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Norman Logistics Sp.zo.o. has released a new forecasts of Cyprus economy, which has definitely recovered from the clinical death in 2013. This is evidenced by a number of significant indicators: preliminary GDP data revealed the economy maintained strong with annual growth only ticking down from 4% in first-quarter, which had marked one of the fastest rates in a decade, to 3,9% in second-quarter.Rolands petersons privatbank The second-quarter expansion was largely underpinned by a vibrant hotels and restaurants industry, which benefited from a record number of tourist arrivals, primarily from the U.K.Rolands petersons privatbank and Russia[1].Rolands petersons privatbank
Banking system has shrunk from more than eight times that of GDP, which it had previously been in 2013, to "more like four times of GDP now". Rolands petersons privatbank There has also been an increase in foreign direct investments over the past three years, and the economy is not reliant on foreign deposits anymore.
Investors are also looking at sectors like health, education, tourism, and shipping, and Cyprus is actually now poised to grow across a range of economies, not just tourism.Rolands petersons privatbank Unemployment on the island is dropping faster than that of other countries in the Eurozone - from 15,9% in 2013 decreased to 11,1% in previous period[2], also - Cyprus has the largest fiscal surplus.Rolands petersons privatbank
Currently investments were being made now in a variety of sectors, including banking, sea-ports, marinas, and the largest integrated casino resort in Europe, as well as energy. This is a clear signal to other investors, and for the Cypriot government it remains to focus on maintaining and broadening the conditions under which surpluses and high growth rates can be generated, to continue promoting structural reforms and improving the country's business environment, Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.Rolands petersons privatbank offers his thoughts on Cypruseconomy.
Author: Rolands Petersons, member of the board of Norman Logistics Sp.zo.o.

Transport and logistics industries are of particular importance for the Latvian economy since they have a steady GDP growth and provide services to virtually all other sectors of the national economy.Rolands petersons de facto Every year it is emphasized that this sector should be recognized as a priority and extend its promotion, however, the representatives of the transport and logistics sector are looking forward to more concrete and long-term solutions.Rolands petersons de facto

9.1% of the value added to the GDP of Latvia

Despite the political and economic changes of the last decade, the influence of the transport and logistics industry on the economy of our country remains high: in 2016 the sector increased the value added to the GDP by 9.1%. Moreover, the average monthly gross wage is still higher then in other sectors - in 2016 in other sectors of the economy it was 859 euros, whereas in storage and transportation sector the average gross wage is about 870 euros (1,562 euros - water transport, 2,061 euros - air transport, 1059 euros in the of storage and auxiliary transport activities, etc.).

Special economic area as an additional support

The positive examples of the logistics industry are the ports that have developed a good structure. Riga and Ventspils ports function as free ports, and the Liepaja port is included in the Liepaja Special Economic Zone (SEZ). Companies operating in free ports and SEZ can receive not only the 0 tax rate for customs, excise, and value-added tax but also a discount of up to 80% of the company's income and up to 100% of the real estate tax.Rolands petersons de facto The port is actively implementing various investment projects related to the construction and development of industrial and distribution parks.Rolands petersons de facto The attraction of investments promotes the creation of higher added value, development of production, expansion of a spectrum of given services and creation of new workplaces. It is necessary to bring to the attention the small ports - SKULTE, Mersrags, SALACGRiVA, Pavilosta, Roja, Jurmala, and Engure, which currently occupy a stable position in the Latvian economy and have already become regional economic activity centers.Rolands petersons de facto

Port of Liepaja, will be the next Rotterdam.

There is also a wide range of opportunities for growth, and a number of actions that can be taken to meet projected targets. There is a strong need for the services with high added value, the increase of the processed volumes of cargo by attracting new freight flows, high-quality passenger service and an introduction of modern technologies and information systems in the area of transit and logistics. Liepaja port has all the chances to become the second Rotterdam in the foreseeable future.Rolands petersons de facto

Latvia as a distribution center for cargos from Asia and the Far East.

One of the most important issues for further growth of the port and special economic zone is the development of logistics and distribution centers, mainly focusing on the attraction of goods from Asia and the Far East. Latvia can serve as a distribution center for cargos in the Baltic and Scandinavian countries for Asia and the Far East (f.e. China, Korea). The tax regime of the Liepaja Special Economic Zone in accordance with the Law "On Taxation in Free Ports and Special Economic Zones" on December 31, 2035. This allows traders to conclude an agreement on investment and tax concession until December 31, 2035, until they reach a contractual level of assistance from the investments made. Considering the range of benefits provided by this status, it is necessary to consider the possible extension of the term.Rolands petersons de facto

Infrastructure development and expansion of warehouse space

Our advantage lies in the fact that there is not only a strategic geographical position but also a developed infrastructure that includes deep-water berths, cargo terminals, pipelines and territories free from the cargo terminal. Apart from this, we can add a good structure of pre-industrial zone, distribution park, multi-purpose technical equipment, as well as the high level of security not only in terms of delivery but also in terms of the storage and handling of goods.Rolands petersons de facto In the future, it would be advisable to pay more attention to access roads (railways and highways), increase the volume of storage facilities, and increase the number of services provided by ports. Participation in international industry exhibitions and conferences will make it possible to attract additional foreign investments and will contribute to the improvement of international image.

