photo: LTG Cargo press releases/War Forces the Invention of New Logistics Chains
LTG Cargo, the freight transport company of the Lithuanian Railways Group (LTG), started a test run from Kaunas Intermodal Terminal (KIT) to Ukraine via Poland this week. The container train with approximately 50 containers of cargo is expected to reach its destination within a few days and then return to Lithuania. It is the first time in LTG's history that cargo from Ukraine will reach Lithuania by rail, bypassing Belarus.
With the war that Russia unleashed on Ukraine, traditional logistics chains that are vital to the region have been left disrupted. This project should help restore some of them by an alternative route via Poland.
The pilot transport will assess the technical aspects of the new route, the timeframe for freight transport, possible logistical problems and their solutions. This route will be implemented only on the narrow European gauge that runs from KIT via Poland to the terminal on the Ukrainian border. It means if the project proves successful, part of the cargo will be able to reach Kaunas without changing the chassis and without transhipment. The company is in constant contact with its Ukrainian colleagues, as well as with Ukrainian Railways and potential customers in Ukraine.
"We are always looking for new areas of diversification and ways to help our freight customers. The intermodal terminal in Kaunas, which was connected to the European rail line less than a year ago, and the strategic decision to establish our branch in Poland in 2020 allow us to look for non-standard freight transport models and efficient ways to adapt to the changing situation," says Eglė Šimė, CEO of LTG Cargo.
LTG Cargo will transport cargo on the new route in Lithuania, and its subsidiary LTG Cargo Polska will transport cargo from the Ukrainian-Polish border. The train is expected to return to Kaunas' KIT terminal with a cargo of approximately 1,000 tonnes of various goods. From Kaunas, it can be efficiently distributed throughout Lithuania and the entire Baltic region.
After assessing the impact of the Russian war against Ukraine and the sanctions imposed on Belarus and Russia on its operations, last week, LTG launched a plan to adapt to the changing business environment and help its customers in doing so. It covers three main areas: improving operational efficiency, cutting costs, diversification and expanding into new markets, particularly in Western Europe.
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