At the beginning of July, the deal to acquire the Port of Riga's fourth-largest cargo terminal – SIA “KS Terminal” – was completed, as a result of which SIA “Kronospan Riga”, a company of the “Kronospan” group, the world's leading wood panel manufacturer, has become the owner of 100% of the company's shares. With this acquisition, the international wood products manufacturer and distributor “Kronospan” will strengthen the “Kronospan group's” operations in Northern Europe, while opening up new strategic opportunities for the port terminal's further growth.
By the end of July, the 199-metre-long and 30-metre-wide cargo vessel “Spanaco Adventure”, owned by the “Kronospan” group, had already moored at the “KS Terminal” berth to carry wood panels made at the “Kronospan Riga” plant to the USA. The vessel set off for the ports of Baltimore and Houston with 40,000 m³ of particle board produced in Latvia. It is planned that “Spanaco Adventure” will henceforth carry out regular cargo runs from the Port of Riga to the USA, delivering “Kronospan Riga” products to the American market.
Assessing the change of ownership at “KS Terminal”, Freeport of Riga Chief Executive Officer Ansis Zeltiņš emphasises: “The entry of a major global player such as the “Kronospan group” into the port services business in Riga is undoubtedly to be viewed very positively. For “KS Terminal” and for the port as a whole, it ensures a more stable cargo base and a more secure outlook for the future. At the same time, the deal concluded by “Kronospan” sends a signal to other foreign investors that the business environment and investment conditions in the Port of Riga are favourable, secure and suited to long-term projects.”
Vivita Vāvere-Ozola, board member of “Kronospan Riga” and “KS Terminal”, notes that the aim of acquiring the terminal is to secure the export of “Kronospan” products to the USA, the United Kingdom and the Scandinavian countries, to ensure the unloading and delivery of raw materials for the plant's needs, and to attract new clients and cargoes to the terminal in order to make the fullest possible use of its potential. In parallel, work is beginning on an investment plan to provide for and modernise the handling of various dry bulk cargoes and other types of timber, ensuring a high standard of service for the terminal's clients.
By cargo turnover figures, “KS Terminal” is the fourth-largest cargo terminal in the Port of Riga. In the first half of this year, the terminal handled 0.67 million tonnes of various cargoes, making up 7.6% of the port's total cargo turnover. “KS Terminal” is a multifunctional terminal providing handling services for a range of cargoes in the Port of Riga's territory on Krievu Sala. The largest cargo groups handled are timber, agricultural dry bulk, chemical dry bulk and crushed stone. Timber accounts for around a third of the terminal's total cargo volume, and over the past six months handling volumes in precisely this cargo group have grown substantially.
Founded in Austria, the “Kronospan group” is one of the world's leading manufacturers and distributors of particle board and related products. The group comprises a number of companies, including 41 production plants worldwide. Its broad product range includes particle board, MDF, laminate flooring and OSB panels, as well as chemicals production and logistics companies. In Latvia, the company has operated as SIA “Kronospan Riga” since 2005, making wood panels at its plant in Bolderāja.
Photograph by Jēkabs Vilkāršis used