In Northern Europe, Latvia offers the finest position for company establishment from a transport and logistical perspective. The Baltic Sea region, which is home to Latvia, is the fastest-growing region in all of Europe. Logistics has long been a top concern in Latvia because of its geographical advantages as a gateway between Scandinavia, Central Europe, and Eastern Europe.
Transport and storage in Latvia
The transportation and storage industry in Latvia is diverse, with rail and sea freight being significant export services. Therefore, Latvia makes sense as a location for regional headquarters and distribution centers of global corporations. Modernization, the use of cutting-edge technology, and process automation all benefit the industry. The potential is further boosted by competitive labor and supportive government policies that improve the road infrastructure, promote railway freight and support ICT and new technologies.
Principal subsectors of Latvia’s transportation and logistics sector
- the largest airline and airport in the area
- logistics and post services for Alibaba aircraft
- rail integration with the whole CIS rail system (1520mm)
- The upcoming Rail Baltica project
- TEN-T transit core network
- multimodal terminals at three ice-free ports and seven minor ports
Latvia’s position in the transport and logistics sector
Riga International Airport, which serves about half of the customers of Latvia’s national carrier airBaltic, is the biggest air transportation hub in the Baltics. It offers 100 direct destinations. The major commercial transportation network in Latvia is comprised of railways, particularly for interior freight. Only Latvia has more than 70% of all inland railroad freight movement in all of Europe. With 22.2 tonnes of port freight per person in 2020, Latvia will be in the fourth position when it comes to managing freight.
Statistics of the Latvian transportation and logistics sector
One of the most promising segments of the Latvian economy is the transport and storage industry. More than 145 million tons of goods were moved via the ports, trains, and roads in Latvia in 2020: 24 million tonnes through rail, 45 million tonnes from the country’s seaports to other countries, 76 million tonnes via road, and 11,000 tonnes via air. In 2021, Riga International Airport had bounced back from the recession; its annual passenger volume had increased by 21% to 2.35 million.
Education and employment in the transport and logistics sector in Latvia
In Latvia, 12 universities provide advanced training in the logistics and transportation fields. A total of 6621 businesses and 71 005 individuals are employed in Latvia’s profitable and appealing transport and logistics industry.
Leaders in the logistics and transportation sectors in Latvia
The following companies dominate the transport and logistics sector in Latvia:
Air Baltic Corporation
The national airline of Latvia, Air Baltic Corporation, connects all major cities and tourist attractions in CIS and Europe with more than 80 direct Airbus A220 routes.
Utilizing all the East-West and North-South transport channels, LDZ Cargo is the fifth-biggest rail freight carrier in the European Union and the largest in the Baltic States. A record-breaking transportation route from China’s “City of railways,” Yiwu, has been put to the test. Your shipment from far eastern China might arrive in Latvia in only 11 days.
With 2000 vehicles and 2000 cooling trailers, Kreiss is one of the leading carriers in the Baltic republics, specializing in perishable and frozen freight in the European and CIS markets. It makes close to 200 million in revenue yearly.
In the terminal and warehousing industry, TFS Trans is a prime example. TFS Trans is the biggest and most modern high-bay warehouse in the Baltics. The firm constructed a fully automated logistics center there. 40 million euros were invested, with a 73,000-pallet capacity.
The Latvian State owns Latvijas Pasts in its entirety. Its main duty is to provide a global postal service. The corporation is always striving for economic diversification and has constructed a mail sorting facility inside the RIX region. With the help of the Alibaba Group, Latvijas Pasts has been maintaining several cargo aircraft each week.