Latviski English По-русски
Saturday 21.07.2018 | Name days: Meldra, Meldris, Melisa

Bank of Latvia: transport industry is the national economy’s blood vessel

(No Ratings Yet)

Transport industry is important to Latvia; maybe even more important that it is in other countries. Last year, transport and storage industry formed 13% from the total added value in Latvia. Only processing (14.1%) and trading (16.9%) formed more last year, says Bank of Latvia economist Igor Kasyanov.

In 2010, transport and storage industry formed 12.1% from the total added value, while the average index across the EU was only 4.9%. The proportion of transport and storage industry in Latvia was the largest one in the EU, followed closely by Lithuania and Estonia.

Ever since the return of the crisis, transport industry has been one of the leading industries in terms of investments. Even now – in the second half of 2012 – the country is in the process of realizing several transport industry related projects. These projects will contribute to the future development of the country’s national economy. Transport industry is no longer its own segment – it is now represented as an industrial cluster along with manufacturing, trading and other industries. Investing in transport industry provides for a way for national economy to reduce costs, improve competitiveness and productivity of other general factors.

It would also be useful to note the role of transport industry in Latvia’s foreign trade. It is well known that Latvia’s foreign trade balance has been in the negative for a long time. However, transport industry gave the largest contribution for the positive growth of Latvia’s foreign trade of services. For example: in 2011, transport services made up 77.6% from the total service balance (the rest was made up of other services – financial services, tourism and business trips, IT services and construction), the economist said.

Kasyanov notes that there were 612.3 thousand cars, 72.6 thousand trucks and 5.2 thousand buses registered in Latvia by the end of 2011. Most cars, at the time, were at least 11 years old – 71.8% of all registered cars. Only 2.2% were younger than two years. A similar situation was present with trucks and buses. However, the proportion of old vehicles was significantly lower – 58.4% and 63.2% respectively.

In total, 53.9 million tons of cargo was transported in 2011. 33.9% was transported by regular transport (i.e. without additional fees) and 66.1% by commercial transport (for additional fees). Vehicles were mainly used to transport mining and quarrying industry products. This category is closely followed by agriculture products, wood and food product transport.

Latvia’s railway services transported 59.4 million tons of cargo in 2011. Only 1.2 million tons or 2.0% were transported using the country’s domestic transport (the cargo was loaded and unloaded in Latvia). 4.9 million tons (8.3%) were used in export. 48.4 million tons (81.6%) were imported to Latvia.

Russia was the main destination for export in 2011, followed by Estonia, Belarus, Kazakhstan and Lithuania. Russia was also the main source of import (73.4%). 19.3% came from Belarus; the rest – from Kazakhstan, Lithuania and other countries.

In 2011, 39.6% of the total volume of cargo that went through Riga port was made up of coal, 5.0% – chemical substances (fertilizers), 22.1% – oil products, 8.9% – cargo containers and 7.8% – wood. At Ventspils port, coal made up 23.3% of the total volume, chemical substances – 9.9%, while the largest proportion (50.8%) was still oil products.

13.3 million tons of cargo was transported by air, including mail.


Leave a reply

SRS: cash register reform still stagnates, but has become much faster than it was last year

The cash registers reform continues stagnating. However, it has become much faster than it was a year ago, as reported by State Revenue Service.

Specialists to search for solutions to topical environmental problems in Ventspils

On Friday, 20 July, a meeting was held between Ventspils Commercial Port representatives and specialists from State Environment Service.

Children with functional disorders to receive services financed by EU funds

Child invalids will have access to social services intended to improve their social skills and mobility. More than EUR 4.2 million has been allocated for this goal from the European Social Fund, as confirmed by Latvia’s Central Financing and Contracting Agency.

Producer price level in industry up 4.3% in Latvia

Compared to June 2017, the average level of producer prices in Latvian industry increased by 4.3 % in June 2018. Prices of products sold on the domestic market rose by 4.8 % and those of exported products by 3.7 %.

Total tax debts in Latvia in July – 1.212 billion euros

At the beginning of July total tax debts in Latvia, including outstanding debts, halted debts and debts applied with repayment term extensions, accounted for EUR 1.212 billion, which is 0.8% less than a month prior, according to data from the State Revenue Service.

Survey: every third Latvian resident has received illegal loan offers

Nearly every third resident in Latvia or 31% of respondents admit having received offers to use illegal loan services, as concluded in a survey performed by Latvian Alternative Financial Services Association and SKDS.

Libya opposed to EU's idea to establish migrant centres in North Africa

Libya is against the solution of the European Union to set up migrant centres in the North African country as a means to keep migrants from arriving in the bloc and Libya would not be convinced with financial support, its Prime Minister Fayez al-Sarraj has noted.

