LTG Cargo Ukraine: focus on rolling stock lease services

LTG Cargo freight wagons and yellow locomotive on railway track in freight yard with rail infrastructure
© LTG Cargo
Previously providing freight forwarding services, from September LTG Cargo Ukraine will change its business model to focus on rolling stock lease services, including wagons and locomotives.

"We established LTG Cargo Ukraine with the aim of strengthening logistics and supply chains between Lithuania and Ukraine. There are almost 500 Lithuanian wagons in Ukraine, and by transferring them to LTG Cargo Ukraine, we can ensure they are used effectively by leasing them to customers. Railways remain an extremely important supply line for a country at war; there is a need for rolling stock. In the future, we will also contribute to Ukraine's reconstruction in this way," says Eglė Šimė, CEO of LTG Cargo.

Eglė Šimė says that the war that began in 2022 slowed down the implementation of LTG Cargo Ukraine's strategy, but the company later made a significant contribution to establishing new logistics chains. For example, when cargo was stuck on the roads at the Polish border, some of it was quickly transported by rail; new routes were created for grain transportation; and broad-gauge (1520 mm) wagons were transported between the Baltic countries and Ukraine via Poland.

"At the beginning of the war in Ukraine, freight traffic fell by half – from 314 million tonnes in 2021 to 151 million tonnes in 2022 – but it has been gradually increasing in recent years. The industry in Ukraine has adapted and is operating, so there is a need for rolling stock for freight transport and terminal work. Most of the wagons we plan to lease are covered wagons, which can be used to transport various cargoes, from construction materials to food products, as well as platforms for transporting containers," says Saulius Stasiūnas, head of LTG Cargo Ukraine.

Plans are in place to lease and transport two modernised ChME3 shunting locomotives from the LTG Cargo locomotive repair depot in Vilnius to Ukraine in the autumn. Within two years, LTG Cargo Ukraine will be responsible for the efficient use of a further 120 wagons, and the company's fleet is expected to include 2M62K mainline locomotives. Alongside the arrival of new electric locomotives manufactured specifically for use in Lithuania, LTG Cargo Ukraine's fleet could also be supplemented with diesel locomotives from Siemens.


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