EU – Baltic States, Legislation, Lithuania, Railways, Transport
International Internet Magazine. Baltic States news & analytics
Thursday, 28.03.2024, 21:58
Lithuanian Railways to be split into 3 separate companies
The government will discuss on Monday the Transport Ministry's proposal to
split public railway infrastructure management, rail freight transport and rail
passenger transport operations into separate companies controlled by Lietuvos Gelezinkeliai.
Under the EU's 4th railway package, the bloc's member states are free to
choose their railway transport sector management models. Lithuania has until
late December to transpose the directive's provisions regarding the
impartiality, independence and financial transparency of the infrastructure
manager into national legislation.
According to the ministry, in considering options for making the management
of the railway sector more efficient, three possible models were discussed,
including the current model of a vertically integrated undertaking, partial
separation and full separation.
Lietuvos Gelezinkeliai spokesman Mantas Dubauskas says
that the group will operate more transparently and more efficiently after the
restructuring is completed.
"This model was chosen as the most efficient and most suitable for
Lithuania. Germany's railway group Deutsche Bahn also operates under such a
model," he told BNS.
According to the spokesman, it is planned to adopt the necessary
legislation within a year and restructure the company within another year.
EU Competition Commissioner Margrethe
Vestager said during her visit to Lithuania last October that unbundling Lietuvos Gelezinkeliai would be a way of
remedying a competition infringement for which Brussels imposed a fine of
almost 28 million euros on the railway company.