Today, on 3 October, the Register of Enterprises has approved the reorganisation of three subsidiaries of SJSC Latvijas dzelzceļš. As a result, the companies LDz ritošā sastāva servis Ltd. and LDz Loģistika Ltd. have been merged into LDZ CARGO Ltd. This marks the completion of the reorganisation process initiated earlier this year in spring, aimed at simplifying the company structure, reducing costs, and creating a unified, strong, competitive, and profitable enterprise.
The merged company, LDZ CARGO Ltd., which previously offered international and domestic freight transport services, will now also provide rolling stock repair, modernisation, maintenance, and refuelling services, as well as freight forwarding. Thus, the company becomes one of the largest and most comprehensive transport and logistics service providers in the region, with clear ambitions to strengthen its leading position in the Baltic market and expand operations across Europe and other markets.
Chairman of the Management Board of SJSC Latvijas dzelzceļš, Artis Grīnbergs, stated:
“In recent years, the LDz Group has undergone significant changes, driven by declines in freight volumes and market shifts caused by various geopolitical events. To adapt to these new circumstances, we have reviewed our operational processes and actively implemented various optimization measures. One key step has been the reorganisation of our subsidiaries — by combining the strengths and resources of three companies, we will not only achieve cost savings and streamline administrative processes but, most importantly, we will strengthen our business positions across all commercial activities offered by these companies and become more efficient. At the same time, the merged company will continue to provide customers with high-quality services and ensure stability for employees. In the longer term, the merged company aims to operate profitably, contributing to the development of the LDz Group and the national economy.”
Employees from the three former companies will continue their work within LDZ CARGO Ltd. following the reorganisation. At the same time, detailed work will continue on aligning systems and processes according to the structure and operating model of the merged company.
Chairman of the Management Board of LDZ CARGO Ltd., Algirds Miķelsons, said:
“The merged company can pride itself on highly qualified and experienced specialists who have accumulated unique expertise in both rolling stock services and freight transport over several decades. I am confident that we also have a number of other significant advantages that, following the merger, will enable LDZ CARGO Ltd. to become stronger, expand the range of services offered, and become market leaders in our business segment. We aim not only to be the largest freight carrier in Latvia but also one of the most recognised and trusted rolling stock service and logistics partners in Europe, capable of providing full-service solutions to our clients.”
Following the merger, the Management Board and Supervisory Council of LDZ CARGO Ltd. will continue to operate in their current composition.