Freeport of Riga improves budget balance despite drop in cargo turnover in 2016

The revenue generated by the Freeport of Riga Authority last year exceeded expenditure by 13 million euros (14 million U.S. dollars), which was one million euros more than a year before, the port authority said citing preliminary results for 2016.

According to the preliminary data, the port's operating revenue in 2016 dropped by 3.3 million euros, or 6.2 percent from 2015, to 50.2 million. Since port charges on the vessels handled at the Freeport of Riga make up more than 80 percent of the port's annual revenue, the revenue drop reflects the current situation in Riga port which saw cargo turnover fall 7.5 percent in 2016, the port authority said on its official website.

The port's expenditure, meanwhile, contracted by 2.6 million euros on year in 2016, ensuring the improvement of the port's balance sheet against 2015.

The port authority said the surplus money would be invested in the port's infrastructure, including real estate, vessels and equipment.

In 2016, the largest investments, worth 13.9 million euros in total, were made in wharfs, quays and harbor reinforcements, 6.9 million euros were spent on dredging and 3.4 million euros on railway infrastructure.

Riga is the largest Latvian port by cargo turnover and the number of ship passengers. Endit