New tracks at Klaipeda port bring oil products on rail

The port of Klaipeda, the Lithuanian gateway to the Baltic Sea, will acquire a new railway track. LTG Infra plans to build a one-kilometre access railway to facilitate transport to and from an oil refining and production plant.

The Lithuanian infrastructure manager came to an agreement with companies Trenze Logistics and Hill Group to undertake the project worth more than 2 million euros. The new track to be will facilitate access to the warehousing facilities of Trenze Logistics and provide access to the oil plant of Hill group that will start operating in 2023. Understandably, the tripartite agreement will bring multifaceted results by serving two different customers.

Two birds with one stone

The new LTG Infra project at the port of Klaipeda will open new ways for Lithuanian rail freight. On the one hand, it will help Trenze Logistics to have direct railway access to its warehouses. The company transports part of its cargo by rail. However, this development will stimulate more rail traffic and save time and truck mileage. “The railway access will solve one of our most important problems: cargo transported by rail will immediately reach the company’s warehouses and reduce the costs of additional storage at Draugystės railway station,” commented Denis Peliušenok, head of the company.

On the other hand, the track will pave the way for a new oil plant to start using rail transport when commencing its operations. Hill Group is investing 105 million euros in the new facilities that will begin operating in 2023. Rail freight will be essential for transporting raw materials to and from the plant, which will process 60,000 tonnes of used oil and produce 80,000 tonnes of lubricating oil per year. Simultaneously, it will be critical for the company’s transport strategy that aims to use even more rail.“The railway artery is essential to us both for the transportation of raw materials and the export of products to foreign markets. We plan to transport almost 70 per cent of our raw materials and products by rail,” said Valdas Burneika, CEO of Hill Group.

Lithuanian rail freight benefiting too

“Rail accounts for around 60% of freight transport in Lithuania, but we aim to continue increasing volumes. One way to get more freight on green trains is to build rail sidings, making it as easy as possible for businesses to use the rail network,” explained Karolis Sankovski, CEO of LTG Infra.

Indeed, if we look at the graph below, we can see that the modal split of rail in Lithuania positions the country among the leading European states in using rail freight. Even countries like Germany, which are considered traditional rail freight forces, come second to Lithuania.

Lithuania’s rail freight modal split.

With the new agreement between the three companies., LTG Infra plans to bring some more volumes on Lithuanian tracks. “In the first year, freight volumes are expected to reach 67,7 thousand tonnes or 2,610 wagons per year, and the traffic volume is planned to increase in the future.

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Author: Nikos Papatolios

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