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Minister: Latvijas Dzelzcels profit should be channeled into company's development

Alla Petrova, BC, Riga, 06.07.2012.Print version
Latvia's current economic development indicates that now is the right time to allow state-owned companies, especially railroad company Latvijas Dzelzcels (LDz), to invest their profits in 2011 it development, Transport Minister Aivis Ronis told Nozare.lv.

"The existing railroad capacity is close to its limit and it is important to ensure safety in passenger and cargo transportation, therefore the company is in need of considerable financial resources to maintain and develop its infrastructure," emphasized the minister.


The government must act farsightedly and responsibly, when deciding on transferring the company's profit to the state budget, writes LETA.


LDz operated with LVL 6.16 million in profit in 2011. The bulk of the profit came from foreign cargo shipments, said Ronis.


At the moment, the country does not co-fund railroad infrastructure maintenance, even though such practices are common in other European countries. Without adequate investments in development and infrastructure, Latvia's railroad will gradually lose its competitiveness, explained the minister.


LDz will urge the government not to withdraw its dividends, since these funds are necessary for the company's development, LDz President Ugis Magonis announced during a press conference earlier this week.

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