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LDZ CARGO Ltd. plans to raise domestic freight transport volumes in Estonia this year

This January marks one year since LDZ CARGO Ltd. has been operating in the Estonian rail freight market. The company won several public tenders in Estonia at the end of last year, which will help it significantly increase its domestic freight transport volumes in Estonia and play an increasingly important role in the neighbouring country’s freight transport market in 2024.

Last November, LDZ CARGO Ltd. was awarded a public contract to transport bio-based woodchips of Estonian state-owned energy company Enefit Power from Valga to Tapa Station to be then shipped to a woodchip cogeneration plant. The projected transport volumes under the contract are 100,000 tons, which will increase LDZ CARGO Ltd. market share in Estonian rail transport. Also at the end of 2023, LDZ CARGO Ltd. was awarded another public contract by Enefit Power for transporting petroleum obtained from oil shale from Vaivara Station to Muuga Harbour station. These projects will further increase LDZ CARGO Ltd. freight turnover in Estonia by around 60,000 tons.

LDZ CARGO Ltd. Member of the Board Mārtiņš Pevko: “Our company’s long-term vision is to consolidate the Latvian and Estonian rail transport markets so that LDZ CARGO Ltd. becomes a carrier of regional significance. In addition, we are planning to expand our operations in Lithuania: at the end of last year we signed an agreement with LTG INFRA for using the Lithuanian public railway infrastructure, which means that we can also ship freights in the territory of Lithuania. We have already made our first shipment there – we transported 50m of railway tracks from the Port of Klaipėda to Tallinn for a project of our client, RAIL BALTICA. In the meantime, we have offered Polish oil refinery ORLEN to provide pan-Baltic services, which means transport along the entire rail infrastructure of the Baltic countries, from the oil refinery in Mažeikiai, Lithuania, in transit through Latvia and on to the Port of Tallinn. This could be the first instance of such kind of service in the history of Baltic railways. We are confident that we will be able to offer favourable conditions to clients in Lithuania.”

LDZ CARGO Ltd. started providing transport services in Estonia at the beginning of 2023 after obtaining all the necessary permits, and in June opened a branch there, which currently employs 10 people. Clients are attracted by appealing tariffs and strong technological back-up, as well as by a variety of transport solutions.

LDZ CARGO Ltd. only cooperates with such clients or freight owners that are financially reliable and have a good reputation. LDZ CARGO Ltd. carries out a thorough assessment of all potential cooperation partners and clients before any form of cooperation commences in order to strictly comply with all the requirements of international sanctions and related restrictions regarding different types of freight, blacklisted persons, and others.