Arrest warrant on Catalan ex-President cancelled by Spain

The Supreme Court of Spain cancelled a European arrest warrant for former Catalan regional leader Carles Puigdemont, as Germany refused to extradite him to face accusations of rebellion for declaring the independence of Spain's region, Catalonia in 2017.

Latvian government plans to allow handing expired food to charity

Latvia’s Agriculture Ministry has prepared amendments to the Law on the Supervision of the Handling of Food that provide permission to hand over certain types of food products to charity after the end of their expiry date.

Estonian industrial producer prices up 2.9% since June 2017

Estonian industrial producer price index has risen by 2.9% between June 2017 and the first summer month this year, resulting in an increase of export prices as well, Estonian statisticians have estimated.

Putin urges NATO to quit «irresponsibly» developing ties with Ukraine, Georgia

Russia's President Vladimir Putin cautioned NATO against developing deeper relations with Ukraine and Georgia, evaluating such a policy was irresponsible and would have consequences for the military alliance.

Latvian parliament not in a hurry to support president Vejonis for a second term

Political parties represented in the Saeima are not eager to support President Raimonds Vējonis for his remainder for a second term.

Weather in Latvia will remain warm and even hot at times

Weather in Latvia in the nearest couple of days will be dictated by a cyclone. Because of that the sky will be partially covered by clouds; thunderstorms are also expected, as reported by State Environment, Geology and Meteorology Centre.

Hungary sued in EU Court for criminalising help to illegal immigrants

The European Union's executive body has stated that a law in Hungary that criminalises support for illegal immigrants is in breach with EU law and Hungary has now been referred to the European Court of Justice for the alleged non-compliance.

Estonians buy alcohol in Latvia; country loses EUR 20 million in six months

Latvian stores located close to the Latvian-Estonian border have sold 1.6 million litres of strong alcoholic drinks in the first half year of 2019. This means Estonia has lost more than EUR 20 million in taxes, according to data from Association of Estonian Alcohol Producers and Importers.

Lithuania’s election watchdog slams ruling LFGU over popular TV series

Political messages can be channeled in various ways and the ruling now Lithuanian party, LFGU has chosen a very delicate way of the communications – through a TV series featuring the beauty and the ambiance of Naisiai, a picturesque settlement in Siauliai district.

Association: around 3,3000 people know of their HIV infection but receive no treatment

HIV remains a serious problem in Latvia – around 3,300 people are aware of their status but receive no treatment and continue spreading the infection. Because of that, it is necessary to act quickly for Latvia to lose its status as HIV kingdom and limit the spread of the infection, says Baltic HIV Association, informing decision-makers and responsible officials in institutions and hospitals about the HIV/AIDS situation.

Driver shortage may force reduction of international road haulage volumes

Latvia’s road haulage companies have started experiencing shortage of drivers. On top of that, if employment conditions for residents of non-EU member states do not change, it may be necessary to reduce the volume of road haulage volumes, says Latvijas auto president Valdis Trēziņš.

Lattelecom’s turnover up 9% in first half-year of 2018

Lattelecom Group’s turnover reached EUR 98.7 million in the first half-year of 2018, growing by 9% in comparison with the same period of 2017, according to unaudited financial results.

1,140 fewer births registered in Latvia in 2017

Since 2016 the number of births in Latvia is declining again. Compared to 2016, a total of 1,140 births fewer were registered in 2017. Also, the provisional number of births registered over the first six months of 2018 (9,664 children) is by 664 children smaller than that registered over the respective period of 2017.

Citadele Bank decides to reform Lithuanian subsidiary as a branch office

Citadele Bank has decided to reform its Lithuanian subsidiary as a branch office, as confirmed in the statement the bank submitted to Nasdaq Riga.

Russian pension age hike discussed amid protest outside Duma

As the Russian paliament votes on the proposal to gradually increase he pension age to 65 for men and 63 for women, some 200 people were seen protesting against the reform in Moscow.

Corruption watchdog chief says bureau has done no illegal actions

After going through Corruption Prevention and Combating Bureau’s past investigative activities, the bureau’s chief – Jēkabs Straume – found it confusing that officers often took no appropriate actions after acquiring evidence or receiving indications regarding necessary steps.

Illegal border crossings to Estonia on rise after Russia World Cup

Football fans with temporary residency permits of the Russia World Cup, or fan Ids, are trying to illegally cross the Russian border with Estonia, a member of the European Union.

Estonian 13-year-old lethally overdoses fentanyl

Estonian prosecutors have accused a 15-year old of negligent homicide after a girl, 13, passed away from fentanyl overdose.