Free Port of Ventspils

GOAL No.3: To develop Free Port’s industrial/

manufacturing zone

Free Port of Ventspils philosophyFree Port of Ventspils philosophy

GOAL No.1: Retain and strengthen

current port’s position in

liquid and dry bulk markets

GOAL No.2: Diversify

port operations (Container and Ro-Ro

traffic development

)

Trans-European Transport Network

Ferries: Scandlines strategy: Ventspils – central Hub for Eastern European transshipmentsVentspils – Nynashamn (Sweden) 5 times per weekVentspils – Travemuende (Germany) 2 times per week

Finnlines:Travemunede – Sasnitz – Ventspils – Helsinki – St.Petersburg

Overseas connections

Free Port and Port Terminals

Free Port of Ventspilswww.portofventspils.lv

Deepest ice free port in the Baltic SeaArea: 2451,39ha incl.242,6ha water

Max depth in liquid cargo area 17,5 metersMax depth in dry and general cargo area 16 meters

Liquid Cargo TerminalsVentspils Nafta TerminalsVentBunkersVentAmonjaksVentAll TerminalsVars

Dry Bulk Cargo TerminalsVentspils Commercial PortVentspils Grain TerminalBaltic Coal TerminalKalija ParksVentPlac

• Railway capacity from Ventspils to Russian border ~350 000 TEU / year

• Length of quays: 1000m / depth 14,7m

Universal terminal − Noord Natie Ventspils terminals

• Can service up to 100 railway platforms at once. This can be upgraded by 40 platforms along the quay.

Wind Situation in VentspilsZ

ZA

A

DA

D

DR

R

ZR

0%

20%

40%

more than 20m/s

14-20m/s

9-13m/s

4-8m/s

1-3m/s

Still

Development of New Terminals in Ventspils

~98ha

Development of Ventspils port in the future: Northern Port project

Northern Port project

Possible partner for the development of the terminal - Russian Transport Lines.

LNG Terminal in Ventspils

Site for LNG import terminal ~34,5ha

Pier No35 – dedicated for the terminal use.Possibility to call Ventspils for non ice-clas tankers whole year

All supportive infrastructure (accessroads, electricity connections etc) – available on site

Airport and optical cable infrastructure

Ventspils Airport: • State of art passanger terminal• Air-taxi and charter flights

Liepaja Airport:• Distance from Ventspils 110km

Riga Airport:• Distance from Ventspils 180km• More than 60 daily flights to

world-wide destinations

Air transportation

Optical cable infrastructure

Ventspils is connected to the international telecommunication network with two independant submarine optical cables:• Lattelecom optical cable from Ventspils to Stockholm with a capacity

of 10 Gbps

• Baltic Fiber optical cable Ventspils – Gothland – Stockholm:• Constructed in 2002 is the newest

cable in the Baltic Sea• Consists of 68 fibers (manufac-

tured by Ericsson)• Present theoretical capacity from

10 to 40 Gigabit/sec each fiber• Used capacity is 5 Gigabit/sec • The cable has 0% damage rate

and the operator guarantees a 99.7% availability of an international IP transit service

BQS -best quality systems by countries, 2009

Taxation andVentspils Free Port – a special economic zone

Source: World Bank Group and PricewaterhouseCoopers, Paying Taxes 2012, The global picture

Total Tax Rates in European Union

Tax incentives in Ventspils(Pursuant to the law “On tax application in free ports and special economic zones)

Tax incentives in Ventspils(Pursuant to the law “On tax application in free ports and special economic zones)

Posibility to acquire tax incentives through the Special Economic Zone/Freeport status

Reductions of Excise tax, Value Added tax and Customs duties

Real estate tax and Corporate tax are decreased by 80% until return of half of the total investment (60% for medium size and 70% for small companies)

Real Estate tax rate = 0,3%

Corporate tax rate = 3%

Tax rates to licensed companies(According to the law “On tax application in free ports and special economic zones)

