Customer confidence and efficiency – our response to market changes
Eglė Šimė, CEO of LTG Cargo
Another year’s results have been compiled, reviewed and published. However, when reflecting on LTG Cargo’s past year, it is equally important to look at the broader context and the outlook ahead.
Rail freight sectors in Latvia and Estonia were heavily dependent on cargo flows from the east, and when these flows stopped, the impact was felt across the entire region. We continue to see a steady decline in transit volumes and are aware of ongoing efforts to redirect cargo to Kaliningrad by sea. What distinguishes LTG Cargo from carriers in neighbouring countries, however, is our ability not only to maintain but also, ulike our neighbours, to increase domestic freight volumes.
What has driven this growth? First and foremost, the rising Net Promoter Score (NPS) reflects the efforts of everyone at LTG Cargo to continuously improve the customer experience. We understand the specific nature of rail transport, but our objective is to make working with us as straightforward and convenient as possible.
The second key factor is LTG Cargo’s strong focus on operational efficiency. We have built significant momentum in this area and are already seeing tangible results.
At the same time, efficiency alone cannot fully offset rising infrastructure tariffs, which I consider one of the most significant business risks this year. We can clearly see how sensitive customers are to increases in service pricing. This is a challenge we must manage carefully – not only to retain our customers and maintain their trust in us as a freight partner, but also to continue growing the business.
More than five years ago, we began expanding into Western markets. The Kaunas-Duisburg route has continued to grow, while LTG Cargo Polska has improved its performance and is highly likely to deliver a positive result next year. The company transports fuel within Poland to Ukraine and has also contributed to the development of additional freight flows between Poland and Ukraine. Meanwhile, LTG Cargo Ukraine is generating revenue through freight forwarding activities while continuing to strengthen operational efficiency and synergies with LTG Cargo Polska.
The market environment is evolving rapidly, and the pace of change continues to accelerate. In Germany, for example, we have seen how a large and historically strong rail freight carrier has spent more than a decade losing customers in both bulk and intermodal segments due to poorly timed and ineffective decisions, ultimately resulting in ongoing losses.
The answer to what we must do to avoid a similar situation is straightforward. We understand that competitiveness in the market determines long-term success. Our focus remains on delivering on our commitments to customers, improving customer experience, increasing efficiency and continuously enhancing service quality. This includes developing data-driven solutions that enable customers to monitor cargo movements and plan logistics more effectively. Viewing our operations through the eyes of our customers will help us maintain a strong focus on safety and employee engagement – the foundation on which all our goals are built.