LDZ Cargo auctions 47 redundant freight wagons
Latvian Railways’ subsidiary LDZ Cargo will auction 47 freight wagons that have been excluded from the company’s inventory. The auction is scheduled for 12 December, with a starting price per rolling stock piece set at 220,000 euros.
LDZ Cargo clarified that despite the wagons being on sale, some of their parts, including sidecars, top spring beams and wheel pairs, will be excluded from the auction and remain the company’s property.
Most importantly, all rail cars will be sold as a single lot, while the starting bidding price for bids is set at 5,000 euros. Additionally, interested parties will need to pay a 44,000 euro deposit to participate in the auction, which will be included in the final purchasing price.
Not clear why
The Latvian operator did not clarify the reasons behind the wagon sale, only implying that they were considered redundant for the ongoing operations. However, considering its tight finances, LDZ Cargo would have many good reasons to sell unused rolling stock equipment.
With the total cargo turnover in 2023 dropping by 28,9 per cent, the company has been bleeding money and volumes for almost two years. Understandably, it would make sense to get rid of unused equipment, which still requires investments for maintenance, and make some extra profit to boost this year’s financial performance as much as possible.