LTG Cargo sees freight volumes defy expectations amid sanction struggles
Lithuanian rail freight operator LTG Cargo transported 27.2 million tonnes of freight in 2023. Total volumes exceeded expectations by 2.5 million tonnes. In the difficult business environment following sanctions on neighbouring Russia and Belarus, LTG Cargo did not foresee such volumes.
According to the company, the sector has seen turbulent years due to the implementation of sanctions against Russia and Belarus. Bordering both countries, Lithuania’s LTG Cargo is at the forefront of sanction implementation. Attempts at circumventing sanctions have led the company to reject nearly 4,000 transport applications worth over 50,000 wagons of freight.
LTG Cargo is in the process of shifting its business model westward as a result of the loss of business with Russia and Belarus. As examples, it cites intermodal routes to Duisburg in Germany, Slavkov in Czechia and increased transport volumes in Poland. The route to Duisburg has become the backbone of international freight transport, according to the company.
Goods and directions
In 2023, LTG Cargo transported primarily oil and oil products amounting to 9.4 million tonnes, construction materials around 5.5 million tonnes and 4.7 million tonnes worth of agricultural products. In comparison with 2022, the total volume of agricultural products transported grew by a third.
Local transport grew by 20 per cent to a total of 7.7 million tonnes. 9.1 million tonnes were transported to and from Klaipėda Seaport. Rail freight into and out of the Russian exclave Kaliningrad dropped by 20 per cent to 6.5 million tonnes. Russia has been making an effort to circumvent Lithuanian railways and move its Kaliningrad freight by sea.
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