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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 21:26

Lithuanian Railways to rebuild Renge tracks

BC, Vilnius, 18.10.2017.Print version
Lietuvos Gelezinkeliai (Lithuanian Railways, LG) should shortly start rebuilding the 19-km railway stretch from Mazeikiai, northern Lithuania, to the Latvian city of Renge dismantled nearly a decade ago, a move that recently resulted in an EC fine of nearly 28 million euros against the state-run company, informs LETA/BNS.

"It is likely that we will soon start rebuilding the Renge stretch to settle the issue," LG CEO Mantas Bartuska told a news conference on Wednesday.


He could not specify the costs of the rebuilding efforts. Earlier calculations suggest the investment could total at about 20 million euros. Bartuska has earlier told BNS that two more railway tracks led to Latvia, used to a maximum of 20% of their capacity.


European Commissioner for competition Margrethe Vestager last week said in Lithuania that rebuilding would solve the problem of the removed Renge tracks.


Lithuania's officials publicly maintain the tracks, which were important for Orlen Lietuva, were dismantled for purely safety reasons.

 

After the European Commission (EC) imposed a 28-million-euro fine for Lietuvos Gelezinkeliai (Lithuanian Railways, LG) for competition violations, the state-run company's CEO Mantas Bartuska does not rule out additional claims from Latvian railways, however, dismisses them as vain without substantial grounds.

 

"We should understand that Latvians are our brothers and competitors. They can name various sums, we heard hypothetically high sums, however, if there are no grounds, they are useless. We intend to speak with Latvians shortly. Will it help to solve this, we'll have to wait and see, what is important to us is that we have partnership and good relations with Orlen and our colleagues in Latvia," Bartuska told a news conference on Wednesday.

 

At the beginning of October, EC slammed LG with a fine of nearly 28 million euros for dismantling a 19-km railway stretch to Latvia in 2008. Brussels found this limited the possibility for Orlen Lietuva, to transport freight via Latvian railways.

 

After the conclusion, Orlen Lietuva, Latvian railways and other affected parties may file additional claims for compensation of damages. Bartuska said the company was currently in talks with Poland's Orlen in an effort to avoid litigation.

 

Latvian railways and the Riga port are also considering claims against Lietuvos Gelezinkeliai.






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