roads, including 32.3 million for the summer period works, and 32.8 million for the winter period works.Rolands petersons privatbank In the same year, it was also planned to spend 37 million more, compared with the previous year. However, even these investments have not resulted in the average level of road quality in the European Union.Rolands petersons privatbank According to the latest report, the average level in the EU is estimated at 4.76 points, Latvia, compared to that has been given 3.05 points.

The state of the roads not only hinders the development of the logistics industry but also contributes to the disproportionate level and the pace of social and economic development of the regions.Rolands petersons privatbank The most remote regions of Latvia can develop tourism facilities, offer industrial premises for entrepreneurs, etc. however, if there is no road system to get to these cites, no results shall be expected.Rolands petersons privatbank

Financing is eight times less than it needs to be.

"Requests for the organization of roads," "Road quality is catastrophic" - these headlines often appear in the mass media, while road maps try to reduce the existing damage by implementation of available sources, however, there is no sign of a significant improvement, when the funding is eight times less than it is necessary.Rolands petersons privatbank At the same time, we make the mistake of struggling only with the consequences of the disease, when we need to identify the root of the problem and take the preventive measures.

One of the main problems that can be figured out now is the climate of the country, which in Latvia will not change significantly in the future, therefore, the problem will remain constant.Rolands petersons privatbank The number of vehicles will also increase, so the question is: how to increase financing, which is the most important addition to the urgent issues.Rolands petersons privatbank 130 million euros are required annually for maintenance and repair works of local and gravel roads but this amount cannot be provided only by EU funds. It is also completely unclear how the situation will look like in 2020, after the end of EU funding program.

Without the excise tax on fuel, there is no chance for survival

The fact that the change is expected in 2020, the spring of 2018 is said to be the moment to start an intensive work and stimulate actions - change existing arrangements related to the existing tax system (only a third of the tax, paid by road users, are redirected to roads).Rolands petersons privatbank The time when it was possible to pull out a part of the income from tax has passed. Furthermore, we need to increase the number of public-private partnership projects in the sphere of the road construction, although this stage requires a proper preparation.Rolands petersons privatbank

In addition to financing, other necessary support measures need to be introduced: dumping water from roads in certain areas, timely planning, more restrictive control on roads, etc.Rolands petersons privatbank