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Monday 21.08.2017 | Name days: Linda, Janīna
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Approval of Riga Freeport’s budget accompanied by reduction of worker motivation expenses

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe budget of Riga Freeport for 2015 was approved by the management board unanimously on December 18th, as confirmed by its Chairman Andris Ameriks. He said the budget plan is rather cautious.

Considering the current geopolitical situation, Riga Freeport’s revenue from cargo handling next year is planned to remain the same as it is now. It has also been decided to perform budget monitoring every three months. Every quarter, the management board will come back to budget revenue and expenses analysis. Krievu Island is marked as the main priority. It is planned to focus on the establishment and expansion of infrastructure there, including Kundzinsala’s railway infrastructure.

Matters related to workers’ motivation have also been clarified. This programme has been reduced by approximately one-third. The main goals and guidelines of Riga Freeport’s budget will be published later on. The full budget is not revealed, because it is a matter of competition. This is limited access information.

As reported by Nekā personīga programme of LTV, Riga Freeport’s budget for next year provides for the allocation of EUR 50,000 for different health services, EUR 41,000 for a Christmas tree and EUR 25,000 for the procurement of sports equipment. The Freeport also plans enormous expenses on procurement of different types of equipment: EUR 18,000 for tablets; EUR 33,000 for notebooks; EUR 31,000 for PCs and EUR 16,000 for servers. Car park expansion is set to cost EUR 500,000. The port also plans to spend EUR 1.2 million on the construction of a new Port Police building.

The port also plans large expenses for the needs of Riga: sports activities and reinforcement of Kipsala’s beaches. This year, the port spent EUR 1.2 million on this initiative. Next year’s expenses are planned at EUR 1 million.

It is also planned to invest in Kundzinsala port’s railway line. A new railway line is planned to be constructed for EUR 1.8 million. More than EUR 2 million will be spent on repairs of existing tracks and nearly EUR 1 million will be spent on the construction of access roads toward existing stevedore terminals.

A few years ago, State Audit had pointed to Riga Freeport’s unreasonable expenses. It has been calculated that the management board of Riga Freeport had misappropriated a total of EUR 41 million over the course of 2009-2011. A lot of money was given away for bonuses, gifts and life insurance. The management board promised to fix everything and take into account all recommendations. However, taking into account this budget plan, it seems nothing has changed. Expenses continue to grow, as do employees’ requirements for comfort.

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