Latvijas Dzelzcels board chairman Kleinbergs fired

RIGA - Latvijas Dzelzcels (Latvian Railroads, LDz) board chairman Maris Kleinbergs has been released from his job, as the company's council said on Thursday.

An open competition for the position of LDz board chairperson will be announced in the near future. At the moment, Rinalds Plavnieks continues to work on LDz board and will be the acting chairman of the board until the competition closes, as well as board member Vita Balode-Andrusa.

LDz council chairman Janis Lange commented: “It is no secret that Latvian transit industry has been through severe turbulence in recent years, and SJSC Latvijas Dzelzceļš is probably one of the Latvian companies that has had to change the most as a result. During these years, LDz has done a lot - it has increased the company's overall efficiency and reduced the administrative burden, as a result, LDz core operating costs are about EUR 40 million smaller than before."

"However, in order for the company to be able to operate sustainably, we must always keep in mind efficiency, cost optimization and, above all, growth opportunities and development, even in situations where finding opportunities for growth seems difficult or almost impossible,” added Lange.

The council and the board of LDz have on many occasions discussed LDz's development strategy for the future, how the volumes of international and domestic freight transportation will be increased and the optimal role of LDz in maintaining the synergy and managing Latvia's current 1,520mm and the new 1,435mm gauge railways in future.

"However, as a result of these discussions, we saw that the opinions of LDz council and Kleinbergs about the future development of LDz were different, therefore the council of LDz made a decision to recall Kleinbergs from the position of LDz board chairman,” said Lange.

According to Firmas.lv, Kleinbergs was appointed chairmann of LDz board on April 7, 2020.