RIGA - Latvian Railway (Latvijas Dzelzcels) is preparing to launch operations in Lithuania, company CEO Ugis Magonis has announced.
"We have an idea to operate in Lithuania, but it is not possible at the moment, as Lithuania does everything to protect its market. They have high infrastructure fees and licensing and certification is also quite complicated," Magonis said on Latvian morning television.
The Latvian Railway CEO said the plan to work in Lithuania had to do with managing the service cargos of Lithuania's Mazeikiu Nafta refinery, transporting them from the Klaipeda port to Riga.
Unfortunately for those who have waited patiently for pan-European international rail to come to Latvia, Magonis said that the Latvian Railway has no plans to expand to other countries for the time being.
The company is also trying to attract more cargo to Latvian ports. To do this, the company suggested that ports should be expanded and upgraded.
"I believe the ports have to invest more and offer a broader range of services so that we could attract more cargo," Magonis said.
Magonis explained that the Latvian ports lack spacious, serious storage and refrigerating facilities.
"If we had them there would be more cargo. The ports have a lot to do here," the Latvian Railway CEO said.
Magonis said that the railway company's cooperation and work with the three main ports was very good, explaining the differences between them.
"We have three ports. All are good. Ventspils developed its potential in the mid and late 1990s, Riga has stepped up its activities at last after a period of deep hibernation, Liepaja is small but it tries to do its best," Magonis said.
The Riga port announced its readiness for increasing their range of services, provided it receives more cargo.
"We are ready for this, our throughput capacity would allow for handling more cargos, and the investment earmarked for a five-year period will enable us to handle up to 100 million tons of cargo per year. For now, our capacity is about 65 million tons of cargo per year," Magonis said.
The Latvian Railway finished 2008 with a turnover of just under 300 million lats (426 million euros), which is an increase of 10 percent from 2007.
Latvian Railway holding consists of LDz Infrastruktura, LDz Cargo, LDz Ritota Sastava Serviss, Starptautiskie Pasazieru Parvadajumi and LDz Apsardze.
Latvian Railway is a state-owned holding working in cargo shipping by rail and infrastructure maintenance.
