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LTG Cargo Polska: More than 5 percent of our freight work is intermodal and we are aiming for more

Our solution to the crisis in intermodal transportation is to take care of our customers’ needs. “Thanks to the relationships that we have built with them, last year we achieved record growth despite the contraction of the overall market”, says Mindaugas Skunčikas, Board President at LTG Cargo Polska, in an interview with “Rynek Kolejowy”. “However, all carriers should jointly seek from the government to level the playing field for inter-industry competition”, he adds.

Mindaugas Skunčikas, Board President at LTG Cargo Polska

Roman Czubiński, ,”Rynek Kolejowy”: “LTG Cargo Polska’s freight growth rate, not limited to intermodal transport, is breaking records. How did you manage to achieve such momentum during such a difficult time?”

Mindaugas Skunčikas, Board President of LTG Cargo Polska: “In order to obtain it, we focused strongly on the quality of our services and gaining the trust of our customers long-term.

There is a lot of competition, but we believe that our offer stands out among others. Thanks to the constant, and very good cooperation with existing customers, we can carry large volumes and develop intermodal transport. We also seek to win smaller orders and spot shipments. The main destinations for containers are Lithuania, Germany, Polish ports and terminals, and the border with Ukraine.

A number of factors are contributing to the increase in freight rates: from acquiring the right rolling stock, to increased commercial activities, to the most important issue: building long-term relationships with customers by understanding their needs, responding promptly to problems and concerns. Another important element is reliability, expressed by reporting truthful and accurate information, as well as flexibility and punctuality in transportation.”

To what extent does intermodal transport contribute to this growth?

Our average annual share by freight weight was 3.01 percent, and by freight work – 4.65 percent. According to UTK data, the market share in intermodal transportation by weight was 3.55 percent in the year 2023. During the same period, the market share of intermodal transportation by freight work reached as high as 5.26 percent.

What kind of intermodal and traction rolling stock does LTG Cargo have in our country today? What are the plans for investment?

LTG Cargo has its own platform wagons of various parameters (40-foot, 80-foot and 90-foot) to carry various types of intermodal units. We also have specialized pocket wagons in our fleet, which, apart from carrying containers, allow us to transport entire semi-trailers (including those unsuitable for intermodal transport – their carriage is possible thanks to special adapters). We also have electric locomotives with a diesel commuter module, which we use where operation of the non-electrified part of the route or “last mile” shunting service is needed. For international transports, we use electric multi-system locomotives.

What intermodal routes does LTG serve most often? What are the plans for development?

In addition to the routes Kaunas – Duisburg and Kaunas – Sławków, we also operate from Gdańsk to Mostyska, on domestic routes from the Polish ports of Gdańsk and Gdynia to terminals in Wrocław, Sławków and Gądki, and we also carry out spot shipments in other directions. We are engaged in a lot of discussions and are striving to develop a network of connections. We are open to all customer inquiries and various destinations in Poland and abroad. In cooperation with other carriers, we are launching intermodal trains, such as Brzesko Okocim – Osnabrück, Wałbrzych – Singen and Kirchain, Mostyska – Oss and Rotterdam.

Poland is supposed to be the “gateway to Europe” for LTG. Are there plans to expand through our country not only to the west, but also to the south of the continent?

The LTG Group’s plans also include southern directions. We are strongly focused on opening the Baltic States to Italy. We are currently analyzing costs and customer needs, seeking to select the best solution. We have not yet decided whether it will be a direct connection, or one that will be launched with the support of partners who already operate transportation in this direction.

In your opinion, what are the causes of the crisis in the Polish intermodal transport sector?

The underlying causes are similar from year to year. One of them is the increase in costs associated with transportation, including the price of electricity. There is also strong competition from the road transport sector. The biggest factor in the decline in intermodal shipments, however, is the war in Ukraine: It has resulted in a reduction of about 60 percent in the flow of container shipments from China to Germany, France or the Netherlands via the New Silk Road via Kazakhstan, Russia and Belarus. Poland plays a major role in the transit of these goods. To sum up, the reasons for the declines are in general less freight on the market and huge competition from road freight.

How can these difficulties be addressed?

Not all the factors mentioned are directly dependent on operators and carriers. We must certainly strive to provide the best quality services possible, so that customers opt for intermodal transportation. Also, the united stance of carriers and operators is important to influence decision-makers on legislative issues that could positively affect the development of intermodal transport or at least equalize the competitive playing field.

Are national and EU support instruments sufficient?

We believe that many decisions are going in the right direction, although there is still much to be done. It is important that there are discussions about new regulations that can positively affect our industry. The financial resources to be raised in the coming years to make the necessary investments in intermodal transportation are also important.