Ventspils

Ventspils – a City for Business and Recreation

A City of Tomorrow!

www.Ventspils.lvwww.investinventspils.lv

Deepest ice free port in the Baltic SeaMultipurpose port with main commodities: - liquid bulk - oil products, liquid chemicals - dry bulk - potash, coal, grain, peat, woodchips - general cargo - containers, Ro-Ro

Free Port of Ventspilswww.portofventspils.l

v

Ferries: Scandlines strategy: Ventspils – central Hub for Eastern European transshipmentsVentspils – Nynashamn (Sweden) 5 times per weekVentspils – Travemuende (Germany) 2 times per week

Finnlines:Travemunede – Sasnitz – Ventspils – Helsinki – St.Petersburg

Overseas connections

Ventspils Airport: • State of art passanger

terminal• Air-taxi and charter flights

Riga Airport:• Distance from Ventspils

180km• More than 60 daily flights

to world-wide destinations

Air transportation

Optical cable infrastructure

Ventspils is connected to the international telecommunication network with two independant submarine optical cables:• Lattelecom optical cable from Ventspils to Stockholm

with a capacity of 10 Gbps

• Baltic Fiber optical cable Ventspils – Gothland – Stockholm:• Constructed in 2002 is the newest

cable in the Baltic Sea• Consists of 68 fibers (manufac-

tured by Ericsson)• Present theoretical capacity from

10 to 40 Gigabit/sec each fiber• Used capacity is 5 Gigabit/sec • The cable has 0% damage rate

and the operator guarantees a 99.7% availability of an international IP transit service

BQS -best quality systems by countries, 2009

Ventspils:Taxes

Corporate Income tax in EU (%) in 2010

Source: World Bank Group and Pricewaterhouse Coopers, Paying Taxes 2011, The global picture

Total Tax Rates in European Union

Tax incentives in Ventspils(Pursuant to the law “On tax application in free ports and special economic zones)

Tax incentives in Ventspils(Pursuant to the law “On tax application in free ports and special economic zones)

Posibility to acquire tax incentives through the Special Economic Zone/Freeport status

Reductions of Excise tax, Value Added tax and Customs duties

Real estate tax is decreased by 80% and Corporate tax is decreased by 66% until return of half of the total investment (60% for medium size and 70% for small companies)

Real Estate tax rate = 0,3%

Corporate tax rate = 5%

Tax rates to licensed companies(According to the law “On tax application in free ports and special economic zones)

Tax rates to licensed companies(According to the law “On tax application in free ports and special economic zones)

Investment = 10 mln Profit = 1

mln Real estate value = 1

mln

Taxation in Latvia: Profit tax (15%) = 150

000 Real estate tax (1,5%) = 15

000 Total = 165

000

Taxation in Ventspils Profit tax (5%) = 50

000 Real estate tax (0,3%) = 3

000 Totally applied = 53

000

Example:

Savings per year = 165 000 – 53 000 = 112 000

Human resources in Ventspils

Ventspils Higher Educational institutions: Ventspils University CollegeRiga Technical University Ventspils BranchThe Baltic International Academy Ventspils BranchRPIVA Ventspils Branch

Field of specialization Number of students (2010)

Business Administration and Management

Bachelor level: 500Master level: 60

Scientific Dr.level: 20

Information technologies Bachelor level: 150Master level: 35

Translation studies (English, German, Russian)

Bachelor level: 220Master level: 85

Engineering (Electronics, Power and electrical engineering)

Bachelor level: 90

Law Bachelor level: 80

Totally more than 1200 students studying in Ventspils on daily basis.

Unemployments rate in Ventspils ~11%

Labs at the Ventspils University:• Digital electronics and Electronical

measurements labs• Signal processing/“National

Instruments” lab• Information transmission technology

Lab• Physics laboratory: Phywe, Edibon,

3D Scientific, Newport, Edmund Scientific equipment

• Optics and optoelectronics lab: Lasers, optical fiber, atomic force microscope, X-ray equipment

• Satellite Techlnology learning lab: Sattelite model, sensors, cameras, antennas, software and other in order to acquire skills in satellite developing and communication

• Mechatronics and robotics labs: “Festo” equipment

• Prototyping lab: for producing PCB’s and various electronic circuits in small series