Tax rates to licensed companies(According to the law “On tax application in free ports and special economic zones)

Investment = 10 mln Profit = 1 mln Real estate value = 1 mln

Taxation in Latvia: Profit tax (15%) = 150 000 Real estate tax(1,5%) = 15 000 Total = 165 000

Taxation in Ventspils Profit tax (3%) = 30 000 Real estate tax(0,3%) = 3 000 Totally applied = 33 000

Example:

Savings per year = 165 000 – 33 000 = 132 000

Industry and Manufacturing

development in Ventspils Free Port

Territory for industrial

development~ 1 200ha

There are land lots in Ventspils dedicated for realization of large projects of a size 50ha and more

Location No.1 in the Ventspils High Technology Park (VHTP):• Greenfield area ~4ha, with a possibility to extend• Connections to comunal infrastructure (water, sewerage, municipal heating, electricity, telecom and internet) available on the border

of the site• Available SEZ status• Negotiable municipal/port authority investments into public infrastructure, like outside parking and logistics area, communications

from the site border till building, outside gardening, fencing etc.• Possibility to use the VHTP Business Incubator and its business start-up support programmes.

1

Location No.2 on Rupnieciebas Str.:• Greenfield area ~5ha• Connections to comunal infrastructure (water,

sewerage, electricity, telecom and internet) available on the border of the site

• Available SEZ status• Negotiable municipal/port authority investments into

public infrastructure, like outside parking and logistics area, communications from the site border till building, outside gardening, fencing etc.

2

Location No.3 on Rupnieciebas Str.:• Greenfield area ~6ha (demolished former indutrial site)• Connections to comunal infrastructure (water, sewerage,

electricity, telecom and internet) available on the border of the site

• Available SEZ status• Negotiable municipal/port authority investments into public

infrastructure, like outside parking and logistics area, communications from the site border till building, outside gardening, fencing etc.

3

Location No.4 on Ganibu Str. (Airport area):• Greenfield area ~4ha, extention possible• Connections to comunal infrastructure (water, sewerage,

electricity, telecom and internet) available on the border of the site

• Available SEZ status• Negotiable municipal/port authority investments into public

infrastructure, like outside parking and logistics area, communications from the site border till building, outside gardening, fencing etc.

4

Conditions for the lease of the land for manufacturing projects

Conditions for the lease of the land for manufacturing projects

Costs of the land: Rent = 0,25% from cadastral value of the land per year

= 0,025 Euro for sq.m for year Land tax = 1,5% from cadastral value of the land per year

= 0,15 Euro for sq.m for year= in case of the SEZ status only 20% of total amount

Basic rules of the Land lease contract:• Duration of the lease agreement 45 years with a possibility at the

end of the period to prolong it to another 45 years on the same rules and conditions

• First refusal rights for the client• General attitude: open for discussion to hear client’s requirements

and wishes to be implemented into the agreement

Development of high technologies in Ventspils (electronics, electrotechnics, automotive industry, IT)

First tenants of the park:• Ventspils electronics factory• Inspecta• Engineering research center of

Ventspils University college• others

VENTSPILS HIGH TECHNOLOGY PARK services

Business Incubator (1300m2 , 35 companies) Technology Park (3200m2, 6 companies)

1. Legal address and support to start a business in Latvia 1. Technical design and construction of premises

2. Infrastructure (premises, office equipment, access to laboratories) 2. Renting office and production premises

3. Front desk and secretariat 3. Acess to laboratories/ projects with research institutions

4. Consultancy services: 4. Organisation of training programmes for engineers/ technicians

- Marketing services 5. Consultancy services:

- Capital attraction services - Assistance with initial team building/ local headhunting

- Local headhunting - Development projects

- Development and testing of the first technologies/ products - Networking

Age of the company

< 1 year 1-2 years 2-3 years 3-4 years

Financial support rate in the business incubator

Up to 85%

Up to 60% Up to 40%Up to 10%

Working places in port terminals and manufacuring

companies

Working places in port terminals and manufacuring

companiesSince 2002:• ~20 new (foreign and domestic) manufacturing

companies have been attracted to Ventspils.

