LDZ Cargo expands in Estonia while Lithuania opens its doors
Latvian rail freight operator LDZ Cargo aims to expand its business operations in neighbouring Baltic countries. It has succeeded in winning public tenders in Estonia, and it has secured access to Lithuania’s public railway infrastructure for freight transportation. As per the company, the stated aim of the expansion is to become a regionally significant rail operator.
The company won two public tenders in late 2023 from the state-owned Estonian energy company Enefit, allowing LDZ Cargo to transport an expected 100,000 tonnes of woodchips and 60,000 tonnes of petroleum within Estonia. According to LDZ Cargo, the awarding of the contracts is a step in the company’s vision for the consolidation of the Latvian and Estonian rail transport markets. LDZ Cargo states that it would allow the company to become a carrier of regional significance.
Moreover, the company has secured access to Lithuania’s public railway infrastructure. This allows LDZ Cargo to carry freight within all three Baltic countries. LDZ Cargo has subsequently offered Polish oil refinery ORLEN ‘pan-Baltic services’, which cover all three Baltic countries. According to LDZ Cargo, it would be the first instance of freight transport by a company along the entire railway infrastructure of the Baltic countries in the history of Baltic railways.
Filling the gaps
Agreements with Estonian Railways and railway operator GoRail allowed LDZ Cargo to move into the Estonian market in early 2023. LDZ Cargo gained permission to use Estonian rail infrastructure under the condition that it would employ Estonian personnel. With its move into the Estonian market, LDZ Cargo filled gaps that were left by the suspension of business activities with Russia.