Construction, Good for Business, Latvia, Lithuania, Railways, Transport

The track is to be rebuild by the end of 2019, in line with Lietuvos Gelezinkeliai's commitment to the European Commission, which in late 2017 imposed a fine of almost 28 mln euros on the state railway company for hindering competition in the rail freight market.

The Lithuanian Cabinet has recently decided that the Mazeikiai-Renge track is not important to national security, a move that followed a decision by the government's commission vetting transactions by strategic companies not to carry out an assessment of the Renge deal.

Vitras-S, the winning bidder, is to rebuild the 19-kilometer track, to rebuild or renovate six bridges and five level-crossings, and to install or reinstall traffic management systems and carry out other works.

Vitras-S Director Mikhail Lipkin said that the company will manage to complete the project by the end of this year if the contract is signed in March.

A decade ago, the railway section was used by the Mazeikiai-based oil refinery Orlen Lietuva, which is owned by Poland's Orlen, to transport its oil products to Latvia.