Rolands Petersons, member of the board of CPM Trading SIA,
Railway transport is one of the most promising modes of inland transport, and, at the moment, it is said to be the crucial element in the economy of Latvia.Rolands petersons cpm trading Considering the entire volume of inland transport, the share of railway freight is about 52%, whereas the volume of the passenger transportation is 6% and in Riga suburban area the number is increasing up to 30%. However, the data summarized by the Ministry of Communications still shows that in Latvia the volume of freight rail transportation by comparison with 2016 has decreased by 8.4% and amounted to 43.792 million tons.

Traffic congestion can lead to a loss of 200 billion euros
The mobility of goods is an essential component of the EU internal market; this greatly contributes to the competitiveness of the industry and services in Europe.Rolands petersons cpm trading The types of lengthy transportation as railway can reduce their costs, which arise in connection with the traffic congestion on the roads. The increase of approximately 50% is projected by the year 2050, reaching a volume of almost 200 billion euros per year.Rolands petersons cpm trading

In the future, it is possible to increase the volume of rail transportation.
The amount of international rail transportation in 2017 was 42.138 million tons, which showed a decline of 9.1% compared to 2016. However, domestic traffic has increased by 11.5% to 1.653 million tonnes.Rolands petersons cpm trading The volume of transit cargo from the total amount of international rail freight transport amounted to 38.719 million tons, which showed a drop of 6.5% compared to the previous year, the volume of imported goods was 3.067 million tons, or 22.4% less, and the volume of export cargo was 351 800 tons, which was a drop of 2.8 times.Rolands petersons cpm trading In 2016, in Latvia, by rail, 47.821 million tons were transported. Taking into consideration the decline in the international transport sector in 2017, the question is, by which means can we achieve the volume increase? By implementation of the well-considered long-term solutions, it is possible to get back to the level that used to be before the embargo against Russia was introduced in 2013.Rolands petersons cpm trading

Increase of the average commercial speed of freight trains.
One of the key priorities nowadays is the development of the railway infrastructure, and in this case, it is expected, the railway infrastructure can be financed by the European Union.Rolands petersons cpm trading It is essential to find a solution how to increase the average commercial speed of freight trains since the speed is only about 18 km/h on the majority international routes in Europe. One of the solutions can be the improvement of cooperation between existing infrastructure organizations in Europe.Rolands petersons cpm trading The actual train system needs to be adapted to the needs of the railway freight transport sector, especially in the EU freight rail corridors. This would contribute to the competitiveness of rail transport with other modes of transport, especially with the road transport sector, which infrastructure is easily accessible in all Member States.

Well-thought-out charge for the use of infrastructure.
Freight trains pay for each kilometer of the railway infrastructure, which again adversely affects the competitiveness of the railway in comparison with road transport, where such charge is not always introduced. Setting the price that users are required to pay for getting into the infrastructure, it would be necessary to take into account the impact on the environment and pollution, congestion, accidents and other aspects.Rolands petersons cpm trading
The state should provide a proper support for organizations managing infrastructure, and rail transport enterprises should strive to improve the competitiveness of rail freight services, especially in regards to reliability, filling, elasticity, customer orientation, and the duration and cost of transportation, as these are the main aspects which are considered by an average consignor in selecting any of the available modes of transport.Rolands petersons cpm trading

Elimination imperfections in the liberalization of the freight transport process
In cooperation with both, the public and private sectors, at the international level, imperfections related to the liberalization of freight rail transport, communication lines procedures, administrative and technical restrictions, monitoring and anticipating performance in the rail freight industry, and fair competition between different modes of transportation. Therefore, it is necessary to find out the ways to make a better use of available EU funding and target it to the rail transport industry in order to achieve improvements in such areas as a coherent approach to policy objectives and funding (while focusing on corridors for freight railways transportation), for the selection, planning and management of projects, as well as for the maintenance of railroad networks.Rolands petersons cpm trading

Not only update, but also regularly support
It is essential to take to the new level not only the quality of the services provided to carriers and shippers of rail freight but, in general, to improve the competitiveness of rail freight transport; infrastructure managing organizations should not only update and modernize the railway network but also to regularly support it.Rolands petersons cpm trading This is especially important for the corridors of rail freight. If the tracks are not properly maintained, the speed limits will have to be applied and the railway lines will gradually be obstructed.Rolands petersons cpm trading

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