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Competition Authority Highlights Long-standing Issues in Ship Waste Management at Riga Freeport

26.12.2024 | 🇱🇻 Latvian competition authority

The Competition Authority has identified limited competition in the ship-generated waste management market at Riga Freeport, primarily due to a long-term contract with a single operator.


The Competition Authority (KP) has concluded that competition in the management of ship-generated waste, particularly oil-containing waste and wastewater, is restricted at Riga Freeport. This is largely due to a long-standing contract with a single operator, Eko osta, which has been managing these services for nearly 22 years. The KP has urged the Riga Freeport Authority (RBP) to conduct a new tender for waste management services once the current contract expires, ensuring that the new agreement does not create barriers for new market entrants.

Complaints regarding rising costs and unequal contract terms prompted the KP to investigate the waste management practices at Riga Freeport. The investigation revealed that Eko osta is the only operator of treatment facilities in the area, which has contributed to the lack of competition. The KP's analysis included a review of the fees charged for waste management services, highlighting the monopolistic nature of the current arrangement.

The existing contracts between RBP and Eko osta are set to remain in effect until March 31, 2025, limiting RBP's ability to amend or terminate these agreements despite the evident competition issues. The KP's findings indicate that RBP's role has been limited to organizing tenders and setting maximum sanitary fees, without actively engaging in the provision of waste management services.

Furthermore, the KP emphasized that RBP's delay in organizing a new tender and setting maximum fees is not considered a business activity but rather a public law action. As such, RBP is not classified as a market participant under the Competition Law, but rather as a derived public entity subject to regulations that prevent it from hindering competition.

The KP recommends that RBP conduct a competitive tender process after the current contracts expire, selecting operators for both waste management and treatment services. To foster competition and allow new entrants, the KP suggests that RBP establish contract terms that are not classified as long-term. Additionally, the KP encourages RBP to consider allowing multiple operators to provide waste management services, ensuring that ships can dispose of their waste efficiently.

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