LTG Group and Ukrainian Railways strengthen cooperation

LTG Group and Ukrainian Railways have officially signed a Memorandum of Understanding (MoU) to strengthen international cooperation and develop a joint international intermodal route Klaipėda-Kyiv through Polish territory. This strategic agreement between the two rail carriers stipulates that the parties will jointly coordinate the project and allocate the necessary resources to ensure its competitive implementation.

The first test runs of the intermodal cargo transportation route are planned for this year. In the future, cargo is expected to be transported regularly along this route. This will create an efficient transport corridor between Lithuania and Ukraine and utilise the potential of the countries’ railways, port terminals, and border crossing points.

“We see Ukraine and Ukrainian Railways as our strategic partners in ensuring smooth cargo movement both between our countries and in expanding export and import opportunities through the Port of Klaipėda between Ukraine and Scandinavia. We are consistently supporting Ukraine in its efforts to develop alternative logistics solutions and increase the competitiveness of both countries’ businesses in the region,” says Egidijus Lazauskas, CEO of LTG Group.

The MoU was signed in Vilnius by Yevhen Liashchenko, CEO and Chairman of the Management Board of Ukrainian Railways, and Viacheslav Yeromin, Member of the Management Board of the company, as well as E. Lazauskas, CEO of LTG Group, and Eglė Šimė, CEO of LTG Cargo, the group’s cargo transportation company.

The companies also agreed to analyse market potential, prepare the necessary technological and operational solutions, and develop a specific action plan to ensure the successful implementation of the project.

This is not the first MoU between Lithuanian and Ukrainian railways aimed at helping Ukraine, which is fighting against Russian aggression, integrate into the European railway network. Last year, LTG Group and Ukrainian Railways signed an agreement in Munich to cooperate in the implementation of LTG’s FREE Rail program, which aims to create a railway operation model based on EU railway standards and best practices and harmonised with the specifics of the broad gauge (EU+). It is expected that this project will make it possible to achieve full integration with Europe – business ties, technologies and IT – and will open up more opportunities for companies, residents and the western railway industry using railway services.

Freight transportation company LTG Cargo is a subsidiary of LTG Group, which is currently continuing active integration and expansion activities in the West. The company provides freight transportation, logistics and forwarding, cargo handling, locomotive and wagon repair as well as wagon rental services in Lithuania and abroad. LTG Cargo has established and manages subsidiaries LTG Cargo Polska in Poland and LTG Cargo Ukraine in Ukraine. Developing greener cargo transportation by rail, the company brings together a team of 1.8 thousand logistics professionals. Last year, LTG Cargo transported 27.2 million tons of freight. The company’s revenue last year amounted to approximately 286 million euros, and net profit – 17.5 million euros.