Since ancient times Latvia has been orientated towards the sea, ships, and the transit of goods. Throughout the ages Latvian ports have not lost their importance; they still successfully fulfill their basic task – being the gateway between the sea and the land.  Ports are one of the main elements in a logical chain; they promote not only the portal cities, but also the economic development of whole regions, and therefore the role of the ports becomes greater and greater both in Latvia and the European Union. 

There are three major ports in Latvia – Liepaja, Riga and Ventspils, as well as seven smaller ports – Skulte, Mersrags, Salacgriva, Pavilosta, Roja, Lielupe and Engure , which are situated along the entire coastline of Latvia. The larger ports are mainly involved in processing transit freight – around 80% of transit freight transported through Latvia is handled through these ports. Smaller ports have local significance. They are mainly engaged in the shipment of timber and receipt of fishing products; in the summer season they are also sailboat terminals. Currently smaller ports have a stabilizing role in Latvia’s economy and they have become centres for economic activity at the regional level.

The ports of Riga and Ventspils have already operated as free economic zones more than 10 years; the port of Liepaja is a part of Liepaja’s special economic zone (SEZ). Considering that there are vast  undeveloped spare ground in the free ports and SEZ’s in Latvia, currently Latvia’s ports and SEZs actively work on different investment projects which are connected with the construction and development of industrial and distribution parks, by attracting investments, creating greater value-adding, developing manufacturing and increasing the range of services offered.

Companies which operate in the free ports and SEZs can not only receive a 0% rate of customs duty, excise tax and value-added tax, but also tax relief of up to 80% for corporate income tax and real estate tax.

Taking into account that financial resources in the state budget for the development of State motorways, funding for railway infra-structure as well as resources of port administration are not sufficient to implement investment projects to the extent necessary, support is also received from the State Investment Program, in the form of State subsidies and loans, with State guarantees. However, in recent years the largest contribution for the development of transport infra-structure has been from European Union funds.

Comparison of volumes of cargo handled by ports of Latvia in 1999-2009