Study on the possible transformation of Latvia's large port authorities into state capital companies
Original Language Title: Pētījums “Atzinums par Latvijas lielo ostu pārvalžu iespējamo pārveidošanu par valsts kapitālsabiedrībām
The aim of the work is to evaluate the existing Latvian large port management model, its application practice, experience, and administration models abroad, as well as the existing laws and regulations in the field of enterprise management.
Additionally, it aims to provide an assessment of the advantages and disadvantages of the existing port management model and opportunities to transform port authorities into companies, as well as to make proposals for actions of transforming port authorities into capital companies.
The study found that port administration at the European Union’s ports are mainly realised by the state, as well as state and municipal owned companies. Management of Latvian ports, operated by state enterprises, is offered in two ways:
- by using one capital company to manage all three large ports, or
- by setting up separate companies for each port management.
The study analyses the existing restrictions and conditions that must be considered when forming ports into companies. The study acknowledges that there is no doubt that port management can also be implemented within the management structure of state-owned companies, in compliance with the existing regulatory framework. With the introduction of the new governance model, it is also necessary to make decisions on the distribution of shares (stocks) of the company between the state and the local government, taking over the responsibilities of the existing port authorities and a number of other practical issues.