photo: LTG Cargo´s press materials/Lithuanian railways are adapting to new realities. LTG's new plan to improve efficiency, reduce costs, and expand into new markets
Having assessed the impact of the war of aggression unleashed against Ukraine by Russia on 24 February 2022, LTG has developed a plan to adapt to the changing business environment in the face of the deservedly harsh sanctions imposed on Russia and Belarus. It covers three main areas: improving operational efficiency, reducing costs, diversifying and expanding into new markets, especially in Western Europe.
"LTG Group will both adapt to the new reality and help its customers to do so as we plan and implement our expansion into new markets. As they look to reorient their supply chains towards Western Europe, LTG Cargo has recently started regular intermodal services to Duisburg in Germany. It has also started offering intermodal services to terminals in Poland, with pilot trips to Gdansk and Malaszewicze," says Mr Lazauskas.
He also says that he is developing partnerships with Latvian and Estonian colleagues to expand Ambertrain's services between Western Europe and the Baltics and that negotiations are underway with representatives of Kazakhstan regarding carriage to the port of Klaipeda.
Among other things, LTG Cargo will be able to transport approximately 1 million tons of grain from Ukraine to the port of Klaipeda annually.
It is estimated that, due to the current world situation LTG Group, which is engaged in railway transportation, will transport about half as much cargo this year as last year (about 26.5 million tons, which equals about EUR 150 million in revenue). It means the biggest drop in cargo volumes in the company's history.
Since the beginning of the war, LTG Group has shown a steadfast commitment to the EU's condemnatory policy towards Russia and Belarus.
"We are strictly complying with the sanctions - since February LTG Cargo no longer carries fertilisers from Belarusian company Belaruskali. The volumes of cargo transport are also affected by Belarus' ban on the transit of petroleum products and fertilisers through this country, the European Union sanctions against Belarus imposed in March, and sanctions against the Russian company SUEK, whose coal was transported through Lithuania. We do not transport cargoes of companies that are on sanctions lists or linked to sanctioned persons. In addition, we are closing our representative offices in Belarus and Russia, which were designed to maintain and seek new contacts with business customers in these countries," says Egidijus Lazauskas, LTG CEO.