Millions Needed to Maintain Ports in 'Survival Mode', Minister Says

After a meeting of the Port, Transit and Logistics Council on Wednesday, Transport Minister Rihards Kozlovskis (New Unity) announced that maintaining port infrastructure in the so-called survival or preservation mode will require millions of euros. Exact calculations are expected by late September or early October, as the full impact of railways is not yet clear—only data from the first half of the year is available.

The council discussed the possibility of state budget funding for port infrastructure when port revenues are insufficient. Finance Minister Māris Kučinskis (AS) noted that talks are ongoing about extending long-term loans, but additional subsidies are not being considered yet because funding sources need to be identified.

Kozlovskis highlighted that railway freight volumes continue to decline, prompting the search for compensatory mechanisms, including shifting road freight to rail and exploring military mobility solutions. He stressed that infrastructure must be maintained to prevent collapse, as restoration would be far more expensive.

Kučinskis described the situation as a total crisis that could foster broader cooperation among Latvian Railways, ports, and the Ministry of Defense. The European Commission is being consulted on Latvia's specific situation in the transit sector, which also has security implications.

The council also discussed the need for a port development program. State Secretary of the Ministry of Transport Andulis Židkovs said a decision is needed on whether to create a separate program or incorporate it into the Transport Development Guidelines. The simplest option would be to request state funding, but the state's ability to afford it must be assessed.

Additionally, amendments to Cabinet regulations regarding the fee schedule of the Latvian Maritime Administration were discussed, aiming to change the navigation fee methodology, which has not been updated since 2017. Neighboring countries have modernized their systems, while Latvia's remains outdated.

Earlier reports indicated that last year Latvian ports handled 34.281 million tons of cargo, a 4.8% decrease from 2024.