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Current Pasazieru vilciens trains service life expires in 2016 – Latvian transport minister

BC, Riga, 05.08.2014.Print version
The joint-stock company Pasazieru vilciens (Passenger Train) has to buy new trains by 2016 as the service life of its current rolling stock will expire in 2016, Transport Minister Anrijs Matiss (Unity) said in an interview with the Latvian State Television today, informs LETA.

Anrijs Matiss

The minister said it was impossible to postpone the procurement of new trains until 2020, as the current rolling stock's service life would expire in 2016, and it would not make much sense to repair trains 30 to 40 years old.


"I understand that the company's board, given the current financial circumstances and pressing terms, will have a hard time in reaching agreement on procurement of new trains, however, the facts that I mentioned must be kept in mind. It means that there have to be new trains already by 2016," emphasized the minister.


Commenting on the possibility that train fares could increase after new trains arrive in Latvia, Matiss said it was possible, but only on condition that passenger service level improved.


As reported, a new board was appointed for Pasazieru vilciens on July 8, with Andris Lubans as the board chairman and Maris Bremze and Mikus Perse as board members.


On July 23, Pasazieru vilciens board decided to halt the procurement of new trains for the

company, saying that going on with the procurement deal would be damaging to the company's interests and financial situation.


By end-August, the board is planning to draw up a strategy for the replacement of the company's rolling stock until 2016.


Lubans has said that the key task at the moment is to not just organize procurement of new trains but to determine the company's long-term strategy. This will help the company decide what trains exactly, and on what conditions, it needs to have.


Lubans said that the deadline for the procurement deal could be extended if it was clear that the bidders would not have enough time to manufacture the new trains. The company also has an alternative plan should the train procurement deal fail, according to which EUR 2 million to EUR 5 million will be spent annually on train maintenance and renovation.


As reported, this is already the second time that procurement of new trains by Pasazieru vilciens falls through. In April 2012, Pasazieru vilciens and the Spanish company Construcciones y Auxiliar de Ferrocarriles signed agreement on manufacture of new trains for Latvia. However, it was later ascertained that the agreement signed by Pasazieru vilciens CEO Nils Freivalds was not in line with the procurement rules, therefore the contract had to be changed - a proposal that was rejected by the Spanish company. The funds that were originally earmarked for this train procurement deal were eventually spent on other railroad projects in Latvia.






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