Riga as a strategic logistics hub for beverages across Europe, Scandinavia and Asia

Just a few years ago, Riga, the largest city in the Baltic States, was primarily focused on trade routes connecting Eastern Europe with Western Europe. However, the situation has changed significantly. 

A few savvy companies have begun to recognise the opportunity to use Riga as a logistics hub, connecting major Central European countries, Scandinavian nations, and non-EU countries such as Georgia, Armenia, Kazakhstan, Uzbekistan, and others.

But why is this the case? Juris Narnickis, CEO of MMD Serviss – a 3PL operator with more than 25 years’ experience in the region – provides a short explanation.

Challenges in the industry

Those working in the industry have undoubtedly noticed one of the most pressing issues of recent times – the shortage of trucks and the lack of warehouse space in Europe’s leading logistics centres.

This has significantly increased delivery times, which businesses strive to avoid.

Equally important is the fact that major transport routes are heavily congested, a critical factor when planning routes. It’s problematic when orders are delayed due to overcrowded transport networks, even when there is a strong demand.

The potential for growth is enormous, particularly in regions like Scandinavia, where purchasing power is high, but this also applies elsewhere. The reality is that all businesses in the region have been affected by the unstable security and economic situation in Europe and the Middle East. This is another crucial element to consider when planning business development, routes, and deliveries.

Do we have a solution?

I can share from my side that Riga, situated at the crossroads of major transit routes between Europe, the UK, Scandinavia, and Asia, has shifted business orientation in the past few years.

This shift has made new capacity available in existing warehouses, making it easier to handle orders quickly, and provide logistics services, even amid challenges such as vehicle shortages, workforce limitations, or congested transit routes.

Having worked in the logistics and transportation industry for over 20 years, I’ve experienced different times, and it’s important to remember that the only constant thing in life is change, which should be seen as an opportunity.

I believe that Riga is currently not being fully used as a logistics hub, and I see enormous potential for many companies that are now considering business development, exploring new markets, or optimising their existing operations and recognise that the traditional routes and approaches no longer bring the same results as some time ago.

That’s why I believe now is the perfect time to consider adding Riga to your business map for operations, helping you save money, time, and stress.

About MMD Serviss, a company based in the gateway of Riga

Established in 1996, MMD Serviss, based in Riga, Latvia, is a leading customs and excise warehouse with over 360 employees.

The company provides logistics services for businesses seeking a reliable channel for beverages and FMCG (fast-moving consumer goods) to and from Europe and beyond.

The MMD warehouse, which spans an expansive 30,000 square metres, is equipped with the latest technology, and is operated by a skilled workforce. In 2023, the company achieved a significant milestone, handling and delivering over 10 million cases of spirits and beverages.