Ventspils - a city of the future

Key Facts about the city:

• Ventspils Port is the largest port in Latvia with nearly 30 m tons cargo turnover
• 47 % of Ventspils territory is a Special Economic Zone (SEZ) which offers favourable business incentives in terms of tax rebates
• Ventspils Free Port Authority is ready to cover land preparation expenses if a company has decided to establish in Ventspils
• The lease price of land in Ventspils is about 0,20 EUR / m² / year (including all taxes)

General information about Ventspils

Ventspils, once a port of the Free Hanseatic League and the main port of the Kurzeme Dukedom, is now widely known and respected as a dynamic logistics, electronics and research hub of the Kurzeme Region, the Western part of Latvia. It provides all the important infrastructure and support companies might need including an outstanding location, an excellent business environment and an attractive place to live which is proved by the recent growth in innovation and businesses operating there. Ventspils is one of the fastest growing and dynamic cities in Latvia.

Ventspils is a modern city of about 45 000 people, situated in the middle of the Baltic Sea region, which makes it an optimal hub for economic co-operation with other countries. It covers 55 km², of which 47% is a Special Economic Zone (SEZ). Approximately 1000 companies and their representative offices operate in Ventspils.

Over the centuries Ventspils has been known as the major transport destination for Russian cargo such as oil products, liquid chemicals, various metals, fertilizers and wood products. Nowadays Ventspils is involved in the container and ro-ro traffic, as well as supporting value-added activities within the port.

Industrial development territories and premises

One of the main goals of Ventspils is to develop industrial activity within the city. Therefore Ventspils City Council and Ventspils Free Port Authority are supporting and promoting industrial development and have designated more than 1000 ha for the development of industrial projects, including the implementation of several industrial park projects. Several land lots, ranging from 1 to 200 ha, have been prepared for construction, providing expansion possibilities if required.

Ventspils Free Port Authority is open to public-private partnership and can perform some additional investments on the site if needed. Ventspils Free Port Authority also offers long-term land lease agreements for any available sites, with a lease fee of around 0,20 EUR/m²/year (including all taxes).

Two industrial parks – Ventspils High Technology Park and NP Ventspils Business Park are being developed, thus providing companies the necessary premises for rent.

Ventspils High Technology Park (www.vhtp.lv)

The aim of Ventspils High Technology Park is to create and provide infrastructure and support services for the development of high technology industries in the city of Ventspils. The priority areas are ICT, electronics, mechanical engineering, industrial automation, computer aided design and space technology. Professional management team, high strategic goals and a clear development plan are the basis for the operation of the park. Ventspils High Technology Park has 2 structural units; a Business Incubator and a Technology Park:

• The Ventspils Business Incubator is designed to support high-tech companies at the beginning of their operational activities. The Business Incubator promotes the establishment and development of new commercial ideas and companies, offering business start-ups, quality infrastructure and office services on reduced tariffs, business consultation on development, financing and organization, and also offers an effective collaborative net during the sale of ideas generated within the incubator. Incubated companies are given all the preconditions to develop rapidly, increase turnover and enter the local and global markets via the collaborative net of the Incubator. The Incubator is located in Ventspils University, where 1000 m² office space will be available for rent at the beginning of 2008, enough space for about 20 companies to operate;
• The Technology Park offers land, premises and business support services to high technology companies and educational and scientific institutions extending or launching operations in Ventspils. Companies that continuously improve their production technologies, creating new products and services require the appropriate specialists, and research and testing facilities. The Technology Park together with its business partners provide strong support in the implementation of business development projects ensuring access to laboratories and research equipment provided by Ventspils International Radio Astronomy Center (VIRAC) and the Engineering Research Center (ERC), as well as training and attracting highly qualified, professional human resources, clustering with relevant industry partners and also international marketing. Altogether there are more than 30 ha of territory available for industrial development within the park.

NP Ventspils Business Park (www.industrial-park.lv)

NP Ventspils Business Park is one of the latest ventures from NP Properties (the largest developer of industrial parks in Latvia). Currently the park occupies 20 hectares, but NP Properties has plans to expand by another 16 ha in the coming years. Future developments will see the park occupy at least 50 000 m² of modern industrial and warehouse space within 5 years.

Transportation possibilities

Any goods produced can be easily moved via the Ventspils Free Port where regular ferry connections to Germany, Sweden, Estonia, and container traffic to Sweden, the United Kingdom and the Netherlands are in operation. Altogether there are 19 weekly departures from Ventspils. Ventspils also has excellent hinterland links, which allow both time and cost efficient deliveries to Russia and other CIS countries. The powerful railway system with a 34 million ton per year capacity connects Ventspils to the transport systems of Russia. The E22 road is of the European significance and has its route through Ventspils. Furthermore, Ventspils Airport comprising of a modern passenger terminal is an essential part of the transport system.

Availability of human resources

The operations of the Free Port ensures the availability of highly qualified port specialists with high competencies in port operations, liquid cargo, dry bulk, general cargo as well as container handling and related other fields. Ventspils has long-standing and rich traditions in wood processing, fish processing and metalworking.

Education, Innovation and R&D are crucial for the development of Ventspils. Ventspils City Council contributes to the continuous upgrading of the educational system where Ventspils University, just celebrating its 10-year anniversary, is the main player. Ventspils University ensures the education of high quality specialists in information technology, business administration, translation and the new engineering sciences department. Additional support is also obtained from its research institutes like the VIRAC (specializing in fundamental research in astrophysics, applied research in satellite technologies, space engineering) and the ERC.

Also the Ventspils branch of Riga Technical University is one of the corner stones of human resources development in Ventspils offering studies in electronics, power engineering, electrical engineering, computer systems and other technical programs.

To strengthen engineering research capacity a new Engineering Research Center (ERC) was established in 2005 now employing 28 researchers and technical specialists with competencies in economic, financial and industrial mathematic modeling, applied electronics and bluetooth, telecommunication product development and CAD/CAM engineering.

Two examples of how this can help a company are Froli Baltic and the development of Bucher Schoerling Baltic, both subsidiaries of German investors in Ventspils. In the first case ERC provided customized solutions in telecommunications, in the second research consultants designed integrated smart-house technology for business management systems.

Today ERC has become part of a larger network consisting of other University/College structures including; Ventspils High Technology Park, NP Business Park Ventspils, Business Incubator, Ventspils Free Port Authority, Ventspils Digital Center, Ventspils City Council and approximately 30 business customers, including the Ventspils branch of Siemens, forming a mutually beneficial network.

Free Port as a Special Economic Zone (SEZ)

Being located within the territory of Ventspils Free Port you will be offered SEZ status that gives additional advantages to the companies located in Ventspils. According to the law, companies can receive considerable indirect tax (value added tax, excise tax and customs duty) reductions, as well as direct tax (corporate income tax and real estate tax) reductions of up to 50% of the initial investment. In addition the free port / SEZ status grants the possibilities of re-exporting.

An excellent business environment, the advantages of a port city, a low tax burden and a qualified workforce make Ventspils highly profitable for foreign investment and local companies, and a natural choice for your business service, engineering and ICT center!

For more information about Ventspils and potential cooperation possibilities, please contact:
Mr Igors Udodovs
Head of Marketing and Development Department
Ventspils Free Port Authority
igors.udodovs@vbp.lv
www.portofventspils.lv
www.ventspils.lv