The Port of Klaipeda – Development and Perspectives INTERREG III C PROJECT PORT-NET PASSENGER TRAFFIC TRENDS IN THE EU - ESPECIALLY CRUISE WITHIN THE BALTIC RANGE 22 – 25 MAY, 2007, KLAIPEDA The Port of Klaipeda – Development and Perspectives Mr. Sigitas Dobilinskas, Director General, Klaipėda State Seaport Authority (Lithuania)

Klaipeda State Seaport „Lithuanian Klaipėda State Sea Port- Perspectives for Development“ - Mr. Sigitas Dobilinskas 1

Management of the port Port Authority: uses and manages the state property; ensures safe navigation in the port; constructs, operates and develops port infrastructure; draws up strategic development plans; leases port land and collects port dues. Port operators - stevedoring, shipbuilding, ship repair and other companies render cargo-handling, warehousing, towage, logistics, forwarding, agency, shipbuilding, ship repair and other types of services. 2

Existing port terminals Multipurpose terminals (metals, metal scrap, timber, Number sugar, cotton, other packed and bulk cargoes) 11 Terminals of refrigerated cargoes 4 Dry fertilizer terminals 3 Terminals for grain and agricultural products 2 Container terminals 2 Ro-Ro cargo terminals 2 Liquid fertilizer terminals 2 Oil and oil product terminal 2 Liquid food product terminal 1 Cruise and Navy terminal 1 Shipbuilding and ship repair enterprises 4 Klaipeda port having more than 30 different terminals and being an ice-free all year around is able to accommodate the trade at any time, without having any capacity constrains during the seasonal or any other type of peak. Furthermore, depending on the situation in the market there are plans being worked out in order to expand the capacity of the port even more. 3

Port of Klaipeda – geographical position and hinterland connections Klaipeda State Seaport is one of the biggest ice-free ports on the Eastern coast of the Baltic Sea. Lithuania, being situated in the middle part of Europe geographically and having an ice-free port, can be called a transport bridge between the East and the West. Klaipėda port is the closest to the West/North Europe and Scandinavian ports. The distance to the main CIS industrial and trade centres is the shortest, well. 2

Port of Klaipeda – geographical position and liner connections Klaipėda port is the closest to West/North Europe and Scandinavian ports. The distance to the main CIS industrial and trade centres is the shortest. 22 shipping lines connect Klaipėda port to the North Europe, Scandinavian and Great Britain ports including 10 container, 7 Ro-Ro and 5 general cargo lines. 9

Riga and Finish bays (March 2003) Sankt - Petersburg Tallinn Klaipeda port remains an ice-free even in the harsh winters, while other ports situated to the North from Klaipeda are covered by ice even in spring time. Riga 4

Reconstruction and dredging of Klaipėda port entrance 2001. The depth of the entrance channel - -12.0 m 2002. The depth of the entrance Channel -14.5 m, breakwaters reconstructed The biggest investment project implemented by the port authority – the reconstruction of the Port Entrance and dredging – opened a new page in the history of Klaipėda port in 2002. Since then the port is able to accommodate the vessels of 300 m in length with the draft of up to 13,5 m and it allows handling of the tankers with the capacity of 100 thousand tons and the bulkers of 70 thousand ton. Recently, the dredging of a fairway was completed and now along the quays of bulk terminals starting from the Port Entrance to International Ferry terminal, it is possible to accommodate PANAMAX type ships. 5

Annual port turnover trend Klaipėda port turnover since the restoration of independence of Lithuania in 1990, retains the tendency to increase. In 2005 the record cargo volumes were handled during this period which comprises almost 22 million tons of cargo and more than 8200 vessel calls. 6

Structure of handled cargo, 2006 m. Klaipėda port is the only commercial port in Lithuania, therefore it is natural that different types of cargo are handled in the port to satisfy Lithuanian and neighbouring states industry and trade enterprises needs. Bulk cargo comprises the biggest tonnage in the cargo handling structure of Klaipėda port: oil products – 27 per cent, fertilizers – 21 per cent. Intermodal cargo is dominating too: Ro-Ro – 14 per cent, containers – 9 per cent. (Ro-Ro – means the vehicles on wheels – horizontal loading). 7

Klaipeda port hinterland countries main cargo suppliers 2006. Мill. t Klaipeda port hinterland reaches Kazakhstan, Uzbekistan, Russia, the Ukraine and Belarus. However the port is primarily used by national traders and industrialists. Together with great growth of economy in our neighboring countries Russia, Belarus, we expect a huge potential in higher trade and cargo traffic demand trough our port from those countries in the coming years. 8

Shipments from/to the port of Klaipėda in 2006 (total 64 countries), thousand t Trade links connect Klaipėda port to 65 countries of the world. The biggest trade partners are the EU countries – Germany, the Netherlands, Sweden, France, Spain and the USA. Wide feeder line network, flexible port dues policy, shortest distances to cargo hub ports of Europe (Hamburg, Rotterdam, etc) – are the main factors which guarantee the effectiveness and attractiveness of maritime transportations between the EU and Lithuania. 10

Container Traffic From 1999 to 2005, container flows increased in Klaipėda port by almost 8 times. The growth in 2003 was 65 per cent and 47 per cent in 2004. 11

