Ventspils nafta termināls

Annual report

Management report 2018

The Company

SIA Ventspils nafta termināls (hereinafter – the Company) has two shareholders – 49% of the company’s shares belong to Eurotank Holding Sarl, part of the international terminal operating company VTTI, while 51% belong to Martank BV, a fully owned subsidiary of the international company Vitol. The Company has a tank storage capacity of 1.2 Mio m3 for the transshipment of crude oil, gasoil, and gasoline.

Development of the Company in 2018

In 2018 the transshipment environment was characterized by oversupply of available tank capacity, thus leading to a very competitive market environment. In those condition the Company effectively maintained its annual transhipment amount of 6.13 million metric tons, compared to 2017, hence retaining its leading position in the port of Ventspils.

In order to adapt to changing market conditions, the Company streamlined its operational processes and procedures and increased its organizational efficiency. In 2018 the Company completed a significant investment stage, by building and commissioning a vapour recovery unit and expanding its pipeline infrastructure. Therefore the Company not only ensured compliance with new environmental regulations, but also expanded its portfolio of products allowed for transshipment, as well as its operational flexibility. Increasing its focus on sustainable development and responsible energy consumption, the Company installed solar panels for power supply to its main administration building, consolidated buildings and implemented a number of internal projects on process optimization.

The Company takes active part in the Employers Confederation of Latvia and the Latvian Chamber of Commerce and Industry, as well as in the Foreign Investors' Council in Latvia (FICIL).

The performance of the company has been recognised by governmental and non-governmental organisations in Latvia and abroad. In 2018, for the fourth consecutive year, VNT received the Platinum award in the nationwide Sustainability Index and the award “Best Employer in Kurzeme Region” presented by the online recruitment company “CV-Online Latvia”. The Ministry of Welfare granted the status “Family friendly company”, the Ministry of Environmental Protection and Regional Development awarded VNT as “Environmental-Friendly Mobility Promoting Organisation”. Furthermore, VNT received the award “Golden Helmet” of State Labour Inspectorate of Latvia and the main prize in the category "The Most Innovative Terminal in Russia & CIS" at Vostock Capital UK Oil Terminal 2018 strategic congress. Ventspils Municipality awarded VNT as the largest taxpayer in the transport and storage sector and the largest taxpayer in terms of personal income tax payment per one employee in Ventspils.

Impact of the environmental protection requirements

According to its declared environmental and quality policy goals in 2018, the Company progressed with reducing emissions due to transshipment, raising the level of operational safety, improving the current environmental monitoring system, while also contributing to the reduction in energy consumption and the development of environmental awareness among employees and subcontractors. According to the Energy Efficiency Law, the Company has created and maintains a certified environmental management system, including energy management, to identify energy efficiency measures for implementation.

Under the environmental management program developed the Company strives to maintain and improve the quality of the environment as well as to ensure sustainable use of natural resources.

Compliance of the Company with ISO 9001 and ISO 14001 was successfully re-certified in 2018 by the international certification organisation Bureau Veritas, by carrying out an audit in all departments of the Company in order to ascertain that its integrated management system meets the requirements set by the environmental management standard ISO 14001:2015 and the quality management standard ISO 9001:2015. Along with ISO 14001 the energy efficiency process was also reviewed within the Company and accordingly an ISO 14001 extension was granted to fulfil the requirements of EC Directive 2012/27/ES on energy efficiency. Bureau Veritas ISO Certification is valid until 19 December 2021.

The Company also managed to prove its compliance to the OHSAS 18001:2007, Occupational Health and Safety, certificate first obtained in 2012 and was successfully re-certified by Bureau Veritas Certification after having passed their certification audit. The certificate is valid until 12 March 2021 and is an important indicator of the Company’s commitment towards Occupational Health and Safety at work.

The quality and environmental management system directs the Company towards safe and efficient services in the transhipment business, while also decreasing the Company’s impact on the environment in an economically reasonable way. For, partners, shareholders, and society, the Company meeting ISO and OHSAS standards attests that the Company meets internationally recognized criteria, as well as encouraging further improvements of the Company’s management systems.

Planned operations in 2019

The objectives of the Company in 2019 is to continue to adapt its operations to an environment of stagnant / declining cargo flows / volumes within the Baltic region in order to improve its diversity of services to maintain its value proposition to its customers. With the Company only being one link in the logistics chain, it will progress its efforts together with other key stakeholders, such as rail transportation companies and ports, in order to assure the Ventspils port remains an attractive and competitive transshipment hub within Latvia and the Baltic States.

Following its investments in 2018, the Company will continue to explore development opportunities that add value to its customer base to assure their retention. The Company will proceed with the implementation of various internal projects related to process optimization, IT standardization, infrastructure maintenance, as well as professional development of its employees to further assure a sustainable profitable business in an increasingly competitive market environment. While adapting to changing market conditions is of great importance, assuring excellence in operational safety and  minimizing adverse environmental effects remains the Company’s most important target.