Cargo, Latvia, Railways, Transport

International Internet Magazine. Baltic States news & analytics Tuesday, 26.05.2020, 08:11

Turnover of Latvijas Dzelzcels railway company down 12.5% in 2019

BC, Riga, 28.02.2020.Print version
Turnover of Latvijas Dzelzcels railway company last year was EUR 183.28 mln, down 12.5% from a year ago, while the company's profit dropped to EUR 32,430, according to the information released by the company.

The management said in its report that in 2019 the number of kilometers run by train has dropped by 14.2%, while the number of kilometers run in passenger transportation has increased by 0.3%.

Latvijas Dzelzcels board chairman Maris Kleinbergs said that in periods when oil, coal and other cargo flow by rail to Latvian ports was more intense, the company was able to operate with significant profits, but the company does not have mechanisms that would allow it to flexibly react to market situation changes and a considerable decline in cargo transportation.

"Therefore we have to make tough and painful decision, but I am sure that we will be able to solve this situation, turning Latvijas Dzelzcels in an efficient and modern company," he said.

Cargo transportation accounted for 41.49 mln tons, which is by 7.77 mln tons or 15.8% less than in 2018, running 8.571 mln kilometers. At the same time, passenger transportation accounted for 18.623 mln passengers and 6.135 mln kilometers.

In 2018, Latvijas Dzelzcels posted EUR 209.431 mln in sales and earned EUR 4.178 mln in profit.

Latvijas Dzelzcels is a fully state-owned enterprise managing public railway infrastructure. It is the leading company of the LDz Group, which includes six subsidiaries.

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