• ~900 new jobs have been created in the attracted companies.

• 3 new port terminals have been established

• ~ 160 jobs have been created in newly established terminals

• Port authority has invested more than 90 million

euro in port development projects. More than 20 million euro was attracted from EU funds. Private companies have invested in port area more than 260 million euro.

Track Record of Manufacturing companies

Fish and sea-food production unit (Latvia/Denmark): 90 employees Start-up in 2002

Candle production unit (Denmark): 200 employeesStart-up in 2004

Plastic items for furniture industry and bed systems (Germany):• Start-up in 2006 • 30 employees in 2007• Award of most innovative company in

Germany in 2004

Sweeper/Cleaner car factory (Switzerland), Bucher Schoerling Baltic belongs to the largest in the world holding for production of utility vehicles

1st phase:• Start-up in 2005• Area size 2,3 ha; Premise – 1700 sq.m• 50 employees

2nd phase:• Start of production summer 2008• Area size 8 ha; premise – 4600 sq.m• 80 employees

3rd phase:• Start of production summer 2011• premise – 3000 sq.m• 160 employees

SIA Kurzemes GranulasWooden pellet production unit (Latvia): 25 new working places Start-up in 2005

SIA ArboWooden door and window production unit (Latvia):35 new working placesStart-up in 2005

SIA “Ventspils Elektronikas Fabrika”Belongs to the group of the largest latvian electronics components producer. Planed 80 employees

SIA “Malmar Latvia” (Belgium):• Metalworking products for automotive industry• Supplier for Scania, Volvo, MAN, etc.• Temporary workshop with 15 new working

places opened in 2006• Planned set-up of new production unit in newly

constructed premises in end of 2012

SIA “BioVenta” (Latvia):• Production of Bio-fuel from rapeseed• Start-up of production in 2008• 30 new working places

SIA “Izoterms” (Latvia):• 1st phase - production of metal constructions • 2nd phase – production of street signs• Planned start-up of production in 2010• Up to 120 new working places

• New, innovative wooden material• Start-up of construction in 2009• Start-up of production in 2010

SIA “Dendrolight Latvija”

FDI Magazine’s citties and Regions of the future 2010/11 Rankings

Duration of the research took over 6 months focusing on 223 cities and 142 regions in Europe

FDI Magazine’s Global Freezones of the Future 2010/11 RankingsFrom over 700 economic zones globally

Overall Freezones of the Future 2010/11 Name of Economic Zone Country1 Shanghai Waigaoqiao Free Trade Zone China2 Dubai Airport Free Zone United Arab Emirates3 San Luis Potosi Mexico4 Aqaba Special Economic Zone (ASEZ) Jordan5 Free Port of Ventspils Latvia... No other European zones within top 10

Best Cost EffectivenessName of Economic Zone Country1 Clark Freeport Philippines2 Togo Export Processing Zone Togo3 Chittagong Export Processing Zone Bangalore4 Free Port of Ventspils Latvia

Best PromotionName of Economic Zone Country1 Dubai Media City United Arab Emirates2 Dubai Airport Free Zone United Arab Emirates3 Dubai Knowledge Village United Arab Emirates4 Dubai Biotechnology and Research Park- DuBiotech United Arab Emirates5 Dubai Studio City United Arab Emirates6 Lodz Special Economic Zone Poland7 Free Port of Ventspils Latvia

Best Port ZoneName of Economic Zone Country1 Shanghai Waigaoqiao Free Trade Zone China2 Tanger Free Zone Morocco3 Jaxport FTZ #64 USA4 Baltimore Foreign Trade Zone #74 USA5 Free Port of Ventspils Latvia

Thank You

Contacts:Igors Udodovs

Head of Marketing and Development department

Tel:+37163602334 igors.udodovs@vbp.lv

www.portofventspils.lv