Aberdeen and the north-east is home to an abundance of dynamic companies. The leaders of those organisations are well aware that success relies on identifying new opportunities and balancing risk versus reward before embarking on new strategies or ventures.
As a corporate lawyer I have enjoyed providing legal guidance to many of these companies as they develop and grow. I regularly advise on UK terms of business and increasingly on international commercial contracts as global expansion takes north-east businesses to foreign shores and overseas subsidiaries or branches are being established.
A key consideration for doing international business is access to new markets. As the prospective Latvian Honorary Consul I have learned a great deal about the business opportunities Latvia offers UK businesses.
Latvia is one of the fastest growing economies in the EU. This rapid growth has provided many opportunities for businesses, especially for smaller companies who want to go international and would be interested in testing new markets.
According to the Investment and Development Agency of Latvia there are already more than 1,000 British companies operating in Latvia with hundreds of new companies joining them every year.
Latvia offers excellent transport links to markets in the Baltic States, to the oilfields of the Caspian region and by rail to Russia and Central Asia.
The rail journey to transport goods from the Latvian capital Riga to China takes just two weeks – half the time of the shortest sea route and sometimes described as the new Silk Road. UK companies have the opportunity to reach 25 million customers in the Baltic region via Latvia within 48 hours.
Energy companies in Aberdeen could benefit from faster routes to their projects in the Caspian Sea. Some of this project cargo is already going by sea to Riga and then onwards by rail to the Caspian Sea.
Other north-east businesses may wish to explore these pragmatic routes to take their commodities to far-flung markets. Trade from Scotland is growing and a lot of alcoholic beverages, whisky in particular, is sent to the Commonwealth of Independent States and Central Asia via Latvia.
When you move into international markets it is never a case of taking the business plan that worked in one country and forcing it to work in another. There are hurdles to overcome, from reassessing your finance options to incorporating or registering your company and its associated intellectual property. Patience is required with significant market research and due diligence.
The first step is to find out more about any new opportunity. Businesses intrigued by the logistical operations offered by Latvia may wish to attend the trade mission on Wednesday, May 20 at Aberdeen Town House.
Visiting experts will share valuable knowledge about the latest developments in Latvia’s transport and logistics sector and explain the potential business for UK logistics companies and those wishing to export or import. Guests will have the opportunity to speak directly with representatives from Latvian companies, organisations and state officials in the sector.
Rod Hutchison is a partner with law firm Ledingham Chalmers