RIGA, May 13 (LETA) - The government on Tuesday supported forwarding the Transport Ministry's amendments to the Law on Ports to Saeima for review.

As reported, the reform of port management is planned to apply mainly to the ports of Riga and Ventspils, according to an information report prepared by the Transport Ministry and approved by the government. The Liepaja Special Economic Zone (Liepaja SEZ) would be affected only after December 31, 2035.

Changing the governance model of the ports of Riga and Ventspils, while maintaining the independence of the Liepaja SEZ, allows each port to adapt to its own needs. This step will contribute to a more accurate and efficient use of resources, ensuring that the management of both the ports of Riga and Ventspils will be coherent and transparent, with the aim of promoting the long-term development and international competitiveness of the ports.

The reform will maintain the port administrations of Riga, Ventspils and Liepaja as derived public entities, reduce political influence and separate supervisory functions from operational management functions in the port administrations.

It also envisages changing the boundaries of the port areas, separating the port operational area from the special economic zone area, providing that the management of these areas will be carried out in a unified manner, keeping the management tasks in the port councils and in the competence of the manager.

At the same time, the governance model for small ports is to be changed, making it easier and more streamlined, reducing the number of board members, allowing for cost savings and allowing local authorities to determine the statutes of the respective port authorities.

The ministry cites the depoliticization of ports, professional management, the involvement of local authorities in decision-making, the separation of property and the possibility for owners to develop industrial sites near ports as the main benefits of the reform.

It is planned that the Riga and Ventspils port councils would be composed of four members - two representatives from the state, one each from the Transport Ministry and the Economics Ministry, as well as two representatives from the respective municipality. The council will be responsible for taking key strategic and financial decisions, including the policy and approval of port fees and service pricing, the annual financial plan, port development strategy and real estate disposal issues in the port area.

As reported, at the end of July last year, the Transport Ministry submitted the relevant informative report for approval, abandoning the original idea of port management reform, which envisaged transforming the Free Ports of Riga and Ventspils into capital companies.

However, the informative report received a number of objections from both the Economics Ministry and the stakeholders on governance issues, which led to a prolonged disagreement and negotiations.