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The income of “Lithuanian Railways” grew by 9,7 million euros

The largest railway company in the Baltic states – "Lithuanian Railways", according to preliminary data, has received 348,5 million euros of operating income – 9,7 million euros more than during the same period last year. These indicators were achieved by JSC "Lithuanian Railways" and two already separated companies of the group – "LG Cargo" and "LG Keleiviams".

"The situation in the cargo market requires a lot of attention. While scales of transit are decreasing "LG Cargo" successfully diversifies its activities and increases the scale of cargo transportation within the country. Additionally, the company draws in new clients. Only by being flexible and operative we can remain competitive and quickly react to the ever-changing situation in the cargo transportation market", - says the director general of "Lithuanian Railways" Mantas Bartuška.

The head of the group adds that that during the third quarter, "LG Cargo" conducting cargo transportation operations achieved good results by transporting grain grown in Lithuania for export (136 percent more comparing the September months of current and previous year). The container transportation scale grows rapidly as well – in July it grew by 45 percent.

This company of the "Lithuanian Railways" group in the first nine months of the current year carried 0,9 percent less cargo – 41,2 million tons. The greatest impact was the 16,9 percent reduction in flow of transit cargo (coal, oil, food products) to Kaliningrad. Additionally, the import of oil and ferrous metals through Port of Klaipėda decreased this year.

However, due to 5,4 percent increase of transportation within Liethuania – mostly food products and products of plant origin – the company was able to avoid a more significant decrease in transportation flow.

"This September we took another important step regarding the project of separating operations – the passenger transportation activities were transferred to a separate company "LG Keleiviams". Thus the main challenge of the current year is being tackled according to the plan", - states M. Bartuška.

The company, which has overtaken the passenger transportation – "LG Keleiviams", during the first nine months of the current year has transported 4,23 million passengers. The most popular railway route remains Vilnius – Kaunas. The route Kaunas – Marijampolė, however, has grown the most rapidly – 48 percent more passengers chose to travel between these cities by railway.

The infrastructure management board has made sure, that within the first nine months of 2019, the trains of railway network of Lithuania would reach 24,4 billion ton kilometres. Last year, during the same period 24,6 billion ton kilometres was achieved – the difference is reflected in slight decrease in cargo transportation within the country.

Only one step remains in the "Lithuanian Railways" programme of separating activities – this December, the infrastructure management activities shall be transferred to an already established "Lietuvos geležinkelių infrastruktūra". This step will complete the activity separation programme obliged by the European Commission and provided in the Code of Railway Transportation of the Republic of Lithuania. Then the LR group will be comprised of three main subsidiary companies – "LG Cargo", "LG Keleiviams" and the previously mentioned "Lietuvos geležinkelių infrastruktūra".

Updated on 2019-11-11