KURZEME REGION - Economy
Maritime activities key to strong economy
The region's contribution to national gross domestic product in 2001 was 12.9%. With Kurzeme's economic development directed mainly towards port activities and transportation, the most important sectors in terms of value added are transport and communication (24.4% of total GVA in the region), and trade (17.6%) play the main role as well as manufacturing (16.2%).
The Liepaja special economic zone and the Ventspils Free Port were established in Kurzeme region with the main objectives of promoting business activities, upgrading the existing infrastructure and creating the necessary environment to attract inward investment and new businesses. In 2002, non-financial investment (i.e. in buildings, machinery, land and software) in Kurzeme was similar to the Latvia's average, and represented 13.2% of total investment in the country. In terms of foreign investment, Kurzeme occupied 3rd place among the other regions in 2000.
In 2002, 4 243 economically active enterprises, or 10% of the total number of economically active enterprises in Latvia, operated in the region of Kurzeme, representing 13.4 enterprises per 1000. Furthermore, in recent years industrial output has begun to stabilise, and is running at just over 11.5% of Latvia's total output. JSC 'Broceni' is one of largest manufacturer of construction materials and producing cement from local raw materials in Latvia.
While cultivation takes place on the hillier parts of the region, more fertile soil is found in the valley of the Venta River with its typical floodplain meadows and pastures. Crop farming and livestock breeding, the traditional agricultural industries, are equally well developed in the region.
One of the main sources of income for the population living in the coastal area is fishing. Apart from the two biggest ports, there are also three other fishing ports of note, namely Pavilosta, Roja and Mersrags. Fish processing is also important to the region, there are produced the fresh fish products for food: fish fillet, cooled fish and frozen fish.
The particular charm of Kurzeme, with its historic and cultural heritage, provides a good basis for the development of tourism. The region's small towns such as Kuldiga, Talsi, Sabile and the valleys of the Venta and Abava Rivers offer promising potential for the development of the tourist industry, as do its extensive seashore including the steep bank at Jurkalne and the Cape of Kolka in the North. The minor ports could develop into yachting ports in the future.
Major ice-free ports cater for transit trade
The region of Kurzeme is a peninsula with its western and north-eastern coasts washed by the Baltic Sea. This ensures good access to and from foreign countries, in particular through the two big ports of Liepaja and Ventspils, which are located in geographically very advantageous places. Furthermore, both ports are ice-free in winter. While Ventspils has for a long time been one of the main exporting ports of crude oil and oil products at the eastern shore of the Baltic Sea, Liepaja was a naval port during the Soviet era. It was only after the re-establishment of national independence in 1991 that it began to grow as a commercial port.
In the 17th century Ventspils was already the leading port in the Duchy of Kurzeme, and at the end of the 19th century a railway line was built in the Russian Tsarist Empire connecting the ports of Ventspils and Liepaja with the railway network of Russia. The railway network in Kurzeme was originally developed to service the needs of the ports.
With regard to cargo turnover, the Ventspils Free Port is currently the leading port on the Baltic Sea and is included in the list of the 15 most important European ports. The terminals handling crude oil, oil products and liquid chemical products operating in the Ventspils port are one of the largest in the Baltic Sea region, while the terminal handling potassium salt is the second largest of its kind in the world.
95 % of the cargo handled in the port is transit cargo from Russia, but it is intended in the future to expand the volumes of imported cargo. This is quite feasible since the handling capacity of the port is higher than the current cargo turnover. The canal enables the Aframax class vessels with the tonnage of up to 120 000 tonnes to enter the port. The crude oil and oil products pipelines from Russia terminate in the port of Ventspils.
The second biggest port in the region is located in Liepaja where for the most part export cargo such as wood and metals is loaded. Ferries from Germany, Denmark and Sweden enter the port of Liepaja several times a week carrying mainly roll-on roll-off cargo.
The country's second biggest airport is situated in Liepaja although it currently services only chartered flights and no regular passenger flights. An airfield is currently being rebuilt in Ventspils.
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