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Lithuania‘s LTG Cargo enters the Polish railway market

2021-03-22

The freight company LTG Cargo, owned by the largest railway group in the Baltic States, Lietuvos Geležinkeliai (LTG), is starting to expand to the West. The company has established a subsidiary, LTG Cargo Polska, which will expand its rail freight operations in Poland. LTG Cargo aims to increase the attractiveness of rail freight transport, strengthen logistics supply chains, and improve the mobility of large loads between Lithuania and Poland.

The expansion to Poland will also allow to diversify LTG Cargo’s operational risks, increase cargo flow, and achieve the goal set in the strategy – 65-70 million tons of cargo per year.

“The changes that have taken place over the past years have strengthened and prepared us for a new phase of operations. And while rail freight businesses across Europe are experiencing shocks, we see the current period as an open window of opportunity for active development. This will allow us to further diversify our cargo flow, reduce our dependence on traditional types of cargo, the demand for which will gradually shrink over the next decade. Undoubtedly, in the long run, the goal is to become an international cargo carrier, offering fast, reliable and competitive cargo movement, and most importantly – bold solutions for customers,” said Egidijus Lazauskas, CEO of LTG Cargo.

LTG Cargo Polska will soon seek strategic partnerships with Polish market carriers in the development of freight routes between Poland and Lithuania. LTG Cargo and PKP Cargo, the largest rail freight company in Poland, are currently negotiating a joint venture. The company will be engaged in intermodal freight transportation between Lithuania and Poland.

The Lithuanian LTG Cargo, which was granted a safety certificate by the Polish Railway Transport Service UTK (Urząd Transportu Kolejowego) at the end of June, also plans to start freight operations in Poland soon. It allows LTG Cargo to operate in Poland with its rolling stock and qualified personnel. First, the company plans to start operations in Poland on a regular freight service between Mockava and Białystok.