18.2 C
Rīga
Sunday, July 21, 2024
No menu items!
HomeLatviaBan on Russian grain imports and transit could cost port and rail...

Ban on Russian grain imports and transit could cost port and rail sector EUR 100 million – Agriculture Ministry

Banning the import and transit of Russian grain could cause losses of EUR 100 million for the Latvian port and rail transport sectors, according to an informative report on the import of Russian agricultural and food products in Latvia prepared by the Ministry of Agriculture (MA).

The report estimates that if Latvia were to ban railways from transporting and ports from handling four million tons of Russian grain and agricultural products, which is the projected volume for 2024, port revenues would be reduced by EUR 60 million and railways by EUR 40 million.

The MA explains that since 2019, Latvia’s major ports have seen a decline in cargo volumes, including a 53.1 percent drop in coal cargo turnover in the first 11 months of 2023 and a 43.7 percent drop in petroleum product cargo turnover.

More and more port companies have adapted their facilities to handle grain and other agricultural products. The total cargo turnover of Latvia’s large ports in 11 months 2023 was 33.25 million tons, including 6.19 million tons of grain and other agricultural products, or 18.6 percent of the total cargo turnover of Latvia’s three large ports.

Compared to 11 months of 2022, grain cargo turnover at Latvia’s large ports increased by 9.6 percent in the 11 months of 2023.

At the same time, according to the Ministry of Agriculture, 3.36 million tons of grain and other agricultural products of Russian origin were delivered by rail to the port terminals of Latvia’s large ports, which is 54.3 percent of all grain and other agricultural products handled at Latvia’s three larger ports.

18 companies tranship grain and other agricultural products originating in Russia at Latvian major ports.

Meanwhile, 67.2 percent of all grain and other agricultural product cargo transported by rail in the first 11 months of last year was of Russian origin. The turnover of grain and other agricultural products by rail in the first 11 months of 2023 was 5.07 million tons, including 3.41 million tons of Russian origin.

The ban on the transit of Russian grain and other agricultural products would affect 18 terminals handling these cargo flows in Latvian ports. In total, the terminals provide jobs for 1,464 employees.

As regards the losses in the rail transport sector, the MA notes that the reduction of freight flows on the rail infrastructure will also reduce the revenue of state-owned rail company Latvijas Dzelzcels for the use of the infrastructure.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

RELATED ARTICLES

Most Popular

Recent Comments