In August LTG Cargo transported record amount of grain and recorded cargo growth
LTG Cargo, the freight transportation company of the largest railway group in the Baltic states Lietuvos Geležinkeliai (LTG), transported more cargoes in August than in the past year and recorded increase in cargo carriage for the first time this year.
Preliminary figures indicate that LTG Cargo transported 5.1 M tons of cargoes in August, which makes up 3.1% more than for the same period in the past year when 4.9 M tons were transported. Record carriage of grain threshed in Lithuania and 22% higher flow of Byelorussian cargoes carried to Klaipeda Seaport have had the highest impact on growth of cargo flow. Last time in November of 2018 LTG Cargo carried more than 5 M tons.
Goal: stable freight balance
The "rebound" recorded in August has allowed LTG Cargo to decrease a lag in results as compared to the previous year: this year the aggregate amount of cargoes from January to August reaches 33.8 M tons and makes up 7.8% less than in the past year. However, this result exceeds cargo forecasts, announced by the company for the year 2020 due to COVID-19 impact, by 5%. Cargo volume decline caused by slow volume of trade, decline in raw material markets and global COVID-19 pandemic has been recorded in all surrounding countries.
According to Egidijus Lazauskas, the Director General of LTG Cargo, the results for August inspires us positively; however, upon evaluation of growing uncertainty in global markets, geopolitical risks and possible second wave of COVID-19 the company applies efforts to diversify cargo flow even more.
"Our goal is diversified and stable cargo balance, so we use efforts to increase cargo flows and prepare for expansion to the Eastern and Central Europe region. For that purpose we incorporated a subsidiary of our company in Poland this summer. We carefully evaluate both organic possibilities of expansion and possible business purchases. We have no doubts that this service will become popular in the near future, as such way of cargo transportation preserves the environment and increases road safety," said E. Lazauskas.
Record amount of grain in August
Preliminary figures indicate that LTG Cargo transported 0.51 M tons of Lithuanian grain through Lithuania in August, which makes up 51% more than in August of the last year, when 0.34 M tons were transported. According to historic records, the amount of local grain transported in August has been the largest since 2014.
"Being aware of forecasts that grain yield expected this year will exceed the yield of the previous year, we have prepared to in advance: we have mobilized our available resources and capacities. To transport larger amount of grain smoothly and rapidly, we have changed the usual process of train composition, supervised transported amounts, duration of cargo transportation continuously and responded to the changing situation flexibly. When registering larger than usual amounts of cargo, we also have had challenges. However, we had always sought to resolve each situation in a timely and flexible manner and evaluated it primarily through customer's perspective," says E. Lazauskas.
This year LTG Cargo has prepared 1.4 thousand wagons to transport the grain yield. The available wagon fleet is currently used to the fullest extent. The company has also "employed" its standby locomotives and started to use 2 locotractors for faster train composition at loading stations.
Updated on 2020-09-24