LOGISTICS CENTRE - RIGA AIRPORT CALL FOR PARTNERSHIP
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1 LOGISTICS CENTRE - RIGA AIRPORT CALL FOR PARTNERSHIP
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4 CONTENT 1. LOGISTICS IN LATVIA 2. WHY LATVIA 3. RIGA AIRPORT AT GLANCE 4. CALL FOR PARTNERSHIP
5 LOGISTICS IN LATVIA 20 DAYS BY RAIL ONLY 8 HR. BY AIR 50 DAYS BY SEA
6 LOGISTICS IN LATVIA
7 LOGISTICS IN LATVIA By Road Transport Berlin, Minsk, Moscow, Saint Petersburg, Tallinn, Vilnius, Warsaw By Scheduled Air Traffic (Connectivity >7 flights per week) Amsterdam, Berlin, Brussels, Copenhagen, Dublin, Frankfurt, Helsinki, Istanbul, Kiev, London, Minsk, Moscow, Munich, Oslo, Paris, Prague, Saint Petersburg, Stockholm, Tallinn, Vienna, Vilnius, Warsaw By Sea Transport (Connectivity >3 passages per week) Helsinki, Rostock, Stockholm
8 WHY LATVIA 36 th world wide LOGISTICS PERFORMANCE INDEX (LPI) 5.2 M./PAX YEAR M CONSUMERS MARKET WITHIN 24H GREEN CUSTOMS CORRIDOR for transit of goods to Russia 39% SHARE OF AVIATION CARGO IN BALTICS 89 AVIATION DESTINATIONS
9 BUSINESS ENVIRONMENT Latvia has the 6 th highest GDP growth rate in Europe. Latvia is ranked as 22 nd in the world for ease of doing business (World Bank Report Doing Business 2016). Corporate income tax in Latvia is 15% and is one of the lowest in EU. Latvia is ranked in top 3 in EU in terms of wage adjusted labour productivity. Latvia is ahead of most EU member states.
10 BUSINESS ENVIRONMENT Country with most foreign languages spoken per capita in EU, main foreign languages spoken: English, Russian and German. For international business the communication infrastructure is important. Latvia ranks 9th globally by average measured connection speed (13 Mbps), 4th in terms of high broadband (>25 Mbps) connectivity. Latvia is the European leader when it comes to fibre-optic networks. In the Baltic States Latvia has the fastest internet. Latvia also has the 7th cheapest broadband in the world, offering a greatly accessible and affordable broadband service to businesses and consumers.
11 BUSINESS ENVIRONMENT In overview Paying Taxes 2016 PricewaterhouseCoopers ranked Latvia among those countries that have a relatively low Total Tax Rate %, which provides favorable platform for investing in manufacturing, establishing shared service centers or locating distribution center for the group. Investment and Development Agency of Latvia (LIAA) provides support and services to foreign investors free of charge as well as takes an active part in international project development.
12 AIRPORT AT GLANCE 3200 m CAT II RWY 5091 m² CARGO WAREHOUSES All kinds of cargo and mail CAT 9 AVIATION FIRE SAFETY 416 M/EUR AIRPORT INVESTMENTS INTO INFRASTRUCTURE 100 t./40 min. HYDRANT SYSTEM FOR REFUELLING B747-8 CERTIFIED
13 AIRPORT AT GLANCE Price and Quality Loading and unloading of cargo aircraft B747 (approx.2.5 hours) Weekly capacity up to 50 B747 cargo aircrafts Handling Costs of B747 at Riga Airport, EUR Handling of all types and sizes of cargo food, general cargo, equipment, oversized cargo etc Rapid transportation of cargo to and from aircraft Storage of cargo in secure locations Flight and Handling Supervision Terminal navigation fee Other charges (noise, emission, etc) Parking fee Landing fee
14 CARGO FORECAST (THOUS. TONNES) YEAR 2018 NEW CARGO TERMINAL OPERATIONS Cargo turnover Potential, unused Cargo total
15 CALL FOR PARTNERSHIP Up to 10% cost reduction on long-haul flights from China to the Riga airport (compare with other EU airports, without loss of delivery speed) Multi-modality (by air; sea; road or rail) Modern airport infrastructure Access to Riga Sea Port logistics centre, compatibility of railway and motorways with Europe and the CIS countries The largest aviation route network in the Baltic states for fast delivery of air cargo and e-commerce Effective and safe investments in the member state of the EU and NATO Availability of efficient financial instruments
16 CALL FOR PARTNERSHIP Cooperation in Air Cargo Consolidation and Establishment of Logistics Chains Support the aviation cargo from Riga to China Development of e-commerce solutions jointly with the national postal service VAS «Latvijas Pasts» Cooperation with the courier services based at Riga Airport (DHL, DPD, UPS) and partnership for development of cargo charter routes Distribution of cargo and e-commerce parcels in Europe and the CIS countries by scheduled passenger flights Specialization - transit and logistics: Transportation and handling of flowers E-commerce Medical products and medications Transportation of perishable and food products Textile goods
17 CALL FOR PARTNERSHIP Partnership for Construction and Operation of a NEW Logistics Centre PROJECT DESCRIPTION: Total area: 5.5 ha Total area of a cargo terminal: 9463 m² (of which warehouse space: m², office space: m²) Warehouse facilities for special cargos and 3 freezers with temperature 0 and -18 C Separate security control checkpoint with direct access to the apron 3 fully accommodated E/F class aircraft stands 22 parking places for heavy trucks, 44 parking places for automobiles Estimated time of project implementation 12 months from the start of construction works Technical design (blueprints) with building permit already available!
18 CALL FOR PARTNERSHIP Partnership for Construction and Operation of a NEW Logistics Centre WE CAN CONTRIBUTE: Co-investment for project funding (estimated project costs: EUR 50 m) A turnkey project (BUILD and OPERATE) Ready blueprints and technical design Competitive pricing and excellent infrastructure Connectivity with the existing logistics chains Option A Invest, build and operate Invest into 9463 sqm. tailored logistics centre with three B-747 capable parking stands. This option includes long-term land use rights at the most valuable aerodrome land plot directly connected to the operational cargo apron. Excellent communications, utilities and competitive airport price policies in combination with multi-modal transportation network will support competitive advantages of a regional distribution centre. Option B Long-term concession agreement RIX can provide investments into the building of aviation logistics centre at the airport. RIX would be delighted to conclude long-term concession agreement (minimum 10 years). This will allow starting operations of logistics and distribution centre without initial investments in infrastructure, but the benefits of business and cost-effective terms of the partnership with RIX will remain.
19 THANK YOU! Arturs Kokars Advisor to the Board Tel.: Fax: SJSC RIGA International Airport 10/1 Lidosta «Rīga» Mārupes novads, LV-1053 LATVIA
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