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LTG Cargo, the LTG Group’s freight company, as of 1 January 2025 is abandoning the 1520 mm track gauge shared wagon fleet used in accordance with the agreement of the Rail Transport Council (GTT). It will be replaced by a private fleet made up of 6,000 wagons operated by LTG Cargo. This change not only contributes to the national security but is also expected to better meet the needs of customers opting for more sustainable rail transport.

“By abandoning the shared fleet model used in the broad gauge area, we are taking another step in transforming the operations of LTG Cargo towards diversification to the West and adapting the company to operate in accordance with the agreements in force in Europe. This is already the second step of the withdrawal from the GTT agreement: after the war in Ukraine, LTG Cargo withdrew its wagons from the movement through Russia and Belarus, and this second step is a disconnection from the shared fleet system and a move towards a European model of operation, where the entire fleet of wagons is privately-owned and will not be used by the railway administrations of other countries,” says Eglė Šimė, the CEO of LTG Cargo.

The changing rail freight market, growing customer needs and the aspiration to increase domestic rail freight volumes are driving the search for new business models. The private fleet of LTG Cargo will be used in two ways: by transferring wagons on long-term lease and by providing wagons for one-off services. For the latter, around 10% of the existing private fleet will be allocated to the so-called reserve fleet.

LTG Cargo will strive to ensure that as many carriages as possible are carried out with wagons on long-term lease, which will allow customers to secure the required number of wagons irrespective of seasonality, and will also allow the customer to choose the length of the lease contract that best suits their needs.

It is planned that the majority of the freights transported by Lithuanian railways will be transported in wagons transferred on customers on a long-term lease basis. 90% of the private wagon fleet of LTG Cargo will be dedicated for this purpose. The use of the leased fleet will increase the turnover of wagons – the same number of wagons transferred to a customer will allow for a higher volume of freight.

LTG Cargo will arrange overhaul repairs or scheduled repairs of both wagons owned by customers on a long-term lease basis and wagons in the reserve fleet for one-off services, ensuring their proper technical condition.

These changes affect only the wagon fleet managed by LTG Cargo. Wagons shared by railway administrations in other countries will continue to operate on the Lithuanian rail network. Please note that a fleet of shared wagons is a fleet of wagons managed by a railway administration, the rules for the use of which are laid down in the international GTT agreement concluded between railway administrations of different countries operating on the 1520 mm gauge track. This agreement allows the sharing of wagons between the railway administrations of different countries.

LTG Cargo is a company of LTG Group that will continue its active integration and expansion in the West. The company provides freight transport, logistics and freight forwarding, freight loading, locomotive and wagon repair and wagon rental services in Lithuania and abroad. LTG Cargo has established and manages LTG Cargo Polska in Poland and LTG Cargo Ukraine in Ukraine. The company has a team of 1,800 logistics professionals to develop greener rail freight transport. LTG Cargo will transport 27.2 million tonnes of freights in 2023. Last year the company’s revenue amounted approximately to EUR 286 million and net profit amounted to EUR 17.5 million.