Project Management in the Port Development Project in Latvia

Paper analyse case study of performance and compliance audit in the port development project in Latvia. Author has participated in the audit process evaluating project management application practical approach in the project implemented by the Riga Freeport Authority and co-funded by the Cohesion Fund “Development of Infrastructure on Krievu Island for the Transfer of Port Activities from the City Centre”. Despite the mass media reports that the Riga Freeport Authority has successfully completed the project, only the construction phase of the project has been completed. During the following two years the stevedore activity must be transferred to the newly built port infrastructure on Krievu Island and coal handling operations must be commenced. In order to implement these activities the stevedores have to build internal infrastructure objects, to install equipment and to restructure logistics. Furthermore, in order to obtain positive opinions from the responsible institutions on the completion of the project and attainment of the defined objectives, by March 2019 it must be proved that the project objective has been reached and the benefits must be presented. The project was initiated in 2006 when the Riga Freeport Authority made a decision on using degraded Krievu Island territories for port activities and commenced the planning estimating that the construction phase of the project would be completed by the end of 2012. In accordance with the initial plans, active cargo handling should be currently taking place in the new port territories on Krievu Island. However, the implementation of the project has delayed by almost three years (detailed project implementation timeline see as annex 1), as we see it – due to ineffective solutions to project management issues and untimely, poor communication with the parties involved in the project, such as stevedores, builders, credit institutions etc.