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LTG Cargo pilot train departs for Ukraine

LTG Cargo, the freight transport company of Lietuvos Geležinkeliai (LTG) Group, has launched a test run from Kaunas Intermodal Terminal (KIT) to Ukraine via Poland. The container train is expected to reach its destination in the next couple of days, before returning to Lithuania with around 50 containers of freight. This is the first time in LTG’s history that freight from Ukraine will reach Lithuania by rail bypassing Belarus.

The outbreak of the Russian war in Ukraine has disrupted traditional logistics chains, which are crucial for the region. The project is therefore expected to contribute to the restoration of part of them via an alternative route through Poland.

The pilot train will assess the technological aspects of the new route, the timing of freight transport, potential logistics challenges and solutions. This route will only be implemented on the narrow EU gauge, which runs from KIT through Poland to a terminal on the Ukrainian border. This means that if the project proves to be a success, some freight can be transported to Kaunas without having to change the gauge or reload it. The company is in constant contact with its Ukrainian colleagues, as well as with Ukrainian railways and potential customers in Ukraine.

“We continue to look for new areas of diversification and ways to help our customers move freight. The intermodal freight terminal in Kaunas, which was connected to the European rail track less than a year ago, and the strategic decision to set up a company in Poland as early as 2020, have given us the opportunity to look for unconventional freight transport models and efficient ways to adapt to the changed situation,” says Egle Šimė, Chief Executive Officer of LTG Cargo.

LTG Cargo will transport freight on the new route in Lithuania and its subsidiary LTG Cargo Polska will transport freight from the Ukraine-Poland border. The train is expected to return to KIT loaded with around 1,000 tonnes of various products. From KIT, freight can be efficiently distributed throughout Lithuania and the entire Baltic region.

Last week, LTG Group, after assessing the impact of the Russian war against Ukraine and the sanctions imposed on Belarus and Russia, launched a plan to adapt to the changed business environment and to help its clients to do so. It includes three main focus areas – improving operational efficiency, reducing costs, diversification and expansion into new markets, especially in Western Europe.