Railway companies will promote intermodal freight transportation between Lithuania and Poland
"LG Cargo", a freight transportation company owned by the largest railway group in the Baltic States "Lietuvos geležinkeliai", and one of the largest rail freight companies in Poland PKP Cargo will promote intermodal transportation between Lithuania and Poland. The aim of this cooperation is to reduce environmental pollution and to increase road safety.
This objective is set forth in the letter of intent signed by the companies on the establishment of a joint venture. On the basis of this document, the companies continue their negotiations, while the signed letter does not impose any obligations whatsoever upon them. The negotiations on the establishment of a joint company are expected to be completed in the nearest future.
Egidijus Lazauskas, CEO of LG Cargo, notes that the volume of intermodal freight transportation has been growing over the last few years, and the interest of business in this mode of freight transportation has especially increased after the logistics chains have been disrupted due to the coronavirus pandemic.
"As the world faces the challenges of battling the present coronavirus outbreak, we continue our operations, as the freight transportation sector does. We have ambitious development plans; therefore, in parallel with new opportunities that will be provided by European railway projects, we are in the process of preparation. To this end, together with PKP Cargo, we aim to develop intermodal freight transportation between Lithuania and Poland. Such a mode of freight transportation, when several modes of transport are combined, not only helps to save the logistics costs incurred by the business but also reduces environmental pollution, traffic jams, noise, road accidents and other negative impacts of road transport on the environment," said E. Lazauskas.
According to E. Lazauskas, in the development of services, great attention will be paid to the transportation of semi-trailers and containers, and the railways will connect the loading terminals of Lithuania, Poland, and Germany.
Freight transportation by rail emits 3 times less CO2 than freight transportation by road; in addition, the number of road accidents is also reduced. About 50 million tons of freight are transported between Lithuania and Poland every year, of which only 1 percent by rail. Approximately 2.5 million trucks cross the countries' borders every year.
The European gauge rail line project Rail Baltica and the modernization of the Kaunas Intermodal Terminal (KIT), which will be connected to the European Union (EU) railway network by the end of 2020, will give a major impulse to rail freight transportation between Poland and Lithuania.