LTG Infra, a subsidiary of Lietuvos gelezinkeliai (LTG), which supports railway infrastructure and organizes railway traffic, has been reducing tariffs for businesses by almost three times since April.

LTG Cargo

It is reported by the railway magazine Railway Supply.

“The country’s logistics sector is facing really serious challenges due to the pandemic and the deteriorating geopolitical situation. Low tariffs for services will allow companies to compensate for the decline in revenues due to reduced volumes of activities, and businesses to choose railways as a cheaper and more environmentally friendly alternative to freight transportation,” the company said in a statement.

It is predicted that the reduction in tariffs will not only help maintain the existing cargo flows, but also increase by 0.5 million tons of total cargo transportation and by 6 thousand TEU for intermodal cargo transported in the western direction.

“We are committed to transporting as much green cargo by rail as possible, which requires attractive rates for business. Due to the decrease in transportation volumes, rising inflation, rising electricity prices and the growth of the wage fund, as well as unprofitable activities in previous years, we are forced to change the tariffs for services. Having assessed the current situation, together with the company’s board, we have found a solution on how we can reduce prices this year and next and increase the attractiveness of the railways for business, ”Karolis Sankowski, CEO of LTG Infra, is quoted in a press release.

Earlier this year, businesses complained to the government that LTG Infra had drastically increased its rates.

After Lithuania stopped the transit of Belaruskali fertilizers in February, the government decided to allocate 20 million euros to LTG Infra, which lost a lot of income because of this.

Transport Minister Marius Skuodis said that the company is scheduled to allocate at least another 45 million euros. According to his forecast, rail traffic volumes in 2022 could be reduced by about 65%, and the LTG group will lose about 150 million euros in revenue.

As previously reported, Belaruskali lost a lawsuit to set aside the cancellation of the transit of fertilizers by Lithuania.

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