RIGA, May 29 (LETA) - Saeima today supported in the first reading amendments to the Law on Ports, which are aimed at improving the port management system by returning local governments' representatives to ports' management.

On the other hand, Saeima turned down amendments to Liepaja Special Economic Zone Law, which envisage changing the principles for appointment of Liepaja Port's council members, as the amendments were not supported by the Union of Greens and Farmers.

Before voting on the bills, Saeima also decided to consider the amendments in two readings.

The amendments stipulate that large ports' councils will be made up of four members, two state representatives and two representatives of the given municipality, who will be professionals selected in open competitions, and chaired by a representative nominated by the transport minister who will have the casting vote. All members of port councils will be approved by the Cabinet of Ministers.

At small ports, port authorities will be responsible to local governments and their boards will be made up of up to five members, instead of the current ten. The boards at small ports will be made up of municipal representatives and representatives of companies operating at the port, while one member, if the local government decides so, will be delegated by the Economics Ministry, Agriculture Ministry or Transport Ministry. Local governments will also have the right to determine port authorities' statutes.

The amendments also envisage changing the boundaries of the port areas, separating the port operational area from those that can be developed for commercial purposes.

The amendments stipulate that port authorities will also set up port cooperation councils, which will include representatives of stevedoring companies, shipping line operators and other stakeholders. Therefore companies operating at a port will be able to influence strategic decision-making by the port's authority, and all operators will have equal rights to use these opportunities.

The Transport 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.

Saeima today also rejected amendments to Liepaja Special Economic Zone Law, which, among other things, would have established that the Port of Liepaja will maintain the existing management model with nine board members - three representatives of Liepaja City council, three representatives of Liepaja companies, and three state representatives delegated by from the Economics Ministry, Finance Ministry and Transport Ministry until December 31, 2035.

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.