Ministry of Transport: Channelling Eurasian cargo flows via Latvia

The Counsellors Office of the Ministry of Transport at the Embassy of the Republic of Latvia in the People’s Republic of China informs that on 7 May 2021 a dry-bulk vessel “Orient Cavalier” completed a journey of 13,563 nautical miles from the Port of Riga in the Baltic Sea to Port of Rizhao in the Yellow Sea. Signifying that the Port of Riga is effectively channelling Eurasian cargo flows via Latvia by providing excellent combined rail-sea transport services and solutions.
On 15 March 2021, a 255 meter long and 43-meter-wide ship “Orient Cavalier” was serviced in the Port of Riga at the dry-bulk terminal berth of the “Riga Coal Terminal” LLC on Krievu Island, where 100,000 tons of coking coal was loaded into the vessel for transportation to China. The “Orient Cavalier” belongs to the so-called Capesize class - a vessel of this size was serviced for the first time at the new port terminals on Krievu Island.
Historically, Capesize vessels have not been extensively serviced in the Baltic Sea due to their size, mainly due to their draught, preventing them from passing via the Danish Straits. In recent years, due to changes in the cargo shipping market and the freight rate, servicing of Capesize vessels, including those which are only partially loaded, provides a competitive advantage for the port by attracting various groups of dry bulk cargo.
The new terminals on Krievu Island at Port of Riga boast appropriate infrastructure to accommodate vessels of this size, and the Freeport of Riga Authority will improve the parameters of the main shipping channel and turning basin to safely and qualitatively receive and service Capesize vessels in the Port of Riga.
“Larger vessels are being used for sea freight worldwide. When transporting a larger amount of cargo, the cost per unit of transported cargo is reduced, and transportation becomes much more attractive for the client. This is particularly important in the dry bulk segment, such as coal and metal ore, where the use of larger vessels makes it possible to provide a much more advantageous ship freight rate per one shipped ton. Besides, it becomes especially advantageous when shipping cargo over longer distances, which provides the possibility to consider more distant regions,” said Mr Ansis Zeltins, CEO of the Freeport of Riga.
“The arrival of the “Orient Cavalier” at the port of Riga and the vessel’s servicing at our terminal is important not only due to its impressive size but mainly due to the new destination and the new type of cargo - coking coal, which is used in metallurgy. We could even say that this call practically marks a new era in servicing this cargo segment,” stated Mr Mikelis Lapse, the Member of the Board of “Riga Coal Terminal” LLC. We need to show our clients that here in Riga, we can simultaneously handle such a large amount of cargo, as well as quickly and operatively service vessels of this size. I think that this will make coal cargo carriers pay more attention to Riga, and hope that in the future a certain part of the coal cargo in a new quality might return to the port of Riga,” said Mr Lapse.
At present, Capesize vessels are practically not serviced in the ports on the eastern shore of the Baltic Sea, so the possibility to do it in Port of Riga provides significant market advantages not only in comparison with the ports of the Baltic States but also with those in Russia. According to the information processed by the Freeport of Riga Authority and the port merchants, currently, more than 30 million tons of coal from the ports on the eastern shore of the Baltic Sea are shipped by Panamax vessels to markets outside Europe – in Asia, South America, and the Middle East. Generally, ports in these regions can accommodate Capesize vessels, so it would be more advantageous for cargo carriers to use larger Capesize vessels instead of Panamax ones. By demonstrating that it is possible to service Capesize vessels in the Port of Riga, the port could secure a sizeable share of this cargo volume in the future.
“The ability of the port to accommodate Capesize-class vessels facilitates access to new cargo and distant markets. Thus, there are additional opportunities for our stevedores, as well as cargo carriers working through the Port of Riga, to provide a full range of services, servicing ships of various sizes. Furthermore, we gain advantages by attracting new cargo segments to the port and promoting the growth of cargo turnover in the port of Riga,” said Mr Ansis Zeltins, CEO of the Freeport of Riga.

Capesize-class ships are mainly dry bulk carriers with a deadweight capacity of over 120,000 tons. The name of the ship class comes from the word “cape”. Capesize – it was the name used for large ships that, due to their parameters, could not pass through the Suez or Panama Canal, so they had to traverse the Cape of Good Hope or Cape Horn to sail between oceans.

For cooperation opportunities and more information, please contact:
Mr Helmuts Kols
Counsellor (Transport and Communications)
Embassy of the Republic of Latvia in the People’s Republic of China
Tel: (010) 8532 3009
Fax: (010) 8532 1925
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.sam.gov.lv / www.vialatvia.com