Latvia, Railways, Transport

The new rates will come into force if the LDz application for higher railroad infrastructure payments is endorsed. In such a case, the infrastructure payment for transport companies may increase by 16-18%.

Dienas Bizness writes that this may bring transit freight flow through Latvia to a halt because Russian and Belarussian transport companies will choose alternative transport routes.

LDz representatives insist that the project is is based on the current situation and infrastructure maintenance costs, while businessmen believe that the project is unjustified.

Baltijas tranzita serviss's board chairman Ivars Sormulis points out that there are no grounds for the new rates, because the railroad infrastructure maintenance currently is a profitable business, and costs in this business are not expected to increase much.

LDz's board member Aivars Straksas said, "It has to be understood that the infrastructure payment has not been changed for 18 months already, while inflation during the period reached 24%." LDz believes that the increase in the infrastructure payment will not have much impact on the transit business because infrastructure payments make up just 30% of rail transportation costs.