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Kundziņsala – the Rising Industrial Hub of Riga

Kundziņsala – the Rising Industrial Hub of Riga

Ministry of Transport

In the coming years, at least seven new companies – including cargo terminals, logistics centers, energy companies, and smart manufacturing facilities – will begin operations in Kundziņsala, creating close to 800 new jobs. The total investment is expected to reach at least EUR 500 million, shaping a future-oriented business environment that supports the development of sustainable energy, modern industry, and smart logistics in one unified location.

In Kundziņsala, the fastest-growing area of the Port of Riga, construction will begin on the Baltic region’s first renewable fuel production facility for hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF). The company Amber Flow Fuels, investing EUR 120 million and creating 120 highly skilled jobs, will launch the production of innovative, high value-added products in 2027. This will contribute to Latvia’s climate neutrality and Green Deal targets.

The transformation of the Kundziņsala territory into the new hub of the Port of Riga includes the implementation of several large-scale industrial projects, particularly in the green energy production segment. The manufacturing of renewable energy-related products with high added value and strong demand is a cornerstone of the Port of Riga’s future development. At the same time, Latvia’s export capacity and energy independence will be significantly strengthened. The Amber Flow Fuels plant in the Port of Riga will supply 100% of the SAF required for the Baltic market. Of the total SAF produced, 70% will be exported, boosting Latvia’s exports by at least EUR 150 million.

In step with the global energy transition, the Port of Riga is also developing an ambitious wind technology manufacturing complex in Kundziņsala. With co-financing from the European Regional Development Fund and the Latvian state, a suitable industrial area will be created in the northern part of Kundziņsala by 2029 for the development of production facilities for offshore and onshore wind technologies and their components.

By leasing the newly developed territory in Kundziņsala to companies manufacturing wind energy technology components, the project is expected to generate exports worth EUR 160 million, create 650 jobs, and contribute at least EUR 7.8 million in annual tax revenue.

For several years, the Port of Riga has been a close strategic partner of NATO and is developing an important national security and military mobility hub within the Kundziņsala area. With co-financing from the European Climate, Infrastructure and Environment Executive Agency (CINEA), several military mobility projects have already been implemented in Kundziņsala.

The construction and modernization of Kundziņsala’s road, rail, and quay infrastructure has significantly increased military cargo handling capacity and improved connectivity between the port and the Ādaži military base. In addition, the Port of Riga authority’s subsidiary, LVR Fleet, has acquired a new multifunctional hybrid-powered vessel – an icebreaker – with CINEA co-financing. Beyond its core port maintenance duties, the vessel also provides military support to the Latvian Border Guard and Coast Guard services.

In cooperation with the Riga City Municipality and with co-financing from the EU Cohesion Fund, construction is currently underway on a new traffic overpass connecting Sarkandaugava with Kundziņsala, which is scheduled to be completed and opened in 2026. The overpass will provide a direct connection between Kundziņsala and Riga’s road network, improving mobility for cargo as well as military transport to and from the port terminals. At the same time, the new overpass, together with the Riga's Eastern highway, will significantly reduce the flow of heavy trucks through the city center, easing the load on Riga’s urban traffic infrastructure and reducing the environmental impact of port operations.

To ensure efficient access for vehicles and pedestrians to Kundziņsala, and to develop a digitalized and automated logistics infrastructure that meets the needs of port clients, one of the most modern port access control points in Europe is currently under development. It will support vehicle movement across six lanes, enable digital cargo data exchange, incorporate machine vision solutions for identifying vehicles and individuals, and integrate with the systems of inspection authorities into a unified, secure port access solution.

Kundziņsala is the container logistics center of the Port of Riga. It handles 72% of all sea containers in Latvia, and six out of nine active port operators in Kundziņsala are involved in container cargo handling. Already today, Kundziņsala is home to the most technologically advanced container and bulk cargo terminals of the Port of Riga, as well as modern warehouses and logistics companies. Several of these companies are currently constructing new cargo yards and warehouse facilities to further diversify terminal operations and meet the growing demand for bulk cargo storage and container handling capacity.

“The paradigm of thinking about ports must change. Ports have always been a strategic asset for any country, and they must be used wisely in the interest of national and urban development. Kundziņsala is a great example that demonstrates how the Port of Riga is a key instrument of national economic security — providing a reliable export and import corridor as well as a suitable location for hosting critical manufacturing facilities essential for the sustainability of the EU economy.

The Port of Riga fully understands its role in the context of national military security, systematically enhancing and strengthening military mobility capabilities and developing alternative supply corridors. At the same time, the port also promotes the country’s energy sustainability by attracting investment in the production of wind technology components, alternative fuels, and other innovative products related to green energy,” emphasizes Ansis Zeltiņš, CEO of the Freeport of Riga Authority.

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