• Radio astronomy and remote sensing lab

• Satellite imagery processing lab

Ventspils Professional school provides middle level education in following fields:• Metalworking (engineering technician, welder (TIG) (MMA),

metalworking machinery mechanic, milling, turning, locksmith,CNC technician)

• Energy (electrician)• Electronics (soldering, telecom technician)• Automotive (mechanics, car mechanician, mechatronics)• Tourism services (catering, cook)• Business administration (accounting)

Ventspils Professional high-school

Ventspils: Research&Development

Plastic parts prototyping (directprinting by ABS and other materials) lab

Working places in port terminals and manufacuring

companies

Working places in port terminals and manufacuring

companies2002

2003

2004

2005

2006

2007

2008

2009

Transport and communications

n/a 4234 4899 4401 4210 4088 3831 3517

incl. Port terminals

2799 2544 2734 2731 2616 2592 2382 2068

Manufacturing companies

1185 1199 1579 1756 1697 1753 1750 1995Since 2002:• ~20 new (foreign and domestic) manufacturing companies

have been attracted to Ventspils.• ~650 new jobs have been created in the attracted companies.

By reaching the planned capacity the companies would employ ~1900 people.

• 3 new port terminals have been established• ~ 200 jobs have been created in newly established terminals• Port authority has invested more than 90 million euro in port

development projects. More than 20 million euro was attracted from EU funds. Private companies have invested in port area more than 260 million euro.

Total number of working places in Ventspils ~17.000

Available sites and Real Estate in Ventspils

Free Port of Ventspils:More than 1000 ha available

for further development

Location No.1 in the Ventspils High Technology Park (VHTP):• Greenfield area ~4ha, with a possibility to extend• Connections to comunal infrastructure (water, sewerage, municipal heating, electricity, telecom and

internet) available on the border of the site• Available SEZ status• Negotiable municipal/port authority investments into public infrastructure, like outside parking and

logistics area, communications from the site border till building, outside gardening, fencing etc.• Possibility to use the VHTP Business Incubator and its business start-up support programmes.

1

Conditions for the lease of the land for manufacturing projects

Conditions for the lease of the land for manufacturing projects

Costs of the land: Rent = 0,25% from cadastral value of the land per year

= 0,025 Euro for sq.m for year Land tax = 1,5% from cadastral value of the land per year

= 0,15 Euro for sq.m for year= in case of the SEZ status only 20% of total

amount Basic rules of the Land lease contract:• Duration of the lease agreement 45 years with a

possibility at the end of the period to prolong it to another 45 years on the same rules and conditions

• First refusal rights for the client• General attitude: open for discussion to hear client’s

requirements and wishes to be implemented into the agreement

VHTP: TECHNOLOGY PARK

30 ha TERRITORY IN SPECIAL ECONOMIC ZONE – TAX REDUCTIONS AND INVESTMENT INCENTIVES

SPECIALISATION: PRODUCTION AND SERVICES IN HIGH TECHNOLOGY BRANCHES – IT, E&E, MACHINE ENGINEERING SPACE TECHNOLOGIES

CLUSTERING WITH ASSOCIATIONS, EDUCATIONAL AND SCIENTIFIC INSTITUTIONS, MUNICIPAL INSTITUTIONS AND OTHER PARTNERS

VENTSPILS HIGH TECHNOLOGY PARK

services

Business Incubator (1300m2 , 35 companies) Technology Park (3200m2, 6 companies)

1. Legal address and support to start a business in Latvia 1. Technical design and construction of premises

2. Infrastructure (premises, office equipment, access to laboratories) 2. Renting office and production premises

3. Front desk and secretariat 3. Acess to laboratories/ projects with research institutions

4. Consultancy services: 4. Organisation of training programmes for engineers/ technicians

- Marketing services 5. Consultancy services:

- Capital attraction services - Assistance with initial team building/ local headhunting

- Local headhunting - Development projects

- Development and testing of the first technologies/ products - Networking

Age of the company

< 1 year 1-2 years 2-3 years 3-4 years

Financial support rate in the business incubator

Up to 85%

Up to 60% Up to 40%Up to 10%

Ventspils:Living Environment &

Quality of Life

Quality of life

• “Blue flagged” beach• Livonian orden castle,

Open air Sea side museum

• Children recreation park• Water attraction park• Skater park• Camping facilities• Etc.

