LTG Cargo expands its technical fleet for grain growers in the country: it will purchase 500 new grain wagons, this is reported by the railway transport news portal Railway Supply.

LTG Cargo

LTG Cargo, the freight transport company of Lietuvos geležinkeliai (LTG) Group, is taking a strategic step in strengthening its logistics services.

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The company, which is actively expanding its activities, intends to purchase up to 500 new grain wagons through public procurement.

It is envisaged that the grain wagons will be purchased in phases, thus, ensuring that the first wagons reach customers as soon as possible.

In the first stage, it is planned to purchase 300 new wagons. Given the growing market demand for efficient and sustainable grain carriage in the country, the renewed fleet of wagons will be used primarily for the increasing freight carriage within the country and to the Port of Klaipėda. Currently, grain transport accounts for around 13-14% of total freight volumes and steadily grows every year.

‘Enterprises in the agricultural production sector are important partners of LTG Cargo. The grain production segment is one of the most stable segments in the country. Thus, with the forecast of consistent growth in the volumes of grain transportation by rail, the expanded fleet of wagons will provide more opportunities to offer competitive transport solutions to existing and future customers,’ says Eglė Šimė, the Manager of LTG Cargo.

Currently, the fleet of wagons for transportation of grain owned by LTG Cargo is around 1,200  grain wagons, i.e. the number of wagons offered for the grain season this year. It is expected that the expansion of the technical fleet will allow the company to transport up to 1 million tonnes of grain per year. The wagons will be maintained by the professional freight wagon repair team of LTG Cargo.

The first wagons are expected to reach the company as early as the summer of 2024, till the start of the new grain transport season.

The exact timing of the procurement will be clear after the successful completion of the public procurement procedures.

LTG Cargo will procure the new grain wagons taking into account the results of the market consultation and the national security interests, and in order to make the most efficient use of the funds available for the procurement.

‘These investments will help the national transport sector as a whole to meet the commitments of the European Union Green Deal. In the last year alone, we transported 3.7 million tonnes of cereals including almost 2.3 million tonnes to customers in Lithuania. The transport volumes are likely to further increase in the future as all European countries turn their attention to rail, one of the greenest modes of transporting goods,’ predicts E. Šimė.

Transportation of heavy containers by rail

This summer, LTG Cargo also announced that for the first time in its history it also purchases electric locomotives.

The commitments of the European Union Green Deal mean that by 2030, around 30% of the more than 300 km of freight transported by road will have to be transported in an environmentally friendly way, primarily, by rail.

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