photo: LTG Cargo / Public domain/LTG Cargo
LTG Cargo reports steady growth in domestic rail transport for H1 2024, driven by project freight expansion and new self-managed international routes.
According to LTG Cargo CEO Eglė Šimė, while the total volume of cargo transported decreased due to the cessation of shipments from Russia and Belarus and the impact of expanding sanctions imposed as a response to the ongoing Russian war in Ukraine, the company is finding success in its efforts to promote rail as the backbone of the transport system. "We are increasing our domestic transport volumes, the number of project-based shipments is growing, and we are moving goods on new international routes — for example, for the first time in history, an LTG Cargo train transported cargo from Bugeniai in Lithuania to Valga in Estonia," Šimė said.
In the first half of 2024, LTG Cargo transported 12.2 million tons of cargo, representing a 6.9% decrease compared to last year. Domestic rail transport comprised 58.5% of the total shipments, with 7.1 million tons of freight transported within Lithuania. This marks a significant increase from the first half of 2023 when domestic transport accounted for 53.4% of all shipments. The growth in domestic volumes was primarily driven by increased shipments of construction materials, which partially offset declines in the transportation of chemicals and mineral fertilizers.
LTG Cargo also reported a substantial increase in project-based shipments, with 94 shipments of military equipment carried out by rail in the first half of 2024, compared to 145 trains for the entire year of 2023. A notable milestone was achieved in March when LTG Cargo won an international tender announced by Orlen Lietuva, the oil refinery operator in Mažeikiai. The company began regular shipments across the Baltic states on the Bugeniai (Lithuania)–Valga (Estonia) route, fully managing the logistics and transport operations independently.
The company has also taken steps to meet customer needs by expanding and optimizing its rolling stock. In the first half of 2024, LTG Cargo acquired 500 grain wagons, and 200 open wagons for bulk cargo, and continued to invest in electric locomotives. The modernization of its freight wagon repair depot in Radviliškis also progressed during this period.
As part of its ongoing efforts to expand into Western markets, LTG Cargo is enhancing its service offerings across Europe. The company has established subsidiaries, LTG Cargo Polska in Poland and LTG Cargo Ukraine in Ukraine. In 2023, LTG Cargo transported 27.2 million tons of cargo, generating revenue of approximately EUR 286 million and a net profit of EUR 17.5 million.
Source: LTG Cargo