TRANSIT SECTOR DEVELOPMENT Ministry of Transport of the Republic of Latvia 23.11.2016.

LATVIA – TRANSIT AND LOGISTICS SECTOR Revenue from transit cargos 3,5% of GDP Revenue for transit cargo handling 1/5 of total services export Experience in logistics and transit business Developed transport infrastructure New challenges Development of container trains Creation of new added value Attraction of investment Creation of working places Cargo turnover in Latvian ports 2005-2015. (thsd.t.): Railways: cargo turnover 56 mln. t.: 1520 mm Single infrastructure Single rolling stock Unified information exchange system Single documentation Developed specialized container trains to Central Asia

CARGO TURNOVER IN RAILWAYS 1996-2015 (million tonns)

CONTAINERISED CARGO TURNOVER IN PORTS 2005-2015 (TEU)

MULTIMODAL CORRIDORS

distribution of goods to stores and retail chains of Northern Europe Services: Transshipment; Consolidation; Repackaging of goods; Customs clearance; Storage of customs goods and EU goods; Monitoring the status of cargo. 48 hours distribution of goods to stores and retail chains of Northern Europe 26.4 million consumers

Container train - Baltica transit Established in 2003 Connects Baltics with Central Asia (Kazakhstan, Uzbekistan, Turkmenistan, Kirgizstan and Afganistan Operated by FESCO (LDz Cargo Logistika) Advantages: regular service 2-3 times a week 13 years experience collects cargo from all Baltic ports short transit times tracking and tracing online electronic priarival declaration simplified customs transit procedures Riga - Alma-Ata 12 days Ashabad 18 days Bishkek 13 days Dushanbe 18 days Tashkent 17 days Hairaton 16 days Next steps: Connections with China Main market – Urumqi city and Xinjiang region Distribution in the Baltics and Scandinavia

PILOT PROJECT BETWEEN CHINA AND LATVIA Test train was organized in 2008 4 countries were involved: China, Kazahstan, Russia, Latvia Cargo: 96 TEU with tomato pasta Further form Latvia cargo was delivered partly to Germany and Italy using road and sea transport Transport mode index: Demonstrated results: 10 day transit time from Dostyk to Riga terminal 14 days in total from Urumqi to door in Central EU CN-KZ by rail (switch gauge: Alashankou-Dostik) KZ-RU-LV by rail (gauge 1520mm) LV-CZ/NL by truck LV-EU by seafreight

CHINA-EUROPE LAND CORRIDOR Advantages using China – Europe rail Delivery time 14 days North European market Regular service Low lead times Track and trace systems Simple customs procedures Temperature - 25C to +25C

Interest in China for an alternative route to Scandinavia and Hamburg Interest in China for an alternative route to Scandinavia and Hamburg YIWU-RIGA PILOT TRAIN 13 DAYS / 11 066 km

16+1 PRIME MINISTER`S SUMMIT IN RIGA, NOVEMBER 5-6, 2016 Main Events Prime Minister`s Summit 16+1; 16+1 Business Forum (more than 750 participants from 17 countries); Yiwu-Riga pilot train arriving ceremony in Riga Central Railway Station; Meeting between Latvian and Chinese transport and logistics industry; Round Table Discussion with 3rd countries – Russia, Belarus, Kazakhstan, etc.; City of Yiwu seminar on transport routes development. Signed Documents Ministry of Transport of Latvia MoU with MoT of China on transport and logistics cooperation; MoU with NDRC on port and harbor industrial park cooperation. Latvian Railway MoU with China Railway Rolling Stock Corporation CRRC on cooperation in railway sector; MoU with Shandong Hi-Speed Group Co.Ltd. on cooperation in railway, roads and logistics; MoU with China Merchants China-Belarus Commercial & Logistics Cooperation on cargo transportation between Latvia and Belarus. Latvian Railway subsidiary company «LDZ Loģistika» (LDZ Logistics) MoU with Transcontainer on cargo transportation between China and Europe.

CONNECTING THREE SEAS FROM BALTIC PERSPECTIVE

Identify OBOR and TEN-T connections through Three Seas Initiative LATVIA Minsk Odessa

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