Container handling in the ports of the Baltic States, thousand TEU In 2004 Klaipėda port became a leader in container handling compared to other ports of the Eastern coast of the Baltic Sea. Klaipėda port did not give up its leading positions in 2005 either, when 214 thousand TEUs were handled in the port. 12

Shuttle train “Viking” Shuttle train Viking (Klaipeda – Ilyichovsk) Distance Time Tariff 1734 km 55 h 20' cont. 40' cont. 551 $ 885 $ Klaipėda port launched the intermodal projects. The main of them is the connection of container and con-trailer trains, on the hinterland of the eastern Baltic Sea region. We are delighted by successful results of the train “Viking”, which connects the Black and the Baltic seas. The train starts in Ilyichovsk port, goes through Kiev, Minsk, Vilnius and reaches Klaipėda in a very short period of time i.e. 55 hours, covering a 1700 km-long distance. The delivery time compared to similar road carriage is very competitive, taking into consideration that it is necessary to cross two non-EU country borders on the way. Transportation tariffs are also competitive to road transport. Maintaining of the same tariff level and time schedule for 3 years allowed us to reach impressive traffic results in 2005 when 15 000 TEUs were transported. This year the train goes three times per week and its traffic results increased by 26 per cent. It is an exemplary project of close cooperation in transport field among three different countries: Lithuania, Belarus and the Ukraine. Competitive tariffs and delivery time (55 hours) Since 01-01-2006 three times per week Since 01-01-2006 excise duty commodities can be carried 13

The project of container train “Mercury” Kaliningrad/Klaipeda – Moscow (within the framework of Project “2K”) Distance Time   20’ cont. 40’ cont. Shuttle train Mercury (Klaipeda-Moscow) 1335 km 46 h 850 $ 1300 $ Shuttle train Mercury (Kaliningrad - Moscow) 1288 km 50 h 800 $ 1200$ The intergovernmental agreement between Russia and Lithuania concerning the implementation of the project “2K” was signed in 2005. It aims at increasing of cargo turnover to/from Klaipėda and to/from Kaliningrad ports. The project “2K” was started to realise in practice in July 2005, when the container train “Mercury” was launched on the route Klaipėda/Kaliningrad – Moscow. The train goes once per week but in case of necessity it is possible to have three runs per week, as it was done in December 2005 when this train transported about 800 TEUs. 14

Block train “Mercury” potential 15

A deep-water avant-port One of the most ambitious future investment projects is the construction of a deep-water (up to 17 m) avant-port. It was approved by the Lithuanian Strategic Planning Committee in January 2005. In 2003-2004 the experts of JICA (Japan international cooperation agency) carried out a study concerning the development perspectives of Klaipeda port till 2025, and suggested to foresee the construction of a deep-water harbour out into the sea. As the expansion of Klaipeda port is limited by the city on land part, and the cargo volumes increase permanently, the existing capacities of the port may not be enough; therefore Japanese experts proposed the best alternative to develop the port out into the sea. The construction of such a harbour would give significant advantages to Klaipeda port: It would allow accommodating the biggest tonnage tankers which can enter into the Baltic Sea; It would decrease the intensiveness of navigation in the inner port channel and would increase navigation safety, as well; Intensively growing containerization and container turnover in the eastern Baltic region, construction of a deep-water harbour and respective railway gauge, connecting to Russia and the CIS railway network, make pre-requisites of transfer of Klaipeda port from feeder port to hub-port level. According to preliminary calculations the construction of such a harbour would cost about 633 million Euros. 16

Cruise shipping in Klaipėda

Active marketing and promotion of cruise in port Klaipėda Paroda ir konferencija "Seatrade Europe Cruise Ferry River-cruise Convention" Active marketing and promotion of cruise in port Klaipėda Seatrade CRUISE SHIPPING Convention (Miami) Seatrade Europe, Cruise ferry & River cruise Convention (Hamburg) Cruise Europe members since 2001 Cruise Europe Annual General Meeting 2008 Klaipėda Member of Cruise Baltic Project 1 & 2 (10 countries) 15

Growth of passenger traffic in the Port of Klaipėda, passengers Ro-Ro passenger traffic Cruise passenger traffic 15

Dedicated vessel terminal since 2003 Investments done by Klaipeda port authority - 25 mln. Lt (2003) Private terminal operator “Klaipėdos laivų remontas” 348 overall length, (6 cruise quays) 10 m depth (8,5 m max. draft) Available 150 ship call yearly ( 2007 – 67 cruise vessel calls) Services in terminal: internet, post box, city map, telephone both Biggest cruise lines - Celebrity Cruise Lines INC, Hansa Kreuzfahrten GmbH, P&O Cruises LTD, Hapag-Lloyd Kreuzfahrten GmbH, Costa Crociere, SPA, Vistamar Canarias, Norvegian CL 15

A new cargo-passenger ferry terminal will be built till 2009 Liquid agricultural products Highway Klaipeda – Vilnius (IXB corridor) Water cleaning facilities Passenger terminal Warehouse Passenger gallery 15

Schema of the new cargo-passenger ferry terminal Vilnius, Minsk Baltijos pr. 33 15

YACHT PORT 24 hour duty electricity fresh water internet the fuel is delivered under the order minor repair closed boathouse 15

Boat base 15

Schema of the boat base 15 Total project budget – 27,8 mln. lt

Thank you for your attention ! www.portofklaipeda.lt Thank you for your attention. 22