Lithuania to rebuild railway link to Latvia

Lithuania to rebuild railway link to Latvia
By bne IntelliNews October 19, 2017

Lithuanian Railways (LG) will rebuild a 19-km section of rail tracks providing a shortcut to neighbouring Latvia, the company said on October 18.

LG’s decision to restore the tracks, which were dismantled in 2008, follows a fine of €28mn imposed on the company by the European Commission in early October. The Commission ruled that the dismantling of the tracks was an attempt by LG to push the Polish-owned Orlen Lietuva to haul production from the Mazeikai refinery to Lithuanian ports, using LG.

“It is likely that we will soon start rebuilding [of the section] to settle the issue," LG CEO Mantas Bartuska told a news conference, Leta reported.

The tracks provided convenient rail access to neighbouring Latvia. Polish-owned refiner Orlen Lietuva used the line to haul its product to Latvian ports, using another rail operator. Following the track removal, however, the Polish company faced using a much longer route to Latvia and in effect redirected transports to the Lithuanian port of Klaipeda.

The company has long said the dismantling of the line to Latvia was due to the line’s poor condition and did not affect the flow of goods between Lithuania and Latvia.

PKN Orlen also disputed Lithuanian Railways’ pricing of access to its infrastructure in a long-running dispute that at some point became a high-level flashpoint between the two countries and was only settled in June.


Related Articles

EU calls for tax haven blacklist in Paradise Papers fallout

The finance ministers of the European Union member states have called for the creation of a blacklist of tax havens to crack down on tax dodging, the ministers said at a meeting in Brussels on ... more

Labour productivity exceeds growth of labour costs in Estonia in H1

Labour productivity increased faster than the growth of labour costs in the Estonian business sector in the first half of the year, Eesti Pank (The Bank of Estonia) announced on October 25. ... more

Former Estonian PM under fire for alleged sexual harassment

The former Estonian Prime Minister Taavi Roivas has stepped down as deputy speaker of the parliament following press accounts of alleged sexual harassment during a trade mission to Malaysia, Estonian ... more