EU – Baltic States, Legislation, Lithuania, Railways, Transport

Smart Continent LT and OR Consulting have won a contract worth 69,000 euros, not including VAT, from the state railway company to conduct a feasibility study on business development possibilities in Poland, according to the official gazette Valstybes Zinios.

The winning bidders will have to work out a market entry strategy and an action plan based on which LG would develop operations in the neighboring country.

LG and Poland's railway company PKP last August signed a joint statement on cooperation in increasing freight and passenger flows. It is expected that closer cooperation will help enhance freight traffic and win back passengers for the route between Poland and Lithuania.

Rail freight traffic between the two neighboring countries amounted to almost 108,000 tons in the first half of this year, including 73,000 tons of timber exported from Lithuania to Poland.

Given that around 20 million tons of goods and 2 million to 3 million passengers cross the border between Poland and Lithuania by road annually, it is expected that the Rail Baltica project will help divert part of the traffic to railways.