The agricultural services co-operative society LATRAPS has become a partner in the port of ALPHA. “For 15 years, LATRAPS has been researching, analysing, and looking for opportunities to sustainably develop the grain export industry. For many years, the dream of owning a grain handling terminal was cherished. In the process of in-depth research, we tested the port and now we have become 50.01% shareholders in the ALPHA port. It has powerful rail and road access and reception and access, ship loading infrastructure, initially sufficient storage capacity suitable for grain handling. By becoming co-owners of a grain handling port, we are shortening the logistics chain” explained LATRAPS Chairman of the Board Edgars Ruža.
The loading capacity of the terminal vessels exceeds 20 000 tpd and the total amount of grain storage is over 100 000 t. Its berth can serve ships of various carrying capacities, including Panamax ships with a total capacity of more than 70 000 t. With the port transaction, we have gained both the opportunity to deliver grain to ships faster and with better quality, as well as additional grain storage capacity.
The shortened path and costs from the field to the end consumer are strategically shortened. Almost all pre-treatment points developed by LATRAPS are built at railway access roads. Consequently, grain products can be efficiently delivered to the port and further loaded on ships. Grain growers who have their own storage capacity on their farms will now be able to deliver grain directly to the port in Riga.
In order for the transaction to take place at the end of 2020, LATRAPS offered its members to buy bonds and invest in their company.
“It was our loyalty to the purchased bonds that ensured the successful acquisition of the port. Thank you to everyone who invested in LATRAPS to open the door to the world grain market even more. The main goal of the investment to develop further sustainably and become partners in the port has been fulfilled” continued Edgars Ruža.
Now that the port has been purchased, work is underway on both the port's investment and business development plan. At present, the port, which until now specialised in the handling of mineral fertilizers, is being reoriented and improved for the handling of grain. Further investments in the port are currently hindered by ill-considered building rights legislation, which has been holding back the further development of ports for years.
In Latvia, it is possible to grow high-quality and environmentally friendly food, which is in demand all over the world. The country is not able to consume as much on the spot in Latvia as it can grow, so about 70% of LATRAPS grain growers are exported. LATRAPS Grain grown by members travels to more than 30 countries around the world, including North Africa, where agriculture is not possible at all.
Read the article online at: https://www.drybulkmagazine.com/ports-terminals/26042021/latraps-has-become-a-partner-in-the-port-of-alpha/
You might also like
Genco Shipping and Trading Ltd has acquired two high specification capesize vessels and has agreed to sell an older capesize vessel for US$19.5 million.