'OP Corporate Bank' Provides EUR 36 Million Loan to 'LTG Cargo'

The Lithuanian branch of corporate bank OP Corporate Bank and freight rail transport company AB LTG Cargo have agreed on a EUR 36.46 million loan. The funds will be allocated to an investment project aimed at acquiring 500 new bulk wagons (hoppers) specifically designed for transporting grain, addressing the growing needs of the grain transportation market.

“The expanded fleet of wagons enables the company to increase the volume of grain transported by rail, a more sustainable method of freight transport compared to road haulage. Such projects represent an investment in a more sustainable and advanced future for the entire country. We are delighted to collaborate with a strategically significant Lithuanian company and contribute to changes that strengthen the food supply chain,” said Giedrius Dzenkauskas, Head of Sales at the Lithuanian branch of OP Corporate Bank.

In Lithuania, around 6 million tonnes of grain are grown annually, depending on the harvest, with global demand for grain continuing to rise. Until now, slightly over 40% of this volume has been transported by rail, despite it being a more environmentally friendly and economically advantageous mode of transport. The majority of grain is currently transported to the Port of Klaipeda by lorries.

“We planned to increase the share of grain transported by rail within the country to 60% of the total grain transportation volume. The newly acquired wagons will enable us to steadily grow the amount of grain transported by rail. Modernising our equipment is crucial for our clients – companies in the agricultural production sector. By expanding the number of wagons dedicated to freight transport, we can offer more efficient, convenient, sustainable, and, naturally, more competitive freight transport solutions,” said Egle Sime, CEO of LTG Cargo.

Nearly half of the new wagons arrived in Lithuania last year, with some already being used to transport agricultural products within the country. The investment project, financed through the loan, is expected to be completed in the first half of this year, when the last of the newly acquired wagons will be registered in the European vehicle register.

The Lithuanian branch of OP Corporate Bank is one of the country’s leading providers of corporate financing. The bank has been operating in Lithuania for 12 years, working with large and leading medium-sized enterprises. OP Corporate Bank is part of OP Financial Group, the largest financial services group in Finland.

LTG Cargo, a part of the LTG Group, manages the largest rolling stock fleet in the Baltic States, comprising over 6,000 various wagons. The transport company also operates subsidiaries LTG Cargo Polska in Poland and LTG Cargo Ukraine in Ukraine.