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Strategic investments and long-term vision pays off for VNT

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Strategic investments and long-term vision pays off for VNT

December 17, 2018 / News

Despite the recent publications on transshipment performance of terminals within the Ventspils Freeport, suggesting that the increase in performance indicators of SIA Ventspils nafta termināls (VNT)  is related to political tensions between Russia and Ukraine, is incorrect and misleading information.  VNT has experienced 5 % growth in last 11 months over the same period 2017 only as a result of its the strategic planning and significant improvements implemented over 2018.

VNT would like to emphasize that the macroeconomic climate in 2018 is identical to 2017, so the better transshipment performance of VNT this year compared to previous year is completely unrelated to political tensions in the greater region. In today’s challenging environment experienced by the Latvian transit sector, VNT has managed to grow its contribution to the Ventspils port in terms of cargo volumes as result of a number of significant development projects as well as operational improvements focused on developing and diversifying its business to match today’s competitive landscape.

VNT believes that the overall situation in the Latvian transit sector is extremely dire and instead of finding meaningful ways to improve the competitiveness of individual entities, private or state, state entities appear to lack proper vision and have seem to have limited interest to make their own serious efforts to refrain from tariff increases towards their customers by looking at their own operational efficiency and necessary corrective measures internally first.

While private companies make significant efforts to improve their standing in today’s challenging market environment, little to none of such efforts can be seen by other entities that form part of the logistics chain. With the Ventspils Freeport Authority increasing port fees and Latvian Railway increasing elements of transportation fees in 2019, it is in contradiction to all signals sent by today’s market and thus not adding any value to improve the competitive position of the Latvian transit sector. Furthermore, inconsistent application of taxation and environmental laws across Latvia further contributes to the opinion of investors whether Latvia is a favorable location for further investments.

About VNT

VNT provides transit services – receipt, storage and handling of crude oil and petroleum products that come by pipelines, rail tank cars and tankers. VNT is a technologically advanced terminal and the largest crude oil and petroleum products transhipment company in the Baltic States with a total tank capacity of 1.2 million cubic meters.

For more information contact:

Janina Biteniece, communication project manager

““Ventspils nafta” termināls” LLC.

Phone: +371 25482399

 

E-mail: jan@vnt.vtti.com