Latvia, Lithuania, Port, Railways, Transport
International Internet Magazine. Baltic States news & analytics
Friday, 29.03.2024, 01:14
Lithuania doesn't need railway stretch to Renge in Latvia
"The decisions that are now announced could be influenced by the interests of both Poland and Latvia. Lithuania does not need this stretch economically. (Rebuilding it) would be a waste of a lot of money," told Remigijus Zemaitaitis, chairman of the parliament's Committee on Economics.
Zygimantas Mauricas, Nordea's chief economist in Lithuania, sees clear interests in this situation.
"Orlen Lietuva wants to have a product transportation alternative to Lietuvos Gelezinkeliai (Lithuanian Railways) and the Klaipeda port. Higher competition could help it obtain lower (transportation) rates and thus improve its operating results," the economist said.
"Latvia has interests of its own. The country has as many as three ports -- in Riga, Ventspils and Liepaja. The latter is in a third brother situation. The port is struggling to make its way and the railway stretch from Lithuania to Latvia could help it attract more transit goods," he said.
The European Commission last May issued an ultimatum to Lithuania regarding the dismantling of the railway stretch back in 2008. Lithuania has to choose between paying a fine of around 43 mln euros or rebuilding the Bugeniai-Renge line, which could cost it about 20 mln euros.