Blue Flagged beach and Jot harbour

Olympic centre “VENTSPILS”

Livonian Order castle & museums

Seaside park and Open air museum

Ventspils – a City of Flowers

Possibilities that will suit your requirements

the best

Ventspils – city of tomorrow

Ventspils:Present Companies and

Track record

Fish and sea-food production unit (Latvia/Denmark): 90 employees Start-up in 2002

Industrial projects:

Candle production unit (Denmark): 200 employeesStart-up in 2004

Industrial projects:

Plastic items for furniture industry and bed systems (Germany):• Start-up in 2006 • 30 employees in 2007, planed

increase till 120.• Award of most innovative

company in Germany in 2004

Sweeper/Cleaner car factory (Switzerland):

1st phase:• Start-up in 2005• Area size 2,3 ha; Premise – 1700

sq.m• 50 employees

2nd phase:• Start of production summer 2008• Area size 8 ha; premise – 4600 sq.m• Planned number of employees – up

to 80

3rd phase:• Start of production spring 2011• premise – 3000 sq.m• Planned number of employees – up

to 120

Industrial projects:

SIA Kurzemes GranulasWooden pellet production unit (Latvia): 25 new working places Start-up in 2005

SIA ArboWooden door and window production unit (Latvia):35 new working placesStart-up in 2005

Industrial projects:

SIA “Malmar Latvia” (Belgium):• Metalworking products for automotive industry• Supplier for Scania, Volvo, MAN, etc.• Temporary workshop with 45 new working

places opened in 2006• Planned set-up of new production unit in newly

constructed premises in end of 2011

Industrial projects:

SIA “HBSI Production” (Norway) andSIA “BAU-HOW Baltic”:

• Production of housing modules• Start up of construction in spring 2007• Start of production in 2010

Industrial projects:

SIA “BioVenta” (Latvia):• Production of Bio-fuel from rapeseed• Start-up of production in 2008• 60 new working places

Industrial projects:

SIA “Izoterms” (Latvia):• 1st phase - production of metal constructions • 2nd phase – production of street signs• Planned start-up of production in 2011• Up to 120 new working places

Industrial projects:

• New, innovative wooden material• Start-up of construction in 2009• Start-up of production in 2010

SIA “Dendrolight Latvija”

Industrial projects:

SIA “Ventspils Elektronikas Fabrika”Belongs to the group of the largest latvian electronics components producer. Planed 80 employees

FDI Magazine’s citties and Regions of the future 2010/11 Rankings

Duration of the research took over 6 months focusing on 223 cities and 142 regions in Europe

FDI Magazine’s Global Freezones of the Future 2010/11 RankingsFrom over 700 economic zones globally

Overall Freezones of the Future 2010/11 Name of Economic Zone Country1 Shanghai Waigaoqiao Free Trade Zone China2 Dubai Airport Free Zone United Arab Emirates3 San Luis Potosi Mexico4 Aqaba Special Economic Zone (ASEZ) Jordan5 Free Port of Ventspils Latvia... No other European zones within top 10

Best Cost EffectivenessName of Economic Zone Country1 Clark Freeport Philippines2 Togo Export Processing Zone Togo3 Chittagong Export Processing Zone Bangalore4 Free Port of Ventspils Latvia

Best PromotionName of Economic Zone Country1 Dubai Media City United Arab Emirates2 Dubai Airport Free Zone United Arab Emirates3 Dubai Knowledge Village United Arab Emirates4 Dubai Biotechnology and Research Park- DuBiotech United Arab Emirates5 Dubai Studio City United Arab Emirates6 Lodz Special Economic Zone Poland7 Free Port of Ventspils Latvia

Best Port ZoneName of Economic Zone Country1 Shanghai Waigaoqiao Free Trade Zone China2 Tanger Free Zone Morocco3 Jaxport FTZ #64 USA4 Baltimore Foreign Trade Zone #74 USA5 Free Port of Ventspils Latvia

Ventspils offers:• Qualified labour

• Qualitative Infrastructure

• Effective and qualitative Transportation links

• Business Incubator support

• Maximum support from the City and other Authorities

• Local project co-ordinator who helps to solve project start-up matters linked to the municipality

Thank you for your attention!

Igors Udodovs

Phone.: +371 636 02334

Mob. phone. +371 29107398

E-mail: igors.udodovs@vbp.lv

www.portofventspils.lv

www.investinventspils.lv