Latvian Railways (Latvijas Dzelzceļš, LDz) launched freight transport in Estonia last week. In recent years, the company aims at diversifying the markets and cargo segment. Last year was difficult for the transit sector – both railways and ports but better than expected.
In the past year, one of the most important priorities of Latvian Railways concern in the past yea has been diversification of the target markets and cargo segments, as well as increase of cargo transportation volumes. Working actively on this goal, LDZ CARGO, a subsidiary of SJSC “Latvijas dzelzceļš”, has received the European safety certificate for transportation services in Estonia and has signed an agreement on the use of infrastructure with Estonian railway company Eesti Raudtee, performing the first cargo transportation in the territory of Estonia already this week.
Māris Kleinbergs, Chairman of the Board of SJSC “Latvijas dzelzceļš” said: “Over the past year, LDz has implemented significant changes, optimizing the company’s technological and internal processes, at the same time, placing all efforts in increasing cargo volumes, diversifying cargo segments, and, of course, launching operations in new target markets. Work on all permissions for domestic cargo transportation in the territory of Estonia was started in the first quarter of last year, and this week, when starting cargo transportation in our neighbouring country, we can be satisfied with the positive results of our work, and continue to actively attract new clients and cargos also in this target market.”
In order to launch cargo transportation in Estonia, LDZ CARGO has received all necessary permissions and has signed an agreement on the use of infrastructure with the Estonian railway company. Besides, as engine drivers working in the territory of Estonia are required to have Estonian language skills, LDZ CARGO has signed a cooperation agreement with Estonian rail transportation company GoRail, ensuring availability of the company’s engine drivers for the needs of LDZ CARGO.
At present, the company has started transportation of food oils by rail and in 2023 it plans to carry about 200,000 tons of this product. As LDZ CARGO is conducting intense negotiations with several other potential clients in Estonia, and in the nearest future the volume of other cargos is expected to grow in this region.